Allowed

Bank of Baroda v. M/s Vansh Enterprises

DRT3 Apr 2025OA/333/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank of Baroda's application under Section 19 of the RDB Act to recover a debt of Rs. 95.02 Lakhs. Proceeding ex-parte due to defendants' absence, the Tribunal determined the liability and directed the issuance of a Recovery Certificate for sale of mortgaged assets.

What did the court decide?

Recovery of Rs. 95.02 Lakhs with interest; issuance of Recovery Certificate; attachment of mortgaged assets; direction to Recovery Officer for realization.

Bank of Baroda versus M/s Vansh Enterprises — Contract and Commercial Disputes | DRT (2025)

OA 333 of 20241.J I

DRT. PATN A

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

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 333 of 2024

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Bank of Baroda. branch at Exhibition Road. District- Patnd

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. . . . . . .Applicant

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M/s Vansh Enterprises through its proprietor Sri Paras Agar\val. Office at- Flat No.B-401. 4th Floor. Alankar Sun City Apartment. SandaIpur. Agamkuan. Patna- 800007. Bihar

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Sri Paras Agarwal, S/o Mohan LaI Agar\'al. resident of Flat No.B-40 1. 4th Floor. Alankar Sun City Apartment. Sanddlpur. Agamkuan, Patnd800007. Bihar

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Smt. Rjtu Agarwal, W/o Sri Paras Agar\val. resident of Flat No.B-401. 4th Floor. Alankar Sun City Apartment. Sandalpur. Agamkuan. Patna800007. Bihar

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Jyoti Prakash. Advocate For the Defendants None

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Dated : 03.04.2025

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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 12.06.2024 against the defendants to recover its debts from defendants of Rs.95.02, 162.18 as on 03.05.2024 along with pendente-lite and fUture interest at the contractual rate from 04.05.2024 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.

¶20

Defendants approached the applicant bank for sanction of cash credit facility of Rs.60 Lakh vide loan application dated 01.03.2014. which was sanctioned by the applicant bank on 01.03.2014 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

OA 333 of 202 Jl ,JI

DRT. PATN A

and security documents and also created equitable mortgage in favour of the applicant bank. details of u'hich are given in OA.

¶25

Defendants again approached the applicant bank for enhancement of cash credit facility of Rs.60 Lakh to Rs.90 Lakh vide loan application dated 08.12.2016. u'hich was enhanced by the applicant bank on 08.12.2016 on various terms and conditions. as stipulated in the sanction letter. \vhich \vere duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and also created/extended equitable mortgage in favour of the applicant bank. details of which are given in OA

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Defendants again approached the applicant bank for enhancement of cash credit facility of Rs.90 Lakh to Rs.150 Lakh vide loan application dated 01.06.2017. which n;,is enhanced bY the applicant bank on 01.06.2017 on various terms and conditions. as stipulated in the sanction letter, u-hich \vere duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and also created/extended equitable mortgage in favour of the applicant bank. details of which are given in OA. At the request of the defendants. the applicant bank has also sanctioned BGECL (WCTL ) of Rs. 13 Lakh on 25.05.202 1 .

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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 sever,11 assurances given by it to the applicant bank resulting in the account turning as NPA on 28.09.202 1

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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.95.02.162.18 as on 03.05.2024 with pendente-lite and future interest contractual rate from 04.05.2024 till the realization

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ti\ a

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PreF?/ FTa Omcet Debt_ - _ .b'In&J E'tl 1 LB A

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OA 333 of 20241.J I

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DRT. PATN A

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This Tribunal issued summons/notices copies of application & pdper book to the defendants b\’ registered/speed post on 05.07.2024. requiring them to sho\'cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules. 1 993.

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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 21.10.2024.

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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 b' Shri Kumar Gaurav. Chief Manager of the applicant bank. The details of documents are as follows :

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SI-N	''IDescriptionof Documents Photocopies	1 Date of Execution 1	Amoun (in Lakh)	tSignatur Executants I	eof	Ex./ Ann. No.
	LoanaDDlication	01.03.2014	60.00	Defendants
	Sanction letter	01.03.2014	60.00	Bank accepted defendants	and by
a )	Letter of sole proprietorship	01.03.2014		Defendant no.I&2		l-)
4	DPnote	01.03.2014		Defendant no.I&2		4
5	Letter ofcontinuing secUl-It'	01.03.2014	60.00	Defendant no.I&2		5
6		01.03.2014	60.00	Defendant no.l&2		6
7	Composite hypothecation agreenrent	01.03.2014	60.00	Defendant no.I&2		7
8		01.03.2014		Defendant no. I&2		8
	PDR	01.03.2014	e			9
	Declaration cum undertaking cum authorit'	01.03.2014	e			10
11	e !uarantee	01 .03.2014	60.00	Defendant no.2&3		11
12	e	01.03.2014	60,OO	Defendants		jl
	Takedeliveryletter	01.03.2014	60.00	Defendants
	Declaration	01.03.2014	60.00	Defendant no. I&2
15	Letter of	01 ,03.2014	60.00	Defendant		15

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q„\

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Pros: IInT Oficei

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Debts rb3 - J - 1-:y Tribtn8i } ,' i ,qA

OA 333 of 202 Jl.J I

DRT, PATN A

	confirmationof creation/extensionot nlOFtgage
16	ma lh iF	08.12.2016	90.00	Bank accepted defendants	and by	16
17	D P Note	08.12.2016	90.00	Defendant no.I&2		17
18	Letter of sole proprietol-ship	08.12.2016	90,00	Defendant no.I&2		18
19	Letter ofcontinuing securlt'	08.12.2016	90,00	Defendant no.I&2		19
20		08.12.2016	90.00	Defendant no.I&2		20
21	Composite hypothecation agreement	08.12.2016	90.00	Defendant no. I&2		21
')')	Powerof Attorney	08.12.2016	e	no.I&2		')’)
23	PDR Borrower	08.12.2016	e	no.I&2		23
Q4	Declaration cum undertaking cum authority	08.12.2016	e	no.I&2		24
	General formof guarantee	08, 12.2016	e
	Letter ofpledge	08.12.2016	e
	Takedeliveryletter	08.12.2016	e	no.I&2
28	Declaration	08.12.2016	e	no.I&2		28
99	Letter of confirnlationof creation/extensionof nlortgage	08.12.2016	e	no.I&2		o9
30	Loan application	01.06.2017	150.00	Defendant no. I&2		30
31	Letter of sole proprietorship	17.07,2017		Defendant no.I&2		31
3)	DP Note	17.07.2017	60.00	Defendant no.I&2		3 2
aa I)	Letter ofcontinuing securItY	17.07.2017	1 50.00	Defendant no.I&2		On _1_1
3 4		17.07.2017	150.00	Defendant no.I&2		3+
3S	Undertaking declaration CLlnl	17.07.2017	150.00	Defendant no.l&2
3 6	Declaration undertakings authorit C Llnl CUlll	17.07.2017	150.00	Defendant no.I&2		3 ()
3p/7	y PDRagreement	17.07.2017	e	no.I&2		37
3 8	Power ofAttorney	17,07.2017	e	no.I&2		38
3 ()	General formof guarantee	17.07,2017	e			3 ()

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r U„

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OA 333 of 202 Jl,JI

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DRT. PATN A

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	Takedeliverylettel	17.07.2017	150.0	0Defendants
	Supplemental conrposrte agreenlent of hypothecat ion	17.07.2017	e	no,I&2
	Letter of pledge	17.07.2017	e
	Declaration	17.07.2017	e	no.I&2
44	mo contirnration of creation/extension of mortgage		e	no.I&2		44
45	a		13.00 150.00	Bank accepted defendants	na by
46			13.00	Defendant no. I&2		46
47	Letter ofcontinuing securIty	25,05.2021	163.00	Defendant no.I&2		47
48	Loan cum hypothecation agreenlent	25.05.2021	163,00	Defendant no.I&2		48
		25.05.2021	13.00	Defendants
	e ruarantee of	25.05.2021	163 .00	Defendant no.2&3
51	e ofmortgage	25.05.2021	163.00	Bank Defendant no. I&2	an	51
50	Letter of acknowledgement of debt	19.12.2022		Defendant no.I&2
	Demand notice	03.01 .2022		Bank
	Legal notice	13.03 .2024		Bank'sadv.
	Statement accounts of			Bank

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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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Prcs??•rpI 'cet Debts :.= = - r -rT Triburi&I F;b'i*xIA

OA 333 of 20241.J I

DRT+ PATN A

It is further submitted by Id. Counsel of applicant bank thdt there is no sta; 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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11 . 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 Idcs. 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 Linritation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 28.09.2021. whereas the present application has been filed on 12.06.2024. 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.

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Shri Kumar (;aura'. 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. Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof of- entries in bcurkers' books.–SIth.jL’CI it) tIle prcnisions tIf this Act. a certified copy Qf cm) elltry ill a hculkcr's ht)t)k

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Debt3TT l-:Ifr?::maJ + hi IJ A

DRT. PATN A

OA 333 of 20241.J I

silull in all lcgcll proceedings be received as prima ftlcie eIitIL’ncc c)I the exislt’ncc c)f sucl1 enIm, cold shall be cldnlitted cls e\idellcc tif ItIL matTers. transacTions and accounTs therein recorded in ever' case \rllcrL’. utld to tIle sonIC extent CIS. the original emIr\ iTself is //(J It' by iLl\t tlclnlissible. but not further or other\rise.

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As such the cerlined true copies of the documents are admissible in evidence. The statement of account maintained in the ordinar\’ course ot business is not onIY 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 ,Ind 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 ha\’e executed various loan documents. as stated in the application and pro'ed 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 lo,in as mentioned in the O. A.. \’'as a\’ailed by the bon'ower under the agreed terms and conditions for repayment u'ith interest. The balance amount till 03.05.2024 has been proved to be Rs.95.02.162.18 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.95.02.162.18 along with pendente-lite and future interest rR. 10% p.a. with compounded monthly rests from 12.06.2024 (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

OA 333 of 202+1.1 1

DRT. PATN A

Rs.95.02.162.18 along \-ith pendente-lite and future interest kF 10% p.d. \''ith compounded monthly rests from 12.06.2024 ( 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 defenddnts, 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 anv 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 Bankruptc} 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 pro'isions 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 nrortgaged/ 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 13.05.2025. The order be communicated accordingly.

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

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Dictated &corrected by me

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dlendraYadav] ,- Presiding Officer I} Ie t S F:L I? (Ib? V 19 ry r T r 1+bb y4 11i ; F P a t 1 la Deb!_ :- -': '' - -'r v -'-)una y/I'l lq A

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rQRbl XO. 9 [See Regulation 24( 1 )]

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DEB’I’S IIE:CO' tRY TRIB U NAL PA’I’N A

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:nd Floor. ( A. B & F Wing) Karpuri Thakur Sudan, Kendriya Karamchari Parisur (GPOA), Ashiana Dil.IhU Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION

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19(Z) READ WITH SECTION 19( m OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS ABIENDED FRONI TIME TO TIME.

RC No. 83/2025

Case No: OA/333/2024

In the Nlattcr of (CH. I) BANK OF BARODA BRANCH AT EXHIBITION ROAD PATN A ,BIHAR -o

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Applicant(s)

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(CD- 1) M/S VANSH ENTERPRISES

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l’hrough its Proprietclr Sri Paras Agar\val, OII-ice at Flat ncl. B- 40 1. 4th Floor. Alankar Sun C'ity Apartnrcnt, Sanclalpur. AgaIn kualr. Putna ,BIHAR -8(J0007

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(CD- 2) SRI PARAS AGARWAL

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S/o- MOIiAN LAL AGAR\’AL. RESIDENT OF FLAT NU.B- 40 1 , 41-1-1 FLUUR. ALAN KAR SUN CIT\’ APAR’I'MENT. SANDALPU11, AGANIKUAN, PATNADc t'L'lrdunt(.s ) 800007, BIHAR

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(CD- 3) SMT. RITU AGAR\’AL

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\ /O- SRI PARAS AGARWAI_, RESIDENT OF FLAT

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NO.B= 401 , 4TFI FLOOR, ALANKAR SUN CITY

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APARTMENT, SANDALPU R, AGANI KUAN! PATN A- S( )0007, BIHAR

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Recover}£utiHcate fur Rs 9502 162.18 1 Rupees Ninety Five I,akhs T\yo Thousand One Hundred Sixty 1\yo And Paisc Eighteen Only

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In terms of linul order dated 03/04/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant CeniHcute Holder Bank is entitled to recover a sum of Rs. 9502 162.18 along with cost, expenses and interest from the 1 2/06/202+ i.e. date of filing / with effective date of the OA/333/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Ceailicate Debtors, hereinafter referred to as:-

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		Loall Type	In t. Type/1\lode	Int IRate	Effcctive Date	rnuunt(Rs.)	Liability Type	Interest (as Order () Date)	RC Amount(Rs.)
I i I	M/S VANSH FNTFRPRISES	i	lllterest Monthjy )	10	112/06/2024	ISC):162.18	ltlyAnd yerally	InterestAs Order	1502162.18
	SRIPARAS AGAR\VAL					12163.1S	lintlyAnd lly	InterestAs Order Date	162. ] 8
[	SMT.RITU AGAR\'AL		Monthly)		12/06/2024	H:163.18			i02162.18

¶107

In case of failure tu pay the aforenrentioned adjudicated amount within 30 days. same shall be recovered from the sale of the moltgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors

¶108

The lnortgaged or hypothec,ned assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovcly proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankluptcy Act 1993

¶109

Parties are directed to appear before I\IANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 13/05/2025,

¶110

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 Institutiuns Act. 1 993 (as amended from time to time) from the above nalncd Certiticate Debtors.

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This Certificate has been issued under mY signature and seal of thc Tribunal on this 04/04/2025

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Gb.
Registrar
Debts Recovery Tribuna!
Pairla

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PRESYING OFrlcER DEBTS RECOVERY TRIBUNAL PATNA Ptr:: ’';'~ Officer Debts :3 : :7377 THjyin&I lalig A

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U 4 n

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FORM NO. 10

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[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

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

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S CHE DU LE TO RECOVERY CERTIFICATE N'IEMO OF COSTS

RC No. 83/2025

Case No: OA/333/2024

Applicant(s): BANK OF BARODA

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Versus

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Defendant( s): M/S VANSII ENTERPRISES

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Item ofCosts	i Amount inRs
Fcc on the application	98000
ProcessFees(Inc. Publication)
AdvocateFees
Commissioner/Receiver/Valuation/SecurityFee
MiscellaneousCh:lrges
TotalCosts:Rs

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Place: PATNA

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PRESIDM OFFICER 1-)atc: 04/04/2025 DEBTS RECOVERY TRIBUNAL PATNA TI

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Note: StrIke out whIChever is not applicable

¶131

Dc= x x*h .. Ix„'

Bank of Baroda v. M/s Vansh Enterprises

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Vansh Enterprises

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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