Allowed

Bank of Baroda v. M/s Maa Durga Traders

DRT29 Jan 2025OA/37/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application under Section 19 of the RDB Act. Upon ex-parte hearing due to the default of respondents, the Tribunal determined the debt and issued a Recovery Certificate for liability adjudication.

What did the court decide?

Recovery certificate issued directing payment of Rs. 42,93,076/- with interest and costs; assets attached by Recovery Officer.

Bank of Baroda versus M/s Maa Durga Traders — Banking and Recovery | DRT (2025)

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OA 37 of20241,11

ORT. 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. 37 of 2024

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Bank of Baroda. branch at Rathore Bhawan. Swarajpuri Road. Main Branch Gaya, Police Station- Civil Line, District- Gaya- 82300 I

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....... Applicant

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Vs.

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I. MIs Maa Durga Traders, situated at Gewal Bigha. Near S.P. Kothi. Police Station- Kotwali, District- Gaya, Pin Code- 823001

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Sri Suraj Kumar, son of Sri Baidehi Sharan Sharma. resident of Gangati Kothi. Nutan Nagar. Police Station- Kotwali. District- Gaya. Pin code 823001, PAN NO.APUPK0718A

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....... Defendants

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Present:

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For the Applicant Shri Animesh Ranjan, Advocate For the Defendants None

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Dated:29.0 I.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 17.01.2024 against the defendants to recover its debts from defendants of R'S.42,93,0761- as on 16.01.2024 along with pendente-lite and future interest at the contractual rate from 17.01.2024 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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Defendant no. I is a proprietorship firm of which defendant no.2 is the proprietor as well as guarantor. Defendants approached the applicant bank for sanction of loan facility for his business of Rs.24 Lakh vide loan application dated I8.01.2012, which was sanctioned by the applicant bank on 18.01.2012 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

OA 37 of20241JI

DRT,PATNA

executed various loan and security documents and hypothecated the movables and also created equitable mortgage in favour of the applicant bank, details of which are given in OA. The defendant no.2 time to time has executed letter of acknowledgement ofliability lastly on 31.07.2023.

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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 28.01.2020. Thereafter the applicant bank issued legal notice on 14.11.2023,but of no use.

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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.42,93,076/- as on 16.01.2024 with pendente-lite and future interest contractual rate from 17.01.2024 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 08.02.2024, 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. 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 111 newspaper was also made against the defendants on 16.05.2024in "Hindustan" newspaper.

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Despite the registered summons/notices and publication of notice in newspaper, 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 19.09.2024.

OA 37 of20241JI

DRT,PATNA

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 Manoj Kumar. Chief Manager of the applicant bank. The details of documents are as follows:

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						l
SI.No	Description Documents Photocopies of	Date of Execution	Amount (In Lakh)	Signature. Executants	of	Ex.! Ann. No.
1	Sanction letter	18.01.2012	24.00	Bank accepted defendants	and by	I
2 f-=----I	DP Note -=::=:-----+:	18.01.2012 ::::::=:'-=-	24.00 I---'::::=	Defendants --+:::===c	=----	2 -+'-----
3	.__,....... Composite hypothecation agreement	...... 18.01.2012	... 24.00	.. Defendants		3
4	Photocopy of sale deed	--				4
5	Letter confirmation mortgage of of	18.01.2012	24.00	Defendants		5
6	Letter of acknowledgement of debt	08.01.2015		Defendants		6
7	Letter of acknowledgement of debt	15.12.2017		Defendants		7
8	Letter of acknowledgement of debt	26.08.2020		Defendants		8
9	Letter of acknowledgement of debt	31.07.2023		Defendants		9
10	Statement of account	--	--	Bank		10
11 to L_I::4:	Legal notice with ----,-..<:..::: p<os:: ::tal=-:f.:::ec:_ __ ---	14.11.2023 :e_:[ip:_:_tt -'- ---	-- -'-	Bank's adv. l	_j	II to : __.14 _ I

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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 Icompound 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.

DRT,PATNA

OA 37 of20241,l!

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 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 28.01.2020. Defendants have also executed letter of acknowledgement of debts lastly on 31.07.2023, whereas the present application has been tiled on 17.01.2024. 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 tiled well within the period of limitation.

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Shri Manoj 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 uls 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 atlidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 (II) 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 tiled under sub section I of sect~m IJ by the applicant.

OA 37 of 20241.11

DRT. PATNA

Section 4 of Banker's Books evidence Act, 1891 runs as under- SA. Mode of proof of entries in bunkers' books.-Subiect to the provisions ofthis Act, a certified copy ol any entry ill a banker's hook shall in all legal proceedings he received as primafacie evidence ofthe existence <I{ such entry. and shall he admitted as evidence or 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 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 16.01.2024 has been proved to be Rs.42,93,076/- 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.42,93,076/- along with pendente-lite and future interest @ 13%p.a. with compounded monthly rests from 17.01.2024(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

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OA 37 of20241JI

DRT. PATNA

and severally. ordered to pay the applicant bank its debt amounting to Rs.42,93,076/- along with pendente-lite and future interest (ti) 13% p.a. with compounded monthly rests from 17.01.2024 (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 certitied 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.

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Parties are directed to appear before the Recovery Officer, DRT. Patna on 10.03.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open ~ )2P-"....29th day of January, 2025. ~..,;') .

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~..,;') . ,.,A\ \

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

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FORMNQ.' [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor. (A. B & F Wing) Karpuri Thakur Sedan, Kendriya Karamchari Parisar (GPOA). Ashiana Digha Road, Patna-80002S.

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RECOVERY CERTIFICATE UNDER SECTION 19(1;)REAo.WITH SECTION 19(22) OFTHE RECOVERY OF DEBTS & BANKRIJPTCY ACT.~. AS AMENDED FROM TIME TO TIME

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BC No. 23a025

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Case No: OAl37/2024

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In the Matter of:

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(CH- I) BANK OF BARODA BRANCH AT RATHORE BHAWAN, SWARAJPURI ROAD, MAIN BRANCH GAYA, POLICE STATION - CIVIL LINE. GAYA,BIHAR-O

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Applicant(s)

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---Versus ------

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To, (CD- I) MIS MAA DURGA TRADERS Situated at Gewal Bigha, Near S.P. Kothi, Police Station- Kotwali, Gaya .BIHAR -82300 I

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Defendantts}

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(CD- 2) SRI SURA) KUMAR SON OF SRI BAIDEHI SHARAN SHARMA, RESIDENT OF GANGATI KOTHI. NUTAN NAGAR, POLICE STATION - KOTWALI, DlSTRICT- GAYA, PIN CODE NO- 823 001

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~ Certificate (or as 429307600 Ipm FortY.Two[.•'hl NinetY.Three Thousapds Seyeptyy_J

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In terms of final order dated 29/0112025 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. 4293076.00 along with cost, expenses and interest from the 17/01/2024 i.e. date of filing 1 with effective date of the OAl37/2024 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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t·~o	CD Name .. .	..- Loan Type I	." InL 'I)'peiMode !	, Int. Rate	. ,. Effective I Date ,	Order Date	. 'A I(Rs)1 mOUD •	I Liability Type	Interest (as en Order Date)	RC Remark Amount(Rs.)
, u	,M/SMAA DURGA TRADERS		~Compound :Interest I(Monthly )	13 ,	_17/01/20241 _	29/01/2025 -	! 4293076,00	;Jointly And Severally	Interest As on Order .Date	~293076.OO
! !2 ,	SRI SURA) KUMAR		Compound Interest (Monthly)	13	j _17/01/2024 _	29/01/2025	4293076,00	Jointly And .Severally	Interest Ason ^Order Date	293076.00

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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 mortgagedlbypothecated assets as well as other personal movable! 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, Parties are directedto appear before MANOJ KUMAR, RecoveryOfficer, DEBTSRECOVERYTRIBUNALPATNA on 10/0312025.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 10 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amendedfrom time to time) 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 30/0112025 V
G~·
PRESIDING OFFICER
DEBTS RECOVERY TRIBUNAL PATNA
r QI Registrar
~ Recovery Tribunal
Pala"

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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 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. 23/2025 IN

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Case No: OAl37/2024

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Applicant(s): BANK OF BARODA

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Versus

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Defendant(s): MIS MAADURGA TRADERS

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Sr. No.	I!!i:mof Costs . .. .. , "-.,,~ "-- ... . ----	IAmount inRs.
I.	. Fee on the application	45000
2. ."",_",-,	p'.~ocessFees(Inc. Publication) .	0
13.	Advocate Fees	0
4.	CommissionerlReceiverNaluationiSecurity Fee	0
L	IMiscellaneous Charges --'---...--.-,-.-.------ ..-~~~-.-- .•-.--.-...	0
	I 'Total Costs: Rs. -,---. ...	1145000

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Place: PATNA

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Date: 30/0112025

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PRESID~CER DEBTS RECOVERY TRlBUNAL PATNA

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Note: Strike out whichever is not applicable

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Bank of Baroda v. M/s Maa Durga Traders

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Maa Durga Traders

Case brief

What is this about?

What did the court decide?

What the court decided

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