Allowed

Bank of Baroda v. M/s Alok Fashion

DRT17 Jan 2025OA/127/2024

Case brief

AI extract

What is this about?

The Tribunal dismissed the objections of the borrower regarding jurisdiction and limitation, found the bank's documentary evidence sufficient to prove the loan and outstanding dues, and granted a recovery certificate for approximately Rs. 30.78 Lakh with interest. The mortgaged assets were attached.

What did the court decide?

Recovery certificate issued for Rs. 30,78,806.53 plus interest and costs; mortgaged assets attached; recovery directed through Recovery Officer.

Bank of Baroda versus M/s Alok Fashion — Execution and Attachment | DRT (2025)

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OA 127of20241JI

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DRT,PATNA

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

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 127 of 2024

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Bank of Baroda, branch at Naya Bazar, Bihta Main Road, Near Ravi Das Statute, Bihta, District- Patna, Bihar 801103

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....... Applicant

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Vs.

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I. Mis Alok Fashion through proprietor Jaju Kumar Singhal. S/o 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, S/o Rampravesh Singh, Rio VillageMolahinpur, P.O.- Amhara, P.S.- Bihta, District- Patna 801103 (Guarantor)

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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: 17.01.2025

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JUDGMENT

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I. 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 20.02.2024 against the defendants to recover its debts from defendants of Rs.30,78,806.53 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 file the suit through various branches including the applicant.

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Defendants approached the applicant bank for sanction of cash credit against the hypothecation of stock and book debts term loan ofRs.35 Lakh vide loan application dated 05.09.2014, which was 9unctioned , by the applicant bank on 08.09.2014 on various terms and conditkns,' 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 and also hypothecated the movables in favour of the applicant bank.

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OA 127 of 20241,11

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DRT,PATNA

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Defendants again approached the applicant bank and demanded Bank of Baroda Funded Interest Term Loan (FITL) loan during Covid pandemic of Rs.7.22 Lakh for pre-sale and post-sale, which was sanctioned by the applicant bank on 24.03.2021

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After some time, the defendants again approached the applicant bank and demanded Bank of Baroda Guaranteed Emergency Credit Line Scheme (BGECLS) loan during Covid Pandemic of Rs.6.68 Lakh for pre-sale and postsale, which was sanctioned by the applicant bank on 30.11.2021 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 and also hypothecated the movables in favour of the applicant bank.

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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.30,78,806.53 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, requiringthem 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.I has appeared and filed 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

OA 127 of 2024!.11

DRT,PATNA

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 the case. The sufficient time has been given to the defendant no.2 to defend his case, but he failed 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 filed written statement and affidavit admitting therein that the applicant bank has sanctioned Cash Credit ofRs.35 Lakh and further a sum ofRs.7.22 Lakh during covid pandemic and in addition, the defendants also secured a sum of Rs.6.68 Lakh on 31.11.2021 under BGECLS.

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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, FTRswere filed against the accused persons. The defendant was signiticantly 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 vanous 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

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documents are as follows:

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SI.No	Description of Documents Photocopies	of Date Execution	Amount (Tn Lakh)	Signature Executants	of	--.~ Ex.! Ann. No.
1	Loanapplication	05.09.2014	35.00	Def.no.!		1
2	Sanctionletter	08.09.2014	35.00	Bank accepted def.no.l	and by	2
, ~	D P note	08.09.2014	35.00	Def.no.l		, .'
4	PDRagreement	08.09.2014	35.00	Def.no.1&2		4
5	Letter of continuing security	08.09.2014	35.00	Def.no.1		5

OA 127 of 20241JI

DRT.PATNA

6	Declaration undertakings authority	cum cum	08.09.2014	35.00	Def.no.l &2	..	6
7	Composite hypothecation agreement		08.09.2014	35.00	Oef.no.1		7
8	Power of attorn	ey	08.09.2014	--	Def.no.l		8 . -
9	General form guarantee	of	08.09.2014	35.00	Oef.no.2		9
10	OeedofFITL		24.03.2021	7.72	. Def.no.I		10
II	Attestation me	mo	30.11.2021	6.68	Bank Oef.no.1	and	I I ,,-
12	Letter proprietorship	of	30.11.2021	--	Def.no.l		12 ...-
13	Letter of instal	ment	30.11.2021	6.68	Def.no.l		13
14	Undertaking create extensi mortgage	to on of	30.11.2021	6.68	Def.no.l		14
15	Undertaking		30.11.2021	6.68	Oef.no.1		15
16	Loan hypothecation agreement	cum	30.11.2021	6.68	Oef.no.1		16
17	Declaration undertakings authoritv	cum cum	30.11.2021	--	Def.no.l		17
18	Legal notice		03.10.2023	--	Bank's adv.		18
19	Statement accounts	of	--	--	Bank		19 .

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Heard arguments and perused the case record. During the course of

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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.

DRT,PATNA

OA 127 of 20241JI

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.

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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 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 filed well within the period oflimitation.

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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 U/S 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 defendantdenies his liabilityto pay the claim made by the applicant,the tribunal may act upon the affidavitof the applicantwho is acquaintedwith the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of the applicationand the documentsas evidence.

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The rule 12 (II) of the aforesaid Rules. provides that the provisionscontainedin section4 of the Banker's Booksevidence that Act, 1891(18 of 1891)shall apply to a certifiedcopy of an entry in a Banker's Booksfurnishedalongwith applicationfiled undersubsection1of section19bythe applicant.

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Section 4 of Banker's Books evidence Act, 1891 runs as under- S,4, Mode of proof of entries in bankers' books-s-Subject to the provisions of this Act. a certified copy of any entry in a hanker's hook sholl in all legalproceedingshe receivedasprimafacie evidenceofthe existence of such entry, and shall he admitted as evidence ofthe matters, transactions and accounts therein recorded in every cusc

OA 127 of20241JI

DRT, PATNA

where. and to the same extent as. the original entry itself is now hy law admissible. but notfurther 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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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.30,78,806.53 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.30,78,806.53 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.30,78,806.53 along with pendente-lite and future interest @ 10%p.a. simple

OA 127 of20241JI

DRT.PATNA

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. 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/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 certificate 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 17th day of January. 2025.

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~/
" \ 0

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Dictated &corrected by me.

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[Kaushalendra Yadav ] 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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2nd Floor: (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA). Ashiana Digha Road, Patna-800025.

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RECOVERY CERTIFICATE UNDER SECTION 19m READ WITH SECTION J9(U) OFTHE RECOVERy OF DEBTS & BANKRIJPTCY ACT. 1993. AS AMENDED FROM TIME TO TIME,

RC No, 1812025

Case No: OAll2712024

In the Matter of:

(CH- I) BANK OF BARODA BRANCH AT NAYABAZAR. BIHTA MAIN ROAD. NEAR RAY] DAS STATUTE, BIHTA PATNA .BIHAR -801103

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Applicant(s)

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To,

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(CD- I) MIS ALOK FASHION through Proprietor Juju Kumar Singhal. S/o- Late Swudcsh Chandra Prakash, RIo Ward 00.4, Mahadcva Road, Bihta. r.o.+ P.S.- Bihta Patna .1lLHAR -XU1103

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Defendant(s)

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(CD- 2) SANTOSH KUMAR S/O- RAMPRAYESH SINGH, RlO- VTLLAGEMOLAIIINPUR. P.O.- AMHARA, P.5.- BIHTA. D1STRICT-PATNA- 801103 (GUARNATOR)

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Recovery.Cer!iH_Q!tefur Rs 3018806.53 !-_Rune,s Thirty Lakbs Se'enlY_EightThous!lnds Eight Hundred Six;And Paile Fifty. Three ()nIY__J

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In terms of final order dated 1710112025passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certiticate Holder Bank is entitled 10 recover a sum of Rs. 3078806.53 along with cost, expenses and interest from the 2010212024i.e. date of filing 1with effective date of the OAll2712024 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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Amount(Rs.) RC Remarl_,

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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 morlgaged/hypothecated 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 19(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 27/02/2025.

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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 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 Illysignature and seal of the Tribunal on this 1710112025

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)/
.
Registrar'
Debts Recovery Tribunal
Patna

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL 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 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

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RC No. 18/2025

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Case No: OA/127/2024

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Applicant(s): BANK OF BARODA

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Versus

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Dcfcndant(s): MIS ALOK FASHION

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	IteIIloCosts	IAmount in Rs.
	!Fee on the application "..1...". "' . ~-- "-'"'-"--	133000
	,,,,, __ ___	10
'3.		10
4.	:Commissioner/Receiver/ValuationlSecurity Fee J , .~__,.. .. . ~	9
Il5.~.	JMisc,e_ll_aneousCharge~ ~..	jL°::__ __J1
: . :F-~"..:":	•.;irl'l-:ot-a"-lc~~o-s-ts-C:}~~s- ..:.-.....- - ...-...-.-....-.-...-....--.-...- .-.-....-- ..--..--	....-]'rlili-:-30-0-0------.1

Place: PATNA

PRESID~ICER

Date: 17/0112025

DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Bank of Baroda v. M/s Alok Fashion

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Alok Fashion

Case brief

What is this about?

What did the court decide?

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