Allowed

Icici Bank Limited v. Rakesh Kumar (Borrower)

DRT6 Sept 2025OA/111/2023

Case brief

AI extract

What is this about?

On an application under Section 19 of the RDB Act, the Tribunal allowed ICICI Bank's claim for recovery of debt against Rakesh Kumar. The debt was established on the strength of sanctioned loan documents, account statements, and the borrower's admission, leading to a final judgment and issuance of a recovery certificate.

What did the court decide?

Debt determined at Rs.70,08,159/- with interest from 27.01.2023 till realization; Recovery Certificate issued; Assets attached.

Icici Bank Limited versus Rakesh Kumar (Borrower) — Banking and Recovery | DRT (2025)

OA 111 of2023jJI

DRT, PATN A

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 111 of 2023

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ICICI Bank Limited, Zonal Office at Plot No.6B, Sahdeo Mahto Marg, S.K. Puri, Boring Road, Patna 800001

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. . . . . . .Applicant

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Rakesh Kumar (Borrower), Proprietor of Sun Shine International, S/o Om Prakash Gupta, R/o Handi Bazar, Ward No.21, Raxaul, East Champaran845303, PAN No.AFHPK1086N

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. . . . . . . Defendant

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Present:

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For the Applicant Shri Prabhakar Nath Rai, Advocate For the Defendant Shri Manish Kishore, Advocate

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Dated: 06.09.2025

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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 27.01.2023 against the defendant to recover its debts from defendant of Rs.70,08,159/- as on 08.11.2022 along with pendente-lite and future interest at the contractual rate from 09.11.2022 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 approached the applicant bank for sanction of Personal Loan of Rs.72 Lakh vide loan application, which was sanctioned by the applicant bank on 03.03.2022 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facility defendant has executed loan and security documents. It has further been stated that the defendant had a fixed deposit with the bank of Rs.12 Lakh of which receipt was issued bearing no. 14773461. The bank had marked lien on said FD while disbursing the loan, which has been duly signed by the defendant but on removing the lien, a sum of Rs.10.34 Lakh was only set off on

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hqPr&tdi>!! ofncet DebB Recs /3 ry Iribu9el PATUA

OA 111 of20231JI

DRT, PATNA

29.08.2022 as per clause 29 pertaining to set off The same is also reflected in the statement of account.

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After availing the sanctioned credit facility, the defendant became irregular in repayment of the 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 14.10.2022.

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Since, the defendant 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.70,08,159/- as on 08.11.2022 with pendente-lite and future interest contractual rate from 09.11.2022 till the realization.

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This Tribunal issued summon/notice copies of application & paper book to the defendant by registered/speed post on 23.03.2023, requiring him 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 defendant has 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 defendant on 04.06.2023 in “Dainik Jagran” newspaper.

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In response to the notice, the defendant has appeared by filing vakalatnama on 03.07.2023 and also filed written statement admitting therein the loan facility granted to the defendant against the Fixed Deposit of Rs.12 Lakh. It has further been stated that the applicant bank has charged higher interest which is contrary to the RBI Guidelines. Due to fire which took place in the business premises, the defendant could not repay the installments regularly and the business of the answering defendant also hampered. The applicant bank has not acted as per the provisions of the Act against the defendant and requested to dismiss the OA.

OA 111 of 2023[JI

DRT, PATNA

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 Dhananjay Kumar, Relationship Manager of the applicant bank. The details of documents are as follows:

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Description Documents Photocopies of	of 1Date Execution	ISignature Executants
PowerofAttorne'		Bank
LoanaDDlication	08.02.2022	Defendant
facility Credit form, application Key factstatement and mostimportant information, Security mandate	28.02.2022	Defendant
o	28.10.2022	Bank
Statementofaccount		Bank
Copyof and and Terms conditions

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Heard arguments and perused the case record. During the course of arguments, there is no any specific denial on behalf of the defendant with regards to the sanction of loan facilities and its utilization and fbrther there is no any specific denial with regards to the execution of loan and security documents in favour of the applicant bank.

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Ld. Counsel of applicant bank submitted that the defendant has taken the loan and utilized the same and also executed the 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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hi Presiding O ficer Debts Recovery Tribunal PATNA

OA 111 of 20231JI

DRT, PATN A

It has been established that defendant is living and carrying on the 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 14.10.2022, whereas the present application has been filed on 27.01.2023. 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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13 . Shri Dhananjay Kumar, Relationship 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 certifIed 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

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LA Presiding Officer Debts Recovery TIibun& PATNA

OA 111 of20231JI

DRT, PATNA

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 defendant has 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 defendant has executed loan documents, as stated in the application and proved by aforesaid evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor has 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 08.11.2022 has been proved to be Rs.70,08,159/- only by way of statement of accounts. 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 defendant of Rs.70,08,159/- along with pendente-lite and future interest @ 10% p.a. simple from 27.01.2023 (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 defendant. The defendant is hereby, ordered to pay the applicant bank its debt amounting to Rs.70,08,159/- along with pendente-lite and future interest @ 10% p.a. simple from 27.01.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs. n / pIL\3o„.„ Debts Recovery Tribwr8 r4THA

DRT, PATN A

OA 111 of20231JI

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

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Defendant is 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 defendant, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant. The Recovery Officer will issue demand notice to the Certificate 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 16.10.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 06th day of September, 2025.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer

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

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DEBTS RECO\’F,R\’ TRIBUNAL PATN A

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2nd Floor, ( A. B & F Wing) Karpuri Thilkur Sudan. Kcndriyzl Karilmchuri Parisar (GPOA). Ashiana Digha Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(7) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC No. 273/2025 IN

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Case No: OA/111/2023

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In the Matter ot (CH- 1) IL-ICI BANK LIMITED ZONAL OFFICE AT PLOT NO 6B SAHDEO MAHTO MAR(J, S.K. PURI, BORiNG ROAD, PATN A ,BIHAR -800001

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Applicant(s)

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-–-– Versus –-–--

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To, (CD- 1) RAKESH KUMAR (Bt)RROWFR) S/o Om Prakash GIlpIn 0 Defendantjs ) Proprietor of Sun Shine International, R/o Ha11di Bazar. Ward No.21. Raxaul.

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Purba Chalnparan .BIHAR -845303

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Recovery (,-ertificate for Rs 7908159,00 [ Rupees Seventy Lakhs Eigh! ThQus,Ind One Hundred Fifty Nine Only_1

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In terms of final order dated 06/09/2025 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. 7008159.00 along with cost, expenses and interest from the 27/01/2023 i.c. datc of filing / with effective date of the OA/111/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificdte Debtors. hereinafter referred to as:-

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CDName	Int 'pe IType/Mode}Rat	Effective Date	Order Date	„„„„„„„	.-;:::'	[Interest :;.'; Date	IC lount(Rs,	Remark
KESI.1 KUMAR BORROWER)	lilnplc Interest o ly)	127/01/2023	>/09/2025	159.an	IF„lly	on Order EDa!?'_ „	rOOS 159 .,[

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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 mollgagcd/hypothecated assets as weI] as other personal movable/ Immovable assets of the ccrtiticatc debtors..

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The nrollgaged or hypothecatcd 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 certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993.

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Parties are directed to appear before MANOJ KUMAR , Recovery Oflicer, DEBTS RECOVERY TRIBUNAL PATN A on 16/ 1 0/2025

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovcly of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named (_'eltificate Debtors

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This Certificate has been issued under my signature and seal of the Tribunal on this 10/09/2025

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( Af E) B1b) tB ££€ FeKqr i b U n a 1 ? aIBa

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’- --' - PRESIDING OFFICER

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FORM NO. 10

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[See Regulatipn 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Karpuri ThaI<ur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 273/2025

Case No: OA/111/2023

Applicant(s): ICICI BANK LIMITED

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Versus

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Defendant(s): RAKESH KUMAR (BORROWER)

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r.No	ItemofCosts	r
	Feeon the application	m7
9 I... r....'.	r	[0
__ 3	! Advocate Fees	[0
	Commissioner/Receiver/ Valuation/SecurityFee	[0
	MiscellMne	ro
	Total Costs:Rs	m7

Place: PATNA

PRESIDING%FFICER

Date: 1 0/09/2025

Note: Strike out whichever is not applicable

Icici Bank Limited v. Rakesh Kumar (Borrower)

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Rakesh Kumar (Borrower)

Case brief

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