Allowed

Bank of Baroda v. M/s Narayani Traders

DRT29 Jan 2025OA/236/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Patna, dismissed the ex-parte application to recover a sum of Rs. 31,19,173/- along with interest from the respondents. The Court allowed the application, issued a Recovery Certificate, and attached the respondents' assets based on the bank's documentary evidence. H

What did the court decide?

Application allowed; Recovery Certificate issued for Rs. 31,19,173/- plus interest; Assets attached; Defendants debarred from disposing properties.

Bank of Baroda versus M/s Narayani Traders — Money Laundering | DRT (2025)

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OA 236 of 20231.1!

DRT,PATNA

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, 236 of 2023

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Bank of Baroda, Rambagh Branch, Kedar Nath Road, Kalyani, Muzaffarpur, 842001.

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....... Applicant

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Vs.

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1, MIs Narayani Traders, a Partnership Firm represented through its Partners Vikas Kumar Sharma & Shyam Sharan Sharma, Gurukripa Complex, Shukla Road, Purani Bazar, Muzaffarpur. PAN AALFN3223H

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2, Vikash Kumar Sharma, Slo Ram Sharan Sharma, Sahu Road, Mahapatra Lane, Musahri, Muzaffarpur, 842002, PAN - CAMPS4041 K

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1. Shyam Sharan Sharma Slo Govind Prasad Sharma, Sahu Road. Mahapatra Lane, Musahri, Muzaffarpur, 842002, PAN - CCEPS5372K

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....... Defendants

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Present:

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

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Dated:29,O I ,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 09.05.2023 against the defendants to recover its debts from defendants of Rs.31, 19, 173/- as on 11.03.2023 along with pendente-lite and future interest at the contractual rate from 12.03.2023 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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Defendant no.l is a partnership finn of which defendant no.2 & 3 are the partners. Defendants approached the applicant bank for sanction of cash credit limit of Rs.I0 Lakh vide loan application dated 31.01.2017, which was sanctioned by the applicant bank on 31.01.2017 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the

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DRT,PATNA

defendants. To secure the loan facilities defendants have executed various loan and security documents and also hypothecation the movables in favour of the applicant bank.

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Defendants approached the applicant bank for enhancement of cash credit limit from Rs.I0 Lakh to RS.25 Lakh, which was sanctioned by the applicant bank on 14.12.2018 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 hypothecation the movables in favour of the applicant bank. The applicant bank has also sanctioned Rs.4.96 Lakh under pre-approved BOB Guarantee Emergency Credit line scheme in order to meet out liquidity mismatch during Covid on 11.06.2020.

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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 05.12.2022.

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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.31, 19,173/- as on 11.03.2023 with pendente-lite and future interest contractual rate from 12.03.2023 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 22.05.2023, requiring them 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 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

OA 236 of 20231,11

DRT,PATNA

advertisement In newspaper was also made against the defendants on 23.09.2023 in "Dainik Bhaskar" newspaper.

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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 12.07.2024.

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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 Shashi Kant Kumar. Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann.
I	Loan Application with Id Proofs	31.01.2017	10.00	Defendants		~~- 1
2	Sanction letter	31.01.2017	10.00	Bank accepted defendants	and by	2
~ .)	Letter of Partnership	31.01.2017	--	Defendants		- - ~ .)
4	D. P. Note	31.01.2017	10.00	Defendants		4 -	I
5	Letter of Continuing Security	31.01.2017	10.00	Defendants		5
6	Composite Agreement	31.01.2017	10.00	Defendants		6	-I
7	Composite Hypothecation Agreement	31.01.2017	10.00	Defendants		7
8	Guarantee Agreement	31.01.2017	10.00	--		8
9	Loan Application	--	25.00	Defendants		9
10	Sanction letter dated	14.12.2018	25.00	Bank accepted defendants	and by	10
II	Letter of Partnership	14.12.2018	--	Defendants		11
12	D. P. Note	14.12.2018	25.00	Defendants		12
13	Letter of Continuing Security	14.12.2018	25.00	Defendants		13	I
14	Composite	14.12.2018	25.00	Defendants		14

OA 236 of 20231JI

DRT,PATNA.

15	Agreement Composite Hypothecation Agreement	14.12.2018	25.00	Defendants	15
16	Letter of Undertaking	14.12.2018	25.00	Defendants	16
17	Draft Undertaking	14.12.2018	--	Defendants	17
18	Power of Attomey	14.12.2018	--	Defendants	18
19	Offer Letter	11.06.2020	4.96	Bank and accepted by defendants	19 ,
20	Acceptance Letter	11.06.2020	4.96	Bank and accepted by defendants	20 -- -
21	D. P. Note	11.06.2020	4.96	Defendants	21
22	Letter of Instalment	11.06.2020	4.96	Defendants	22
23	Letter of Partnership	11.06.2020	4.96	Defendants	23
24	Loan cum Hypothecation Agreement	11.06.2020	4.96	Defendants	24
25	Composite Agreement	11.06.2020	4.96	Defendants	25
26	Undertaking Letter	11.06.2020	4.96	Defendants	26
27	Letter of Acknowledgement of Debt	20.11.202I	--	Defendants	27
28	Demand Notice	05.04.2022	--	Bank	- 28
29	Demand Notice	10,05.2022	--	Bank	29
30	Legal Notice	03.01.2023	--	Bank's adv.	-- 30
31&32	Statement of Accounts	--	--	Bank	31 & 32 - --

¶41

Heard argumertts 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.

OA 236 of20231JI

DRT,PATNA

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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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 05.12.2022. whereas the present application has been filed on 09.05.2023. Even. it is counted for the purpose of Limitation, then it is established that the applieant 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.

¶49

Shri Shashi Kant Kumar, 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.

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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,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 documentsasevidence.

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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 Booksfurnishedalongwith applicationtiled undersubsection1of section19bytheapplicant.

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Section 4 of Banker's Books evidence Act, 1891 runs as under- S,4. MtJdeof proof of entries in bankers' books.s-Subjectto the provisions of this Act. a certified copv of any entry ill a hanker ',1' book

DRT,PATNA

OA 236 of20231JI

shall in all legalproceedings he received as primafacie evidence of the existence of such entry. and shall he admitted as evidence of the matters, transactions and accounts therein recorded in every elise where. and 10 the same extent as. the original entry itself is now bv 11Iw admissible, hut 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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IS. 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 I 1.03.2023 has been proved to be Rs.31,19,l73/- 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.31,19,173/- along with pendente-lite and future interest @ 9.75% p.a. with compounded monthly rests from 09.05.2023 (The date of filing of this OA) till realization. So the tinal order may be passed accordingly, to meet the ends ofjustice.

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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

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OA 236 of 20231JI

DRT,PATNA

.and severally, ordered to pay the applicant bank its debt amounting to Rs.31,19,173/- along with pendente-lite and future interest (al 9.75% p.a, with compounded monthly rests from 09.05.2023 (The date of filing of this OAl 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. bc 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/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 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.

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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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[KaushalendraYadav1 Presiding Officer Debts Recovery Tribunal, Patna

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fOBMNO 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 Digba Road, Patna-800025.

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RC No. 2112025

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Case No: OAl236/2023

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In the Matter of: (CH- 1) BANK OF BARODA RAMBAGH BRANCH, KEDAR NATH ROAD, KALYANI, MUZAFFARPUR ,BiHAR -M2oo1

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AppUcant(s)

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---- versus..--

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To, (CD- 1) MIS NARAYANI TRADERS . represeoted through its Partner Vikash Kumar aod Shyam Sharan Sharma Gurukripa Complex, Shukla Road, Purani Bazar. Muzaffarpur ,.BIHAR -842002 (CD- 2) V1KASH KUMAR SHARMA S/O RAM SHARAN SHARMA, SAHU RoAD, Defendant(s) MAHAPATRA LANE, MUSAHRI, MUZAFFARPUR, R42oo2. .

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(CD- 3) SHYAM SHARAN SHARMA S/O GOVIND PRASAD SHARMA, SAHU ROAD, MAHAPATRA LANE, MUSAHARI MUZAffARPUR, R42002

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RecoverY.Certificate for as 3119173.00 I Rupees Thirty One Lakhs NlMieeO Thousapds ODeHnDdmi ScvcPtr. Dne Only_)

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In terms of final order dated 29/0112025 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. 3119173.00 along with cost, expenses and interest from the 09/05/2023 i.e. date of tiling 1 with effective date of the 0Al23612023 and future interest from order date till the ~ate of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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BeDN	.Ole	Loan Type -	laC Type/Mode	, Jnt. Ra.e	Effective ~ Date :	Order Date	AmouDt(Rs.)	.... ............ Liability Type	.... Interest (asoD Order Date)	RC AmouDt(Rs.)
1 . __	MIS NARAYAN! . Tl~~l?E.RS..	._... J .---	Compound Interest il\1y!ui_11,\J	~75 l	09/05/2023 , , I	29/0112025	3119173.00 l	ointly And Severally	Interestru ,^{on Order} Date	J119173.00
[V1K	ASH KUMAR ![SHARMA	_	• n.	} 75 .	'09/05/2023	29/01/2025	311917300	Jointly And IS~~~U	lnlerestAs on Order y^Date	3119173.00
EJI~H	YAM SHARAN ISHARMA	~	ond t y)	'975 : :	09/05/2023	29/0112025	311917300	Jointly And Severally	Interest.ru onOrder Date	3119173.00

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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 movable/ 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 10103/2025.

¶93

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 30/0112025

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G~'
k-'
Registrar
Debts Recovny Tribunal
Patn"

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PRE~R DEBTS RECOVERY TRIBUNAL PATNA

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

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DEBTS RECOVERY TRIBUNAL PATNA

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 2112025

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¶103

Case No: OAl236/2023

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Applicant(s): BANK OF BARODA

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Versus

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Defendant(s): MIS NARAYANI TRADERS

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/Fn" .". ISr.No.	tern of Costs	j~inRs
II. I.	Feeon the application ......-	. 4000
2.	£!"ocessFees(Inc. Publication)	0
3.		0
4.	~~ReceiverNaluatiOniSecurity Fee	0
5.	Mi~cellan.e.ousCharg_es.. ......	0
I· ... ---- [._.	1 - jTotal Costs: Rs. - . _	1134000

¶108

Place: PATNA

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Date: 30/0112025

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PRESID~ DEBTS RECOVERY TRIBUNAL PATNA

¶111

Note: Strike out whichever is not applicable

Bank of Baroda v. M/s Narayani Traders

Case brief

What is this about?

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Bank of Baroda v. M/s Narayani Traders

Case brief

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