Allowed

Punjab National Bank v. M/s Sangeeta Trader

DRT8 Jul 2025OA/347/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Punjab National Bank to recover Rs. 42 lakhs along with interest from borrowers and legal heirs of a deceased guarantor, verifying loan documents and bank records as prima facie evidence under Section 19 RDB Act.

What did the court decide?

Recovery of Rs. 42,00,750/- with interest at 9.15% p.a. jointly and severally from defendants; attachment of mortgaged properties; issuance of Recovery Certificate.

Punjab National Bank versus M/s Sangeeta Trader — Banking and Recovery | DRT (2025)

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OA 347 of 2012IJI

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DRT,PATNA

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

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 347 of 2022

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Punjab National Bank, branch office at Dehri On Sone, Dehri, DistrictRohtas

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....... Applicant

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Vs.

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I. MIs Sangeeta Trader, a proprietorship concern through its proprietor Sangeeta Kumari, Village- Makrain, P.O.- Dalmianagar, P.S.- Dehri, Dehri On Sone, District- Rohtas- 821307

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Sangeeta Kumari, W/o Rajiv Kumar (PAN No.-DBRPK9895N),

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Basmatiya Devi @ Basmato Devi, W/o Jagdish Sah (Died during pendency)

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3A Ramesh Sah, S/o Jagdish Sah

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3B Ram Pravesh Sah, S/o Jagdish Sah

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3C Sanjay Sah, S/o Jagdish Sah

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3D Rajiv Kumar, S/o Jagdish Sah

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All residents of Village- Makrain, P.O.- Dalmianagar, P.S.- Dehri, Dehri On Sone, District- Rohtas- 821307

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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:08.07.2025

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JUDGMENT

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I. 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 06.06.2022 against the defendants to recover its debts from defendants of Rs.42,00,750/- as on 23.05.2022 along with pendente-lite and future interest at the contractual rate from 24.05.2022 with costs till realization.

OA 347 of 20221JI

DRT.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.

¶27

Defendant no.2 with an aim to run trading of food grains like rice smoothly in the name of defendant no.I being proprietorship concern approached the applicant bank for sanction of credit facility of Rs.30 Lakh vide loan application dated 01.11.2017, which was sanctioned by the applicant bank on 07.11.2017 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 mortgage in favour of the applicant bank, details of which are given in ~A.

¶28

Deceased defendant no.3 in order to secure the advance extended in favour of defendant no.l executed agreement of guarantee on 14.12.2017 and also created mortgage by deposit of her title deed bearing deed no.l5903 dated 26.08.1992 on 14.12.2017 along with land possession certificate and also an affidavit declaring therein her intention for creating charge over her property. Applicant Bank by letter dated 15.12.2017 acknowledged the factum of deposit of Deed No.15903 in order to secure the credit facility granted to Sangeeta Kumari.

¶29

Defendant no.2 by letter assured the applicant bank that she would clear the overdue amount and further requested for restructure the account. Accordingly, the applicant bank on 26.12.2019 restructured her proposal by converting the component of overdue amount of Rs.2.75 Lakh into term loan by opening an account bearing no.060700IC00000034, which required to be repaid within 60 months. As per directives of the RBI during covid pandemic Bank disbursed the mount of Rs.l,82,068/- to the CC account of defendant under CFITL Scheme which was availed by the defendants. Deceased defendant no.3 acknowledged the said credit facility and executed letter of continuity on 26.12.2019 confirming the security would continue for additional facility also. Defendant did not regularize the account but however, on 10.12.2020, the defendant no.2 approached the bank and acknowledged her liability by executing balance confirmation letter.

OA 347 of 20221J)

DRT,PATNA

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 31.03.2021.

¶34

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.42,00,750/- as on 23.05.2022 with pendente-lite and future interest contractual rate from 24.05.2022 till the realization,

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 30.07.2022, 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.

¶37

Notice sent to the defendant no.3 returned back with postal remarks "addressee died". Thereafter the applicant bank has moved an IA 249 of 2023 for impleadment of legal representatives of the deceased defendant no.3 and notice was issued to the proposed legal representatives on 03.07.2023. Since none has appeared hence the said IA was allowed on 09.02.2024. Again the notice was issued on 27.05.2024 & 20.08.2024. 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 in newspaper was also made against the defendant no.3A to 3D on 14.11.2023 in "Dainik Jagran" newspaper.

¶38

Despite the registered summons/notices and publication of notice in newspaper, the defendant no.3A to 3D have not appeared before this Tribunal to contest the case. The sufficient time has been given to them 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 15.04.2025. Despite the

OA347oflOlllJI

DRT.PATNA

service of notice, the defendant no.1&2 have also not appeared hence they are also proceeded ex-parte.

¶43

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 Ujjwal Prakash, Deputy Circle Sastra Head of the applicant bank. The details' of documents are as follows:

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SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature of Executants	Ex.! Ann. No.
I	Loan application	01.11.2017	30.00	Def.no.1&2 and deceased guarantor Basmatiya Devi	1
2	Detailed terms and condition of sanction	07.11.2017	30.00	Bank and accepted by Def.no.1&2 and deceased guarantor Basmatiya Devi	2
3	Hypothecation agreement	14.12.2017	30.00	Def.no.1&2	3
4	Agreement under BPDR	14.12.2017	30.00	Def.no.l&2	4
5	Agreement of tee	14.12.2017	30.00	Deceased guarantor Basmatiya Devi	5
6	Agreement under BPDR	14.12.2017	30.00	Deceased guarantor Basmatiya Devi	6
7	Letter indicating deposit of title deed	14.12.2017	30.00	Deceased guarantor Basmatiya Devi	7
8	Photocopy of sale deed	--	--	--	8
9	Affidavit	09.11.2017	--	Deceased guarantor Basmatiya Devi	9
10	Land possession certificate	18.10.2017	--	--	10
11	Letter acknowledging deposit of title deed	15.12.2017	--	Bank	11
12	Letter for restructure	--	--	Def.no.2	12
13	Sanction letter	26.12.2019	2.75	Bank and accepted bydef.no.2	13
14	Draft letter of continuity .	--	--	Deceased guarantor Basmatiya Devi	14
15	Notice	01.06.2020	--	Bank	16
16	Balance and security confirmation letter	10.12.2020	--	Def.no.l&2	16
17	Notice	20.03.2021	--	Bank	17
18	Recall notice	14.04.2021	--	Bank	18
19	Statement of accounts	--	--	Bank	19

OA 347or20221JI

DRT,PATNA

Heard arguments and perused the case record.

¶49

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.

¶50

It is further submitted by ld. 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.

¶51

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 31.03.2021, whereas the present application has been filed on 06.06.2022. 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

Shri Ujjwal Prakash, Deputy Circle Sastra Head 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.

OA 347 ofl022lJI

DRT.PATNA

Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application U/S S.19 (I) 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,providesthat if the defendantdenies his liabilityto pay the claim made by the applicant,the tribunal may 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.

¶59

The rule 12 (11) of the aforesaid Rules, provides that the provisionscontainedin section4 of the Banker's Booksevidence. that Act, 1891(18 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Booksfurnishedalongwith applicationfiled undersubsection1of section19by the applicant.

¶60

Section4 of Banker's BooksevidenceAct, 1891runs 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 legalproceedings 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 notfurther 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. 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.

¶63

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 23.05.2022 has been proved to be Rs.42,00,750/- only by way of statement of accounts.

•

OA 347 of 2022!J]

DRT,PATNA

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.

¶69

Since the defendant no.3A to 3D are the legal representatives of the deceased guarantor and mortgager BasmatiyaDevi hence the defendantn03A to 3D are liable to pay the dues of the applicantbank with interest and other legal chargesto the extentof inheritedpropertiesfromtheirdeceased.

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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.42,00,7501- along with pendente-lite and future interest @ 9.15% p.a. with compounded monthly rests from 06.06.2022 (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 herebyjointly and severally, ordered to pay the applicant bank its debt amounting to Rs.42,00,7501- along with pendente-lite and future interest @ 9.15% p.a. with compounded monthly rests from 06.06.2022 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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It is madeclearthatthe defendantn03Ato 3D are liableto paythe duesof the applicant bank with interest and other legal charges to the extent of inherited propertiesfromtheirdeceased.

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It is further 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

OA 347 ofl0221J1

DRT.PATNA

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 19.0S.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on OStbday of July, 2025.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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_,., 'T' ' ,

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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.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 20012025

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¶92

Case No: OAl347/2022

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Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): MIS SANGEETA TRADER

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Sr. No.	Item of Costs	Amount inRs.
I.	Fee on the application	45000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
4.	Commissioner/Receiver/ValuationlSecurity Fee	0
5.	Miscellaneous Charges	0
	Total Costs: Rs.	45000

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Place: PATNA

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Date: 09/07/2025

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PRESIDVoFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

¶100

\ __

¶101

DlpMNa! {See RetIIIItioo 24(1)1

¶102

DEBTSRECOVERYTRlBUNALPATNA 2DdFloor. (A. B.t F Wma) Katpuri lbakur Sadaa. Keadri.ya Karamcbari Parisar (OPOA). Asbiaaa 0ipuI Road. PIfDa.8<IOO2S.

• •

Be No.1OIII2OH

C... No: 0Al34712Ol1

In the Matterof:
(CR- I) PUNJABNATIONAL BANK
BRANCH OFFICE AT DEHRI ON SONE Applic:anl(l)
ROHTAS.BIHAR.(J

¶108

-- __ Versus • • To, (CD-I) MISSANGEETATRADER.

¶109

a proprietorship roocnn Ibro. its Pmpri«or SangccbI kumari
Village Maknin PO Dalmialllgar, PS Dchri on Sonc. Oehri
Robtas .8lHAR ..&21307

¶110

(CD-l) SANGEETAKUMARI WIO RAJIV KUMAR (PANDBRPK989SN) VILLAGE MAKRAfN PO DALMIANAGAR. PS DEHRI, DEHRI ON SONE, DISTRICT RUHTAS, PIN 821307

¶111

(CD- 3) BASMATIYADEVIALIAS BASMAlQ DEVI
(DECEASED)
LcpIHdr·'
RAMESHSAH
SON OF IAGDISH SAH, RESIDENT OF VILLAGE MAKRAIN.
P.O.-DALMIANAGAR, P.S.-DEHRI, DEHR) ON SONE,
l.oIII.Jkk:.1.
RAM PRAVESHSINGH
SON OF JAGDISH SAH. RESIDENT OF VILLAGE MAKRAIN.
P.O.-DALMIANAGAR, P.S.-DEHRI, DEHRI ON SONE.
Leal Heir']
SANJAYSAH
SIOJAGDISH SAH. RESIDENT OF VILLAGE MAKRAlN, P.O.-
DALMIANAGAR. P.S._DEHRI, ON SONE,
1.. 1"c!r'4
RAJlVKUMAR
S/O JAGDISH SAH. RESIDENT OF VILLAGE MAKRAIN, P.U.-
DALMIANAGAR, P.S.- DEHRJ. ON SONE,

¶112

Dcfendlull(s)

¶113

In terms of final order dated 08/01/2025 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 RB.4200750.00 along with cost, cxpcuses and interest from the 06/0612022 i.e. date of filing I with effeclive
date of the OAl34712022 and future interest from order date till the date of realisation in full, jointly or severa1ly from the Certificate Debtors,
hereinafter referred to as:-
... - CDNa_ .....Type I.t. 1)peIMode ... I.f, '" """""Oat. 0_ "".. Albo.al(Rl. ........Type 1.1:ereR (..Order Date) o. Amo•• RC f(Ib.} .... rl
, MISSANOIiliTATRADJ:iR ,Monthly)~pound Interest' ,9.15 06l06I2022 01/1)'12025 200750.00 ./otntly;SeverailyADd lructesl All ""'" """ 00 200750.00
SANGEETAKUMARI Monthly) ,.- 9.15 boIo'12025 200750.00 yAndSeverally IntaatAsonOrder Dale 200750.00
BASMATIYADEV) ALIAS
BASMATODE ". V
-r I
IAAMESHSAH
"n_,",
3 RAM PRAVESHSINGH ,(Monlhly)Compound Interest 19 ]5. """,,,.22 """12025 200750.00 'ScwrullyJointly And OrdefInterest As onDate 200750.00
~~
SANJAYSAH I
"n,' ,
I RAJIVKUMAR i

¶114

In case: of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of

¶115

the mortgagedlhypothccated assets as well aa 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 tmdcr the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. Partil'll are directed to appear before ASHISH KUMAR. R~'CO\leryOfficer, DEBTS RECOVERYTRIBl!NAL PATNA un 1910812025.

¶117

The: Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 2S to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time 10 time) from the above named Certificate Debtors.

¶118

It is made clear that the def~ntJantsoo.3A to 3D are liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from their deceased.

¶119

This Certificate has been issued under my signature and seal of the Tribunal on this 09107/2025

¶120

(}"" ..
Registrar
Dtbta Recovery Tribunal
PatDa

¶121

PR~GOFfICER DEBTS RECOVERYTRIBUNAL PAlNA

Punjab National Bank v. M/s Sangeeta Trader

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Sangeeta Trader

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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