Allowed

Union Bank of India v. M/s a Four Garments

DRT19 Sept 2024OA/76/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by the Applicant bank to recover a debt of Rs. 22,21,255/- along with interest and costs from the Defendants who were jointly and severally liable on a home loan.

What did the court decide?

Debt amounting to Rs. 22,21,255/- with future interest at 12.50% p.a. was determined and ordered to be paid by the defendants jointly and severally.

Union Bank of India versus M/s a Four Garments — Banking and Recovery | DRT (2024)

DRT, PATN A

OA 76 of2022jJl

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 76 of 2022

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Union Bank of India, EAB Khagaul Branch, District- Patna.

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. . . . . . . Applicant

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M/s A Four Garments, (Proprietorship concern), Lekha Nagar, Cantt Road, Khagaul. Danapur, Patna- 801105

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Anita Kumari (Proprietor), PAN No. EDNPK0697B, W/o Kumar Shekhar, R/o Lekha Nagar, Asopur, Khagaul, Danapur, Patna 801 105

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Kumar Shekhar, S/o Arvind Kumar, R/o Lekha Nagar, Asopur, Khagaul, Danapur, Patna- 801105

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Shiv Pratap, Advocate For the Defendants None

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Dated : 19.09.2024

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JUDGMENT

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The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 29.01.2022 against the defendants to recover its debts from defendants of Rs.22,2 1,255/- as on 18.01.2022 along with pendente-lite and future interest at the contractual rate from 19.01.2022 with costs till realization.

¶20

The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to file the suit through various branches including the applicant.

OA 76 of 20221 Jl

DRT, PA’TNA

Defendant no.1 is a proprietorship concern engaged in trading and manufacturing of readymade garments and defendant no.2 is the proprietor of defendant no.1. Defendant no.3 stood as guarantor to the loan facilities availed by the defendant no.1 & 2. Defendant no.2 approached the applicant bank for financial assistance vide loan application dated 15.09.2016 for sanction of Cash Credit limit of Rs.15 Lakh, which was sanctioned by the applicant bank vide sanction letter dated 15.09.2016 under OCCGN Scheme.

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Defendant no.2 again approached the applicant bank vide loan application dated 03.10.2017 for enhancement upto Rs.20 LaNl, which was enhanced by the applicant bank vide sanction letter dated 03.10.2017.

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At the request of the defendants the applicant had further sanctioned loan facility of Rs.5 Lakh vide sanction letter dated 02.01.2016. To secure the loan facilities, the defendants have executed various loan documents and hypothecated the movables in favour of the applicant bank.

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After availing the sanctioned credit facilities defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 26.06.2020.

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Since, the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank, hence this application has been filed by the bank.

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The total liability in the loan account is Rs.22.21,255/- as on 18.01.2022 with pendente-lite and future interest contractual rate from 19.01.2022 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 01.06.2022 requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993 .

DRT. PATNA

OA 76 of 20221 Jl

Despite the service of registered summons/notices, the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 18.03.2023.

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To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Rakesh Kumar Sinha, Branch Manager of the applicant bank. The details of documents are as follows:

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V	Description Documents of Photocopies	1 Date of Execution	Amount	I Signature Executants	of	Ex./ Ann. No.
1	Ta–nctionletter	15.09.2016	15.00	Bank accepted def.no.1&2	and by	1
	Loan application	03.10.2017	20.00	Def.no.I&2
	Sanction letter	03.10.2017	20.00	Bank
	DP Note	28.12.2018	20.00	Def.no.I&2
	Compositeagreement	10.10.2017	20.00	Def.no.1&2
	Compositeagreement	28.12.2018		Def.no.I&2
	Sanction letter	m 019	20.00	Bank accepted def.no.I&2	and by
	DP Note	01.01.2019	20.00	Def.no.I&2
	Loanapplication			Def.no.2&3
	Sanctionletter		5.00	Bank accepted def.no.2&3	and by	10
	DPNote	02.01.2016	5.00	Def.no.2 &3
	Compositeagreement	02.01.2016	25.00	Def.no.2&3
	Certificate			Bank
	Statement of account			Bank

(A\

OA 76 of 20221 Jl

DRl-, PA’rNA

15	Statement of account		Bank	15
16	Recall notice	27.08.2019	Bank	16
17	Recall notice	08.06.2020	Bank	17
18	o Acknowledgement debt		Def.no.1&2	18

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates. and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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It is further submitted by Id. Counsel of applicant bank that there is no stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for, in OA.

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11 . It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 20.06.2020, whereas the present application has been filed on 29.01.2022. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has filed the case within the limitation period. As such, it is established that the present application has been filed well within the period of limitation.

OA 76 of2022jJl

DRT, PATN A

Shri Rakesh Kumar Sinha, Branch Manager of the applicant bank, has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

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Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application u/s S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

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The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993, provides that if the defendant denies his liability to pay the claim made by the applicant, the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 (11) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker’s Books evidence that Act, 1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker’s Books furnished along with application filed under sub section 1 of section 19 by the applicant.

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Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof of entries in bankers’ books.–Subject to the provisions of this Act, a certi.ned copy of any entry in a banker’s book shall in all legal proceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law admissible, but not further or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statement of accounts more so since the entries in the statement of account have not been challenged.

OA 76 of 20221 Jl

DR’I-, PA'rNA

On perusal of the application, documents, affidavit and on consideration of the arguments. it is proved that the defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendants have executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account.

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The evidence discussed above goes to establish that the amount of loan as mentioned in the O.A., was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 18.01.2022 has been proved to be Rs.22,21,255/- only. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and final realization of the claim.

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In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover from defendants jointly and severally of Rs.22.21.255/- as on 18.01.2022 along with pendentelite and future interest @ 12.50% p.a. with compounded monthly rests from 29.01.2022 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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ORDER

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In the result, the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt amounting to Rs.22.2 1.255/- along with pendente-lite and future interest @ 12.50% p.a. with compounded monthly rests from 29.01 .2022 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

OA 76 of 20221 Jl

DRT, PATN A

Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants, by sale ofmortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 04.11.2024. The order be communicated accordingly.

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Judgment signed. sealed, dated and pronounced in the open court on lgth day of September, 2024.

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Dictated &corrected by me.

//
k/ *e

[KaushalendraYadav]

Presiding Officer

Debts Recovery Tribunal, Patna

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FORM NO. 9 [See RegulatIon 24( 1 )]

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DEBTS RECOVER' TRIBUNAL PATNA

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2nd Floor. ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya Karumchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(Z) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTC\’ACTt 1993, AS AMENDED FROM TIME TO TIME,

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RC No. 238/2024 IN Case No: OA/76/2022

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In the Nlattcl' of: (CH- 1 ) UNION BANK OF INDIA E AB KHAGAUL BRANCH PAI’NA .BIHAR -o

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Applicant( s )

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To (CD- 1) M/S A FOUR GARMENTS .

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(Proprietorship Concern). Lekha Nagar. Cantt Road. .Kllagaul Danapur Patn ll .BIHAR -801105

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(CD- 2) ANITA KUNIAltl (PROPRIETOR) W/O KUMAR SHEKH AR R/0 LEKH A N AGAR. A SO PU R, KH AGA UL, DANAPUR, PATNA-80 1 105

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De i'endant( s )

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(CD-3) KUMAR SHEKHAR S/0 ARVIND KUMAR R/C) LEKH A N AGAR. ASOPUR. KHAGAUL. DANAPUR. PATN A-801105

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Recovery Certificate for Rs 2221255.00 1. Rupees Twenty TIvo Lakhs Twenty One Thousands Two Hundred Fifty Five Only_I

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In terms of final order dated 1 9/09/2024 passed by this Tribunal in the above mentioned case. it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2221255.00 along with cost, expenses and interest from the 29/0 1/202 1 i.e. date of filing / with effective date of the OA/76/2022 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors. hereinafter referred to as:-

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CDtVarne	Int i Type/Mode	int !Rate	Effective Date	Order Date	A1nr1o u n t ( R sB)	L !!i1: ry	Interesl (as on Order Date)	RC Amount(Rs.)
M/S AFOUR RMENTS	:ompound Interest I(Monthly)	12.50				lointly Severally	Interest IAs on IOrder Date	:221255.00
Nl’rA KUM ARI PROPRIETOR)	iCompound Interest :Monthly)							1255.00
KUMAR SHEKHAR	lly )	12.50	>/01/2022;	F] 9/09/2024	:l2221255.00	:IAnd ;everally	Ason IOrder	12221255.00

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In case of failure to pay the aforementioned adjudicated amount within 30 days. same shall be recovered from the sale of the mortgagecVhypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors

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The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final ordqr under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) ofRecovely of Debts and Bankruptcy Act 1 993

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Parties are directed to appear before ASHISH KUMAR . Recovery OffIcer. DEBTS REC'OVERY TRIBUNAL PATNA on 04/11/2024.

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The Recovery C)fReer shall realize the amount as per this Certitlcate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act. 1993 (as amended from time to time) from the above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 20/09/2024

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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tr ar Debts Recovery 7tibgn8] Patna

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FORM NO. 10 [See Regulation 24(2)]

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DEBTS RECOVER- TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA),

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Ashiana Digha Road, Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 238/2024

Case No: OA/76/2022

Applicant(s): UNION BANK OF INDIA

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Versus

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Defendant(s): M/S A FOUR GARMENTS

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ItemofCosts	I
Feeon the application	m
ProcessFees(Inc. Publication)	i()
AdvocateFees	Dc
>	ro
N’liscellaneousCharges	ro
Total Costs:Rs	m3

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Place: PATNA

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Date: 20/09/2024

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PRESIDrNG OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Union Bank of India v. M/s a Four Garments

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/s a Four Garments

Case brief

What is this about?

What did the court decide?

What the court decided

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