Allowed

State Bank of India v. M/s S.S Fashion Points

DRT17 Jul 2025OA/350/2024

Case brief

AI extract

What is this about?

The DRT allowed a Section 19 application filed by State Bank of India against two borrowers for recovery of Rs. 90,03,336. The Tribunal found the claim established by documentary evidence and afidavits, deeming accounts correct as not challenged. A recovery certificate was issued for execution.

What did the court decide?

Recovery order for Rs. 90,03,336 with interest from 20.06.2024; Recovery Certificate issued; mortgaged assets attached.

State Bank of India versus M/s S.S Fashion Points — Banking and Recovery | DRT (2025)

OA 350 of 2024jJ1

DRT, PATNA

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 350 of 2024

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

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,Applicant

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M/s S.S. Fashion Points (Borrower)

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M/s S.S. Trading Co., (Borrower)

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Through the prop. Sushma Rani, (PAN No.BXBPR3496N), W/o Sri Shailendra Kumar Singh, At- Hari Complex, PNB Building, Sasaram,

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P.O.- Sasaram, District- Rohtas- 821115 .

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Also at- Tetari, Sasaram, P.S.- Sasaram, District- Rohtas- 821115

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. . Defendants

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Present:

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For the Applicant For the Defendants

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Shri Ajit Pratap Singh, Advocate Shri Arun Kumar, Advocate Shri Aman Kumar, Advocate

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Dated : 17.07.2025

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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 20.06.2024 against the defendants to recover its debts from defendants of Rs.90,03,336/- as on 30.05.2024 along with pendente-lite and future interest at the contractual rate from 31.05.2024 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.

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3 . Defendant M/s S.S. Trading Co. approached the applicant bank seeking cash credit facility of Rs.17 Lakh vide loan application dated 07.06.2018, which was sanctioned by the applicant bank vide letter of arrangement dated 31.07.2018 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities

OA 350 of 20241JI

DRT, PATNA

defendants have executed various loan and security documents and also hypothecated the movables in favour of the appliqant bank.

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Same proprietress Sushma Rani, again approached the said branch, being the proprietress of M/s S.S. Fashion Points seeking Cash Credit of Rs.50 Lakh vide loan application dated 21.10.2019, which was sanctioned by the applicant bank vide letter of arrangement dated 24. 10.2019 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 hypothecated the movables in favour of the applicant bank.

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At the request of the borrower, the applicant bank has also sanctioned a sum of Rs.3.25 Lakh vide arrangement letter dated 02.06.2020, FITL facility of Rs.5 Lakh vide arrangement letter dated 30.06.2021 and another GECL facility of Rs.10 lakh vide arrangement letter dated 30.11.2021 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

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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 several assurances given by it to the applicant bank resulting in the account turning as NPA on 02.10.2023 .

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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.90,03,336/- as on 30.05.2024 with pendente-lite and future interest contractual rate from 31.05.2024 till the realization

OA 350 of 2024jJI

DRT, PATN A

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 09.07.2024, 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 .

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In response to the notice, the defendants have appeared and filed vakalatnama on 22. 10.2024 but have failed to file the written statement within the statutory period hence vide order dated 04.04.2025, opportunity to file the same was closed and they were given opportunity to file the rebuttal evidence. Same has also not been filed the defendants.

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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 by Shri Rajeev Kumar, Chief Manager of the applicant bank. The details of documents are as follows:

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SI.No	of Description Documents Photocopies	1 Date of Execution	IAmount 1 (in Lakh)	I Signature 1 Executa I	of nts	1Ex./ IAnn. INo.
	o		e
	PAN		e
	e arrangement		a	accepted defendants	by
4	Agreementofloan cum hypothecation	31.07.2018	e	as
	PDR	31.07.2018	e
	LoanaDDlication	21.10.2019	e
	Letter of arrangement	24.10.2019	a	accepted defendants	by
8	Hypothecation agreement	24.10.2019	e	r
	PDT	24.10.2019	e			9
	Letter arrangement of	02.06.2020	a			10
11	Suppl.agreementof loan cum hyDothecation	02.06.2020	e 3.25			11
12	FDI	02.06.2020	50.00 3.25	e
	Offer letter	21 .06.2021		Bank
	Letter arrangement o		5.00 50.00 3.25	Bank accepted defendants	and by
15	Offer letter	30.1 1.2021	10.00	k

OA 350 of20241JI

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	Letter arrangement no	10.00 5.00 50.00 3.25	Bank accepted defendants	116
	I loan cum hyDothecation	68.25	Defendants
18to21	Interest calculation chart andStatement of accounts			18to21
	Revival letter		Defendants
	Revival letter		Defendants

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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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It is fbrther 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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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.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 02.10.2023, whereas the present application has been filed on 20.06.2024. 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.

DRT, PATNA

OA 350 of 20241Jl

Shri Rajeev Kumar, 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.

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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 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 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.

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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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15 . 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

DRT, PATN A

OA 350 of 20ml

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 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 30.05.2024 has been proved to be Rs.90,03,336/- 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.90,03,336/- along with pendente-lite and future interest @ 10% p.a. simple from 20.06.2024 (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 Rs.90,03,336/- along with pendente-lite and future interest @ 10% p.a. simple from 20.06.2024 (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 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 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

OA 350 of 2024IJl

DRT, PATNA

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 30.08.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court OJI 17th day 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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FC)RBI NO. 9 [See Regulation 24( 1 )]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Kdrpuri Thakur Sadan. Kendrlyd Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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RECO\’ERY CERTIFICATE UNDER SECTION 19(2) READ WITH SECIION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No. 224/2025 IN

Case No: OA/350/2024

In the Matter of

(CH- 1) STATE BANK OF INDIA SASARAM BRAN('I-I THR(_)UCill TIIE STRESSED ASSETS RECOVERY BRANC Fl 2ND FLOOR PATNA MAIN BRANCH BUILDING WEST OF GANDHI MAIDAN PATN A .BIHAR -800001

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Applrcant(5)

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To (CD- 1) M/S S.S FASHION POINTS Through the Prop. Sushmu Rani, W’/o- SrI Shailendra Kumar SIngh. At. HarI C-omplex, PNB BuIlding, Susaran1,P.o.-Sasarum Rohtdli .BllIAR -821115 Also At TETARI, SASARAM. P.S.- SASARAM. DISTRICTROHTAS82 1 1 1 5

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Defendant(s)

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(CD- 2) M/S S.S. TRADING CO. (BORROWER) THR( )UCiFI THE PROP. SL;SHM A RANI. \V, O- SRI SHAILENDRA KUMAR SINCII I. AT. HARI COMPLEX, PNB BUILDING. SASARAM. P. C).SASARAM. DISTRICT- ROJITAS- 831115

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Also At

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TETARI, SASARAM. P.S.- SASARAM. DISTRICTROHTAS82 1 1 1 5

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Recover}:CcrtificJte for R1 9003336.W_I Rupees Ninety Lakhs Three Thousand Three Hundred Thirty Six Only_I

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In terms of final order dated 17/07/2025 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. 9003336.00 along with cost. expenses and interest from the 20/06/2024 i.e. date of filing / with efFective date of the OA/350/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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CDName	Loan Type	Int. I Type/I\lode	Int !Rate	Effective Date	Order Date	Amount(Rs.)	Liabilit PC	Interest (as0 Order Date)	RC FAmount(Rs.)	Remark
					17/07/’2025	[9003336,00	Jointly IAnd Severally	Interest As in Order !Date	13336
		imple Interest Yearly )		:o/06/2024	117/07/2025	)03336'00	lintly !!fnd

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In case of failure to pay the aforcnrcntioncd adiudlcatcd anlount within 30 days. same shall be recovered from the sale of the mortgaged/hypothecated assets as \cII as other personal movable/ Immovable assets of the certificate debtors

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Thc mortgagcd or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the UntIl order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993

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Panics arc directed to appear before ASHISH KUMAR . Recovery UHicer, DEBTS RECOVERY TRIBUNAL PATNA on 30/08/2025

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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 Financial Institutions Act. 1993 (as amended from time to tinlc) from the above named Certificate Debtors

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This Certificate has been issued under my signature and seal of the Tribunal on this 18/07/2025

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( X.' RegIstrar Debts Rec:very Tribunal \ PatIla

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PRESIDING OFFICER DEBTS RE('OVERY TRIBUNAL PATNA

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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 Sad,in, Kendriya Karamchari Parisar (GPOA),

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Ashiana Digha Road, Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE

!MEMO OF COSTS

RC No. 224/2025 IN

Case No: QA/350/2024

Applicant(s): STATE BANK OF INDIA Versus

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Defendant(s): M/S S.S FASHION POINTS

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	Item ofCosts	mountinRs
	Feeon the application	E93000
2	1	ro
3	c	0
	[	[0
	MiscellaneousCh les	[0
	Total Costs:Rs.	m9

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Place: PATNA

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Date: 18/07/2025

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PRESIDrNG OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

State Bank of India v. M/s S.S Fashion Points

Case brief

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State Bank of India v. M/s S.S Fashion Points

Case brief

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