Allowed

Punjab National Bank v. M/s Hotel Azim Palace

DRT3 Sept 2025OA/317/2024

Case brief

AI extract

What is this about?

The DRT determined the debt liability of borrowers and guarantors totaling Rs. 2.74 crore along with interest and costs, relying on the bank's certified account statements as evidence and issuing a recovery certificate.

What did the court decide?

Determined the debt to be Rs. 2,74,71,078.03 along with interest @ 10% p.a. from 03.06.2024 and costs; issued a recovery certificate.

Punjab National Bank versus M/s Hotel Azim Palace — Banking and Recovery | DRT (2025)

OA 317 of2024jJ]

DRT, PATNA

Debts Recovery Tribunal, Patna

¶6

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶7

Presiding Officer : Shri Kaushalendra Yadav

¶8

OA Case No. 317 of 2024

¶9

Punjab National Bank, Branch at Jamui Branch, District-Jamui.

¶10

.Applicant

¶11

¶12

M/s Hotel Azim Palace through its Proprietor Md. Ajimuddin, registered office at Khaira Road, Jamui Bihar, 811307 (Proprietorship Firm). ), GST No-lOAAQPU4683HIZB .

¶13

Md. Ajimuddin @ Shekh Mohammad Ajeem @ Md Ajim, Son of Mohd Sheikh Ismail, resident of Khaira Road, Jamui, District-Jamui, Bihar, Pincode-811307. (Proprietor/Borrower/Mortgagor). ), PAN NoAAQPU4683H.

¶14

Mrs. Nuresha Khatoon, wife of Md. Ajimuddin , Resident of Khaira Road, Jamui, District-Jamui, Bihar, Pincode-811307.(Guarantor/ Mortgagor ), PAN No-ACOPK2726H.

¶15

¶16

Mrs Shahjahan Khatoon, wife of Md. Ajimuddin, Resident of Khaira Road, Jamui, District-Jamui, Bihar, Pincode-811307.(Guarantor), PAN No-BAEPS9999F

¶17

. . . . . . . Defendants

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Present:

¶19

For the Applicant For the Defendants

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Shri Sachindra Kumar Tiwari, Advocate Shri Vikash Kumar Jha, Advocate

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Dated:03.09.2025

¶22

JUDGMENT

¶23

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 03.06.2024 against the defendants to recover its debts from defendants of Rs.2,74,71,078.03 as on 30.04.2024 along with pendente-lite and fUture interest at the contractual rate from 01.05.2024 with costs till realization.

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OA 317 of20241JI

DRTt PATNA

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.

¶29

Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 and 4 are the guarantors and also wife of defendant no.2

¶30

In the year 2018 the applicant bank has taken over the existing Term Loan facility as outstanding of Rs.193 Lakh availed from Bihar Gramin Bank, Jamui for setting up a New Multiple purpose Hotel cum Banquet Hall and purchase of equipment and other fixed assets for part of financial their upcoming project at Khaira Road, Bachjhiyar, Jamui. Defendant no.2 has desired to start and run M/s Hotel Azim Palace, and for said purpose, approached the applicant bank for sanction of Term loan facility of Rs.193 Lakh for smooth running of their aforesaid Hotel cum Banquet Hall business vide loan application dated 11.12.2018, which was sanctioned by the applicant bank on 29.12.2018 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 created equitable mortgage in favour of the applicant bank, details of which are given in OA.

¶31

Before availing the aforesaid facility, the defendant no.2 approached the applicant bank for sanction of Housing Loan facility as Term Loan of Rs.25 Lakh, which was sanctioned by the applicant bank on 29.06.2010 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 equitable mortgage in favour of the applicant bank, details of which are given in OA.

¶32

The defendant no.2 again approached the applicant bank for sanction of Overdraft facility (existing House Loan facility) as Term Loan of Rs.25 Lakh, which was sanctioned by the applicant bank on 14.02.2019 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

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OA 317 of2024jJI

DRT, PATNA

loan and security documents and also created equitable mortgage in favour of the applicant bank, details of which are given in OA.

¶39

The defendant no.2 further approached the applicant bank for sanction of fresh Term loan facility of Rs.50 Lakh for existing business, which was sanctioned by the applicant bank on 18.06.2019 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 equitable mortgage in favour of the applicant bank, details of which are given in OA.

¶40

The defendant no.2 again approached the applicant bank for sanction of Term loan facility of Rs.161 Lakh for existing business, which was sanctioned by the applicant bank on 22.01.2020 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 equitable mortgage in favour of the applicant bala, details of which are given in OA.

¶41

The defendant no.2 again approached the applicant bank for sanction of Term loan facility of Rs.53 Lakh (WCTL) for existing business, which was sanctioned on review cum restructure by the applicant bank on 08.06.2020 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 equitable mortgage in favour of the applicant bank, details of which are given in OA.

¶42

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 29.01.2024.

¶43

\h Presiding O ficer Debts Recovery Tribunal PATNA

DRT, PATNA

OA 317 of20241JI

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.

¶48

The total liability in the loan account is Rs.2,74,71,078.03 as on 30.04.2024 with pendente-lite and future interest contractual rate from 01.05.2024 till the realization.

¶49

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 25.06.2024, 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.

¶50

In response to the notice, the defendant no.2 has appeared on 29.07.2024 and other defendants on 20.12.2024 by filing their vakalatnama but no written statement was filed within the statutory period hence vide order dated 07.02.2025 opportunity for the same was closed. and again fresh vakalatnama has been filed on behalf of all the defendants on 02.08.2025 through their Id. counsel Sri Vikash Kumar Jha, Rebuttal evidence has also not been filed by the defendants despite opportunities hence vide order dated 04.08.2025 arguments of Id. counsel for the applicant was heard and the case was reserved for orders/judgment and further an opportunity of 15 days was granted to the defendants to file written notes of arguments.

¶51

A written note of arguments has been filed on behalf of the defendants admitting therein the loan facilities granted by the applicant bank to the defendants. It has been stated that the bank has wrongly and arbitrarily declared all the accounts as NPA and charged illegal charge. It has been further stated that the applicant bank auctioned the collateral assets of bearing Khata No.53, Khesara no.468 through e-auction on 16.07.2024 at the cost of Rs.33.06 Lakh, another property bearing khata no.53, khesara no. 461 at the cost of Rs.30.33 Lakh and other property, which was mortgaged in TL A/c no.204700NC000 13099 at the cost of Rs.78.86 Lakh on 16.07.2024, which are very much lower than the current valuation. Entire sale amount has not been adjusted in the loan account by the applicant bank. The defendants have

D.b=,,:#B PATNA

DRT, PATNA

OA 317 of 2024jJl

challenged the e-auction sale by filing SA 306 of 2024, which is pending before this Tribunal.

¶57

It has further been stated that the applicant bank has illegally, arbitrary and wrongly declared all six loan accounts as NPA w.e.f. 29.01.2024 and calculated penalty, interest and other charges against the defendants and sold the high value property on very much low price without even the current valuation report.

¶58

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 Girijesh Kumar, Chief Manager-cum-Authorized Officer of the applicant bank. The details of documents are as follows:

¶59

SI.No	Descriptionof Documents Photocopies	Date of Execution	Amount (in Lakh)	Signatur Executan	no e ts	Ann No.
1	Powerof Attorney /Authorization	05.04.2024		Bank
2	Registration Certificate			e
	LoanApplication	18.12.2018	193.00	Def no.	I &2.
	a	29.12.2018	193.00	Bank accepted No.1&2	and def. .
5	Hypothecationof AssetstoSecure Termloan Facility	29.12.2018	193.00	e
6	Agreementof Guarantee	29.12.2018	193.00	Defno.	3and4	6
7	Aphotocopiesof saledeed					7
8	photocopy/ true copyofSale Deed					8
	e	14.02.2019	25.00	Bank		9
	Sanctionletter	14.02.2019	25.00	Bank
	Agreement overdraft facility forHousing LoanBorrowers	15.02.2019	25.00	Def.no.I	&2.
12	PDRundertaking andConsent Clause	15.02.2019	25.00	Def.no.3	&4.	12
13	Agreementof Guarantee	15.02.2019	25.00	Defno.3	&4.	13
14	Sanctionletter	18.06.2019	50.00	a accepted no.1&2.	bydef.

¶60

Pr e s / d/ n g 1C 1SbIIIjIE • ?#A Debts RecoverY Tdbanal PATNA

OA 317 of20241J1

DRT, PATNA

15	PhotocopyofSale Deed				15
	Sanction Letter	23.01.2020	161.00	1Bank
	TermLoan Agreement	23.01.2020	e
18	r Guarantee	23.01.2020	e		18
19	A photocopy ofsale deeds				19
20	Demand Promissory Note	08.06.2020	53.00	Def.no.I &2.	20
	Master Agreement	08.06.2020	53.00	Def.no.I &2.
	r WorkingCapital Term Loan (WCTL)	08.06.2020	53.00	Def.no.I &2.
	RecallNotice	30.01.2024		Bank	23
	DemandNotice	18.03.24		Bank	24
	Statement of Accounts along with Certificate			Bank

¶65

Heard arguments and perused the case record.

¶66

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.

¶67

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.

¶68

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.

OA 317 of 2024jJI

DRT, PATNA

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 29.01.2024, whereas the present application has been filed on 03.06.2024. 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.

¶73

Shri Girijesh Kumar, Chief Manager-cum-Authorized Officer 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. In the affidavit, it has also been disclosed that some mortgage properties (detailed in affidavit) have been sold on 16.07.2024 through e-auction for total Rs.1,42,25,000/- and the same was adjusted in the defendants’ loan accounts.

¶74

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.

¶75

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.

¶76

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.

¶77

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 cert Wed 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.

¶78

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

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Presiding OBcer Debts Rec')vetY TdbullaI PATNA

DRT, PATNA

OA 317 of20241JI

account, more so since the entries in the statement of account have not been challenged.

¶84

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.

¶85

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 30.04.2024 has been proved to be Rs.2,74,71,078.03 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.

¶86

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.2,74,71,078.03 along with pendente-lite and future interest @ 10% p.a. simple from 03.06.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of Justrce.

¶87

ORDER

¶88

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.2,74,71,078.03 along with pendente-lite and future interest @ 10% p.a. simple from 03.06.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶89

It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.\4

¶90

Presiding O$ica Debts Recovery Tribuna) PATrVA

OA 317 of2024IJI

DRT, PATNA

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.

¶95

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.

¶96

Parties are directed to appear before the Recovery Officer, DRT, Patna on 13.10.2025. The order be communicated accordingly.

¶97

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

¶98

Dictated &corrected by me.

¶99

[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna Presiding 0 ficer 9 Sbts Recovery Tribunal PATNA

¶100

FORM NO. 9

¶101

DEBTS RECOVERY TRIBUNAL PATNA

¶102

[See Regulation 24( i )]

¶103

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

¶104

OVERY C'ERTIFI(,'ATE UND

¶105

’) R SEe’FI(i [ RECOVERY OF DEBTS & B UC .U9 ,M 'NI Tl

¶106

R(,'No.262/2025
IN CaseNo:OA/317/2024
In the Matter of:
(CH- 1) PUNJAB NATIONAL BANK BRANCH AT JAMUI BRANCH	Applicant(s)
JAMUI,BIHAR-81 1307
To. (CD- 1) M/S HOTELAZIM PALACE through itsProprietorMd. Ajimuddin,registeredofficeat khairaroad.
Jamui,BIHAR-8 11307

¶107

(CD- 2) MD. AJIMUDDIN ALIAS SHEKH
MOHAMMAD AJEEM ALIAS MD. AJIM
SONOFMOHD SHEIKH ISMAIL RESIDENTOF
KHAIRA ROAD, JAMUI, DISTRICT- JAMUI, BIHAR
PFNCODE- 811307,(PROPRIETOR/BORROWER)

¶108

Defendant(s)

¶109

(CD- 3) MRS. NURESHA KHATOON WIFE OF MD.AJIMUDDIN RESIDENT OF KHAIRA ROAD. JAMUI, DISTRICT- JAMUI, BnIAR PIN CODE811307 (GUARANTOR)

¶110

(CD- 4) MRS. SHAHJ AH AN KHATOON WIFE OF MD.AJIMUDDIN RESIDENT OF KHAIRA ROAD. JAMU I. DISTRICT- JAMUI, BIHAR PIN CODE-

¶111

811307 (GUARANTOR)

¶112

R£guvery Certificate for Rs 27471078.03 1 Rupees Two CrQr! Seventy FItur Lakhs S?venty One ThQvsand s S$vent)aght And Pai se Three Clnlv -1

¶113

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. 2747 1078.03 along with cost, expenses and interest from the 03/06/2024 i.e. date of filing / with effective date of the OA/3 17/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶114

	Int. iType/Mode	Int.	iEffective Date	Order Dat	lount(Rs.)	Liability Type	IC Amount(Rs.)
4/SHOTELAZIM .LACE	’early)				1078.03	And	7471078.03
EEM ALIAS MD. AJIM	}le rearly)				1078.03		:7471078.03
4RS.NURESHA HATOON				)3/09/2025	127471078.03	ly
dRS.SHA}UAHAN		10	/06/2024		:7471078.03	FointlyAnd ly	:7471078.03

¶115

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 certificate debtors.

¶116

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 1 993.

¶117

Parties are dircctcd to appear before ASHISH KUMAR , Recovery oniccr, DEBTS RECOVERY TRIBUNAL PATN A on 13/10/2025

¶118

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.

¶119

This Certificate has been issued under my signature and seal of the Tribunal on this 08/09/2025
a N /
PRMNG OFFICER
1n p h t S It :fJ !!:Vai T i b U n a 1
PatTIa

¶120

FORM NO. 10

¶121

[See Regulation 24(2)]

¶122

DEBTS RECOVERY TRIBUNAL PATNA

¶123

2nd Floor, (A. B & F Wing) Karpuri Thakur Sddan, Kendriya Karamchari Parisar

¶124

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

¶125

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 262/2025

Case No: OA/317/2024

Applicant(s): PUNJAB NATIONAL BANK Versus

¶130

Defendant(s): M/S HOTEL AZIM PALACE

¶131

	Item ofCosts	.mountinRs
	Fee on the application	150000
2	}rocessFees(Inc.Publication)	ro
	AdvocateFees	[0
	Commissioner/Receiver/Valuation/SecurityFee	ro
5	s	[0
	no1Cost;R	150000

Place: PATNA

\ /

PRESIDINvG OFFICER

Date: 08/09/2025

DEBTS RECOVERy TRiBUNAL PATNA

¶137

Note: Strike out whichever is not applicable

¶138

PresIding oflow DebB Recovery TribwnJ PATNA

Punjab National Bank v. M/s Hotel Azim Palace

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Hotel Azim Palace

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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