Allowed

Hdfc Bank Limited v. M/s Laxmi Bhandar

DRT25 Jul 2025OA/388/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna adjudicated an application under Section 19 of the RD&BA, 1993 filed by HDFC Bank. Relying on documentary evidence and Banker's Books Evidence Act provisions, the Tribunal determined the debt and ordered recovery from the borrowers and guarantor with accrued interest.

What did the court decide?

Recovery of Rs. 77,29,761.15 plus pendente-lite and future interest at 10% p.a. from 22.07.2024 with a Recovery Certificate issued.

Hdfc Bank Limited versus M/s Laxmi Bhandar — Contract and Commercial Disputes | DRT (2025)

OA 388 of2024jJI

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. 388 of 2024

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HDFC Bank Limited, branch office at lst Floor, Rajendra Ram Plaza, Exhibition Road, Patna 800 001

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. . . . . . .Applicant

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M/s Laxmi Bhandar through proprietor Ajit Kumar Agarwal (Borrower), Main Road, Dumraon, Buxar, Bihar- 802119, PAN No. ALLPA8 1 13 A

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Ajit Kumar Agarwal (Proprietor), S/o Moti Lal Agwwal, resident of ward no. 14, Station Road, Near Hari Ji K Hata, Dumraon, Buxar802119, PAN No.ALLPA8113A

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Sunayna Agarwal (Guarantor), W/o Ajit Kumar Agarwal, resident of ward no.14, Station Road, Near Hari Ji K Hata, Dumraon, Buxar802119, PAN No.AZEPA1680R

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. . . . . . . Defendants

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Present:

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For the Applicant For the Defendants

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Ms. Tanushri, Advocate

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Shri S.K. Shrivastava, Advocate

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Dated:25.07.2025

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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 (here-in-after referred to as Act) on 22.07.2024 against the defendants to recover its debts from defendants of Rs.77,29,761.15 as on 30.04.2024 with pendente-lite and future interest at the contractual rate from 01.05.2024 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.

aFl

OA 388 of20241J]

DRT, PATNA

3 . Defendant approached the applicant bank for sanction of cash credit facility of Rs.85 Lakh vide loan application dated 22.10.2021, which was sanctioned by the applicant bank on 04.12.2021 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and also created mortgage in favour of the applicant bank, details of which are given in OA

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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 05.03.2024.

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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 account is Rs.77,29,761.15 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 02.09.2024, 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. Notice again issued on 26.09.2024 was served personal to the defendants through the Advocate Commissioner, who has also filed his report.

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In response to the notices, the defendants no.1 & 2 have appeared by filing vakalatnama dated 11.11.2024 and have filed written statement but despite the registered summons/notices and service upon the defendant no.3, the defendant no.3 has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant no.3 to defend her case, but

OA 388 of20241JI

DRT, PATNA

she failed to appear and to file WS, hence, the defendant no.3 is proceeded exparte.

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The defendants no. I & 2 have filed their written statement and also filed rebuttal evidence admitting therein that the applicant bank has sanctioned cash credit limit of Rs.85 Lakh on 04.12.2021 and thereafter the defendant no.2 has deposited substantial amount to the applicant bank, so on the request of the defendants, the limit was reduced from Rs.85 Lakh to Rs.75 Lakh on 20.02.2023. Without notice or intimation to the defendants, the applicant bank started charging interest at the rate of 13.11%, which is highly objectionable. There are also irregularities in mortgage of immovable properties and requested to dismiss the OA.

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In the rebuttal evidence, the defendant no2 has further stated that the guarantee bond that might have been executed by the defendant no.2 & 3 has not been placed before the Tribunal. The applicant bank has not annexed any documentary evidence with the evidence on affidavit, so the instant petition of evidence on affidavit deserves to be dismissed.

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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 Shri Pappu Thakur, Authorized Officer of the applicant bank. The details of documents are as follows:

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Sl.No	Description Documents Photocopies of	1 Date of Execution	IAmount I(in Lakh)	I Signature 1Executa I	of Ex ntsIAnn. INo.
	PowerofAttorne'	16.07.2022		Bank
	Loanapplication Renewal sanction letter	22.10.2021 20.02.2023		Defendants bank	and
3	Deed of Hypothecation	10.12.2021	85.00	Def.no.1&2	3
4	Memorandum recording past transactionof creationofmortgage by delivery of title deeds			Def.no.2&3	4
	DeedofIndemnit'	i8		Def.no.2&3
		0		Defno.2&3

OA 388 of 2024jJI

DRT, PATN A

tee
o	14.06.2024	Bankadv
Statementofaccount		Bank
foreclosure and
statement

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Heard arguments and perused the case record. During the course of arguments, there is no any specific denial on behalf of the defendants with regards to the sanction of loan facilities and its utilization and further there is no any specific denial with regards to the execution of loan and security documents in favour of the applicant bank.

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Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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It is further submitted by Id. Counsel of applicant bank that there is no stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for, in OA.

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It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 05.03.2024, whereas the present application has been filed on 22.07.2024. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has filed the case within the limitation period. As such, it is established that the present application has been filed well within the period of limitation.

OA 388 of2024jJI

DRT, PATNA

Shri Pappu Thakur, Authorized Officer 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 shaH 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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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. N / a

OA 388 of 2024jJ]

DRT, PATNA

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 30.04.2024 has been proved to be Rs.77,29,761.15 only by way of statement of accounts and affidavit. 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.77,29,761.15 along with pendente-lite and future interest @ 10% p.a. simple from 22.07.2024 (The date of filing 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.77,29,761.15 along with pendente-lite and future interest @ 10% p.a. simple from 22.07.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

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Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets. „ / /d=\

OA 388 of 2024jJI

DRT, PATNA

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 25th day of July, 2025.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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FORM NO. 9 [See Regulation 24( 1 )]

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DEBTS RECOVERY TRIBUNAL PATNA

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

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RECOVERY CERTIFICATE UNDER SECTION 19(a READ WITH SECTION 19(D2 OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC No. 254/2025 IN

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Case No: OA/388/2024

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In the Matter of: (CH- 1) HDFC BANK LIMITED BRANCH OFFICE AT 1 ST FLOOR. RAJENDRA RAM PLAZA, EXHIBITION ROAD, PATNA ,BIHAR -0

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Applicant(s)

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(CD- 1) M/S LAXMI BFLANDAR through proprietor Ajit Kumar Agarwal (Borrower), Main Road, Dumraon, Buxar,BIHAR -802 1 19

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(CD- 2) AJIT KUMAR AGARWAL (PROPRIETOR) S/0- MOTI LAL AGARWAL, RESIDENT OF WARD NO. 14, STATION ROAD, NEAR HARI JI K HATA, DUMRAON, BUXAR- 802 119

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Defendant(s)

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(CD- 3) SUNAYNAAGARWAL (GUARANTOR) W/0- AJIT KUMAR AGARWAL, RESIDENT OF WARD NO. 14. STATION ROAD. NEAR HARI JI K HATA DUMRAON , BUXAR- 802 119

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Recovery Certificate for Rs 7729761.15 1 Rupees Seventy Seven Lakhs Twenty Nine Thousands Seven Hundred Sixty One And Paise Fifteen Only]

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In terms of anal order dated 25/07/2025 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. 7729761.15 along with cost, expenses and interest from the 22/07/2024 i.e. date of filing / with effective date of the OA/388/2024 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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CD Name
LAXMI Fointly As on
FLANDAR :erest [22/07/2024 )7/2025 [l7729761.15 :der
(Yearly ) ieverally
IT KUMAR ;imple
.GARWAL Interest 7/2024 r/2025l7729761.15
PROPRIETOR) ,Yearly )
lple lointly on
AYNAhl Interest 17/2024 :l25/07/2025 r61.15 '2976 1.15
Order
:GUARANTOR) :Yearly )
IY ;Date

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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 modgaged/hypothecated 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.

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

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

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This Certificate has been issued under my signature and seal of the Tribunal on this 25/07/2025

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W (/]b\ Registrar Debts Recovery Tribunal Patna

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P >FFICER 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