Allowed

Bank of Baroda v. M/s Anjani Agrotech

DRT17 Jan 2025OA/171/2024

Case brief

AI extract

What is this about?

Bank of Baroda sought recovery against defaulting borrowers and guarantors under Section 19 of the Recovery of Debts and Bankruptcy Act for a loan of approx Rs. 1.21 crore. The Tribunal allowed the application ex-parte as respondents failed to appear, determining the debt principal, interest, and costs.

What did the court decide?

Joint and several recovery of Rs. 1,21,50,256/- plus pendente-lite and future interest at 11.65% p.a. from 07.03.2024 till realization.

Bank of Baroda versus M/s Anjani Agrotech — Banking and Recovery | DRT (2025)

OA 171 of20241JI

DRT.PATNA

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 171 of 2024

¶8

Bank of Baroda (erstwhile Vijaya Bank), branch at Dokania Market, Near MRD High School, Banka- 813102

¶9

....... Applicant

¶10

Vs.

¶11

I. MIs Anjani Agrotech, a proprietorship concern, through its proprietor Ankit Choubey, Sio Gopal Choubey Kaithpura, Sondiha. Barahat. Banka, Bihar 813101, PAN NO.AWJPC4215A

¶12

Ankit Choubey, Sio Gopal Choubey, Kaithpura, Barahat Banka, Bihar 813101. PAN NO.AWJPC4215A

¶13

Gopal Choubey. Sio Suresh Choubey. Kaithpura. Barahat Banka, Bihar 813101, PAN NO.AKMPC670IG

¶14

Shiv Nandan Chou bey, Sio Suresh Choubey, Kaithpura, Barahat Banka, Bihar 813101.

¶15

....... Defendants

¶16

Present:

¶17

For the Applicant Shri Manish Kishore, Advocate For the Defendants None

¶18

Dated: 17.01.2025

¶19

JUDGMENT

¶20

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) 011 07.03.2024 against the defendants to recover its debts from defendants of Rs~1,21,50,256/- as on 30.12.2023 along with pendente-lite and future interest at the contractual rate from 31.12.2023 with costs till realization.

¶21

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.

¶22

Defendant no.1 is a proprietorship firm of which defendant 110.2 is the proprietor. Defendant no. 3 and 4 stood as guarantors of the loan facilities availed by the borrower.

OA 171 of20241JI

DRT,PATNA

Defendant no.2 approached the applicant bank for sanction of cash credit limit of Rs.15.50 Lakh and Term Loan of Rs.4.50 Lakh for establishing rice mill and for construction of civil works vide loan application dated 16.12.2014. which were sanctioned by the applicant bank 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 hypothecated the movables and also created registered mortgage in favour ofthe applicant bank. details of which are given in ~A.

¶27

Defendants on 10.02.2016 requested the applicant bank for renewal of the credit facilities availed and the said renewal request was considered by the applicant bank vide sanction letter dated 17.02.2016. Defendant no.2 again approached the applicant bank for sanction of additional credit facility by way of working capital of RS.25 Lakh, vide loan application dated 20.12.2016, which was sanctioned by the applicant bank on 30.12.2016 on various terms and conditions, as stipulated in the sanction letter. which were duly accepted by the defendants. To secure the loan facility defendants have executed various loan and security documents and hypothecated the movables and also created registered mortgage in favour of the applicant bank, details of which are given in ~A.

¶28

Defendant no.2 again approached the applicant bank for sanction of commercial vehicle loan of Rs.1.80 Lakh to use the same in his business. which was sanctioned by the applicant bank on various terms and conditions. as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facility defendants have executed various loan and security documents and hypothecated the vehicle in favour of the applicant bank.

¶29

Defendant no.2 again approached the applicant bank for sanction of credit facility of Rs.20.80 Lakh, which was sanctioned by the applicant bank on 23.08.2018 on various terms and conditions, as stipulated in the sanction letter. which were duly accepted by the defendants. To secure the loan facility defendants have executed various loan and security documents and

OA 171 of20241JI

DRT.PATNA

hypothecated the movables and also created registered mortgage in favour of the applicant bank, details of which are given in OA.

¶34

Defendant no.2 again approached the applicant bank for sanction of additional credit facility by way of Term loan of Rs.33 Lakh, which was sanctioned by the applicant bank on 05.10.2018 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facility defendants have executed various loan and security documents and hypothecated the movables and also created registered mortgage in favour of the applicant bank, details of which are given inOA.

¶35

As per the guidelines of the RBI during covid 19 in accordance with regulatory package, the accrued interest was converted into Funded Interest Term Loan (FlTL) of RS.l.44 Lakh at the same rate of interest as applicable to the CC/OD facility on 31.12.2020. The defendants on the same day i.e, 31.12.2020 approached the applicant bank and acknowledged the liability by executing a letter of acknowledgement of debt on 31.12.2020 with a promise to pay the same.

¶36

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 31.03.2021.

¶37

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.

¶38

The total liability in the loan account is Rs.1,21,50,256/- as on 30.12.2023 with pendente-lite and future interest contractual rate from 31.12.2023 till the realization.

¶39

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 16.04.2024, requiring them

OA 171 of20241JI

DRT,PATNA

to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993.

¶44

Despite the service of registered summons/notices, 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 10.07.2024.

¶45

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 Anuj Kumar Singh,

¶46

Senior Manager of the applicant bank. The details of documents are as follows:

¶47

SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
1	Loan Application with ld Proofs	16.12.2024	20.00 CC 4.50 TL	Defno.I&2		I
2	Process Note Sanction	--	--	--		2
3	D. P. Note	03.02.2015	4.50	Defno.I&2		, y
4	Agreement cum Hypothecation Deed	03.02.2015	4.50	Def.no.I&2		4
5	Letter of Guarantee	03.02.2015	4.50	Def.no.3&4		5
6	Photocopy of Mortgage Deed	30.01.2015	--	--		6
7	Application Letter	10.02.2016	--	Def.no.I&2		7
8	Sanction letter	17.02.2016	15.50	Bank		8
9	Agreement cum Hypothecation deed	17.02.2016	15.50	Def.no.I&2		9
10	Letter of Guarantee	17.02.2016	15.50	Def.no.3&4		10
11	Loan application	20.12.2016	--	Defendants		II
12	Sanction letter	30.12.2016	25.00	Bank accepted defendants	and by	12
13	Photocopy of Mortgage Deed	30.12.2016	--	--		13
14	Sole Proprietorship	30.12.2016	--	Defno.I&2		14
IS	D. P. Note	30.12.2016	25.00	Defno.I&2		IS
16	Letter confirming execution ofDPN	30.12.2016	25.00	Def.no.I&2		16
17	Permission letter to access	30.12.2016	25.00	Def.no.I&2		17
18	Letter of Guarantee	30.12.2016	25.00	Def.no.3&4		18
19	Supplementary Agreement	30.12.2016	25.00	Defno.1&2		----- 19
20	Photocopy of	21.0S.2018	--	--		20

OA 171of20241JI

DRT,PATNA

	Mortgage Deed
21	Sanction Letter	23,08,2018	20.80	Bank accepted defendants	and by	21
22	D. P. Note	23.08.2018	20.80	Def.no.1&2		22
23	Agreement cum Hypothecation Deed	23.08.2018	20.80	Def.no.I&2		23
24	Letter of Guarantee	23.08.2018	20.80	Def.no.3&4		24
25	Sanction Letter	05.10.2018	33.00	Bank accepted defendants	and by	25
26	Agreement cum Hypothecation Deed	09.10.2018	33.00	Def.no.I&2		26
27	Letter of Guarantee	09.10.2018	33.00	Def.no.3&4		27
28	Letter of Acknowledgment of debt	28.03.2019	--	Def.no.I&2		28
29	Acceptance Letter of FITL	--	--	Def.no.1&2		29
30	Letter of Acknowledgment of debt	31.12.2020	--	Def.no.1&2		30
31	Demand Notice	30.11.2021	--	Bank		31
32	Letter of Acknowledgment of debt	31.01.2022	--	Def.no.I&2		32
33	Possession Notice	18.02.2022	--	Bank		33
34 to 40	Statement of Accounts with Certificate under Bankers' Book Evidence Act	--	--	Bank		34 40	to
8.	Heard arguments and	perused the ca	se record.

¶52

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.

¶53

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.

V:'O\ ,,'"

OA 171 of 20241JI

DRT. PATNA

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.

¶59

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 07.03.2024. 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.

¶60

Shri Anuj Kumar Singh, Senior 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.

¶61

Section 19(3) of the Recovery of Debts and Bankruptcy Act. 1993 provides that the application u/s S.19·(l) shall be accompanied with true copies of all the documents relied on in support of the claim.

¶62

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 tribunalmay act upon the affidavitof the applicantwho is acquaintedwith the facts of the case or who has on verificationof the record sworn the affidavit in respect of the contents of the applicationand the documentsas evidence.

¶63

The rule 12 (II) 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 undersubsectionI of section19bythe applicant.

¶64

Section 4 of Banker's Books evidence Act, 1891 runs as under- S.4. Mode of proof of entries in bankers' books.<;ubjed to the provisions of this Act, a certified copy of any entry in a hanker's book shall in all legalproceedings be received as primafacie evidence of the existence of such entry, and shall be admitted as evidence ofthe matters, transactions and accounts therein recorded in evev case where, and to the same extent as. the original entry itself is now by law admissible. but notfurther or otherwise.

DRT,PATNA

OA 171 of20241JI

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.

¶69

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.

¶70

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 30.12.2023 has been proved to be Rs.l,21,50,256/- 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.

¶71

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.I ,21,50,256/- along with pendente-lite and future interest @ 11.65% p.a. with compounded monthly rests from 07.03.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

¶72

ORDER

¶73

In the result, the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are herebyjointly and severally, ordered to pay the applicant bank its debt amounting to Rs.I ,21,50,256/- along with pendente-lite and future interest ({~11.65% p.a.

•

OA 171of20241JI

DRT,PATNA

with compounded monthly rests from 07.03.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶79

It is made clear that any amount deposited by the defendants. be deducted in the claim amount, ifnot deducted.

¶80

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.

¶81

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.

¶82

Parties are directed to appear before the Recovery Officer, DRT, Patna on 27,02,2025. The order be communicated accordingly.

¶83

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

¶84

Dictated &corrected by me.

¶85

[KaushalendraYadav 1 Presiding Officer Debts Recovery Tribunal, Patna

¶86

FQRMNO 9 [Sec Regulation 24(1)]

¶87

•

¶88

DEBTS RECOVERY TRIBUNAL PATNA

¶89

Sattan. Kendriya Karamchaii Parisar (GPOA). Ashiana

¶90

2nd Floor, (A. B & F Wing) Karp"ri lbakur

¶91

Digha Road, Patna-80002S.

¶92

R£CQYERTIFICATE UNPER SECl..ON 19I1lREAQ WITH SECTION 19(12)OFIHI!: RECOVERY OF DEBTS & RANKRUncy ACI.'!93. AS AMEJ'jllEl!_I'RQIII IJMf._I!.HIME.

RC No. 1912025

Cas. No: OAlI7112024

In the Matte' of (CH· 1) BANK OF BARODA BRANCH AT DOKANIA MARKET, NEAR MRD HIGH SCHOOL. BANKA.BIHAR -RJ3102

¶97

Applicant(s)

¶98

-- Versus ------

¶99

To. (CD- J) MIS ANJANI AGROTECH a Propnctorship concern through its Proprietor Anikt Choubey 5/0- Gopa! Choubey. Kelrbpura. Sondiha, Barahat. Bimka,BIHAR -R13101

¶100

(CD- 2) ANKIT CHOUBEY S/O- GOllA!. CHOUBEY KAITHPURA BARAHAT, BANKA BII1AR·M13101

¶101

Defcndant(s)

¶102

(CD- 3) GOPAl CHOUBEY SiO- SURESti CHOUBEY,KAITHPURA BARARAT. BANKABIHAR-813101

¶103

(CO-4) SHIV NANDAN CHOUBEY SIO- SURESHCHOUBEY, KAITHPURA BARAHAT, BANKA BII-IAR-~13101

¶104

RecQY_~n'_.Ctrlincah:for Rs 12150156.00 I RuP«5 One ('otre 1\yenlY.One ",khl FIfty Thouynd. Two HUldred flRy..slJ..Only__J

¶105

In terms of final order dated 1710112025 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. 12150256.00 along with cost, expenses and interest from the 07/03/2024 i.e. date of filing / with effective date of the OA/17112024 and future interest from order date till the date of realisation in full. jointly or severally from the Certificate Debtors. hereinafter referred to as:-

¶106

.
Rat.Inl. Efft'cliveDMle OrderDate !AmounttRs.) Liability 1)'pe Interest (ason Ordern.te) AmouDt{Rt.) RC Reolark
11.65 07103/2024 1710112025 ' 12150256.00 SeverallyointiyAnd IntCfC6tAs on Order Date 12150256.00
'EJ" '3• i ,GOrAL.CHOURf.Y " I 1 'ICompound t "terestiM ont}','hi n.es 07/U31l024 17/01/2025 121O?5600IJomt!YAnu.. - . ';Sevcrnllyintl .• tnterestOrder DateAs on 12150256.00
:r-%7:~~onIY !! 165 07103/2024 171011202512150256.00 ~~ =oZon 12150256.00
f 1;~~iN~~~:-t-··

¶107

In case of failure to pay the aforementioned adjudicated amount within 30 days. same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable! Immovable assets of the certificate debtors.

¶108

The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shalJ 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.

¶109

Parties arc directed to appear before ASH ISH KUMAR. Recovery Otticer. DBBTS RECOVERY TRIBUNAL PATNA on 2710212025.

¶110

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 . Dallied Certificate Debtors.

¶111

has been issued under my signature and seal of the Tribunal on this 17/01/2025

¶112

Re istrar
Debts Recovery Tribunal
Patna

¶113

PR~FICER
DEBTS RECOVERYTRIBUNAL PATNA

¶114

FORM NO. 10

¶115

[See Regulation 24(2)]

¶116

DEBTS RECOVERY TRIBUNAL PATNA

¶117

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

¶118

. .---------- ----

¶119

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶120

RC No. 19/2025

¶121

¶122

Case No: OA/17112024

¶123

. Applicant(s): BANK OF BARODA

¶124

Versus

¶125

Defendant(s): MIS ANJANI AGROTECH

¶126

ilr.N._. [Itemof Costs	Amount inRs.
IL. . Fee on the application	124000
:I~~_ Process Fees(Inc. Publication)	o
13. [Advocate Fees	o
I - 14. ...S:()Il1Il1issoner/Rece_iv_e0'~luationlSe~urity Fee	o
	o
,Total Costs:Rs.	124000

¶127

Place: PATNA

¶128

Date: 17/0112025

¶129

PRESIDI~CER DEBTS RECOVERY TRIBUNAL PATNA

¶130

Note: Strike out whichever is not applicable

Bank of Baroda v. M/s Anjani Agrotech

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Anjani Agrotech

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

S G Preservatives Private Limited versus Bank of Baroda

Bharat Construction and Ors. versus Bank of Baroda

Edge Techno Chem and Ors. versus Indian Bank

Bank of Baroda versus M/s Alok Fashion

Hdfc Bank Ltd. versus Vasudevan Sridhar

Hdfc Bank Ltd., versus Mrs.Arshiya Jabeen