Allowed

Canara Bank v. Rajesh Pandey

DRT2 Apr 2025OA/365/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Patna allowed an application filed by Canara Bank to recover a debt of approximately Rs. 46 lakhs from two borrowers who defaulted on a cash credit facility. As the defendants did not appear, the tribunal passed an ex-parte order confirming the debt and issued a recovery certificate.

What did the court decide?

Debt of Rs.46,11,104.32 with pending and future interest confirmed. Recovery certificate issued against defendants jointly and severally. Assets attached.

Canara Bank versus Rajesh Pandey — Banking and Recovery | DRT (2025)

DRT,PATNA

OA 365of20241J I

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

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 365 of 2024

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Canara Bank, BSEB Branch, Ramdayalu Nagar, P.S.- Sadar, P.O. + DistrictMuzaffarpur- 842002

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....... Applicant

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Vs.

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I. Rajesh Pandey, Son of Sri Jagamath Pandey, resident of villageHarpur Bakhari, Tarma, PO- Mirzapur, P.S.- Musahari, DistrictMuzaffarpur842003

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Smt. Ranjn Devi, wife of Shri Rajesh Pandey, resident of villageHarpur Bakhari, Tarma, PO- Mirzapur, P.S.- Musahari, DistrictMuzaffarpur842003

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....... Defendants

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Present:

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For the Applicant Shri Manoj Kumar, Advocate 'For the Defendants None

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Dated:02.04.2025

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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 02.07.2024 against the defendants to recover its debts from defendants of Rs.46,11,104.32 as on 18.06.2024 along with pendente-lite and future interest at the contractual rate from 19.06.2024 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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Defendants approached the applicant bank for sanction of cash credit facility of Rs.12 Lakh vide loan application dated 25.01.2016, which was sanctioned by the applicant bank on 25.01.2016 on vanous terms and conditions, as stipulated in the sanction letter, which were duly accepted by the _»<:_ v,,....I'> O..A..

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OA 365 of 20241JI

DRT.PATNA

defendants. To secure the loan facilities defendants have executed various loan and security documents.

¶26

Defendants again approached the applicant bank for enhancement of said cash credit facility ofRs.12 Lakh upto Rs.15.00 Lakh vide loan application dated 28.06.2016, which was enhanced/sanctioned by the applicant bank on 28.06.2016 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 oA. At the request of the defendants, the applicant bank has also sanctioned DPN loan of Rs.60,000/on 29.07.2017. The defendants have executed the acknowledgement of debt and security on 15.05.2019 and 10.03.2022 respectively.

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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 accounttuming as NPA on 28.08.2018.

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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.46,II, I04.32 as on 18.06.2024 with pendente-lite and future interest contractual rate from 19.06.2024till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 29.07.2024, requiring them to show-cause within 30 days of the service V/s 19 (4) of the Act & Rule of the DRT [Procedure1 Rules, 1993.

OA 365 of 20241JI

DRT,PATNA

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 27.09.2024,

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To prove its case, the applicant Bank has referred vanous certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Pratyush Kumar, Branch 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 of Executants	Ex.! Ann. No.
I	Loan application	25.01.2016	12.00	Defendants	I
2	Sanction letter	25.01.2016	12.00	Bank and accepted by defendants	2
3	Pronote	25.01.2016	12.00	Defendant no.I	3
4	Cash credit agreement	25.01.2016	12.00	Defendant no.1	4
5	Guarantee agreement	25.01.2016	12.00	Defendant no.2	5
6	Agreement under PDR	25.01.2016	12.00	Defendants	6
7	Loan application for enhancement	18.06.2016	15.00	Defendants	7
8	Pronote	28.06.2016	15.00	Defendant no.1	8
9	Suppl, agreement	28.06.2016	15.00	Defendant no.I	9
10	Cash credit agreement	28.06.2016	15.00	Defendant no.l	10
11	Request for od facility	28.06.2016	15.00	Defendant no.1	II
12	Guarantee agreement	28.06.2016	15.00	Defendant no.2	12
13	Agreement under PDR	28.06.2016	15.00	Defendants	13
14	Declaration	28.06.2016	15.00	Defendant no.2	14
15	Draft of LEDTD	28.06.2016	--	Defendant no.1	15
16	Photocopy of sale deed	16.03.2015	--	--	16
17	Letters of acknowledgement	15.05.2019 10.03.2022	--	Defendant no.l	17
18	Demand notice	10.05.2019	--	Bank	18
19	Legal notice	07.06.2024	--	Bank adv.	19
20	Statement of accounts	--	--	Bank	20

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DRT,PATNA

OA 365 of20241JI

8, 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 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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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 28.08.2018. The defendants have executed the acknowledgement of debt and security lastly on 10.03,2022, whereas the present application has been filed on 02.07.2024. 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 Pratyush Kumar, Branch 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.

DRT,PATNA

OA 365 of 20241JI

14, 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 defendantdenieshis 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.

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The rule 12 (II) of the aforesaid Rules, provides that the provisionscontainedin section4 of the Banker'sBooksevidence that Act, 1891(18 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Booksfurnishedalongwith applicationfiled undersubsectionI of section19bythe applicant. '

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Section 4 of Banker's Books evidence Act, 1891 runs as under- S,4, Mode of proof of entries in bankers' books.cSubjec: to the provisions of this Act, a certified copy of any entry in a banker's book shall in all/egal 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 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.

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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 18.06.2024 has been proved to be Rs.46,11,104.32 only by way of statement of accounts.

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DRT,PATNA

OA 365of20241JI

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.46,11,104.32 along with pendente-lite and future interest @ 12%p.a. with compounded monthly rests from 02.07.2024 (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.46,l1,104.32 along with pendente-lite and future interest @ 12% p.a. with compounded monthly rests from 02.07.2024 (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 Recovery Certificate before the RegistrarlSub- 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

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OA 365of20241JI

DRT,PATNA

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 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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[KaushalendraYadav 1 Presiding Officer Debts Recovery Tribunal, Patna P~,.,;Jjw~Offi ttlr Oebt!! .~~cOv"......Tribunal ..t.;»

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F(lRM N(l 9 [See Regulation24( I)J

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor.(A. B & F Wing) Karpuri Thakur Sedan. Kendriya KaramchariParisar (GPOA), Ashiana Digha Road. Patna-800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(1) READ WITH SECTION 19(mOFTHE RECOVERY OFDEBIS & BANKRIJPTCYACT •.ll2J. AS AMENDED FROM TIME TO TIME.

BC No. 7412025 IN

Case No: OAl36512024

In the Matter of:

(CH. I) CANARABANK BSEB BRANCH, RAMDAYALUNAGAR, P.S.· SADAR,P.O+DlSTRICT· MUZAFFARPUR,BIHAR ·842002

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Applicanl(s)

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

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To, (CD"I) RAJESH PANDEY. Sio Sri lagarnath Pandey Resident of Village- Harpur, Bakhari, Terma, POMirzapur, P.S.- Musahari, Muzaffarpur ,BIHAR -842003

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Defendanrts)

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(CD.2) SMT. RANJU DEVI WIFE OF SRI RAJESH PANDEY,RESIDENT OF VILLAGE· HARPUR BAKHARI.TARMA, PO· MIRZAPUR,PS· MUSAHARI, DISTRICT· MUZAFFARPUR842003.

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Recovery CertjficBte for R. 461J 104.32 L_BJ!~y' Six Lakbs Eleven Thousands One Hundred Four And raise ThirtY. Im!.i!JIJy_J

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In terms of final order dated 0210412025passed 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. 4611104.32 along with cost, expenses and interest from the 0210712024 i.e. date of filing 1 with effective date of the OAl36512024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to 3S:-

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iSr.n It	o CD Name , RAJESH PANDEY	Loan Type	Int TypelMode r-:0mpound Interest Mo~thly}	Int. Rate ! i 12 ..	Ettecnve Date _02/07/2024 _	Order Date 1°2104/2025	I, !Amount(Rs.) 4611104.32	Liability Type Jointly And Severally	Interest (as on Order Date) Interest As on Order Date	RC AmouDt(Rs.) ~611104.32	Remark
i2	SMT. I~ANJU DEVl	I	ompound Interest Monthly)	, i12 ,	02/07/2024	02/0412025 ,	~611104.32	Jointly 'And Severally	Interest As ~~'der te	f4611104.32

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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 movablel Immovable assets of the certificate debtors.

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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.

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Parties are directed to appear before ASHIS~ KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 12/0512025.

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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 time) from the above named Certificate Debtors.

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ThisCertificate has been issued under my signature and seal of the Tribunal on this 03/04/2025

¶101

PRESICER
(l}. DEBTS RECOVERYT!\IBUNU
Registrar ",,'11., UB'''·'
Debts RCCC<'lcryTribunal Oe})ta lteco"e'!'"f Trio •.••'
Patna ,AUlA

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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. 74/2025

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¶109

Case No: OAl365/2024

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Applicant(s): CANARA BANK

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Versus

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Defendant(s): RAJESH PANDEY

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Sr. No. .-	.- - tern of Costs .. ... - -.	[Amount inRs.
1.	Fee on the application _	[49000 I
2. .. _	____ Jcess Fees(Inc ..ubiction) .. -	I~ _I
3. _	Advocate Fees	[0 I
4..	ICommissioner/Receiver/Valuation/Security Fee	1[9 1
5.	Miscellaneous Charges	[0 I
[	ITotal Costs: Rs.	1[49000 1

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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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PRESID~CER DEBTS RECOVERY TRIBUNAL PATNA ,.,,,1•• , 0 lie.' oeb tl .&Co•• tT ,.~u.n.' 'AlMA

Canara Bank v. Rajesh Pandey

Case brief

What is this about?

What did the court decide?

Canara Bank v. Rajesh Pandey

Case brief

What is this about?

What did the court decide?

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