Allowed

State Bank of India v. M/s Vina Enterprises

DRT29 Jan 2025OA/159/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna, hearing an application under Section 19 of the RDB Act, 1993 for recovery of dues. The applicant bank proved the loan sanction and default via affidavit and documents. Being no-show, the defendant was proceeded against ex-parte, and the court allowed the application and issued a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs.25,29,800.39 with interest and costs to be realized by sale of secured assets.

State Bank of India versus M/s Vina Enterprises — Banking and Recovery | DRT (2025)

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DRT, PATNA

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OA 159 of20241JI

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Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Palna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No, 159 of 2024

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State Bank of India, branch at Pipra Branch, District- Supaul through the Stressed Assets Recovery Branch, 2 nd Floor, Patna Main Branch Building, West of Gandhi Maidan, Patna

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....... Applicant

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Vs.

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MIs Vina Enterprises through its proprietor Smt. Vina Devi, Wlo Sri Chhote Lal Paswan, resident of village- Dinapatti, Ward No.13, PO + PS- Pipra, District- Supaul- 852218

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....... Defendant

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Present:

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For the Applicant Shri Manoj Kumar, Advocate For the Defendant None

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Dated:29,01.2025

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JUDGMENT

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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 04.03.2024 against the defendant to recover its debts from defendant of Rs.25,29,800.39 as on 29.02.2024 along with pendente-lite and future interest at the contractual rate from 01.03.2024 with costs till realization.

¶17

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.

¶18

Defendant approached the applicant bank for sanction of Cash Credit loan ofRs.19 Lakh and Term Loan ofRs.3.66 Lakh vide loan application dated 05.07.2022 under Stand Up India Scheme tor manufacturing and trade business of furniture items, which were sanctioned by the applicant bank on 22.07.2022 on various terms and conditions, as stipulated in the sanction letter. which were duly accepted by the defendant. To secure the loan facilities defendant has executed various loan and security documents and also hypothecated the movables in favour of the applicant bank, details of which are given in OA

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OA 159of20241JI

After availing the sanctioned credit facilities, the defendant became irregular in repayment of its 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 29.08.2023.

¶23

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.

¶24

The total liability in the loan account is Rs.25,29,800.39 as on 29.02.2024 with pendente-lite and future interest contractual rate from 0l.03.2024 till the realization.

¶25

This Tribunal issued summon/notices copies of application & paper book to the defendant by registered/speed post on 05.04.2024, 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 24.05.2024 in "Dainik Jagran" newspaper.

¶26

Despite the registered summon/notice and publication of notice in newspaper, the defendant has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant to defend its case, but he failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendant on 19.07.2024.

¶27

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 Shashi Ranjan Chaudhary, Chief Manager of the applicant bank. The details of documents are as follows:

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OA 159of20241JI

SLNo	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
I	Loanapplication	05.07.2022	19.00 CC 4.00TL	Defendant		1
2	Arrangementletter	22.07.2022	19.00 CC 3.66TL	Bank accepted defendant	and by	2
3	Agreement of loan cumhypothecation	22.07.2022	22.66	Defendant		- ,.'
4	PDRagreement	22.07.2022	22.66	Defendant		4 -
5	Legalnotice	08.02.2024	--	Bank'sadv.		5
6	Statement of accounts	--	--	Bank		6

¶32

Heard arguments and perused the case record.

¶33

Ld. Counsel of applicant bank submitted that the defendant has 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.

¶34

It is further submitted by ld. 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.

¶35

It has been established that defendant is living and carrying on her 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.

¶36

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 29.08.2023. whereas the present application has been filed on 04.03.2024. Even. it is

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OA IS9 of 20241J I

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.

¶41

Shri Shashi Ranjan Chaudhary, Chief Manager of the applicant bank has tiled 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.

¶42

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.

¶43

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.

¶44

The rule 12 (II) 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 I of section 19by the applicant.

¶45

Section 4 of Banker's Books evidence Act, 1891 runs as under- SA. Mode of proof of entries in bankers b(}ok.~.-Sub;ecl 10 the provisions ofthis Act, a certified copy of any entry in a banker's hook shall in all legal proceedings be received as primafacie evidence ofthe 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 entrv itself is flOW hy law admissible, but notfurther or otherwise.

¶46

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.

¶47

On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendant has applied for loans and the bank had sanctioned the loans and to secure the loan and for repayment of loan amount with interests etc., the defendant has executed various loan documents.

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OA 159 of20241JI

as stated in the application and proved by aforesaid evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Accounts.

¶53

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 29.02.2024 has been proved to be Rs.25,29,800.39 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.

¶54

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.25,29,800.39 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 04.03.2024 (The date of tiling 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.25,29,800.39 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 04.03.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶57

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

•

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OA 159of20241JI

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.

¶64

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 certi ticate 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.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 10.03.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 29th day of January, 2025.

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Dictated &corrected by me.

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~II [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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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 19(1)READ WITH SECTION 19(U) OFTUE RECOVERY OF DEBTS & BANKRUPTCY ACT,_l2ll, AS AMENDED FROM TIME TO TIME·

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RC No 29/2025_ IN Case No: OAl159/2024

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In the Matter of: (CH-I) STATE BANK OF INDIA BRANCH ATPIPRA BRANCH DISTRICTSUPAULTHROUGH THE STRESSED ASSETS RECOVERY BRANCH, 2ND FLOOR. PATNAMAIN BRANCH BUILDING, WEST OF GANDHI MAIDAN, PATNA,BIHAR -80000 I

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Applicant(s)

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

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To, (CD- I) MIS VINA ENTERPRISES through its Proprietor Smt. Vinn Devi, W/o- Sri Chhote Lal Paswan, resident of VillageDinapatti. Ward no. 13, PO + PS- Pipra, Supaul.BIHAR -852218 .

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Defendant(s)

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Recovery, Certificate for Rs 2529800.39 l_Rypees Twenty, Five I,akhs Twenty. Nine ThQusands Ejght

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Hundred And Paise ThirtY. Nine Only_I

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In terms of tinaI order dated 29101/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum ofRs. 2529800.39 along with cost, expenses and interest from the 04/03/2024 i.e. date of filing I with effective date of the ON 159/2024 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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'.....!.I~ .• ~I .1	:.nJ.··· ~D :·me - ' IMIS VINA ,ENTERPRISES	Lo:nr Type]	Int. : TypelMode, Compound Interest (Monthly)	Int. Rate, ' : 10 _...J	~ Effecti:: ! Date I i i iI0410312024 ! L	ord~r - Date 12910112	[~~~nt(RS)Liab 1 1 : ; i 025.2529S00.39 ____	ility Type ,·I~.~~D;; <br>!Fully ' i j	I(a~:~t Order ;a;;;t;;.e)4 iInterest lAs on II0rOO ~Date	RC Amouot(Rs.) 2529800.39	Remark + 4'

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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 Immovableassets ofthe 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. Parties are directed to appear before ASHISH KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 1010312025.

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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 my signature and seal of the Tribunal on this

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3010112025 »: Debts Recovl'y Tribunal Pat'..a

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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·,

¶90

FORM NO. 10 [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 Kararnchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶94

RC No. 29/2025

¶95

¶96

Case No: OA/159/2024

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Applicant(s): STATE BANK OF INDIA

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Versus

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Defendant(s): MIS VINA ENTERPRISES

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--,_, Sr.No.	- .. -~,-."-,.-...---. . -_•..,,--- tern of Costs	IAmOUDtinRs.
I. ------ ...	Fee on the applicatioll.. .-- ""'-' - ...	28000
2. _,--	__ Process Fees(Inc. Publication) -.	0
3.	Advocate Fees .. -	0
4. ,,.._ -...-~-.-----	Commi~!oner~e(;t!ivt!rl_Valllllti0nl.~ecurityFee --	0
5. L	Miscellaneous Charges ~ .-------._.,.._-- I	10 I
_	_ Total Costs: Rs.	28000

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Place: PATNA

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Date: 30/0112025

¶103

PRESIDING~ DEBTS RECOVERY TRIBUNAL PATNA

¶104

Note: Strike out whichever is not applicable

State Bank of India v. M/s Vina Enterprises

Case brief

What is this about?

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State Bank of India v. M/s Vina Enterprises

Case brief

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