Allowed

Bank of Baroda v. Santosh Kumar

DRT15 May 2025OA/108/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Bank of Baroda against a borrower and guarantor for outstanding dues of ₹52,73,242/- along with pendente-lite and future interest arising from a term loan and personal loan that turned into NPA.

What did the court decide?

Defendants jointly and severally ordered to pay ₹52,73,242/- with pendente-lite and future interest @ 10.5% p.a. from 09.01.2024. Recovery certificate issued. Attached assets subject to final order.

Bank of Baroda versus Santosh Kumar — Execution and Attachment | DRT (2025)

OA 108 of2024jJI

DRT, PATNA

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. 108 of 2024

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Bank of Baroda (erstwhile Vijaya Bank), ROSARB Branch, lst Floor, Saryug Complex, Nehru Nagar, Patliputra, Patna 800013

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. . . . . . . Applicant

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Vs.

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Santosh Kumar (Borrower), S/o Bhagwan Lal Jha, R/o Flat No.122, Jamuna Apartment, Boring Road, Patna 800001, PAN No. AGZPK5672P

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Smt. Indira Jha (Guarantor), W/o Ashok Kumar Jha, R/o VillageRaiyam Dakshin, P.O.- Raiyam, District- Madhubani- 847404 PAN No. AGHPJ407 ID

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Sanjay Singh Thakur, Advocate For the Defendants None

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Dated:15.05.2025

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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 09.01.2024 against the defendants to recover its debts from defendants of Rs.52,73,242/- as on 22.11.2023 along with pendente-lite and future interest at the contractual rate from 23.11.2023 with costs till realization.

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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.

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3 . Defendant no. 1 is a borrower and the defendant no.2 is the guarantor of the loan availed by the defendant no.1. Defendants approached the applicant bank for sanction of Term loan of Rs.37 Lakh vide loan application dated 29.11.2017, which was sanctioned by the applicant bank on 15.12.2017 on various terms and conditions, as stipulated in the sanction letter, which were

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Prestdiat Ojlcer D8bt3 Recovery Tribuao PATNA

OA 108 of20241JI

DRT, PATNA

duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and also created equitable mortgage of immovable property i.e. Residential Flat in favour of the applicant bank, details of which are given in OA.

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Defendant no. I once again during Covid period requested the applicant bank vide loan application dated 29.04.2020 to sanction personal loan facility provided during the Pandemic in compliance of necessary direction of the Ministry of Finance and accordingly, the applicant bank sanctioned Rs.3.25 Lakh on 29.04.2020 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents.

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After availing the sanctioned credit facilities, the 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 31.03.202 1.

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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.52,73,242/- as on 22.11.2023 with pendente-lite and future interest contractual rate from 23.11.2023 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 02.04.2024, 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. But the defendants have not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 23.07.2024 in “Prabhat Khabar” newspaper

OA 108 of2024jJI

DRT, PATNA

Despite the registered summons/notices and publication of notice in newspaper, 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 24.02.2025.

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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 Animesh Kumar, Chief Manager-cum-Authorized Officer of the applicant bank. The details of documents are as follows:

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Sl.No	of Description Documents Photocopies	IDate of Execution	IAmount I(in Lakh)	of Signature Executants	1Ex./ Ann. No.
	Loan application	29.11.2017	37.00	Defendants
	Sanction letter	15.12.2017	37.00	Bank and acceptedby defendants
3	Articles of agreement	15.12.2017	37.00	e
	Ret	15.12.2017	37.00	Defendantno.1
	Receipt	15.12.2017	37.00	Defendantno.1
	Photocopy ofsale deed
	Memorandum	15.12.2017	37.00	Defendantno.1
	Letter ofguarantee	16.10.2017	37.00	Defendant no.2
	Authorizatmo	15.12.2017	37.00	Defendant no.2
	Application form	29.04.2020	3.25	Defendantno.1
	Appraisal cum sanctronmemo	29.04.2020	3.25	Bank
12	DPnote	29.04.2020	3.25	Defendantno.1	12
	Letter ofinstallment	29.04.2020		Defendantno.1
	Acknowledgement ofliabilit'	29.03.2019		Defendantno.I
15	Acknowledgement ofliabilit'	30.01 .2020		Defendantno.I	15
	e	16.07.2021
	Statement of accounts

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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

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the loan and utilized the same and also executed the various loan documents to

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PresidinB OIIIcBI Debts Recovery Tab luw PATNA

DRT, PATNA

OA 108 of2024jJI

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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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 31.03.2021, whereas the present application has been filed on 09.01.2024. 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.

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Shri Animesh Kumar, Chief Manager-cum- Authorized Officer 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

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II11\It \ 1:1$ 1L)

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Presiding Office1 Debts Recovery TrIbute PATNA

OA 108 of20241JI

DRT, PATNA

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 cert Bed 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 account, more so since the entries in the statement of account have not been challenged.

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15 . 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 22.11.2023 has been proved to be Rs.52,73,242/- only by way of statement of accounts. There is nothing to prove the amount more than that disclosed in the aforerfrentioned statement. As such this amount is recoverable till full and final realization of the claim

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y,( PrestdinB

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PrestdinB O ficer 11111) 11 1E111)111 111p19 S1:E!)::i f1F ][ Fi DUBaI

OA 108 of20241JI

DRT, PATNA

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.52,73,242/- along with pendente-lite and future interest @ 10.5% p.a. with compounded monthly rests from 09.01.2024 (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.52,73,242/- along with pendente-lite and future interest @ 10.5% p.a. with compounded monthly rests from 09.01.2024 (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.

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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 of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants. The Recovery Officer will issue demand notice to the Certificate

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C4Z

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PresIding OfFicer Debts Recovery TdbwtaJ PATNA

OA 108 of 20241JI

DRT, PATNA

debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted. The copy of this judgment be uploaded in the website of the Tribunal.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 25.06.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 15tb day of May, 2025.

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Dictated &corrected by me.

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[KaushalendraY4dav] Presiding Officer

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

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DEB’I’S RECO\’ ER\’ 'I-I{IBUN Al. PA’l'N A

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2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya Kammchari 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 & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No. 184/2025

Case No: OA/108/2024

In tIle Matter of (CH- 1) BANK OF BARODA ROSARB BRAN(-11, 1 ST FLOOR, SAR\’UG COMPLEX, NEHRU NAG AR PATLIPUTRA, PATN A .BIHAR -800013

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Applicant(s)

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--–-- Versus -–---Fo (CD- 1) SANTOsri KUMAR S/o- Bhagu an LaI J ha R/o- Flat No, 1 22, Jamuna Apartment, Boring Road Patnt] .BiHAR -8(>000 1

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Defendant(s)

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(CD- 2) SMT. INDIRA JH A (GUARANTOR) W/O- ASI IOK KUMAR .Ill A. R/O- VILLAGERAI\’AM DAKSH IN. P.O.- R,'\IYANI. DISTRIC-TM ADI–I U BAN 1 - 8+74tH

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Recovery Certificate for Rs 5273242.1)0 [ Rupees Fifty T+yo Lakhs Seventy Three Thousands T\yo Hundred Forty TIvo £m}LI

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In terms of final order dated 15/05/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certilicatc Huldcr Bank is entitled to recover a sulu of Rs. 5273242.00 along with cost, expenses and interest fI-om the 09/0 1/2024 i.c. date of filing / with effective d,lte of the OA/108/2024 and future interest from ordcr date till the date of realisation in full, jointly or severally from the Certificate Debtors. hereinafter referred to as:-

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r.no	CDName	Loan	Int -ype/Mode	1nt :Rate	Effective . Date	~„.„„„„. IOrder Date	";:':":	Interest S’;. Date)	RC ".: ,mount(Rs.)	ReIna
	SAN-i-OSil KUN'IAR		)mpountl Interest Monthly )	1 0.5			>intl IIly	Interest IS OII e	;273242,00
	4T.INDIRA HA (GUARANTOR):		:ompound 1Interest :Monthly)	0.5	}/o1/20241	15./05/2025 15273242,oo	)intly Id everally	?lntcrcsl ,S on >rdcr Date	:73242.00

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In case of fai]ure to pay the aforcmcntioncd adjudicdted amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothccatcd assets as well as other personal movable/ Immovable assets of the celtincate 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 order under the recovery proceeding in pursuance of the Recovery cer+ificdte issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 Parties are directed to appear before ASHISH KUMAR . Recovery (Jfnccr. DEBTS RECOVERY TRIBUNAL PATNA on 25/06/2025

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The Recovery Officer shall realize the amount as per this Certificate in the manner and made prescribed under SeCtions 25 to 28 of the Recovel)' 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 1 6/05/2025

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gb PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA MwE£::YqMuRd Presiding OPc'' P8tn8 Debts Recovery Tr1 : • PATNA

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd l-"loor. ( A. B & F Wing) Karpuri ’I-hakur Sadan. Kendrjya Karamchdri Parisar

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(GPOA). Ashiana Digha Road, Patnd-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 184/2025

Case No: OA/108/2024

Applicant(s): BANK OF BARODA Versus

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Defendant(s): SANTOSH KUMAR

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Item ofCosts	I
)	55000
ProcessFees(Inc. Publication)	10
AdvocateFees	b
Commissioner/Receiver/Valuation/SecurityFee	ro
MiscellaneousCharges	ro
TotalCosts:Rs	mo

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Place: PNFNA

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Date: 16/05/2025

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Note: Strike out whichever is not applicable

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PRESIDING OFFICER DEB’rs RECOVERY TRIBUNAL PATNA Pr8rldh8 OPen Debts RecoveR THbuw' PATHA

Bank of Baroda v. Santosh Kumar

Case brief

What is this about?

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Bank of Baroda v. Santosh Kumar

Case brief

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