Allowed

Punjab National Bank v. M/s Hero Bricks

DRT8 Sept 2025OA/186/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab National Bank to recover RS 23,22,316.55 from borrowers and guarantors. The court found that the loan was availed and utilized, and the defendants failed to repay dues. The Tribunal issued a recovery certificate determining the debt amount and interest.

What did the court decide?

Recovery certificate issued directing payment of Rs. 23,22,316.55 plus interest at 10% p.a. and costs from defendants jointly and severally; mortgaged assets attached and to be sold on default.

Punjab National Bank versus M/s Hero Bricks — Contract and Commercial Disputes | DRT (2025)

DRT, PATN A

OA 186 of2022jJI

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. 186 of 2022

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Punjab National Bank, branch at Samastipur, Station Road, Ram Babu Chowk, Samastipur- 848101

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. . . . . . .Applicant

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M/s Hero Bricks through its proprietor Suresh Ray, S/o Late Mushar Ray, Vill.+P.O.- Harpur Bhindi, Block-Morwa, P.S.- Tajpur, DistrictSamastipur- 848122

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Sri Suresh Ray, S/o Late Mushar Ray, Proprietor of M/s Hero Bricks, ViII.+P.O.- Mohanpur, District- Samastipur- 848122

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Munaki Devi @ Munakia Devi (died during pendency of the OA) 3(i) Sri Satish Ray, S/o Lae Mushar Ray, 3(ii) Sri Dinesh Ray, S/o Lae Mushar Ray,

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3(iii)Sri Raj Kumar Ray, S/o Lac Mushar Ray,

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Def. no.3(i) to (iii) are resident of Vill.+P.O.- Mohanpur, District- Samastipur- 848122

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3(iv) Smt. Sita Devi, W/o Sri Ram Naresh Ray, R/o Vill.- Dadhia Bellar, Post- Karpoorigram, District-Samastipur- 848101

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. . Defendants

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Present:

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For the Applicant For the Defendants

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Shri Hemant Kumar Kam, Advocate Shri S.N. Choubey, Advocate

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Dated : 08.09.2025

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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 21.02.2022 against the defendants to recover its debts from defendants of Rs.23,22,3 16.55 as on 31.01.2022 along with pendente-lite and future interest at the contractual rate from 01.02.2022 with costs till realization.

¶22

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.

Uw,

OA 186 of20221JI

DRT, PATNA

During pendency of the case, the applicant bank has filed an IA No. 566 of 2022 disclosing that the defendant no.3 Munaki Devi @ Munakia Devi died and requested to substitute her legal representatives as defendant no. 3(i) to 3(iv). Notice and substituted service by way of paper publication were made against the legal representatives but they have not appeared hence the said IA was allowed vide order dated 06.11.2023 and the legal representatives of the deceased defendant no.3 have been substituted as defendant no. 3(i) to 3(iv).

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3 . Defendant no. 1 is a proprietorship firm engaged in the business of brick kiln of which defendant no.2 is the proprietor. Deceased defendant no. 3 was the guarantor as well as mortgager.

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Defendant no. 1 & 2 approached the applicant bank for sanction of cash credit limit of Rs.20 lakh vide loan application, which was sanctioned by the applicant bank on 07.01.2013 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant no.1&2. To secure the loan facility the defendant no.1&2 including the deceased defendant no.3 have executed various loan and security documents and also created mortgage in favour of the applicant bank, details of which are given in OA

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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 30.12.2020.

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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.23,22,316.55 as on 31.01.2022 with pendente-lite and future interest contractual rate from 01.02.2022 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 07.06.2022 requiring them

VOw\

OA 186 of 2022jJ]

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. In response to the notice the defendant no.1 & 2 have appeared by filing vakalatnama on 04.07.2022.

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Thereafter notice was also issued on 27.04.2023 to the legal representatives of the deceased defendant but they have 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 them on 04.08.2023 in “Dainik Jagran” newspaper.

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In response to the notices, the defendant no. 3(i) and 3(ii) have appeared and filed their vakalatnama on 18.09.2024 but despite the registered summons/notices and publication of notice in newspaper, the defendant no.3(iii) and 3(iv) have not appeared before this Tribunal to contest the case. The sufficient time has been given to them to defend their case, but they failed to appear and to file WS, hence, they are proceeded ex-parte.

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Record shows that the appearing defendants have failed to file their written statement within the statutory period. They have further failed to file rebuttal evidence despite the opportunities. Hence Id. counsel for the applicant bank was heard on 24.07.2025 and the case was reserved for orders/judgment.

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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 L. B. Sharma, Senior Branch Manager of the applicant bank. The details of documents are as

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follows:

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Description Documents Photocopies of	1Date of Execution	1All (in Lakh)	Executants
Loan application		20.00	Def.no.1&2
monletter	07.01.2013	20.00	Bank
DP Note	07.01.2013	20.00	Def.no.I&2
Hypothecation ment		20.00	Def.no. I &2
e	07.01.2013	20.00	Def.no.1&2
ementtoDll		20.00	Def.no.1&2
e	07.01.2013		Def.no.I&2

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IIE11111) e b 1:11 T=== =JTIll FATWA

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OA 186 of 2022

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DRT, PATN

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Consentclause		Def.no.1&2 & deceased defendantMonakia Devi
of Agreement tee		deceaseddefendant MonakiaDevi
o deed with other documents
Recall notice	12.05.2021	Bank
Balanceandsecurity confirmationletter	17.11.2021	Def.no.1&2
Statementofaccount		Bank

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Heard arguments and perused the case record.

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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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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.

¶53

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.12.2020, whereas the present application has been filed 21.02.2022. 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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Van Presidi-q Ofice1 DebB Recovery Tri_btllnl PATNA

OA 186 of2022jJ1

DRT, PATNA

Shri L. B. Sharma, Senior Branch 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 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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On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendant no.1&2 including deceased defendant Munaki Devi @ Munakia Devi 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 no. I &2 including deceased defendant Munaki Devi @ Munakia Devi have executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendants have

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UK Presiding Omce1 Debts Recov3ry TribwW PATNA

OA 186 of 20221JI

DRT, PATNA

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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In the present case, as the defendant no.3(i) to 3(iv) are the legal representatives of the deceased guarantor and mortgager Munaki Devi @ Munakia Devi hence they are liable to pay the dues of the applicant bank with interest and other legal charges till realization in full to the extent of inherited properties from their deceased.

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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 3 1.01.2022 has been proved to be Rs.23,22,3 16.55 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.23,22,3 16.55 along with pendente-lite and future interest @ 10% p.a. simple from 21.02.2022 (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.23,22,316.55 along with pendente-lite and future interest @ 10% p.a. simple from 21.02.2022 (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 Legal Representatives i.e. the defendant no.3 (i) to 3(iv) are liable to pay the dues of the applicant bank with interest and other legal charges till realization in full to the extent of inherited properties from their deceased

OA 186 of20221JI

DRT, PATNA

It is further 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 mortgage(1 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 marmer 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. 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 20.10.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 08th day of September, 2025.

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Dictated &corrected by me.

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1p <BY/1\ 4\ [KaushalendraYadav] Presiding Officer Debts Rec(#gMjpu@'a Debt' R',,„,,y T,ibmu PATNA

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FOR)1 NO, 9 [See Regulation 24( 1 )]

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DF,BTS RE('o\’l'II{' 'I’RIBL’ X ,\1 J P/\TNA

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:ntl Flotjl. ( A. B & F \ inu) Kilrlruri 'Fhukur Siltl lin. K&ndrl\ it Kilritnrchilli Puri\ur ( GPO A ). A>;hi:Ina Dighu Road. Putna-800025

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WWLCJWIJIUI(a)eTlwmM,-DII,AS

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AbIENDED FRO)I TINIE TQ TINIE;•

RC No. 29+/2025

Case No: OA/186/2022

In tIle Nlatter Itt ((• H- 1 ) PU NJ A 13 NATIONAL BANK BR ANC’II AT SA\1ASTIPL.iI(. STATION I<t ) AD. R ANI BABL CHO \V K

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Applicant( s )

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SAM ASTI PUl€ ,BIHAR -848 IOI

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(CD- 1) M/S HERO BRICKS

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Through its Proprietor Suresh Ray S/Ii Late Nlus;har Ray

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ViII. ilnd P.C).- Harpur Bhindi. Block - Morwa. P.S.- Tujpur, Silmirstipur .BIll AR -848 122

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(CD- 2) SRI SLJIIESH RA\

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s/( ) LATE MUSH AR RAY PRQI)RIETOR UF M/S HERO BRICKS VILL. AND P.0.- NIOHANPUI t. DISTRICT-

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SAMASTIPUR- 8+B 1 22

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(CD- 3) MUNAKI DEVI ALIAS MUNAKIA DEVI ( DECEASED) ( DIED DURING PENDENCY OF THE OAI

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Legal Heir: I SIt I SATISH ll A\

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Dcfcndant( s )

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S'o LATE MUSH AR RAY 'ILL + P(iST - M( )FIANIIUR SANt ASTI Pt. I R

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L£gal Heir; 2 SRI DINESH RAY

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S O LATE MUSH AR RAY VILL.+ POST - MOHANPUR. SA\4ASTIPUR

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1,CHaI lleir: 3 SIll RAJ KLINI AR RAY

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S '0 LATE MUSH AR RAY \’ILL ' POST - VIOHANPUR

SA\1ASTIPt IIt

1,quill Heir: +

SMT. SITA DEVI

\V/Q- SRI RAM NARESH RAY. R/O- VILL.- DADHI A BELLAII, POST.- KARI'OORIGRAM.

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RnII„er) ('rrlilign Ir fOr RS 2322316.55 l__Rgpeei Twenty Three L,3kh$ Twenty TwO ThqU sands Three Hundred Sixteen And Puise Fifty Fjyf Only]

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In tcrnl ts of final order dated 08/09/2025 passed by this Tribunal in the above mentioned case. it is ordered that the Applicant Certificate Holder Bank is entitled ttl recover iI sum of Rs. 23223 16.55 along with cost, expenses and interest from the 21/02/2022 i.c. date of filing / with effective date of tIle o A,'1 86/2022 and fUture interest from order date till the diltc of realisation in full. jointIY or se\’erally from the Certificate Debtors. hcrclnilftcr referred to :is:-

¶118

Lu:Illrl It:ItcInt. Effect i\ 1):Itc c OrderD:Itc int(Rs.) Liullilit} I Interest (as unOrder Date) I Arnount(Rs.)RC
,1,'S lIERO BRICKS (Yearly ) 10 lf02/'jo:l ;22316.55 ' I;;iii; ,CIal IAntI :is t >n 1 6.55
.I SUitEStI RAY P223 1 6.55 ;sc\ cAljy Interest As onDiItc
DEVI ALIAS
lmple Interest It) 16.55 Oi.tty A.,1 {1.t„est As U.
Veal-ly )
im 1 AR RA<br>TI a DEVI

¶119

In case of failure to pay the aforementioned adjtldicated amount \within 30 days, same shall be recovered from the sale of tIle nltrrtgagcd/llypotllecrltcd assets as well as other pcrsonu I nro'ablc/ llnlno\ able assets of the ccrti ncatc debtors.

¶120

rhe lnortgagcd or hypothecated ilslicts to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in ptlrstlance ot- the Recoveljy' certificate issued under Section 1 9(22) of Recovery of Debts and Bankruptcy Act 1993, Panics are directed to appear before 1\IANO.J KUMAR . Recovery Otlicer. DEBTS RECOVERY TRIBUNAL PATN A on 20/ 10/ 3025

¶121

The Recovery Officer shall realize the amount as per this Certificate in the manner alld 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 Certiticate Debtors.

¶122

It is made clear th:It Legal Represent;ltivcs i.c the defendant no. 3 ( 1 ) Ict 3 (4) are liable to lrily thc cItIes of the applicant bank with interest and L)thcrs legal clrltrges tIll re:lliziltiun ill full to tIre extent of llrtlcl-itetl prt)pcrtlcs fronr their tleceilsctl.

¶123

This L-ertincatc has been issued under my signature and seal of' the I ribunal on this 11/1)9/:025

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\_)'
Debts i e?i ?It::I ICTr i b LI I I = I
Paina

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PRESIDING OFFICER

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

¶129

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

RC No. 294/2025

Case No: OA/186/2022

Applicant(s): PUNJAB NATIONAL BANK Versus

¶136

Defendant(s): M/S HERO BRICKS

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Item ofCosts	lountinRs
mtheappliciiii	m6
ProcessFees(Inc.Publication)	[0
AdvocateFees	[0
o
MiscellaneousCharges
Total Costs:Rs

Place: PATNA

PRESIDIN& OFFICER

Date: 11/09/2025

DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

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Pfestding OBIe+ Dobtg Recovery Tribunal PATNA

Punjab National Bank v. M/s Hero Bricks

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Hero Bricks

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

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Case details

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