Allowed

Bank of Baroda v. M/s Maa Sarswati Note Book Printers

DRT8 Apr 2025OA/369/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna, allowed an application filed by Bank of Baroda against a proprietorship firm and its guarantor for recovery of a defaulting loan. The defendants, absent after summons, failed to contest the bank's evidence of loan sanction and utilization. The Tribunal determined the debt principal as Rs. 22,15,214.38 plus interest and issued a Recovery Certificate.

What did the court decide?

Debt of Rs. 22,15,214.38 along with pendente-lite and future interest at 10.55% p.a. with monthly rests, costs, and attachment of mortgaged/hypothecated assets.

Bank of Baroda versus M/s Maa Sarswati Note Book Printers — Banking and Recovery | DRT (2025)

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OA 369 of 21i241.II

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DRT. PATrNA

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Debts Recovery Tribunal, Patna

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Karl)uri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 369 of 2024

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Bank of Baroda, branch office at- Nazareth Hospital. Mokanra. District- Patna. Bihar.

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M/s Mad Sdrswati Note Book Printers. its proprietor Mr. Mukesh Kumar. regjstered office at villageALlnta, TolaChandarbhan. MoItama, Paula, Bihar 803303

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Mr. Mukesh Kumar. S/o Rdnrchandra Yadav. R/o Ward No.9. Aunta Main Road. Near Mdhavir N4andir. P.S.- Hathidah. Aunta. Mokama. Paula. Bihar 8033303

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Mrs. Sandhya Devi. Wo Mukesh Kumar. R/o Ward No,9, Aunta Main Road. Near Maha'lr Mandir. P.S.- Hathidah, Aunta, MoItama, Patna Bihar 8033303

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. , . . . . . Defelrd tInts

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Present:

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For the Applicant Shri J\’oti Prakash. Advocate For the Defendants None

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Dated : 08.04.2025

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JUDGMENT

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1 . The Applicant bank has made this application u/s 19 of the Recover)- of Debts and Bankruptc\’ Act. 1993 (here-in-after referred to as Act) on 04.07.2024 against the defendants to recover its debts from defendants of Rs.22.15.214.38 as on 30.04.2024 along u'ith pendente-lite and future interest at the contractual rate from 0 1 .05.2024 with costs till realization

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The application has been filed with the contention that the applicdnt bank. is a body corporate. carries on the business and is conlpetent to file the suit through various branches including the applicant.

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Defendant no. 1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 is the guarantor of the loan facilities.

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Presiding OOcn Debts RecovetY THbune1 yATN A

OA 369 of 20241.J 1

DRT. PATN A

Defendants approached the applicant bank for sanction of Term Loan of Rs.14.25 Lakh and Cash Credit of Rs.9.50 Lakh. vide loan application dated 13.09.2022. which were sanctioned by the applicant bank on 20.09.2022 under PMEGP on various terms and conditions. as stipulated in the sanction letter. \vhich \'ere duly accepted b)’ the defendants. To secure the loan facilities defendants have executed various loan and security documents and also hy-pothecated the movdbles/stocks in favour of the applicant bank.

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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 02.04.2024.

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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 dccount is Rs_22.15,214.38 as on 30.04.2024 with pendente-lite and future interest contractual rate from 01.05.2024 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 24.07.2024. requiring them to show -cause \'-ithin 30 days of the service LJ/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules. 1993.

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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 thev failed to appear and to file WS. hence. the Tribunal has passed an order to proceed ex-parte against the defendants on 17.09.2024.

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To prove its case. the applicant Bank hds refUTed various certified photocopies of documents before this Tribunal. The applicant bank has also

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DkT. PATN A

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OA 369 of 202+l.J I

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given evidence on affidavit by way of affiddvit by Shri Kamlesh Kumar. Branch Manager of the applicant bank. The details of docunrents arc as foIIou's :

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1Sl.No	Description Documents Photocopies		Date of Execution	Amount (in Lakh)	Signdture E\ecutants	of	FEx./ Ann No.
L 1	Sanction letter		IO 09.IC)ll	14.2 TL 9.50C’C	5Bank Faccepted 'def.no.2	an b)'	d1
l	Letterof proprietorship	sole	20.09.2022	--	Def.no.2
l -1	DPNote		m2–2––	-ni	–}–M&l
4	Letter of install	ment	14.12.2022	F 14.25	: Def.no.1&2
)	Letterofauthor	ity	20.09,2022	] ]4.25	Def.no,1&2
6	General form guarantee	of	–	–	Def.no.3
7	Letterofundert	aking	20.09.2022	23.75	Def.no.I &2
	Pon;erof Attorn	ey	20.09.2022	--	:Def.no.I&2
	Letter ofconti secuI-IIV	nuing	20.09,2022	23.75	!Def.no.l&2
10	Composite hypothecation aqreeITlellt		2009 IOla	23.75	Def.no.I&2		1 0
11	Declaration undertakincs authorit	euIll CU111	20.09,21)22	23.75	bc+'.iiI&2		11
jl	e entry	of	20.09.2022	23.75			jl
	Declaration			23,75	Def.no.3
	Confirmatio creation/extensi lrrorlqaqe	nof on ol	20ooIOll	23.75	Def.no.3
15	l		27.05.2024		Bank-s adv.		15
	l accounts/ foreclosure	of			Bank

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8 Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants ha'e taken the loan and utilized the same and also executed the 'arious loan documents to secure the loan. Further. submitted that the claim of the bank has been proved b)’ documentary evidence. All the transactions \ crc entered in the ledger of the loan accounts in the name of the defendant duly nlaintained 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 pernritted bv and do not run counter to the directives ol'Reser'e Bank of India.

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Vg~A

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t) e ID : :: : :Te :I! I :::tt1[1111b1) PA iN A

DRTq PATN A

OA 369 of 21)241.Jl

It is further submitted by Id. Counsel of applicant bank that there is no std)’ 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 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 pecuniall’ 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.(J4.2(J2+. u-hereas the present application has been filed on 04.07.2024. Even. it is counted for the purpose of Linritation. then it is established that the applicant bank has filed the case u’ithin the limitation period. As such. it is established that the present application has been filed u-eII within the period of linritation.

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Shri Kanllesh 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 pIe,ldings and documents of the applicant bank as stated above.

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Section 19(3 ) of the Recovery of Debts and Bankruptc}' Act. 1993 pro'ides that the application u/s S. 19 ( 1 ) shall be acconrpanied 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 nray act upon the aft-idavit of the applicant who is acquainted with the facts of the case or u-ho has on verification of the record sworn the affidavit in respect of the contents of the application and the docunlents 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 tIf- proof tIf' entries in bankers' books.–SIlb jocI tc) ItIC lu'tnisit ills ( if lllis Jc-/, a ccrlifit’d ct)PT CIf CUIT c11lr\’ ill cl Irtnllicr"s bt>t)k

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q\„A

DRT. PATN A

OA 369 of 20241.11

s}lclll ill all legal pt'tjcceclirlgs he received cls jwillla .fZlcit’ c\i(!c11cc c)f the cxistcllce t)f SIlcII clllr\’. crrlc] shall be tlcllllittccl v.s clidcllcc tIf tIte nlaTTcrs. trLtnsLICTions cold clcct}IltItS tllcrcin recorded ill ever' case \vIlert'. curd to the scInrc extent CIS. IIte t)rigillctl cnlr' ilst’I.f is //(irl' bv Icr\t cldntissihle. llnl noI f-uriller or oIIler\rise.

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As such the certified true copies of the documents are adnlissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statelnelrt ol account. nrore so since the entries in the slatelrlent of account have not been chat lenaed.

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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 repavnrent of loan amount \-ith interests etc.. the defendants have executed various loan documents. as stated in the application and pro'ed by aforesaid evidence. Defendants have neither denied the utilization of I'unds advanced b\’ applicant bank nor have pointed out an' 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.. \’as av,rited by the borro\ver under the agreed terms and conditions for re Ira'nlent u'ith interest. The balance amount till 30,0 4.2024 has been proved to be Rs.22.15.214.38 onI' by u-av of statement of accounts/ afl-ida\’it. There is nothing to prove the amount more than that disclosed in the aforenrentioned statement. As such this amount is recoverable till full ,Ind fin,11 realization of the clain1

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In lny vie\-. facts of the case stand proved b)- evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover from defenddnts jointly and severally of Rs.22.15,214.38 along u-ith perrdentc-lite and future interest [ cl~ 10.55% p.d. \'ith compounded nronthly rests from 04.07.2024 (The date of filing of this OA) till realization. So the final order nra\’ 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 allo\vcd and debt is determined \' ith costs against the defendants. The defendants are hereby jointly

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V@,,

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_ ,_ ..._ - ; . _- :/ rribu£Ki PAIMA

A -i

OA 369 of 20241 .J I

DRT, PATN A

and severally. ordered to pay the applicant bank its debt anlounting to Rs.22,15,214.38 along with pendente-lite and future interest 'a; 1 0.55'}h p.a. u’itIl compounded monthly rests from 04.07.2024 (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 cIe,lr that an' 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 otheru'ise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets \-ithout paying the aforesaid adjudicated dues to tIle applicant bank to secure the ends of justice. The nrortgaged or hypothecated assets to secure the loan in question are herc:b)’ 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 nra\’ submit the certified cop- 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 certificdte of recovery be dra\ll up forth\-ith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued. on the b,ISiS of the order of the Tribunal to the Recovery Officer. The Reco\’er)’ Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants. by sale of mortgage(I/ 11)'pothecated assets as \-eII as other personal nlovable/inlnrovable assets of the defendants.

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Parties are directed to ,IDpear before the Recover' Ol’ficer. DRI-. Palna on 19.05.2025. The order be communicated accordinglv.

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Judgment signed. sealed. dated and pronounced in the open court on 08tl' day of April, 2025.

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Dictated &corrected bY me

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r., "f,,/ [KaushalendraYadav] Presidi nq OI'ficer Debts Recovery Tribunal. Patna ;='t8 /!’-? © gtc@ E3cbb R3c3very TrLbt\ 1 , 1 P ;ii\T P I

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I-aRM NO. 9

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DEBTS RECO\’ERV TRIBUNAL I)ATN A

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[See Regulation 24( 1 )]

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:nd Floor. ( A. B & F Wing) Karpuri Thakur Sudan. Kendriya Karamchari Paris:lr (GPOA), Ashiana Digha Road, Patna-800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(Z) READ\-ITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993. AS Ai\IENDED FROM TIME TO TIME.

RC No. 141/2025

Case No: OA/369/2024

In the N'latter of:

(CH- 1) BANK OF BARODA BRANCH OFFICE AT NAZARETH HOSPITAL M UK AM A PATN A .BIHAR -803302

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Applicant(sI

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(CD- 1) N’I,'S 1\IAA SARS\VATI NOTE BUOK

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PRIF-rERS

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its Proprietor Mr. Mukesh Kumar. registered office at Village - Aulrtil, Told- C'handrabhan, Mokilmu Patna ,BIHAR -803303

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(CD- 2) MR. NIUKESH KUMAR

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S/C)- RAM('H ANI)RA YADAV. R/O- WARD NO.9. AUN'l-A bIAIN ROAD. NEAR MAHAVIR MANDllt, P.S.- HATHID AH. At JN-TA. MOK AMA. PATN A BIHAR- 803303

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Dc f'elrd tint( s )

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(CD- 3) MRS. SANDHYA DEVI

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\V/O- M UKESII KURt AR, R/O- WARD NO-9. AUN'l’A MAIN IIOAD. NEAR MAHAVll{ MANDllt, P.S.-

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HATHIDAH. AUNT,. MOKANI A. PATNA BIHAR-

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803303

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Recoverylil'tilic:Itc for Rs 2215214.38 1 Rupees Twenty TIvo Lakhs Fifteen Thousands T\to Hundred Fourteen And Pais£ Thirty Ejgjlt OnI\ I

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In terms of final order dated 08/04/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2215214.38 along with cost, expenses and interest from the 04/07/2024 i.e. date of tilinu / with effective date' of the OA/369/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Cellificate Debtors. hereinafter referred to as:-

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CDNanrc	Int „'Typ./M„d,	IIIt. IR,t.	Order Date
MSXIAA ARSWATI BOOK PRINTERS	'Olll Monthly )	10.55			FI)intly And :verally	lterestAs Order IDatc	1215214.38
MIt.b'IUKESH KUMAR		:0.55	./2025	5214.38	n		122 15214.38
MRS. SANDI-1\’A DEVI	Monthly)		F/2025	l22152 14.38	lntlyAlrd verally		15214.38

¶102

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well ds other personal movable/ Immovable assets of the certificate debtors

¶103

The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the anal- order under the recovery proceeding in pursuance of the Recovcry certificate issued under Section 19(22) ol Recovery of Debts and Bankruptcy Act 1 993.

¶104

Pilrties are clircctccl to appear bef'ore ASlllSll KUNI AR . Recovery Otlicer. DEBTS RECOVERY TRIBUNAL PATNA on 19/05/2025

¶105

The Recovery Officer shall realize the amount as per this Certificate ill 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 the above named Certificate Debtors

¶106

This Certificate has been issued under my signature and seal of the Tribunal on this 09/04/2025

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[' PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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CF PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA Registrar Debts Recovery TribunE! '' , ' i; ?' "=g o$"iCe? Patila tr,. bb ,\ec3very TribuiLhb 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 'Fhakur 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. 141/2025 IN

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Case No: OA/369/2tJ24

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Applicant(s): BANK OF BARODA Versus

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Defendant(s): M/S MAA SARSWAFI NOTE BOOK PRINTERS

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Sr. No	Item ofCosts	r
	Feeon the application	mo
2	ProcessFees(Inc. Publication)	,0
3	c	Dc
4	o	r)
5	s	[0
	Total Costs:Rs	m2

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Place: PATNA

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Date: 09/04/2025

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PRESIDIMOFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike ,Ut wt,i,h,v„ i, .,t ,pplicab1,

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' .-_ -. I’ ;:: '-- I ' ' : T P R.TNA

Bank of Baroda v. M/s Maa Sarswati Note Book Printers

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Maa Sarswati Note Book Printers

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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