Allowed

Bank of Baroda v. M/s Ahilya Traders

DRT31 Jan 2025OA/375/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19(1) of the RD&B Act, 1993 filed by the Bank of Baroda. The Tribunal found that the loan was availed and the claim was established through documentary evidence as defendants did not appear. It issued a recovery certificate for the determined debt with future interest.

What did the court decide?

Application allowed; debt determined at Rs.37,91,407/- with future interest; recovery certificate issued for realization.

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

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OA 375 of 20231JI

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. 375 of 2023

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Bank of Baroda, Gopalganj Branch, Hajiapur Road, Gopalganj. 841428

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....... Applicant

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Vs.

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MIs Ahilya Traders, a Proprietorship Concern represented through its Proprietor Lawlin Prasad Singh (Now deceased) [Borrower]. Ward No.7. Kathwalia, Gopalganj, 841428,PAN - AORPS59~6E

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Ahilya Devi, Wlo Late Lawlin Prasad Singh [Mortgagor & Guarantor] At Teinrua. Rajapatti, District Gopalganj. Pin 841420. PAN - EQGPD7454F

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Sneha Gautam, 0/0 Late Lawlin Prasad Singh Wlo Amit Kumar [Mortgagor & Guarantor], Ward No.7. Kathwalia. Gopalganj, Pin 841428. At Present At Sisai, P.O. Sisai, Siwan. Pin 841506 PAN - BFWPG0371J •

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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 Manish Kishore, Advocate Shri Vyash Kumar Mishra, Advocate

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Dated:31.01.2025

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JUDGMENT

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The Applicant bank has made this application uls 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 03.08.2023 against the defendants to recover its debts from defendants of Rs.37,91,407/- as on 19.06.2023 along with pendente-lite and future interest at the contractual rate from 20.06.2023 with costs till realization.

¶22

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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Debts P.:")-;:7'I'ribuna,

PAl'.NA

OA 375 of 20231J I

ORT, PATNA

Defendant No.1 is a Proprietorship Concern and its proprietor was Lawlin Prasad Singh who transacted the business in the name and style "MIS Ahilya Traders", and dealt in business of trading of FMCG Products and Dealership of Hindustan Unilivers. Defendant No.2 and 3 are the heirs and legal representatives of the said Proprietor Lawlin Prasad Singh who after death of Lawlin Prasad Singh inherited the estate of the original Proprietor including the assets and liabilities of the said proprietorship business of Dealership. The Defendants No.2 and 3 offered themselves as guarantor to the credit facility granted to deceased Lawlin Prasad Singh.

¶29

Lawlin Prasad Singh alongwith Defendants No. 2 and 3 approached Applicant Bank for credit facilities for running the said business by way of working capital. They approached the Applicant Bank for Cash Credit Limit of Rs.35 Lakh in the name of Defendant No.1 by submitting application/proposal on 01.02.2021. Applicant Bank after appraisal of the proposal of Defendants approved the proposal Cash Credit Limit of Rs.35 Lakh on 26.03.2021 on various terms and conditions, as stipulated in the sanction letter. which were duly accepted by the defendants. To secure the loan facility. Lawlin Prasad Singh (now deceased) along with defendants have executed various loan and security documents and also created equitable mortgage in favour of the applicant bank, details of which are given in ~A. The Defendant No.2 by letter informed the Applicant Bank regarding death of her husband- the Proprietor of Mis Ahilya Traders who died on 22.05.2022 alongwith death certificate

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4.. 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 21.11.2022.

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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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P reSl.;l'·,'rs s: Offi''..'_ ICP' Debt;:; ;::';:'C:)7::;,7 Tribl1'1&l PA'.I.'.NA

OA 375 of20231JI

DRT. PATNA

The total liability in the loan account is Rs.37,91,407/- as on 19.06.2023 with pendente-lite and future interest contractual rate from 20.06.2023 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 01.09.2023, 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. In response to the notice the defendant no.3 has appeared and filed vakalatnama dated 18.09.2023. But the defendant 1&2 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 defendant no.l&2 on 30.12.2023 in "Prabhat Khabar" newspaper.

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Despite the registered summons/notices and publication of notice in newspaper, the defendant no.1&2 have not appeared before this Tribunal to contest the case. Defendant no.3 has also not appeared after filing of the Vakalatnama. The sufficient time has been given to the defendants to defend their case, but they failed to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 11.09.2024.

¶39

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 Randhir Kumar, Chief Manager ofthe applicant bank. The details of documents are as follows:

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SI.No	Description Documents Photocopies	of	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
1	Loanapplicatio	n	01.02.2021	35.00	Defendant with Lawlin Sinuh	s along deceased Prasad	.. - 1
2	Sanctionletter		26.03.2021	.35.00	Bank and by D alongwith Lawlin Singh	accepted efendants deceased Prasad	2
0 .)	Letter of proprietorship	sole	26.03.2021	--	deceased PrasadSin	Lawli;, gh .-__ .	-[3----- -__
4	DPNote		26.03.2021 V tI.	35.00 ( _)_	Deceased	Lawlin	--i4

OA 375 of 20231JI

DRT,PATNA

					Prasad Singh
5	Letter of contin securitv	uing	26.03.2021	35.00	Deceased Lawlin Prasad Singh	5
6	Composite hypothecation agreement		26.03.2021	35.00	Deceased Lawlin Prasad Singh	6
7	Declaration undertaking authority	cum cum	26.03.2021	35.00	Defendants along with Deceased Lawlin Prasad Singh	7
8	Letter of underta	king	26.03.2021	35.00	Deceased Lawlin Prasad Singh	8
9	General form guarantee	of	26.03.2021	35.00	Defendant no. 2 & 3	9
10	Photocopy of deed	sale	14.06.2018	--	--	10
11	Annexure-A		26.03.2021	35.00	Defendant no.2&3	II
12	Annexure- B		26.03.2021	35.00	Defendant no.2&3	12
13	Memorandum Entry	of	26.03.2021	35.00	Bank	'0- 13
14	Declaration In matter of mortga	the ge	26.03.2021	35.00	Defendant no.2&3	14 _.----
15	Letter confirmation mortgage	of of	26.03.2021	35.00	Defendant no.2&3	15
16	Letter		29.06.2022	--	Bank	16 ._---
17	Letter along death certificate	with	--	--	-~---l Def.no.2	I7 --
18	Demand notice		17.08.2022	--	Bank	18
19	Notice		,08.09.2022	--	Bank	19
20	Notice		21.02.2023	--	Bank	20
21	Statement of acc	ount	--	--	Bank ----,.---	21 ----'------

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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 further submitted by ld. 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 ~A.

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Pred!!",'? C rriepr 'Qebts RCC'J73:y Tr;~""'..

fAT.NA

OA 375 of20231JI

DRT,PATNA

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 21.11.2022, whereas the present application has been filed on 03.08.2023. 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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Shri Randhir Kumar, Chief Manager of the applicant bank has tiled 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 (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 verificationof the record sworn the affidavit in respect of the contents of the applicationand the documentsas evidence.

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The rule 12 (11) of the aforesaid Rules, provides that the provisionscontainedin section4 of the Banker's Booksevidence that Act, 1891(18 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Booksfurnishedalongwith applicationtiled undersubsection1of section19bythe applicant.

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Section 4 of Banker's Books evidence Act, 1891 runs as under- SA, Mode of proof of entriesin bankers' books,-Sub;eci 10 the provisions ofthis Act, a certified copy of'any entry in a hanker '.I' hook shall in all legalproceedings be received as primafacie evidence ofthe existence of' such entry. and shall be admitted as evidence of' the matters, transactions and accounts therein recorded in ere~v case

OA 375 of 2023IJ I

DRT.PATNA

where. and to the same extent as. the original entry itselfis now hy law admissible. hut 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 19.06.2023 has been proved to be Rs.37,91,407/- 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.37,91,407/- along with pendente-lite and future interest @ 10% p.a. simple from 03.08.2023 (The date of tiling 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.37,91,407/- along with pendente-lite and future interest (il; 10% p.a. simple

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, _':'"ff;(',_ ,. ~"'} Tri:..,tl,T\aJ De::;.~: .....,....~A

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OA 375 of 20231JI

DRT.PATNA

from 03.08.2023 (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 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/SubRegistrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up fix 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 11.03.2025. The order be communicated accordingly.

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Judgment signed. sealed, dated and pronounced in the open court on 31" day of January, 2025.

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Dictated &corrected by me.

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~\I~ [Kaushalendra Yadav 1 Presiding Officer Debts Recoilrrytl'ritJuOOPMna Oebts RecO'lery Tribl.lll'" PATNA

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FORM NO, 9 [See Regulation24(I)]

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DEBTS RECOVERY TRIBUNAL PATNA

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Znd Floor. (A. B &. F Wing) Karpuri Thakur Sedan, Kendriya Karamchari

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Parisar (GPOA), Ashiana Digha Road, Patna-80002S.

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RECOVERY CERTifiCATE UNDER SECTION 19(n READWITH SECTION t9fU) prIDE BECOYERYOFDEBTS " ~~. i.:.RIJPTCYACT._lID.AS AMENDED FRC)M TIME TO TIME.

RC No. 3912025

Case No: OAl37S12023

In the Maner of: (CH· 1) BANK OF BARODA GOPALGANJ BRANCH. HAJIPLI( i(UAD. GOPALGANJ .BIHAR ·841428

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Applicant{s)

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Versus -

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T<.), (CD- I) MiS AHILYA TRADERS a Proprietorship Concern represented through its Proprietor Lawhn Prasad Singh (Now deceased ). Ward no. 7, Kathwulia. Gooulganj ,BIHAR-4142 (CD· 2) AHILYA DEVI W/O LATE LAWLIN PRASAD SINGH. AT TEINRUA. RAJAPATTI. DISTRICT- GOPALGANJ. Defendanl{s) PIN H4142IJ

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rcn- 3) SNEHA GAUTAM DiO LATE LAWLIN PRASAD SINGH W/O-AMIT KUMAR, WARD NO.07, KATHWA L!A, GOPALGANJ, PIN 84142~. AT PRJ:::Si!NTAT SISAl, P.O.· SISAl. SIWAN. PIN 841506

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Recovery: Certilicate for Rs 3791407.00 '-....Rupees Thirty Stlven Lakhs NinetY.One Thousands Four Hugdred Sevep Ogly I

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In terms of final order dated 31/0112025 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. 3791407.00 along with cost, expenses and interest from the 03/0X/2023 i.t-. date of filing / with effective date of the OA/375/2023 and future interest from order date till the date of realisation III lull. jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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iF'B'

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iF s... r.ne: ~	B CD NaDIC . c cc!	it ~ ,o~n 1Type	I . I -' :•.1 nt, ,IType/Mtlde I	I; : 01. : Rate: I '	:'En'.:1 -i. . cCllve. ! Dale . ····-···-	1 0 d r er Date ·J'r-· - - -'	·t- .... .A.mount(Rs.) ; 'f~~~-	L· bTty 18 II Type 1---	IDterest(as 00 Order Date) -;;	RC .Demark Amouot(RI.) ,no" ;~~+-----t---!
:r.- 11.; f	.. '/SAHILYA,i ,=l~~A: j	. ~"~~ ....	, jlSJmple --; S '::I) l	.. r:- r_~	I _'(3/U8/2023 ~	. . 131/01/2025, '~	i 3791407.00 i	Jointl And SeveIIY ''	.., Interest As ~~rder ~	3791407
	_{;		j	:	::;	::	::::	:::;		:::

¶103

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

¶104

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 ACI 1993.

¶105

Parties an: directed to appear before I-tANOJ KlJ1UAR . Recovery Officer. DEBTS RECOVERY TRIBUNAL PATNA on 11103/2025.

¶106

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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This Certificate has been issued under my signature and seal of the Tribunal on this 01/0212025

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~.
Registrar
Debts R, C" .' ,':, Tribunal

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PRES~ICER
DEBTS RECOVERY lRIBUNAL PATNA
Pr>:' .•.. -.,rf"":rp"
,'

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FORM NO. 10 [See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Kararnchari Parisar

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(GPOA), Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 39/2025

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¶116

Case No: OA/375/2023

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Applicant(s): BANK OF BARODA

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Versus

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Defendant(s): MIS AHILYA TRADERS

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	tltem of Costs	Amount inRs.
	~4	0000
		o
![3. ... ....	.1Advocate Fees _ .	o
'~'. .	_jICommissioner/Rec~iver/ValuationiSecurity Fee	o
~: lil===i	]!fiiscellanrous Charges l -. -.-.--- ...-.....---.-.-.	10
_....	,__._J	40000

Place: PATNA

PRESID~FFICER

Date: 0 1/02/2Q25

Note: Strike out whichever is not applicable

¶125

DEBTS RECOVERYp~~lI¥?~~Ir'}~A

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OAbt· ~ - .. '~."-'"

Bank of Baroda v. M/s Ahilya Traders

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Ahilya Traders

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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