Allowed

Canara Bank (e- Syndicate Bank) v. Mr. Arshuddin

DRT8 Sept 2025OA/315/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed Canara Bank's application under Section 19 of the RDB Act to recover Rs. 36,35,647.57 from borrowers and guarantors who failed to appear. The Court adopted ex-parte evidence of ledger entries, determined the debt, and issued a recovery certificate. Assets were attached pending realization.

What did the court decide?

Recovery of Rs. 36,35,647.57 plus pendente-lite and future interest from respondents jointly and severally; attachment of mortgaged assets; issuance of recovery certificate.

Canara Bank (e- Syndicate Bank) versus Mr. Arshuddin — Contract and Commercial Disputes | DRT (2025)

DRT, PATNA

OA 315 of20241J1

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. 315 of 2024

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Canara Bank (e-Syndicate Bank), branch at Gyan Bharti Public School (GBPS) Branch Darbhanga, Laxmi Sagar, PO- Lalbagh, P.S.- Laheriasarai, District- Darbhanga

¶9

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Mr. Arshuddin, Son of Late Md. Iliyas Alam, resident at- Urdu Bazar, PO- Lalbagh, P.S.- Laheriasarai, DistrictDarbhanga- 846004 (Borrower/Mortgager)

¶11

Md. Amir Nezamuddin, Son of Late Md. Iliyas Alam, resident atUrdu Bazar, PO- Lalbagh, P.S.- Laheriasarai, District- Darbhanga846004 (Mortgager/Guarantor)

¶12

Md. Ziyauddin, Son of Late Md. Iliyas Alam, resident at- Urdu Bazar, PO- Lalbagh, P.S.- Laheriasarai, District- Darbhanga- 846004 (Mortgager/Guarantor)

¶13

Sabina Khatoon, wife of Late Md. Iliyas Alam, resident at- Urdu Bazar, PO- Lalbagh, P.S.- Laheriasarai, District- Darbhanga- 846004 (Mortgager/Guarantor)

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Nazre Alam, Son of Abu Zafar, resident of village- Bheriyahi, POKoyla Asthan, PS + District- Darbhanga- 846005 (Guarantor)

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Sanjeev Ranjan, Son of Sita Pati Sharan, resident at- K M Tank, POLalbagh, PS- Laheriasarai, District- Darbhanga- 846004 (Guarantor)

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. . Defendants

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Present:

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For the Applicant Shri Manoj Kumar, Advocate For the Defendants None

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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 31.05.2024 against the defendants to recover its debts from defendants of Rs.36,35,647.57 as on 28.05.2024 along with pendente-lite and future interest at the contractual rate from 29.05.2024 with costs till realization.

OA 315 of2024jJI

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.

¶26

3 . Defendants approached the applicant bank for sanction of Housing loan of Rs.7.42 Lakh for construction of house vide loan application dated 15.04.2012, which was sanctioned by the applicant bank on 22.06.2012 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 mortgage in favour of the applicant bank, details of which are given in OA

¶27

Defendants again approached the applicant bank for sanction of cash Credit loan of Rs.25 Lakh for working capital vide loan application dated 19.09.2016, which was sanctioned by the applicant bank on 10.03.2017 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/extended mortgage in favour of the applicant bank, details of which are given in OA. At the request of the defendants on 05.01.2022, the applicant bank has also granted GECL loan of Rs.2.40 Lakh on 05.01.2022. The defendants have also executed letters of renewal dated 29.06.202 1 and 28.11.2022 respectively.

¶28

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 21.03.2023 .

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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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p,Riding Oji„, Debts Recovery Tribunal PATNA

OA 315 of2024jJ]

DRT, PATN A

The total liability in the loan account is Rs.36,35,647.57 as on 28.05.2024 with pendente-lite and future interest contractual rate from 29.05.2024 till the realization.

¶35

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 01.07.2024, 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 20.09.2024.

¶37

Thereafter an IA No. 740 of 2024 has been by the defendant no.1 on 21.12.2024 to recall the order dated 20.09.2024 but vide order dated 10.02.2025 the said IA was dismissed due to non-presence of the defendant no.1 and the defendant was given liberty to file rebuttal evidence, if any, against the evidence filed by the applicant but the same has not been filed.

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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 Ms. Pratibha Kumari, Branch Manager of the applicant bank. The details of documents are as follows:

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Description Documents Photocopies	of	of 1Date Execution	ISignature Executants of
Housing aDDlication	o		Defendant
Letter ofsanct	ion	22.06.2012	Bank and accepted bydefendantsno.I to4
Housing agreement	loan		Def.no.1,2,4&5
I ment		25.06.2012	Def.no.5
PbR		25.06.2012	e

¶40

Presiding Oficar I)ebb Recovery TIa)ural PATNA

OA 315 of20241JI

DRT, PATNA

	PDR	125.06.2012	7.42	Def.no.5
	e		7.42	Def.no.1.&4
	o		25.00	Def.no.1
	e		25.00	Bank andaccepted bydef.no.1&6
9	Composite hypothecation agreement	10.03.2017	25.00	e
10	I agreement	10.03.2017	e		10
	PDR	10.03.2017	e
	PDR	10.03.2017	e
	Letter ofundertakinj	10.03.2017	e
	e defendants	10.03.2017	e
15	Photocopyofsimple mortgage deed with other relatedDaDers	06.03.2017			15
	Loan application	05.01 .2022	e		16
	Sanction letter	05.01.2022	k		17
	Undertaking	05.01 .2022	e		18
	Take delivery letter	05.01 .2022	e		19
	r deed of hyDothecation	05.01 .2022	e		20
	PDR	05.01.2022	e
	Letter ofrenewal	29.06.2021 28.1 1.2022	e
	Demand notice	23.03.2023
	Legal notice	6		I’Sadv.
	accounts			Bank

¶45

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.

¶47

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.

OA 315 of20241J]

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.

¶52

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 21.03.2023, whereas the present application has been filed on 31.05.2024. 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.

¶53

Ms. Pratibha Kumari, 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

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/f)NA Presiding Of'icet Debts Recovery Trlbun al PATNA

OA 315 of 2024jJ]

DRT, PATN A

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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15 . 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 28.05.2024 has been proved to be Rs.36,35,647.57 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.

¶66

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.36,35,647.57 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 31.05.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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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.36,35,647.57 along with pendente-lite and future interest @ 10% p.a. with

CVd\

OA 315 of 20241JI

DRT, PATNA

compounded monthly rests from 31.05.2024 (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 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 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. Qb$/ //

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Qb$/ // {/~~* [KaushalendraYadav] Presiding Officer Debti Recovery Tribunal, Patna Presiding Omcet Debb Recovery Tribuna PATNA

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Dictated &corrected by me.

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raBbI NO. g. [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 Kwamchni Pnisar (GPOA), Ashian3 Digha Road, Patna.800025

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RECOVERy CERTIFICATE UNDER SECTION iPr Z) READ WITH SECTION 19(nJ OF THE RECOVERY QF pEnT S & BANKRUPTCY ACTq 199])AS AMENDED FRO BI TIME TO TIME.

RC No. 302/2025

Case No: OA/315/2024

In the Matter of (CH- 1) CANARA BANK (E- SYNDICATE BANK) BRANCH AT GYAN BHARTI PUBLIC SCHOOL (GBPS) BRANCH DARBHANGA LAXMI SAGAR, PO- LALBAGH. PS- LAHERISARAI.

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Applicant(s)

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DARBHANGA .BIHAR -846004

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(CD- 1) MR. ARSHUDDIN S/o- Late Md. Iliyas Alam Resident at- Urdu Bazar, PO- Lalbagh, RS, Laherisarai, Darbhanga ,BIHAR -846004

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(CD- 2) MD. AMiR NEZAMUDDIN SON OF LATE MD. IL]YAS ALAM. RESIDENT AT- URDU BAZAR. PO- LALBAGH. PS- LAHERIASARI A. DISTRICTDARBHANGA PIN- 846004,

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(CD- 3) MD. Z]YAUDDIN SON OF LATE MD. ILIYAS ALAM. RESIDENT AT- URDU BAZAR. PO- LALBAGH. P.S- LAHERIASARAI. DISTRICTDARBHANGA. PrN-846004 (MORTGAGOR/GUARANTOR)

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Defendant(s)

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(CD-4) SABrNA KHATOON WIFE OF LATE MD. ILIYAS ALAM. RESIDENT AT- URDU BAZAR, PO- LALBAGH, P.S- LAHERIASAIU\I, DISTRICTDARBH ANG A- 846004 (MORTGAGOR/GUARANTOR )

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(CD- 5) NAZRE ALAM SON OF ABU ZAFAR. RESIDENT OF VILLAGEBHERIYAHI. PO- KOYLAASTHAN. PS+ DISTRICT. DARBHANCI A- 846005.

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(CD- 6) SANJEEV RANJAN SON OF SITA PATI SHARAN. RESIDENT AT- K M TANK. POLALBAGH, PS- LAHERJASARAI, DISTRICT- DARBHANGA-

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(GUARANTOR)

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Rt£overy Certificate for Rs 3635647,57 l_Rgpw s Thirty Six Lakh s Thirty Five Thou lands Six HDndr£a Forty Seven And Pai$$ Fifty Seven OnI)=1

¶101

In terms 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 to recover a sum of Rs. 3635G+7.57 along with cost, expenses and interest from the 31/05/2024 i.c. date of filing / with efTective date of the OA/315/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶102

CDName	Int.Type/Mode	Int. Rate		,mount(Rs.)	Type	Interest ( OrderDate)	bb Am
		O	L/05/2024	,5647.57
aD.AMIR DDIN				1647.57			-5647.57
D.ZIYAUDDIN				15647.57		'\StIn Date	5647.57
INA	Monthly )		1/05/2024	15647.57		As (in Date	;635647.57
rAZREALAM	Intcrcst M	10	1/05/2024	15647.57	>intly And	As on Date	;635647.57
	Interest Monthly )	10		1/09/2025 i3635647.57		As	,5647.57

¶103

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

¶104

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 Parties are directed to appear before ASHISH KUMAR . Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 20/1 o/2025

¶105

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, 1 993 (as amended from time to time) from the above named Ccrlincatc Debtors

¶106

This Certificate has been issued under my signature and seal of the Tribunal on this 11/09/2025

¶107

PRESIDING OFFICER DEBTS RECOVERY TRiBUNAL PATNA ( 1, Registrar Debts Recovery Tribunal Patna

¶108

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.

¶111

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 302/2025

Case No: OA/315/2024

Applicant(s): CANARA BANK (E- SYNDICATE BANK) Versus

¶116

Defendant(s): MR. ARSHUDDIN

¶117

Sr.No	[temofCosts	I
	'eeon the application	m3
	'rocessFees(Inc. Publication)	[0
3	,dvocateFees	ro
4	o	[0
5	s	[0
	'otalCosts:Rs	m3

¶118

Place: PATNA

¶119

Date: 11/09/2025

¶120

PRESID\ OFFICER DEBTS RECLY

¶121

Note: Strike out whichever is not applicable

Canara Bank (e- Syndicate Bank) v. Mr. Arshuddin

Case brief

What is this about?

What did the court decide?

Canara Bank (e- Syndicate Bank) v. Mr. Arshuddin

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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