Allowed

State Bank of India v. M/s Rayansh Enterprises

DRT29 Jan 2025OA/21/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna, in an ex-parte application under Section 19 of the RD and BI Act, 1993, allowed the State Bank of India to recover Rs. 63,06,883.41 from the defendants, who failed to appear. The court issued a recovery certificate and ordered attachment of assets.

What did the court decide?

The defendants were directed to pay Rs. 63,06,883.41 with interest and costs; a recovery certificate was issued and secured assets were attached.

State Bank of India versus M/s Rayansh Enterprises — Contract and Commercial Disputes | DRT (2025)

•

OA 21 of20241JI

DRT,PATNA

Debts Recovery Tribunal, Patna

¶6

Karpuri Thakur Sadau, Aashiana Digha Road Pa!n3-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 21 of 2024

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State Bank of India, SME Gulabbagh Branch, Pumea through the Stressed Assets Recovery Branch, 2 nd Floor, Patna Main Branch Building, West of Gandhi Maidan, Patna

¶10

....... Applicant

¶11

Vs.

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MIs Reyansh Enterprises through its proprietor Sri Abhishek Rathi. having its office/unit situated at Near Damka Chowk Mohankunda. Gulabbagh, District- Purnea- 854326

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Sri Abhushek Rathi, Sio Sushi! Kumar Rathi, resident of Near Damka Chowk Mohankunda, Gulabbagh, District- Purnea- 854326, PAN NO.BIPPA8457D

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....... Defendants

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Present:

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For the Applicant Shri Santosh Kr. Singh. Advocate For the Defendants None

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Dated:29,01.2025

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JUDGMENT

¶19

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 03.01.2024 against the defendants to recover its debts from defendants of Rs.63,06,883.41 as on 30.11.2023 along with pendente-lite and future interest at the contractual rate from 01.12.2023 with costs till realization.

¶20

The application has been tiled 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.

¶21

Defendants approached the applicant bank for sanction of cash credit (stock) facility of Rs.30 Lakh and Term Loan of Rs.38 Lakh for their proprietorship finn vide loan application dated 12.08.2020. which were sanctioned by the applicant bank on 31.08.2020 under CGTMSE scheme on

OA 21 of20241JI

DRT,PATNA

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 stock in favour of the applicant bank.

¶26

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 02.05.2023.

¶27

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.

¶28

The total liability in the loan account is Rs.63,06,883.41 as on 30.11.2023 with pendente-lite and future interest contractual rate from 01.12.2023 till the realization.

¶29

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 25.01.2024, requiring them to show-cause within 30 days of the service V/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules. 1993. But the defendants 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 the defendants on 17.05.2024 in "Dainik Jagran" newspaper.

¶30

Despite the registered summons/notices and publication of notice in newspaper, 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 12.08.2024.

OA 21 of20241JI

DRT.PATNA

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 Choudhary, Chief Manager of the applicant bank. The details of documents are as follows:

¶35

SI.Nu	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
I	Loanapplication	12.08.2020	30.00 CC 37.70 TL	Defendants	- -	I ----.-... -~
2	Arrangementletter	01.09.2020	30.00 CC 38.00 TL	Bank accepted defendants	and by	2
3	Agreement of loan cumhypothecation	01.09.2020	68.00	Defendants		,.'
4	PDRagreement	01.09.2020	68.00	Defendants		4
5	CERSAIdetails	--	--	--		5 -. --
6	Revivalletter	03.12.2022	--	Defendants		6
7	Demandnotice	02.05.2023 12.06.2023 12.07.2023	--	Bank	. -	7 -----
8	Legalnotice	22.10.2023	--	Bank	--	8 ------ -
9	Statement of accounts	--	--	Bank		9 ---- ---

¶36

Heard arguments and perused the case record.

¶37

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 ofindia.

¶38

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.

OA 21 of 20241.11

DRT. PATNA

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.

¶43

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 02.05.2023. whereas the present application has been filed on 03.01.2024. Even. it is counted for the purpose of Limitation, then it is established that the appl icant 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.

¶44

Shri Shashi Ranjan Choudhary, Chief 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.

¶45

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.

¶46

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.

¶47

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 certitied copy of an entry in a Banker's Books furnished along with application tiled under sub section I of section 19by the applicant.

¶48

Section 4 of Banker's Books evidence Act, 1891 runs as under- S.4. Mode of proof of entriesin bankers' books=Subiect 10 the provisions ofthis Act, a certified copy of any entrv in a hanker '.I' hook shall in all legalproceedings be received as primafacie evidence ofthe existence of such entry, and shall he admitted as evidence afrhe matters, transactionsand accounts therein recorded in eve~ycase

OA 21 of20241JI

DRT, PATNA

where. and to the same extent as. the original entry it.'el(is now by law admissible. but notfurther or otherwise.

¶53

As such the certified true copies of the documents are admissible III 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.

¶54

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.

¶55

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 30.11.2023 has been proved to be Rs.63,06,883.41 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.

¶56

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.63,06,883.41 along with pendente-lite and future interest @ 13.40% p.a. with compounded monthly rests from 03.01.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

¶57

ORDER

¶58

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.63,06,883.41 along with pendente-lite and future interest @. 13.40% p.a.

DRT,PATNA

OA 21 of20241JI

with compounded monthly rests from 03.01.2024 (The date of filing of this OA) till realization ofthe entire sum due and recoverable with costs.

¶63

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

¶64

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 RegistrarlSub- 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 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 10.03.2025. The order be communicated accordingly.

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

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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FORM I)iO. 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-80002S.

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RECOVERY CERTIFICATE UNDER SECTION 19(7)READ WITH SECTION 19m) OF THE RECOVERY OF DEBTS & BANKRIIPICvACI,_iH3, ASAMENDEDFROMTIME m TIME

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RC No. 30/20Z5

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¶76

Case No: OAlZl/2024

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In the Matter of: (CH- I) STATEBANK OF INDIA SME GULABBAGH BRANCH, PURNEA THROUGH THE STRESSED ASSETS RECOVERY BRANCH 2ND FLOOR, PATNA MAIN BRANCH BUILDING, WEST OF GANDHI MAlDAN, PATNA,BIHAR -80000 I

Applicant(s)

------ Versus ----

To,

(CD- I) MIS RAYANSH ENTERPRISES through its Proprietor Sri Abhishek Rathi, having its office/unit situated at Near Dumka Chowk Mohankunda, Gulabbagh. Purnia ,BIHAR -854326

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Defendant( s)

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(CD- 2) SRI ABHISHEK RATHI S/O- SUSHIL KUMAR RATHI, RESIDENT OF NEAR DAMKA CHWOK MOHANKUNDA, GULABBAGH, DlSTRICT- PURNEA- 854326.

¶84

y Certificate (or Rs 630688].41 [ Ru Three Lakhs SixThousand Eight Hundred. Efat): Tbree And Paise For!y One Qnly_j

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In terms of final order dated 29/01/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs, 6306883.41 along with cost, expensesand interest from the 03/01/2024 i.e. date of filing 1 with effective date of the OAl2112024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶86

[I , 18r.oo I	, CD Name	I iLoan ,Type	Int. Type/Mode	, Int. Rate	Effective Date	Order Date	iAmount(Rs.)	, Liability Type	:Interest i (as on , Order Date)	RC Am•• nt(Bs.) ^Remark
II I 11 I	MIS RAYANSH ENTERPRISES		Compound Interest Monthly)	13.40	_03/0_I_1202{ _	9/011202	, ! _5_16306883.41 -	Jointly And Severally	:lInterest [As on :Order iDate	16306883.41
if , i2 i	1 SRI ABHISHEK RATHI " ..... -~~--	" I	Compound nterest (Monthly)	! 13.40 i	0310112024_,_ "	29/011202	5,6306~~3.41	: I 'Jointly And Severally^I ,	Interest [As on ^Order Date	,6306883.41

¶87

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 certificatedebtors.

¶88

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 BankruptcyAct 1993.

¶89

Parties are directed to appear before ASHISH KUMAR. Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 10/03/2025.

¶90

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 amendedfrom time to time) from the above named CertificateDebtors.

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•

¶92

This Certificate has been issued under my signature and seal of the Tribunal on this 30/01/2025

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. _ . Registrar_ De.hts Recovery Tribunal P8.tllll

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PRESI~ER DEBTS RECOVERY TRIBUNAL PATNA

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•

¶96

FORM NO. 10 [See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

¶98

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

RC No. 30/2025

Case No: OAl2112024

Applicant(s): STATE BANK OF INDIA

¶104

Versus

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Defendant(s): MIS RAYANSH ENTERPRISES

¶106

ISr.No.....	· IItem of Costs . ..,---	[AmountinRs.
L ,.	j^{Fee on theapplication} - ..-_...•- -.---	~~O
[ ___.	.J^{Process Fees(Inc. Publication)} -'-"-'---'"	0
	. ___ Advocate Fees	0
	ComrnissionerlReceiver/ValuationiSecurityFee	0
15. . L	JMiscellaneol:lsCI:arlles ------.~ ..-- ,----.,...- ....•....•.•._...,.- I	0
L --.- ^_	.I ^{J[Total Costs: Rs.}... --- .-.. .._	166000

Place: PATNA

PRESIDING ~.

Date: 30/0112025

DEBTS RECOVERY TRIBUNAL PATNA

¶111

Note: Strike out whichever is not applicable

State Bank of India v. M/s Rayansh Enterprises

Case brief

What is this about?

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State Bank of India v. M/s Rayansh Enterprises

Case brief

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