Allowed

Bank of Baroda v. M/s Siddhi Vinayak Life Style

DRT17 Jan 2025OA/126/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal adjudicated a debt recovery petition filed by Bank of Baroda against borrowers and guarantors for a default of approx. Rs. 23 Lakh plus interest. The court accepted the bank's documentary evidence, rejected the defence of external threats causing inability to pay, and allowed the claim.

What did the court decide?

Order directing defendants jointly and severally to pay Rs. 23,45,718.27 with interest and costs; issuance of Recovery Certificate; appointment of Recovery Officer; attachment of mortgaged/hypothecate

Bank of Baroda versus M/s Siddhi Vinayak Life Style — Banking and Recovery | DRT (2025)

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DRT,PATNA

OA 126of20241.11

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-80002S

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Presiding Officer : Shri Kaushalendra Vadav

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OA Case No, 126 of 2024

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Bank of Baroda, branch at Naya Bazar, Bihta Main Road, Near Ravi Das Statute, Bihta, District- Patna, Bihar 80 II 03

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....... Applicant

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Vs.

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I. Mis Siddhi Vinayak Life Style. through proprietor Jaju Kumar Singhal. Sio Late Swadesh Chandra Prakash, Rio Ward No.4, Mahadeva Road. Bihta, P.O. + P.S.- Bihta, District- Patna 801103

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Santosh Kumar, Sio Rampravesh Singh, Rio VillageMolahinpur. P.O.- Amhara, P.S.- Bihta, District- Patna 801103.

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. Defendants

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Present:

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For the Applicant Shri Nishant Ranjan, Advocate For the Defendants Shri C.S.P. Sinha, Advocate & Shri Rounak Sinha, Advocate

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Dated: 17,OL2025

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JUDGMENT

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I. The Applicant bank has made this application uls 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 20.02.2024 against the defendants to recover its debts from defendants of Rs.23,45,718.27 as on 10.02.2024 along with pendente-lite and future interest at the contractual rate from 11.02.2024 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 tile the suit through various branches including the applicant.

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Defendants approached the applicant bank tor sanction of cash credit against the hypothecation of stock and book debts vide loan application dated 31.12.2014. After due consideration, the applicant bank has sanctioned cash credit against hypothecation of stock and book debt term loan of Rs.3 5 Lakh on 31.12.2014 on various terms and conditions, as stipulated in the sanction letter.

OA 126 of 20241.11

DRT.PATNA

which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and also hypothecated the movables in favour of the applicant bank.

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Defendants again approached the applicant bank and demanded Bank of Baroda Funded Interest Term Loan (FlTL) loan during Covid pendency of Rs.6.63 Lakh for pre-sale and post sale. which was sanctioned by the applicant bank on 24.03.2021.

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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 29.07.2023.

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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.23,45,718.27 as on 10.02.2024 with pendente-lite and future interest contractual rate from 11.02.2024till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 15.03.2024. 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.In response to the notice, the defendant no.1 has appeared and tiled his written statement but the defendant no.2 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 no.2 on 21.05.2024 in "Dainik Bhaskar" newspaper.

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Despite the registered summon/notice and publication of notice in newspaper, the defendant no.2 has not appeared before this Tribunal to contest

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DRT.PATNA

OA 126 of 20241.11

the case. The sufficient time has been given to the defendant no.2 to defend his case. but he tailed to appear and to file WS. hence, the defendant no.2 is proceeded ex-parte.

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In response to the notice, the defendant no.I has tiled written statement with affidavit admitting therein that the applicant bank has sanctioned Cash Credit of Rs.35 Lakh and further a sum of Rs.6.63 Lakh during covid pandemic.

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It has further been stated that defendants and his family were under the looming threat of harm, both to their lives and property since 16.05.2023 and in such circumstances, FIRs were filed against the accused persons. The defendant was significantly hindered in his ability to operate his shop, which was the primary purpose for securing the loan in question. It has further been stated that the declaration of accounts of the defendants is erroneous in law and requested to dismiss the OA.

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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 Dayanand Kumar. Authorized Officer cum Senior Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
1	Loanapplication	31.12.2014	35.00	Defendants		1 ~ -
2	Sanctionletter	31.12.2014	35.00	Bank accepted defendants	and by	2
3	DPNote	31.12.2014	35.00	Def.no.l		1.' --
4	Letter of continuing securitv	31.12.2014	35.00	Def.no.1		-
5	Letter of sole . proprietorship	31.12.2014	35.00	Def.no.l	~_	r:_
6	Letter of depositing fixed/shortdeposit	31.12.2014	35.00	Def.no.l		6
7	PDR-borrower	31.12.2014	35.00	Def.no.l		7 --
8	Letterofundertaking	31.12.2014	35.00	Def.no.1		8
9	Instrument of hypothecation of goods	31.12.2014	35.00	Def.no.1 -		9 ---

OA 126 of20241JI

DRT, PATNA

10	Powerof attorney	31.12,2014	35.00	Def.no.I	10
II	General form of guarantee	31.12.2014	35.00	DeCno.2	II
12	Declaration cum undertaking cum authority	31.12.2014	35.00	DeCno.1	12
13	Letter of acknowledgment of debt	17.02.2023	--	Def.no.1	13
14	Legalnotice	03.10.2023	--	Bank's adv.	14
15	Statement of accounts	--	--	Bank	15 ._

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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 defendants with regards to the sanction of loan facilities and its utilization and further 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 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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II. 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.

OA 126 of 20241,11

DRT,PATNA

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 29.07.2023, whereas the present application has been filed on 20.02.2024. 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 tiled well within the period of limitation.

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Shri Dayanand Kumar, Authorized Officer cum Senior 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 uls S.19 (I) 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,providesthat if the defendantdenieshis liabilityto pay the claim made by the applicant.the tribunalmay act upon the atlidavit of the applicantwho is acquaintedwith the facts of the case or who has on verificationof the record sworn the atlidavit in respect of the contents of the application and the documentsasevidence.

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The rule 12 (11) of the aforesaid Rules. provides that the provisionscontainedin section4 of the Banker'sBooksevidence that Act, 1891(18 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Books furnishedalongwith applicationtiled undersubsection1of section19by the applicant.

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Section 4 of Banker's Books evidence Act, 1891 runs as under- SA. Mode of proof of entries in bankers books=Subject to the provisions ofthis Act. a certified copy ofany entry in a hanker's hook shall in all legal proceedings he received as primafacie evidence ofthe existence of such entry, and shall be admitted as evidence of' rhe mailers, 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 notfurther or otherwise.

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As such the certified true copies of the documents are admissible in

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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.

OA 126 of 20241JI

DRT.PATNA

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 10.02.2024 has been proved to be Rs.23,45,7IS.27 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 defendants jointly and severally of Rs.23,45,7IS.27 along with pendente-lite and future interest@ 10% p.a, simple from 20.02.2024 (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.23,45,7IS.27 along with pendente-lite and future interest ell! 10% p.a. simple from 20.02.2024 (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, ifnot 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

DRT.PATNA

OA 126 of 20241.11

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 Rankruptcy Act 1993. The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/SubRegistrar 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 certiticate in the manner and mode prescribed under the Act from the defendants. by sale of mortgagedl 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 27.02.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 17thday of January, 2025.

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Dictated &corre~ted by me.

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[Kaushalendra Yadav 1 Presiding Officer Debts Recovery Tribunal. Patna

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

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DEBTS RECOVERY TRIBUNAL PATNA

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Znd PlOOf.(A. B & F Wing) Karpuri Thakur Sedan. Kendriya Karamchari Parisar (GPOA). Ashiana Digha Road. P8tna~OOO25.

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j{ECO_YERYCERTIFICAU UNDER SECTION 19m READ WITH SECTION 19(m OF THE RECOYERY OF DEBTS & BANKRUPTCY ACT,J!l2J, AS AMENDED FROM TIME TO TIME.

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RC No. IV2025

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IN Case No: OA/126/2024

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IIIthe Matter of: (CH· I) RANK OF BARODA BRANCH AT NAYA BAZAR, alHTA MAIN ROAD. NEW RAV] DAS STATUTE. PATNA.BIHAR ·801Hl)

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Applicant(s)

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------ Versus -------

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1'0. (CD.I) MIS'SlODHI VINAYAK LIFE STYLE through Proprietor Jaju Kumar Singhal, 8/0- Late Swadesh Chandra Prakash, RIO Ward 00.4, Mahadeva Road. Bihta, P.O.+ P.S.- Bihta Patna •BIHAR ·ROII 0)

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Defendant(s)

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(CD- 2) SANTOSH KUMAR (GUARANTOR) SID· RAMPRAVESH SINGH, RIO· vlLLAGEMOLAHINPUR. P.O.- AMHARA. P.S.- BIHTA. DISTRICT- PATNA- 801103

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~y. Certificate for Hs 234571827 I Rupen Twenty Tbree Laths fori): Five ThQyypds Seven Hundred Elzhteep Apd

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.raise TwentY.Seven Only_]

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In terms uffinal urder dated 1710112025passed 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. 2345718.27 along with cost, expenses and interest tram the 2010212024i.e. date of filing 1with effective date of the OAll26/2024 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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·1" - r Loan Int. Int. Effeclive Order I.. t(Rs) Liability I~.:::t RC •
:Sr.no 1 CD Name Type Type/Mode Rate Date Date r moun . Type! Order Amount(Rs.) Remafll
\ .".L.",,,,,,,.,,. --,.'''''--------.-,.,.Iil-~l...-.··4j-4~~~+----,·,,·~~"'il'---+.::;D,;;.t;;e;:,)+----t---_I
·1 IM/SSIDOI~
\1 iVINAYAK.L1FE
i iSTYLE
L .L.

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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 mortgagedlhypothecated assets as well as other personal movablel 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 order under the recovery proceeding in pursuance of the Recovery certificate issued under Section I~(22) of Recovery of Debts and Bankruptcy Act 1993.

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Parties-are directed to appear before MANOJ KUMAR. Recovery Officer. DEBTS RECOVERY TRIBUNAL PATNA on 2710212025.

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The Recovery Ofticer shall realize the amount as per this Certificate 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 17/0112025

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PRESICR DEBTS RECOVERY TRIBUNAL PATNA

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strar
Debts Recovery Tribunal
ilatna

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FORM NO. 10

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[See Regulation 24(2)]