Allowed

State Bank of India v. Rajesh Kumar

DRT2 Apr 2025OA/349/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Bank's application to recover dues for an unsecured term loan. The defendant did not appear, and the Tribunal passed an ex-parte order determining the debt amount of Rs. 61,37,137.12 based on bank statements and a recovery certificate.

What did the court decide?

Recovery certificate issued to appellant for Rs. 61,37,137.12 with interest @ 11.25% p.a. and costs of Rs. 64,000.

State Bank of India versus Rajesh Kumar — Execution and Attachment | DRT (2025)

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DRT,PATN1

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadao, Aashiaoa Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 349 of 2024

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State Bank of India, Bihar Sharif Branch, through the Stressed Assets Recovery Branch, 2nd Floor, Patna Main Branch Building, West of Gandhi Maidan, Patna

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....... Applicant

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Vs.

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Rajesh Kumar, s/o Late Kamta Prasad, resident of 172, Nalanda Colony, Uttar Bhag, Ramchandrapur, Bihar Sharif, Nalanda803101, PAN No. AYTPKD0790J

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....... Defendant

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Present:

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For the Applicant Shri Santosh Kr. Singh, Advocate For the Defendant None

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Dated:02.04.2025

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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 15.06.2024 against the defendant to recover its debts from defendant of Rs.61,37,137.12 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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The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to tile the suit through various branches including the applicant.

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Defendant approached the applicant bank for sanction of SRTO loan for purchasing of two units of Buses/chassis of Tata Motors Ltd. under the CGTMSE Scheme vide loan application dated 28.01.2021 and after due consideration of loan proposal for purchasing of two units of buses at a total cost (including cost of insurance and registration) of Rs.44.33 Lakh. The applicant bank has sanctioned Rs.66.00 Lakh vide sanction letter dated 18.02.2021 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities

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OA 349 of 20241JI

DRT, PATNA

defendant has executed vanous loan and security documents and also hypothecated the vehicles in favour of the applicant bank, details of which are given in OA.

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It has further been stated that the defendant had also availed a term loan of Rs.24.75 Lakh; while executing the arrangement letter, the outstanding of Rs.15.41 Lakh has been mentioned in the arrangement letter dated 18.02.2021 under the heading of Term Loan-I and thus total of fund based limit is Rs.81.4l Lakh.

¶23

It has further been stated that the on 07.02.2024, Term loan-l which is mentioned in the arrangement letter dated 18.02.2021 has been closed by the defendant hence claim of the bank is related to term loan-2 amounting to Rs.66 Lakh.

¶24

After availing the sanctioned credit facilities, the. defendant 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 22.10.2023.

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Since, the defendant 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.61,37,137.12 as on 30.04.2024 with pendente-lite and future interest contractual rate from 01.05.2024 till the realization.

¶27

This Tribunal issued summon/notice copies of application & paper book to the defendant by registered/speed post on 08.07.2024, requiring him to show-cause within 30 days of the service Vis 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993.

¶28

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OA 349 of20241JI

DRT,PATNA

Despite the service of registered summon/notice, the defendant has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant to defend the case, but he failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendant on 30.09.2024.

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To prove its case, the applicant Bank has referred varIOUScertified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Shashi Ranjan Cnoudhary, Chief Manager 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 Executants	of	Ex.! Ann. No.
1	Loan application	28.01.2021	66.00	Defendant		1
2	Letter of arrangement	18.02.2021	15.41 66.00	Bank accepted defendant	and by	2
3	Agreement of loan hypothecation	18.02.2021	66.00	Defendant		3
4	Agreement under PDR	18.02.2021	81.41	Defendant		4
5series	Quotation cum Proforma invoice	--	--	--		5series
6series	Invoice	--	--	--		6series
7series	RC books	--	--	--		7series
8	CERSAI Details	--	--	--		8
9	Legal notice	02.04.2024	--	Bank's adv.		9
10	Statement of account	--	--	Bank		10

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendant has 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.

¶37

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OA 349 of 20241J I

DRT.PATNA

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.

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II. It has been established that defendant is living and carrying on 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.

¶43

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 22.10.2023. whereas the present application has been filed on 15.06.2024. 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 oflimitation.

¶44

Shri Shashi Ranjan Choudhary, 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,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.

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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 section19bythe applicant.

OA 349 of 20241JI

DRT,PATNA

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 '.I' book shall in all legal proceedings be received as primafacie 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 hy law admissihle, hut 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.

¶53

On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendant has 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 defendant has executed various loan documents, as stated in the application and proved by aforesaid evidence, Defendant has neither denied the utilization of funds advanced by applicant bank nor has pointed out any specific error and discrepancy in the Statement of Account.

¶54

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.61,37,137.l2 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.

¶55

In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover from defendant of Rs.61,37,137.12 along with pendente-lite and future interest @ 11.25% p.a. with compounded monthly rests from 15.06.2024 (The date of filing of this OA) till realization. So the fmal 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 defendant. The defendant is hereby, ordered

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•

OA 349 of20241JI

ORT,PATNA

to pay the applicant bank its debt amounting to Rs.61,37,137.12 along with pendente-lite and future interest @ 11.25% p.a. with compounded monthly rests from 15.06.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶64

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

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Defendant is debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the , applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993.The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Officer, The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendant, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 12,05,2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 02 nd day of April, 2025,

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Dictated &corrected by me.

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!- [KaushalendraYadav1 Presiding Officer Debts Recovery Tribunal, Patna .. ::;. OffiCII DebL ~. !~y Triliul1aJ

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i ••• .I.-.i.>iA

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FORM NO. 9 [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor. (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(1)READ WITH SECTION 19(W OF THE RECOYERY OF DEBTS & BANKRUPTCY ACT. 1m. AS AMENDED FROM TIME TO TIME.

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BC No. 6212025

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IN Case No: OAl349/Z0Z4

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In the Mutter of: (CH- I) STATE BANK OF INDIA BIHAR SHARIF BRANCH THROUGH THE STRESSED ASSETS RECOVERY BRANCH 2ND FLOOR, PATNA MAIN BRANCH BUILDING WEST OF GANDHI MAIDAN PATNA ,BIHAR -800001

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Applicant(s)

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

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To, (CD. I) RAJESH KUMAR. Late kamta prasad resident of 172, Nalanda Colony, Uttar Bhag, Ramchandrapur Bihar Sharif Nalanda ,BIHAR -80310 I

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Defendant(s)

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RecoverY. Certificate for Rs 6)37137,12 ( Rupees Six!y' (}oe I"akhs ThirtY. Seven Thousands One Hundred Ilill:ty Seyen And Paise T,'Veive OnIY_1

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In terms of final order dated 02/04/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum ofRs. 6137137.12 along with cost, expenses and interest from the 15/06/2024i.e. date of filing 1 with effective date of the OA/349/2024 and future interest from order date till the date of realisation in full, jointly or severallyfrom the Certificate Debtors, hereinafterreferredto as:-

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E i r.noi	II CD Name i :RAJESH IKUMAR i	~:~~n Typej	Int. Type/Modei Compound: Interest (Monthly)	i Int. Rate! i11.25! i J	Effective Date _15/06/2024 _ ~	02/04/2025 Order Date	.6137137.12 ; ~ i Amount(Rs.)	Fully Liability Type	Interest (as on Order Date) [lnteresr As on Order Date	RC Amount(Rs.) 6137137.12	i Remarki , I , I il

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In case of failure to pay the aforementionedadjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecatedassets as well as other personal movablel Immovableassets of the certificatedebtors.

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The mortgagedor hypothecatedassets to securethe loan in questionare hereby attachedand shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22)of Recoveryof Debts and BankruptcyAct 1993. Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 12/05/2025.

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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 FinancialInstitutions Act, 1993(as amended from time to time) from the above named CertificateDebtors.

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This Certificatehas been issued under my signatureand seal of the Tribunal on this 03/04/2025

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Reeistrar /::: "'. "
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Patna

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V PRESIDING OFFICER
DEBTS R&:OVERY TRIBUNAL PATNA
Pta'S", 0flit-' .. TT1DI1!&I Oao"•.".,,,e,, IAUlA

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FORM NO. 10

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24(2)]

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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. 62/2025

¶97

¶98

Case No: OAl349/2024

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Applicant(s): STATE BANK OF INDIA Versus

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Defendant(s): RAJESH KUMAR

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Sr. No.	tem of Costs	Amount inRs.
I..	Fee on the application	64000
2.	Process Fees(Inc. Publication)	0 ___j
3.	Advocate Fees	0
4.	issioner/Receiver/Valuation/Security Fee	0
5.	Miscellaneous Charges	0
i	Total Costs: Rs.	64000

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Place: PATNA

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Date: 03/04/2025

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Note: Strike out whichever is not applicable

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PRESIDING~CER DEBTS RECOVERY TRIBUNAL PATNA f'rtJI,ullJ{. 0.11''''' 9!Pt. Jt",co..-ery T" ».•.,,," .-.,,A'M6

State Bank of India v. Rajesh Kumar

Case brief

What is this about?

What did the court decide?

State Bank of India v. Rajesh Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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