Allowed

Central Bank of India v. M/s Patna Eatery and Beverages Pvt. Ltd.

DRT23 Jul 2025OA/369/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application to recover dues of Rs. 42,58,760/- along with interest and costs from five respondents, including directors of the borrowing company. The tribunal relied on documentary evidence and passed an order ex-parte against non-appearing respondents.

What did the court decide?

Joint and several recovery of Rs. 42,58,760/- plus pendente-lite and future interest at 10% p.a. simple from 27.07.2023 till realization, along with costs, against the defendants.

Central Bank of India versus M/s Patna Eatery and Beverages… — Banking and Recovery | DRT (2025)

DRT. PATNA

OA 369 of2023JI

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. 369 of 2023

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Central Bank of India, Frazer Road Branch, Police Station- Kotwali, Town and District- Patna 800001

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. . . . . . .Applicant

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M/s Patna Eatery & Beverages Pvt. Ltd., situated at House No.8, Kunti Kunj, Police Station- Rajiv Nagar, District- Patna- 800002

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Dr. Iqbal Jawed, son of Md. Jawed Aziz, resident of 5A/3 1, Sahay Sadan, Vevekanand Marg, North S.K. Puri, Police Station- Sri Krishna Puri, District- Patna- 800013 and resident of Block Road, Near Rahman Nursing Home, Motihari, Police Station- Motihari, District- East Champaran- 845401, PAN No.AVDPJ3087A

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Sri Abhishek Tiwari, son of Late Binod Shankar Tiwari, resident of Kanti Kunj, Road No. 1, East Patel Nagar, Police Station- Shastri Nagar, District- Patna 800023, PAN No.AEIPT0872M

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Sri Rajesh Sahay, son of Late Shashi Kant Sahay, resident of 5 A/3 1, Sahay Sadan, Vivekanand Marg, North S.K. Pun, Police Station- Sri Krishna Puri, District- Patna 800013, PAN No.AOUPS6266E

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Sri Ashish Mishra, son of Sri Ramesh Chandra Mishra, resident of Sarvamangla, Road No. 1, East Patel Nagar, near Gandhi Muni, Police Station- Shastri Nagar, District- Patna 800023, PAN No.ARFPM5238C

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Neeraj Kr. Singh, Advocate For the Defendant no.5 Shri M.K. Mishra, Advocate

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Dated:23.07.2025

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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 (#re-in-after referred to as Act) on

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27.07.2023 against the defendants to recover its debts from defendants of Rs.42,58,760/- as on 24.07.2023 along with pendente-lite and future interest at the contractual rate from 25.07.2023 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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Defendant no.1 is a Pvt. Ltd. company engaged in the business of restaurant and the defendant no.2 to 5 are the directors of the defendant no. 1 Company . Defendants approached the applicant bank for sanction of cash credit facility of Rs.6.50 Lakh and Term Loan of Rs.43.09 Lakh under Mudra Scheme vide loan application dated 25.10.2019, which were sanctioned by the applicant bank on 01.11.2019 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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On 26.06.2020, the defendant no. 3 and 4 applied for prevailing fund of C:ovid-19, of cash credit loan of Rs.8.16 Lakh, which was sanctioned by the applicant bank on 26.06.2020.

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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 30.09.2022.

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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.42,58,760/- as on 24.07.2023 with pendente-lite and future interest contractual rate from 25.07.2023 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 21.08.2023, 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. 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 defendants on 19.10.2023 in “Prabhat Khabar” newspaper.

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In response to the notice, the defendant no. 5 has appeared by filing vakalatnama on 03.11.2023 but despite the registered summons/notices and publication of notice in newspaper, the defendants no.1 to 4 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 no. 1 to 4 on 29.11.2023 .

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Defendant no. 5 has failed to file his written statement within the statutory period hence vide order dated 30.01.2024 opportunity to file the same was closed.

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Thereafter the defendant no.5 has filed an IA No. 343 of 2024 to recall the order dated 30.01.2024, whereby the opportunity to file the written statement was closed. As there is no provision under the RDB Act to enlarge the time to file the written statement beyond the period mentioned thereunder hence the IA cannot be allowed and the defendants were given an opportunity to file rebuttal evidence against the evidence filed by the bank in support of the OA

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The defendant no.5 has filed the rebuttal evidence stating therein that the applicant bank has not taken consents from the defendant no.5 for disbursement of term loan, cash credit facility and C:ovid-19 loan and no loan amount has \4*]

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been transferred or alienated in other account by the defendant no.5. Defendant no.5 has resigned from the post of Director on 08.08.2021. However, the defendant no.5 has denied his liability and further stated that the defendant no. 5 is not liable to pay any amount given to the defendant no. 1 and OA is not maintainable against the defendant no.5 .

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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 Ms. Swati KumaR, Senior Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description Documents Photocopies of	1 Date of Execution	I Amount 1(in Lakh)	I 1Executants	no	Ann No.
	Loanapplication	25.10.2019	49.59	Defno.I&2
	Loanapplication	25.10.2019	43.09 TL 6.50CC	Def.no.3
3	Loanapplication	25.10.2019	e TL 6.50CC			3
4	Loanapplication	25.10.2019	e TL 6.50 CC			4
5	Certificate regrstratron modification of for			ROC,Patna		5
	Resolution	04.10.2019	e
	Resolution	04.10.2019	e
	Sanction letter	01.11.2019	4 TL 6.50 CC	Iaccepted 1defendants	and by
	DPNote	01.11.2019	e			9
	Letter ofcontinuit'	01.11.2019	e
	Letterofwaiver		e
	e variation		e
13	Agreement hypothecation o		6.50	Defendants		13
14	Tir agreement		btJnV7	Defendants		14
15	Supplementary agreement	01.11.2019	49.59	Defendants		15
16	Guarantee	01.11.2019	49.59	Defendant 2,3,4&5	mr
17	Director-creditor cement	26.06.2020		Def.no.1,3&4		17
18to 20	-tatement of accounts			Bank		18to 20

q\i

OA 369 of 202:h

DRT, PATNA

Photocopy ofpostal receiDts
Legalnotice	20.04.2023	Bank adv

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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 loans 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 laos. 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 30.09.2022, whereas the present application has been filed on 27.07.2023. 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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13 . Ms. Swati Kumari, Senior 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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Defendant no.5 has denied his liability to repay the dues of the applicant bank with interest etc., but has not produced any document establishing that he is not liable to pay the dues of the applicant bank, whereas on perusal of the loan documents produced as above by the applicant bank, it appears that to secure the loan facilities granted by the applicant bank, the defendants including the defendant no.5 have executed various loan documents as well as guarantee agreement in the personal capacity also. Hence the defendant no.5 is also liable to pay the dues of the applicant bank with interest and other legal charges.

DRT, PATNA

OA 369 of 2023J]

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 24.07.2023 has been proved to be Rs.42,58,760/- 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.42,58,760/- along with pendente-lite and future interest @ 10% p.a. simple from 27.07.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of Justrce.

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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.42,58,760/- along with pendente-lite and future interest @ 10% p.a. simple from 27.07.2023 (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

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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 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 03.09.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 23rd day of July, 2025.

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D \

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Dictated &corrected by me.

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7'7

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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FOR$1 NO. 9

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24(1)]

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2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digha Roacl Patna-800025,

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RECOVERy CERTIFICATE UNDER SECTION 19(2) READ WITH SECTION 19(B) OF THE RECOVERY at DEBTS & BANKRUPTCy ACT, 1993, AS AMENDED FROM TIME TO TIME.

R(,' No. 243/2025

Case No: OA/369/2023

In the Matter of:

(CH- 1) CENTRAL BANK OF INDIA FRAZER ROAD BRANCH, POLICE STATION- KOTWALI, TOWN AND DISTRICT-

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Applicant(s)

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PATNA ,BIHAR -80000 1

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––Versus –-––

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To.

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(CD- 1) M/S PATNA EATERY AND BEVERAGES PVT

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LTD

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Situated at House no. 8, Kunti Kunj, Police Station- Rajiv Nagar, Patna ,BIHAR

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(CD- 2) DR. IQBAL JAWED

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SON OF MD. JAWED AZIZ, RESIDENT OF 5A/3 1, SAHAY SADAN VIVEKANAND MARG, NORTH S.K. PURI, POLICE STATION- SRI KRISHN A PURI, DISTRICT-

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PATNA 800013 AND RESIDENT OF BLOCK ROAD, NEAR RAHMAN NURSHING HOME, MOTIHARI, POLICE

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STATION - MOTIHARI DisTRicr- EAST CHAMPARAN PIN CODE- 845401

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(CD- 3) SRI ABHISHEK TIWARI

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SON OF LATE BINOD SHANKAR TIWARI. RESIDENT OF KANTI KUNJ, ROAD NO. 1, EAST PATEL N AGAR, POLICE STATION- SHASTRI NAGAR, D]STRICT-PATNA 800023

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Defendant(s)

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(CD- 4) SRI RAJESH SAYAY

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SON OF LATE SHASHI KANT SAHAY, RESIDENT OF 5 A/3 1. SAH AY SADAN. VIVEKANAND M ARG. NORTH S.K. PURI POLICE STATION - SRI KRISHNA PURI

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DISTRICT- PATN A 800013

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(CD- 5) SRI ASHIS MISHRA

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SON OF SRI RAMESH CHANDRA MISHRA. RESIDENT

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OF SARVAMANGLA. ROAD NO. 1. EAST PATEL NAGAR.

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NEAR GANDHI MURTI. POLICE STATION- SHASTRI

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N AGAR, DISTRICT- PATN A PrN CODE NO- 800023

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Recovery (,-crtit]cate for Rs 425l769.00 1 Rupees Forty TsvQ Lakhs Fiftyaght Thousand; Soxn Hundred Silt}Jm}J

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In terms of final order dated 23/07/2025 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. 4258760.00 along with cost, expenses and interest from the 27/07/2023 i.e. date of filing / with effective date of the OA/369/2023 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		R	R	Int(Rs	ji LTn©	Interest(as on Order Date)	RC Amount(Rs.)
F/ITN IEAItIth BEVERAGES PVT .TD	0	r/07/2023	r/2025	1()	Fuintly And	As on Date
DR.iQBALJAWED		r/07/2023 "''	"
UABHISHEKTIWARI	b		+		And IScTplly	As on : lcrDate	[258760
iIRAJESHSAYAY					M	l£qM1 Date	rOO
ASHIS MISHRA				[258760.00	1v/\IId lly	EM EOrdcr Date	r60

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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 mortgagcd/hypothccatcd assets as well as other personal movable/ Immovable assets of the certificate debtors.

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The mortgdgcd or hypothccatcd 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 issucd under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993

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Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 03/09/2025

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The Rccovcry Oniccr shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Rccovcry of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from thc above named Certificate Debtors

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This Certificate has been issued under my signature and seal of the Tribunal on this 24/07/2025

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t/. Debts i::El: it:4qr i b u n a 1 Patna

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA