Allowed

Hdfc Bank Limited v. M/s Keshri Agency

DRT29 Jan 2025OA/391/2024

Case brief

AI extract

What is this about?

Applicant bank applied for recovery of dues arising from a cash credit facility. Defendants failed to appear. Tribunal deemed facts proved via bank's affidavit and documents, allowing application and directing recovery certificate issuance.

What did the court decide?

Debt of Rs 91,02,907.48 with interest to be recovered; recovery certificate issued; attachment of mortgaged assets; cessation of dealing with properties.

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

•

DRT. PATNA

OA 391 of20241JI

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. 391 of 2024

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HDFC Bank Limited, branch office at l" Floor. Rajendra Ram Plaza. Exhibition Road, Patna 800 00 I

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....... Applicant

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Vs.

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I. M/s Keshri Agency through proprietor Abhishek Keshri (Borrower). Koirpurwa 460, Ward no.28, Near Nagar Parishad Office, near Tarka Nala, District- Buxar, PAN NO.ARJPK40 IOG

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Abhishek Keshri (Proprietor/borrower). Sio Sri Krishna Prasad Keshri. resident of ward no.30, near Jamua Chowk, Buxar, Bihar 802101. PAN No. ARJPK40 IOG

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Sri Krishna Prasad Keshri (co-borrower/guarantor/mortgagor), Sio Vishwanath Keshri, resident of ward no.30, near Jamua Chowk, Buxar. Bihar 80210 I.

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....... Defendants

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Present:

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For the Applicant Ms. Tanushri, Advocate For the Defendants None

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Dated:29.01.2025

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JUDGMENT

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I. 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 22.07.2024 against the defendants to recover its debts from defendants of Rs.9I.02,907.48 as on 30.04.2024 along 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.

DRT, PATNA

OA 391 of 20241J I

Defendants approached the applicant bank for sanction of cash credit facility of RS.90 Lakh vide loan application dated 23.11.2021,which was sanctioned by the applicant bank 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 hypothecated the movables and also created mortgage in favour of the applicant bank, details of which are given in OA. Memorandum recording past transaction of creation of mortgage by delivery of title deeds was executed on 08.07.2022 and it has also been agreed that the said charges upon the properties shall continue unless the bank issues a certificate discharging the security created. A deed of simple mortgage was executed on 12.07.2019 between the bank and the defendants for securing the loan facility.

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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 III the loan account is Rs.91,02,907.48 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 27.08.2024, 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.

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Despite the service of registered summons/notice, 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

DRT,PATNA

OA 391 of 20241JI

to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 24, I0.2024.

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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, Officer of the applicant bank. The details of documents are as follows:

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SI.Nu	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
1	Power of Attorney	16.07.2022	--	---- Bank	~	--------- 1
2	Loan application, Sanction letter	23.11.2021 15.06.2022 02.07.2022	90.00	Defendants bank	and	2 -- -
3	Deed of hypothecation	08.07.2022	90.00	Defendants		, .) --------
4	Memorandum recording past transactions of creation of mortgage by delivery of title deeds	08.07.2022	90.00	Def.no.3		, 4
5	Letter of continuing. guarantee	08.07.2022	90.00	Def.no.2&3		5
6	Loan recall notice	10.06.2024	--	Bank		6
7	Statement of account	--	--	Bank		7

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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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10, 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 tor, in OA.

DRT.PATNA

OA 391 of20241JI

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.

¶42

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.

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Shri Pappu Thakur, Officer of the applicant bank has tiled the aftidavit 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 defendantdenies his liabilityto pay the claim made by the applicant,the tribunal may 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'sBooksevidence that Act, 1891(18 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Booksfurnishedalong with applicationfiled undersubsectionI of section 19by the applicant.

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Section 4 of Banker's Books evidence Act, 1891 runs as under- S.4. Mode of proof of entries in bankers' books=-Subjcc: 10 the provisions of this Act. a certified copy of any entry in a banker's book shall in all legal proceedings be received as primafacie evidence ofthe existence of such entry. and shall he admitted as evidence of the matters. transactions and accounts therein recorded in every elise! where. and to the same extent as. the original entry itself is now hy law admissible. but notfurther or otherwise.

DRT,PATNA

OA391of20241JI

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 30.04.2024 has been proved to be Rs.91,02,907.48 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.91,02,907.48 along with pendente-lite and future interest @ 10%p.a. with compounded monthly rests 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 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 and severally, ordered to pay the applicant bank its debt amounting to Rs.91,02,907.48 along with pendente-lite and future interest (a} 10% p.a. with

OA 391 of20241JI

DRT.PATNA·

compounded monthly rests from 22.07.2024 (The date of filing of this OAl 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. ifnot 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.

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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 mortgagedl 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 court on 29 th day of January, 2025.

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Dictated &corrected by me.

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[KaushalendraYadav1 Presiding Officer Debts Recovery Tribunal. Patna

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FOBMNQ' [See Regulation 24( I)]

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

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RECOVERY CERTIFICATE UNPER'SECTION 19(1) REAP WITH SECTION '9(21) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT • .!m, AS AMENDED FROM TIME TO TIME.

BC No. 3312025

Case No: OAl39112024

In the Matter of:

(CH· I) HDf(" BANK LIMITED

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BRANCH'OFFICEAT 1ST FLOOR, RAlENDRA RAM PLAZA, EXHIBITION ROAD, PATNA,BIHAR -HOOOOI

Applicant(s)

---Versus ---

To,

(CD- I) MIS KESHRI AGENCY through proprietor Abhishck Kcshri (Borrower), Koirpurwa 460, War No.28, Near Nagar Perished Office, Near Tarka Neta, Buxar.BIHAR

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(CD. 2) ABHISHEK KESHRI

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S/O- SRI KRISHNA PRASAD KESHRI. RESIDENT OF WARD NO.30. NEAR JAMUA CHOWK, BUXAR, Defendantts) BIHAR-80lI01.

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(CD.3) SRI KRISHNA PRASAD KESHRI (CO· BORROWER/GUARANT0R/rv10RTGAGOR) S/O- VISHWANATHKESHRI, RESIDENT OF WARD NO-30, NEAR JAMUA CHOWK, BUXAR, BIHARM0210l

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~ CertifiCate for as 91029074B I RMom: Ninety Ope ' .. "hl TwoIhouypd Niue Hugdm' SeyegAnd PIE Forty lijgbt Oply I

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In terms of final order dated 29/01/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum ofRs. 9102907.48 along with cost, expenses and iaterest from the 22/07/2024 i.e. dale of tiling 1 with effective date of the OAl39I12024 aod 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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ISr•no CD Name
~ompound r:'o~~tly. InreresA
I, jM/S KESHRI AGENCY ~~(Monthly)terest 10 ~2J07J2024! 29/0112025 9102907.48 [Severally ~JU ~::; Date 9102907.48
: ....._L. .
Compound ointly Interest
Interest 10 ~2/07/2024 29/01/2025 ~I02907.48 And ~;;: 9102907.48
(Monthly) Severally Date
!compound omlly. AInterest
Interest 10 2/07/202429/01/20259102907.48 And son 9102907.48
Monthly} Severally ~er

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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 mortgaged/hypothecated assets as well as other personal movable/Immovable assets of the certificate debtors .. 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 Rec6very of Debts and Bankruplcy Act 1993.

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Parties arc directed to appear before ASHISH KUMAR. RecoveryOfficer, DEBTS RECOVERY TRIBUNAL PATNA on 10103/2025.

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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 30/01/2025 G· -}oJ Registrar DEBTS Debts Recovery Tribunal Patna

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24(2)]

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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. 33/2025

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¶99

Case No: OAl39112024

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Applicant(s): HDFC BANK LIMITED

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Versus

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Defendant(s): MIS KESHRI AGENCY

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Sr. No.	...-..-..-........ Item of Costs .--.----- .	Amount in Rs. ~~.-
I. .-	~.:': on the application _ - .- .__.	194000 1
2.	!Process Feesrlnc. Publication)	0
13.	Advocate Fees	0
14.	CommissionerlReceiverNaluationiSecurity Fee	0
5. --	1!.i~cellaneous Cha!'J?;:s _____ - ...-	10 1
	[Total Costs: Rs. ----..- - ---.-- - .-	~4000 ]

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Place: PATNA

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Date: 30/0112025

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PRESI~ICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Hdfc Bank Limited v. M/s Keshri Agency

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/s Keshri Agency

Case brief

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What did the court decide?

What the court decided

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