Allowed

Hdfc Bank Limited v. Om Trading

DRT4 Apr 2025OA/325/2023

Case brief

AI extract

What is this about?

The DRT, Patna allowed an application by HDFC Bank to recover debts from defaulting borrowers, I. Om Trading and Raja Ram Prasad. The bank proved its case via affidavit and bank records while defendants remained absent. The Tribunal issued a determination order and Recovery Certificate.

What did the court decide?

Defendants ordered to jointly and severally pay Rs. 20,05,392.74 plus interest and costs; Recovery Certificate issued payable to HDFC Bank.

Hdfc Bank Limited versus Om Trading — Contract and Commercial Disputes | DRT (2025)

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OA 325of20231JI

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DRT,PATNA

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiaua Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 325 of 2023

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HDFC Bank Limited, branch office at 2nd Floor, Rajendra Ram Plaza, Exhibition Road, Patna 800 00 I

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....... Applicant

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Vs.

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I. Om Trading, through proprietorRaja Ram Prasad, Purani Godown, Haldi Wari Market, Near Ranchi Oil Agency, Gaya- 823001

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Raja Ram Prasad, S/O Uma Sharan Prasad, Rang Bahadur Road, Buudani Gali, Yadav Nivas, Piparpati, Gaya823001, PAN No. BGFPP6099E

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....... Defendants

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Present:

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For the Applicant Ms. Tanushri, Advocate For the Defendants None

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Dated:04.04.2025

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JUDGMENT

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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 28.06.2023 against the defendants to recover its debts from defendants of Rs.20,05,392.74 as on 10.05.2023 along with pendente-lite and future interest at the contractual rate from 11.05.2023 with costs till realization.

¶17

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.

¶18

Defendants approached the applicant bank for availing two credit card facilities of Rs.1.50 Lakh and Rs.1.55 Lakh. Thereafter, again on 27.06.2020, the defendants approached the applicant for availing business loan facility to augment working capital requirement to enable business unit to meet operating liabilities and restart/increase operations. The applicant bank sanctioned the loan facility amounting to Rs.l,469/- on 20.07.2020. At the request of the

¶19

t<"\ ,.,.,ili., 0 J!iC!tI, Oebts Recovery Trtu n '" rAT,""

OA 325 of20231JI

DRT,PATNA

defendants, the applicant bank has also sanctioned Rs.20,II ,250/- on 22.12.2021 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

¶24

It has further been stated that prior to availing these facilities, the defendants also availed Business Loan of Rs.IO.19 Lakh, Top Up loan of Rs.2.10 Lakh and another Top Up loan ofRs.20 Lakh.

¶25

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 02.01.2023.

¶26

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.

¶27

The total liability in the loan account is Rs.20,05,392.74 as on 10.05.2023 with pendente-lite and future interest contractual rate from 11.05.2023till the realization.

¶28

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 20.07.2023, requiring them to show-cause within 30 days of the service VIs 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 III newspaper was also made against the defendants on 21.09.2023 in "Dainik Jagran" newspaper.

¶29

Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the case. Tho sufficient time has been given~~~da"" '0 M,"' their case,

¶30

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OA 325 of20231JI

DRT,PATNA

but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 29.01.2024.

¶35

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 Swapan Patra, Officer of the applicant bank. The details of documents are as follows:

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Sl.No	Description Documents Photocopies	of	Date of Execution	Amount (In Lakh)	Signature of Executants	Ex.! Ann. No.
1	Loan application		26.04.2019	--	Defendants	I
2	Schedule cum tact statement terms conditions,	key & and	--	Rs.I,469/-	Defendants	2
3	Loan applicati terms conditions,	on, and	09.12.2021	Rs.20,11,2S0/-	Defendants	1J
4	Loan recall notice		11.05.2023	--	Bank	4
5&6	Statement accounts	of	--	--	Bank	5 &6

¶37

Heard arguments and perused the case record.

¶38

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 Icompound 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.

¶39

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.

¶40

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,

¶41

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DRT, PATNA

OA 325 of20231JI

this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶47

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 02.01.2023, whereas the present application has been filed on 28.06.2023. 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.

¶48

Shri Swapan Patra, 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.

¶49

Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application uls S.l9 (I) shall be accompanied with true copies of all the documents relied on in support of the claim.

¶50

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 verification of the record sworn the affidavit in respect of the contents of the applicationand the documentsas evidence.

¶51

The rule 12 (II) of the aforesaid Rules, provides that the provisionscontainedin section4 of the Banker's Booksevidence that Act, 1891(18 of 1891)shall applyto a certitied copy of an entry in a Banker'SBooks furnishedalong with applicationtiled undersubsectionI of section19bythe applicant. Section 4 of Banker's Books evidence Act, 1891 runs as under- S.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 mailers, transactions and accounts therein recorded in every case where, and 10 the same extent as, the original entry itself is now hy law admissible, but notfurther or otherwise.

¶52

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

¶53

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OA 325 of20231JI

DRT. PATNA

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

¶58

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.

¶59

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 10.05.2023 has been proved to be Rs.20,05,392.74 only by way of statement of accounts/affidavit. 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.

¶60

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.20,05,392.74 along with pendente-lite and future interest @ 10%p.a. with compounded monthly rests from 28.06.2023 (The date of filing of this OA) till realization. So the final 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 and severally, ordered to pay the applicant bank its debt amounting to Rs.20,05,392.74 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 28.06.2023 (The date of filing of this OA) till realization of the 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, if not deducted.

¶64

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OA 325 of2023!J1

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/SubRegistrar 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 14.05.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 04 th day of April, 2025.

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Dictated &corrected by me.

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r-~ f "_ '1.;) [Kaus alendra Yadav 1 Presiding Officer Debts Recovery Tribunal, Patna Prult!J1,,'J 0 fJic'lr Debts Reco'(lC~n" Trn"l· PArJ,11..,;I.'

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FORM N() 9

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[See Regulation 24(1»)

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DEBTS RECOVERY TRIBUNAL. PATNA

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

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Digha Road. Patna-SOOO25.

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RECOVERY CERTIFICATE UNDER SECTION 19m READ WITH SECTION 19(W OF THE RECOVERY OF DEBTS & BANKRIJPTCY ACT,.l22l, AS AMENDEP FROM TIME TO TIME.

BC No. 10912025

Case No: OAl32512023

In the Matter of:

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(CH·!) HOFC BANK LIMITED BRANCH OFFICE AT2ND FL.OOR,RAJENDRA RAM PL.AZA,EXHIBITION ROAD, PATNA.BIHAR ·80000I

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Applicanus)

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------ Versus -------

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Tu, (CD. I) OM TRADING Through Proprietor Raja Ram Prasad. Purani Godown, Haldi Wari Market, Near Ranchi Oil Agency,

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Gay. ,BIHAR ·g2300 I

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Defendant(s)

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(CD- 2) RAJA RAM PRASAD

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SIO UMASHARAN PRASAD RANG BAHADUR ROAD, BUUDANI GAll YADAVNNAS PIPARPATIGAYA·823001

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~ Certifieate (ur Hs 2005322 74 (.....&IIP,e, TwentY. I.akh$ Five Thousand Three Hundred Ninety. Two And raise Sn:m..ty. Four Only' ]

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In terms of final order dated 04/04/2025 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. 2005392.74 along with cost, expenses and interest from the 28/0612023 i.e. date of filing 1 with effective date of the OAl325/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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. ISr.no	, ' ! ; CD Name , .	Loan Typo	InL Type/Mode	i Int. IRate	, Effective Date	Order Date	Amount(Rs.) !	Liability Type	Interest I (as on Order Date)	RC Amount(Rs.} ^Remark
I	'OM 'TRADING		. Compound ' Interest ,(Monthly)	10	_28/06/2023 _	04104/202	, 5^.2005392.14	Jointly And Severally	Interest As on Order Date	2005392.14
12	RAJA RAM' PRASAD	I	Compound Interest (Monthly)	JO	28/06n023	jo.!/04n025	2005392.14 !	ointly And Severally	Interest As onOrder Date	2005392.74

¶95

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.

¶96

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 10 appear before ASH ISH KUMAR, Recovery Otlicer, DEBTS RECOVERY TRIBUNAL PATNA on 14/05/2025.

¶97

The Recovery Otlicer shall realize the amount as per this Certiticate 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.

¶98

This Certificate has been issued under my signature and seal of the Tribunal on this 0510412025

¶99

c~~~ v
JU9iJtrar PRESIDING OFFICER
DEBTS RECOVERYlfe,"
,r, rribllnal

¶100

PRESIDING OFFICER DEBTS RECOVERYlfe," - ·1~.:)'78!",.7?r:.;·"'·"':- " r ._

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.... - ...

¶102

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

¶103

DEBTS RECOVERY TRIBUNAL PATNA

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

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶107

RC No. 109/2025

¶108

¶109

Case No: OAl325/2023

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Applicant(s): HDFC BANK LIMITED

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Versus

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Defendant(s): OM TRADING

¶113

ISr.No.	........__. IItem of Costs	Amount in Rs.
11.	IFee on the application	23000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0 I
14.	CommissionerlReceiver/ValuationlSecurity Fee	0
5. -	Miscellaneous Charges	0
I	IITotalCosts: Rs.	~23000 I

¶114

Place: PATNA

¶115

Date: 05/04/2025

¶116

PRE~ OFFICER DEBTS RECOVERY T~~~~ ~f,t,

¶117

Note: Strike out whichever is not applicable

¶118

,"., ',< ~ "

Hdfc Bank Limited v. Om Trading

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Om Trading

Case brief

What is this about?

What did the court decide?

What the court decided

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