Allowed

Canara Bank v. Ms Mangalam Water Products

DRT3 Sept 2025OA/294/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna allowed the bank's application under Section 19 of the RDB Act to recover a defaulted loan. Despite non-appearance by respondents, the tribunal adjudicated the debt of Rs. 31,48,407/- based on documentary evidence and issued a recovery certificate.

What did the court decide?

Debt of Rs. 31,48,407/- with interest determined; Recovery Certificate issued for realization; Attached assets subject to recovery.

Canara Bank versus Ms Mangalam Water Products — Execution and Attachment | DRT (2025)

OA 294 of 2024jJI

DRT, PATNA

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 294 of 2024

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Canara Bank, Branch Office at Sheikhpura Branch 2, Chandani Chowk, Sheikhpura, Bihar, Pin 811105 . . . . . . .Applicant.Applicant

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. . . . . . .Applicant.Applicant

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M/s Mangalam Water Products, a Proprietorship Concern through its Proprietor Avinash Kumar Mrithunjay S/o Pramod Kumar Singh [Borrower Firm], Village Jaimangla, P.O. Sirari, Sheikhpura , Bihar 811107

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Avinash Kumar Mrithunjay, S/o Pramod Kumar Singh [Proprietor/ Borrower] Village Jaimangla, P.O. Sirari, Sheikhpura, Bihar 811107 [PANBRVPM2858P]

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Pramod Kumar Singh, S/o Balmiki Singh [Guarantor/Mortgagor] Village Jaimangla, P.O. Sirari, Sheikhpura , Bihar 811107

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Amod Kumar Singh, S/o Balmiki Singh [Guarantor/Mortgagor] Village Jaimangla, P.O. Sirari, Sheikhpura , Bihar 811107

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Amit Kumar Sonu, S/o Amod Kumar Singh [Guarantor] Village Jaimangla, P.O. Sirari, Sheikhpura , Bihar 811107

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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 :03.09.2025

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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 24.05.2024 against the defendants to recover its debts from defendants of Rs.31,48,407/- as on 24.04.2024 along with pendente-lite and future interest at the contractual rate from 25.04.2024 with costs till realization.

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OA 294 of20241JI

DRT, PATN A

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.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 to 5 are the guarantors of the loan facilities. Defendants approached the applicant bank for sanction of cash credit facility of Rs.10 Lakh and Term Loan of Rs.20 lakh vide loan application dated 24.02.202 1 for running and establishing Water Bottling Plant, which were sanctioned by the applicant bank on 24.02.202 1 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 created registered mortgage in favour of the applicant bank, details of which are given in OA.

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Defendant no.2 was offered Rs.6 Lakh of credit facility by the Applicant Bank under pre-approved Guarantee Emergency Credit Line Scheme in order to meet out liquidity mismatch during covid on 07.12.2021. The said offer was accepted by the defendants on 07.12.202 1 and loan application was submitted for such facility. The said facility under GECL as Term Loan was duly sanctioned after appraisal on 07.12.2021.

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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 14.03.2024.

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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.31,48,407/- as on 24.04.2024 with pendente-lite and future interest contractual rate from 25.04.2024 till the realization

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VW;\ Presiding Of"icep Debts Recovery Tribunal PATNA

OA 294 of20241J1

DRT, PATNA

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 19.06.2024, 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.

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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 23.09.2024.

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

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Sl.No	of Description Documents Photocopies	1Date of Execution	IAmount I(in Lakh)	ISignature 1Executants	no	Ann No.
	Loan ADDlication			Def.no.&2
	a	24.02.2021	20.00 TL 10.00 WC	Bank accepte defendants	and dby
3	Request for OverdraftFacilit'	24.02.2021	10.00	Def.no.1&2		3
	Pronote	24.02.2021	e
	Composite Loan Agreement	24.02.2021	e
6	e Undertakin	24.02.2021	e			6
	r	24.02.2021	e			7
10	O letters andGuarantee Agreements	24.02.2021	e			8 to13
14	Photocopyofsimple MortgageDeed	07.02.2021				14
15	a hypothecated machineries	25.02.2021	e			15
16	Offer Letter	07.12.2021	6.00	Bank accepted def.no.I&2	and by	16
	AcceptanceLetter	07.12.2021	6.00	Def.no.1&2
	LoanApplication	07.12.2021	6.00	Def.no.1&2
	a	07.12.2021	6.00	Def.no.1&2

DRT, PATN A

OA 294 of2024jJl

	Agreement-cum' deedof hyDothecation	07.12.2021 6.00	1Def.no.I&2
21	UndertakingLetter	07.12.2021	Def.no.I&2
22	BPDR lent	07.12.2021	Def.no.1&2
23	v	15.12.2021	Bank
24	Overdue Notices	30.12.2022	Bank
25	Acknowledgement ofDebt andSecuri	03.01.2023	Def.no.I&2
	Notice	9
	DemandNotice	21.03.2024
	of Statement Accounts

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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.

¶48

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 14.03.2024, whereas the present application has been filed on 24.05.2024. Even, it is counted for the purpose of Limitation, then it is established that the applicant

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OA 294 of2024jJI

DRT, PATN A

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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Shri Sanjeev Ranjan, 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.

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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 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.

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q~ r,,,tding Of'c„ . Debb Rec ')v : Ty TlibMd PATNA

OA 294 of2024HI

DRT, PATNA

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 24.04.2024 has been proved to be Rs.31,48,407/- 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.31,48,407/- along with pendente-lite and future interest @ 11.75 % p.a. with compounded monthly rests from 24.05.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice. ORDER 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.3 1,48,407/- along with pendente-lite and future interest @ 11.75 % p.a. with compounded monthly rests from 24.05.2024 (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 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 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 294 of20241JI

DRT, PATNA

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. 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 13.10.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 03rd day of September, 2025.

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Dictated &corrected by me.

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~£

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[KaushalendraYadav] Presiding Officer

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

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DEBTS RECOVERY TRIBUNAL PATN A

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2nd Fluurl (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Pmi s;ar (GPOA), Ashiana Digha Road, Patnu-800025

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RECOVERy CERTIFICATE UNDER SEGTIQN 19(Z) REAP WITH SECTIQN 19(22) OF THE RECOVERY OF DEBTS a BANKRUPTCY ACTS W& AS AMENDED FROM TIME TO TIME.

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RC No. 260/2025 IN Case No: OA/294/2024

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In the Matter of: (CH- 1) C'ANARA BANK BRANCH OFFICE AT SHEIKHPURA BRANCH 2, Applicant(s) CHANDANI CHOWK.

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SHEIKHPURA,BIHAR -8 1 1 105

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–-–- Versus ––--To

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(CD- 1) MS MANGALAM WATER PRODUCTS a Proprictorship Concern through its Proprietor Avinash Kumar Mrithunjay S/o Pramod Kumar Singh Village Jaimungla, POSirari

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Shcikhpura,BIHAR -8 11107

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(CD- 2) AVINASH KUMAR MRITHUNJAY S/0- PRAMAOD KUMAR SINGH ( PROPRIETOR/BORROWER) VILLAGE JAIMANGLA, P.O.- SIRARI, SHEIKHPURA, BIHAR 811107

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(CD- 3) PRAMOD KUMAR SINGH S/0- BALMIKI SINGH (GUARANTOR/MORTGAGOR) Defendant(s) VILLAGE JAIMANGLA. P.0. SIRARI, SHEIKHPURA. BIHAR 811107

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(CD- 4) AMOD KUMAR SINGH S/0- BALMIKI SINGH (GAURANTOR/MORTGAGOR) VILLAGE JAIMANGLA, P.0. SIRARI. SHEIKHPURA, BIHAR 811107

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(CD- 5) AMIT KUMAR SONU S/0- AMOD KUMAR SINGH (GUARANTOR) VILLAGE JAIMANGLA. P.0. SIRARI, SHEIKHPURA, BIHAR 811107

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Recovery Certificate for Rs 314$407.00 1 Rupees Thirty One Lakhs Fort)aght Thou lands FQur Hundred Seven Only_I

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In terms of final order dated 03/09/2025 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. 3148407.00 along with cost, expenses and interest from the 24/05/2024 i.e. date of filing / with effective date of the OA/294/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶98

CDName	It.Type/Mod	Int.	Effective	Order Date	lount(Rs.)	Type	Interest(as Order Date)	LC R Amount(Rs.)
/ATERPRODUCTS	Test(Monthly I	11.75		'/2025	l3148407.oo		Ason	148407.00
bV1NASH KUN RITHUNJAY	(Monthly	111.75			148407.00	And	Ason	1+8407.00
ODKUMAR INGH	(Monthly	III.75	L/05/2024		148407.00
	(Monthly	}II.75			148407.00		InterestAson Date	1+8407.00
KUMARSONU	In;crest (Monthly	11.75	!4/05/2024	,/09/2025	13148407.oo		As on Order Date	148+07.00

¶99

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

¶100

The mortgagcd or hypothccatcd 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 certiticatc issued under Scction 19(22) of Recovery of Debts and Bankruptcy Act 1993

¶101

Parties are directed to appear before ASHISH KUMAR . Recovery Ofticer. DEBTS RECOVERY TRIBUNAL PATIVA on 13/10/2025

¶102

The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Rccovcry of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors

¶103

This Certificate has been issued under my signature and seal of the Tribunal on this 08,'09/2025

¶104

DEBTS RECOVERY TRIBUNAL PATNA Reg 6rar Debts Prestamg omcep Recovery Tribunal -\R Patna JebB Re;TTT£TILDL

¶105

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 Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

¶108

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 260/2025

Case No: OA/294/2024

Applicant(s): CANARA BANK Versus

¶113

Defendant(s): MS MANGALAM WATER PRODUCTS

¶114

	Item ofCosts	r
	Feeontheapplication	34000
9	r	ro
	AdvocateFees	ro
	Commissioner/Receiver/Valuation/SecurityFee	[0
5	:iscellaneousCharges	[0
	TotalCosts:Rs	34000

Place: PATNA

PRESIDING OFFICER

Date: 08/09/2025

Note: Strike out whichever is not applicable

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DEBTSREC(mWbWATNA

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DobB Recovery Tnbwl al PATNA

Canara Bank v. Ms Mangalam Water Products

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms Mangalam Water Products

Case brief

What is this about?

What did the court decide?

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