Allowed

Canara Bank v. M/s Real Infra

DRT3 Apr 2025OA/401/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Canara Bank against M/s Real Infra for recovery of a loan principal of Rs. 28.82 lakhs along with interest and costs. The tribunal proceeded ex-parte as the borrowers failed to appear, accepting the bank's documentary evidence and affidavit.

What did the court decide?

Recovery of Rs. 28,82,092 with interest; issuance of Recovery Certificate under Section 19(22); attachment of secured assets.

Canara Bank versus M/s Real Infra — Banking and Recovery | DRT (2025)

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OA +01 of 20241.Jl

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DRT. PATN A

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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. 401 of 2024

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Canara Bank. Sheohar Branch. Sheohar

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. . . . . . .Applicant

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M/s Real Infra (Proprietorship Hrm) Borrower, represented through its proprietress Smt. Nitu Kunrari. place of business at village. Brinda\=an. P.S.- Tariyani. P.O. & P.S.- Sheohar. District- Sheohar (Bihar)- 843329

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Smt. Nitu Kumari, borrower (PAN No.BLGPN4132G). u-ife of Sri Sushil Kumar. proprietress of M/s Real Infra. resident of villageBrinda\van, P.S.- Tari}-ani. Sheohar, P.O. & P.S.- Sheohar. DistrictSheohar (Bihar)- 843329

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Present:

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For the Applicant Shri Ratnesh Nandan Sinha, Advocate For the Defendants None

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Dated: 03.04.2025

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JUDGMENT

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1 . 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 26.06.2024 against the defendants to recover its debts from defendants of Rs.28.82.092/- as on 3 1.05.2024 along with pendente-lite and future interest at the contractual rate fron1 01 .06.2024 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 dpplicant.

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Defendant no.I is a proprietorship concern engaged in the business of contractor works as Civil Contractor, of which defendant no.2 is the proprietress. Defendants approached the applicant bank for sanction of Cash Credit loan limit of Rs.25 Lakh. which was sanctioned by the applicant bank on various terms and conditions. as stipulated in the sanction letter. which were

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icet Prost direOn\ a {I r C I B) I

OA 401 of 202+1.J1

DRT, PATN A

duly accepted by the defendants. To secure the loan facilities defendants h,Ive executed various loan and securitY documents and also created equitable mortgage if immovable properties in favour of the applicant bank. details of which are given in OA. The said limit was renewed vide sanction letter dsated 23 11 9092

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After availing the sanctioned credit facilities. the defendants bec,Ime irregular in repayment of their dues as per agreed terms dnd 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 20.08.2023.

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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.28.82.092/- as on 3 1.05.2024 with pendente-lite and future interest contractual rate from 01.06.2024 till the realization

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This Tribunal issued summons/notices copies of application & paper book to the defendants b)- registered/speed post on 21.08.2024. 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 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 they failed to appear and to file WS. hence. the Tribunal has passed an order to proceed ex-parte against the defendants on 12.1 1 .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 Alok Kulwdnt Tigga. Senior Manager of the applicant bank. The details of documents are as foIIo\'s:

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PP\ii„.

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1 1) eb : :: :: ; A : = # f:IIII ; ! 1 11!1 11111L\1b ' .- i- '! A

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OA 401 of 20241.Jl

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DRT. PATN A

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SI-N'	of FDescription Documents Photocopies	Date of Execution	Amount (in Lakh)	Signature 1 Executants	of	1Ex,/ Ann. INo.
1	Cash credit agreenlent	18.08.2020	e
	mI	18.08.2020	25.00	Defendants
	Letterofundertaking	18.08.2020		Defendants
	Request fOI overdraftfacilit\|18.08.2020	25.oo	Defendants
)	o absolutesale deed	07.11,2019				5
6	Letter evidencing depositof titledeed	+		Defenda	nts	16
	Application forloans	2311?Ol2	25.00	Defendants
	Sanction memorandum	23.11.2022	25.00	Bank accepted defendants	and by
	e		25.00	Defendants		9
	Letter of undertaking	1 23.1 1,2022		Defendants
	a			Bank
	Legal notice	28.08.2023		Bank-sadv.

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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 \’ere 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 Tndia.

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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 oI' 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 \vithin the jurisdiction of this Tribunal. Therefore. this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present applicdtion.

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q„

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PICS: / T-a Officer Debtl T. A :- -- ' '’'' T:::Jun al I

DRT. PATN A

OA 401 of 20241 .Jl

10 On the issue of Limitation. to prove it. the applicant bank has subnlitted that the applicant bank has declared the account as NPA on 20.08.2023. whereas the present application has been filed on 26.06.2024. Even. it is counted for the purpose of Limitation. then it is established that the applicant bank has filed the case \'’ithin the linritation period, As such, it is established that the present application has been filed \veII \vithin the period of limitation.

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13 Shri Alok Kul\;ant Tigga. Senior 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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14 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 \-ho has on verification of the record sworn the affidavit in respect of the contents of the application and the docunrents 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.–Srlhil'ct to tlle prt)visiotls Qf 1 Iris Act. cl cerI i.fied COPY tIf tInY entry in a bclnker's book shall ill all legal prc)ceedirlgs he received as prinlcl .filcie evidence of- IIte exislerlce o.f- srlcl1 etllr'. clnci shall be cldnrilled cls cvicierlce of' lhc nlullers. lrcnrsactit)ns curd clccormts therein recorde(I ill eve in' case \vherc. and To The sonic extenT us. the original entrY itself is now hv Icr\ adnlissihle, buT not frlrTher 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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q„ P::’? JJ-, CPacep Debt - ' 't-taI

14 HA

OA +01 of 20241.Jl

DRT. PATN A

On perusal of the application. documents. affidavit and on consideration of the arguments. it is proved that the defendants h,Ive applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of Io,in amount with 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 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.. \vas availed by the borrower under the agreed terms and conditions for repayment u’ith interest. The balance amount till 31 .05.2024 has been proved to be Rs.28.82.092/- only by way of statement of accounts/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.28.82.092/- along with pendente-lite and future interest a 10% p.a. with compounded monthly rests from 26.06.2024 ( The date of filing of this OA) till realization. So the final order may be pdssed 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.28.82.092/- along with pendente-lite and future interest at 10% p.a. with compounded monthly rests from 26.06.2024 (The date of filing of this OA) till realization of the entire sulu 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.

OA 401 of 202+l.Jl

DRT. PATN A

Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the nlortgaged 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 nrortgaged 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 mdnner and mode prescribed under the Act from the defendants. by sale of mortgaged/ hypothecated assets as u-eII as other personal movable/immovdble assets of the defendants

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Parties are directed to appear before the Recovery Officer. DRT, Patna on 13.05.2025. The order be communicated accordingly

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Judgment signed. sealed, dated and pronounced in the open court on 03’d day of April, 2025.

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Dictated &corrected by me.

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[KaushalendrdYadav] Presiding Officer Debts RecoverY Tribunal. Patnd Pf ,fl '":'q Q$'iCet Debt3 == = = ===7 TribwrO PI;i +iA

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FC)RbI NO, 9 [See Regulation 24( 1 )]

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DEB’I S kE(’o\’ ER' 'I-IiI BIFf\’'\ I. P.,\’l'N A

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2nd Floor. ( A. B & F Wing) Karpuri Thakur Sudan. Kcntlriyu Karamchari Parisar (CPC)A), Ashiana Digha Road, Patna-800025

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RECOVER' CERTIFICATE. UNDER SECTION 19(Z) READ \'ITtl SEC'TION 19(B) OF THE RECOVERY OF DEBTS & BANKRU p’rc\ .\C'1-, 1993,AS A)I ENDED FROM TISIE 1-o TIi\IEn

RC N o. 82/2025

Case No: OA/401/2024

In the N'1 utter ot

(CH- 1) CAN ARA BANK Sl iFol I/\R OR ANC-H SH LOI I AR,BIll AR -S+3329

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Applicant( S)

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------ Versus -------

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(CD- 1) M,S RF Al_ INFRA represented through its Proprietrcss SnH. Nitu Kunrari. place of Business At- Village- Brinda\van. P.S.- Furiyani. P.O. and P.S,- Shcohar, Shcohar,BIH AR -S+3339

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Defendant(s)

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(CD- 2) SN'IT. NITU KUNI ARI WIFE OF SRI SUSI Ill, KUMAR PROPRIETOR (-)F MS REAL INFRA RESIDENT OF \’[LLAGFBRIN D /\'/\ N. 1). S - TA R 1 IL'\NI. SH EO H .'\ R P.C) AND I’.S.- SIILoi IAl< DIS'l-lllC'l-- Sl IEt)I I Alt BIH AR - 8.43329

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RccuvcrvCcrtilic IIte for Rs 2882092.00 1 Rupees Twenty Eight Lnkhs EigHy Two ThQusunds Ninety TIvo OnI}LI

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In terms of final order dated 03/04/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Ht)Idcr Bank is entitled to recover a sum of Rs. 2882092.00 along with cost. cxpcnscs and interest frc)nI the 26/06/2024 i.c. date of filing I with effectivc date of the OA/401/2024 and futurc interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hcrcinaftcr referred to as:-

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r.noI CDName	Loan ype i	lllt Type/,\lode	IIIt iRate	Effective DiNI
Nl/S REAL INFRA		-ol,lpountl Interest T'lunthly)	()	26/06/'2024	l03/04/2025	:3882092.on ;everally	Ason Irdcr	:882092,or)
SMT 'INl’l'L KU MARI		!Compound nt crest I( Monthly )	1 0	!2(1/06/202+	j03/o+/2025	ointly ;2882092.oo	IDate	i2882092.oo

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In case of failure to pay the aforcnlentioncd adjudicated iunount within 30 days. same shall be recovered from the saIc of the nrortgaged/hypothecatcd assets as well as other personal movable/ Immovable assets of the certificate debtors

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The mortgagcd or hypothecatcd asscts 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 Recovery certificate issued undel Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 . Parties are directed to appear before NI ANOJ KUBIAR . Recovery Ofnccr'. DEBTS RECOVERY TRIBUNAL PATN A on 1 3/ 05/2025

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Thc Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Reco\’ely 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 04/04/2025

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C*. Registrar PRESErDING OFFICER Debts Reeovery Tribun?1 DEBTS RECOVERY TRIBUNAL PATNA Patna Pros? ’:;-'’I (JfTicer Debt3 ===- = = T-; T::bbq ai LId 144l1

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FORM NO. 10

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[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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SCI-IEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 82/2025

Case No: OA/401/2024

Applicant(s): CANARA BANK Versus

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Defendant(s): M/S REAI, INFR,\

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Item ofCosts	r
Feeon the application	31000
Process Fees(Inc. Publication)	10
Advocate1fees	[i
Commissioner/Receiver/Valuation/SecurityFee	to
MiscellaneousCharges	b
TotalCosts:Rs	13 looo

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Place: p/Vl-NA

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Date: 04/'04/2025

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Note: Strike out whichever is not applicable

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PRRSIDINEfOFFICER DEBTS REcovERYnx,rk[wAeWN A Debts i' ? : :: 317 TribltrIal 1 '- ' '"'’

Canara Bank v. M/s Real Infra

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s Real Infra

Case brief

What is this about?

What did the court decide?

What the court decided

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