Allowed

Canara Bank v. M/s Mahalaxmi Saree

DRT31 Jan 2025OA/429/2024

Case brief

AI extract

What is this about?

The applicant bank filed an application under Section 19 of the RD and B Act 1993 to recover a debt of Rs. 26,53,741 from a borrower who failed to appear despite summons. The Tribunal, relying on documentary evidence including a statement of accounts, allowed the application and issued a recovery certificate under Section 19(22).

What did the court decide?

Recovery certificate issued directing recovery of Rs. 26,53,741 along with interest and costs from the mortgaged and other assets of the defendants.

Canara Bank versus M/s Mahalaxmi Saree — Banking and Recovery | DRT (2025)

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OA 429 of 20241J I

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DRT,PATNA

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana DighaRoad Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 429 of 2024

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Canara Bank. branch at Rampur Atauli. Saran. Bihar

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"'" .Applicant

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Vs.

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I. Mis Mahalaxmi Saree (Borrower). a proprietorship concern through its proprietor Smt. Kajal Singh. Wlo Sri Amit Kumar Singh, situated at village- Doila, P.O.- Mashrakh, P.S.- Mashrakh, District- Saran. Bihar 841417, PAN NO.LWPPSI89IB

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Smt. Kajal Singh, Wlo Sri Amit Kumar Singh. situated at villageDoila, P.O.- Mashrakh, P.S.- Mashrakh, District- Saran. Bihar 841417. PAN No.L WPPSI891B

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....... Defendants

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Present:

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For the Applicant Ms. Kumari Anjali, Advocate For the Defendants None

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Dated:31.0 1.2025

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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 27.08.2024 against the defendants to recover its debts -from defendants of Rs.26,53,7411- as on 10.08.2024 along with pendente-lite and future interest at the contractual rate from 11.08.2024 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 tile the suit through various branches including the applicant.

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Defendant no. I is a proprietorship concer of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of cash credit facility of Rs.25 Lakh for establishing and running a retail and wholesale Saree business vide loan application dated 28.09.2022, which was sanctioned by the applicant bank on 28.09.2022 under CGTMSE Scheme on various terms

OA 429 of 20241JI

DRT,PATNA

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 hypothecated the movables/stocks in favour of the 'applicant bank.

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After availing the sanctioned credit facility, 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 19.06.2024.

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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.26,53,741/- as on 10.08.2024 with pendente-lite and future interest contractual rate from 11.08.2024 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 13.09.2024, requiring them to show-cause within 30 days of the service V/S 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993.

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6, Despite the service of 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 21.11,2024.

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To prove its case, the applicant Bank has referred vanous certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Vinay Kumar, Manager of the applicant bank. The details of documents are as follows:

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\4,

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'Pr":J -c , ePic" De^"'''' .JL.., _,I..: .. .., .'''' .... -, - - ........ on,! !"'::'l";'''''u...'~ ~ f;;:.,.:i.·..~A

OA 429 of 20241,11

DRT,PATNA

	Documents Photocopies	Execution	(In Lakhl	Executants		Ann. No.
I	Loanapplication	28.09.2022	25.00	Defendants		.-"- I
2	Sanctionletter	28.09.2022	25.00	Bank accepted defendants	and by	') ...-- -
, .,	Cash credit agreement	28.09.2022	25.00	Defendants		, .'
4	Request for overdraftfacilities	28.09.2022	25.00	Defendants		4
5	Letter evidencing execution of documents	28.09.2022	25.00	Defendants		5
6	Pronote	28.09.2022	25.00	Defendants		6
7	PDR	28.09.2022	25.00	Defendants		7
8	Legalnotice	21.06.2024	--	Bank'sadv.		8
9 & 10	Statementof account withCertificate	--	--	Bank .._-		9& 10 ---".....-

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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 ofIndia.

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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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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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P *^"C"i,,; ....... "n^"" Officer Oe..., .......'" ,i:"c ~~""''''''1 ....·...",_ .. Tribun&J PATNA

OA 429 of 20241JI

DRT,PATNA

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 19.06.2024. • whereas the present application has been filed on 27.08.2024. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has tiled the case within the limitation period. As such, it is established that the present application has been tiled well within the period oflimitation.

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Shri Vinay Kumar, Manager 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 (l) 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 tribunal may act upon the affidavit of the applicantwho is acquaintedwith the facts of the case or who has on veritication of the record sworn the affidavit in respect of the contents of the applicationand the documentsas evidence.

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The rule 12 (II) 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 Booksfurnishedalongwith applicationtiled undersubsectionI of section19bythe 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' b(JOk~~-Sllhiecl 10 the provisions of this Act, a certified copy of any entry in a hunker's hook shall in all legal proceedings he received as primafacie evidence ofthe existence of such entry, and shall he admitted us 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 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

~\ {' tricer

OA 429 of20241JI

DRT, PATNA

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 10.08.2024 has been proved to be Rs.26,53,741/- 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.26,53,741/- along with pendente-lite and future interest (iil10%p.a. with compounded monthly rests from 27.08.2024 (The date of tiling 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.26,53,741/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 27.08.2024 (The date of tiling 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 afoesaidadjudicated dues to the applicant bank to secure the end of j,ice. The mortgaged or hypothecated

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P ¥^{.".:·,.'··~} .... ,,.,^ocr;ce, Jj~ gebts Reco78::YTYibu.••• i'A'£NA

OA 429 of 20241.lJ

DRT, PATNA

assets to secure the loan in question are hereby attached and shall be subject to the tinal 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 11.03.2025. The order be communicated accordingly.

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

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Dictated &corrected by me.

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/ \

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna P,~sldjl'rg Offlc" Debts Recovary Tribunal FA'rNA

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FORMNQ 9 [See Regulation 24(I)J

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DEBTS RECOVERY TRIBUNAL PATNA

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

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RECOVERY CERTIFICATE UNDER SECTlOI': 19m READ WITH SECTION 19(W OF THE RECOVERY QFDEBTS & BANKR!JPICYACT,_l22,1,AS AMENDED FROM TIME TO TIME

RC No. 4212025

Case No: OAI42912024

In the Matter of: (CH- I) CANARA BANK BRANCH AT RAMPUR ATAULI.

Applicant(s)

SARAN .BIHAR -0

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

re,

(CD- I) MIS MAHALAXMI SAREE a Proprietorship Concern Through its Proprietor Smt. Kajal Singh. W/o- Sri Amit Kumar Singh. situated at Village- Doila. P.O.- Mashrakh. P.S.Mashrakb Saran ,BIHAR -841417

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Defendant(s)

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(CD- Z) SMT. KAlAL SINGH W/O- SRI AMIT KUMAR SINGH. SITUATED AT VILLAGE- DOILA. P.O., MASHRAKH. P.S.MASHRAKH. DISTRIC1CSARAN. BIHAR841417.

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~.-y_Certiticate for Rs 2653741.00 L....R.!!p-ees TweptY.Six I.akhs fiftY. Three Tbopypds Sevep Hupdred fgrty...clB QillLI

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In terms of final order dated 31/01/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2653741.00 along with cost, expenses and interest from the 27/08/2024 i.e. date of filing 1 with effective date of the OAl42912024 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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Isr.nc	:Amount(Rs.) Liability Type	Interest (ason Order nate)	RC Amount(Rs.)	Remarl. 1.11

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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.

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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 01 Debts and BankruptcyAct 1993. Parties are directed 10 appear before ASH ISH KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 11'03'2025

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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 CertificateDebtors.

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

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(},.
I: ~ +ar
DebL L . . ''''nal
1

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v PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA . r" ,'"

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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 CGPOA),Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 42/2025

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Case No: OAl429/2024

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Applicanus): CANARA BANK

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Versus

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Defendant(s): MIS MAHALAXMI SAREE

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11.	.._ "'eeon the applicatiol1.	29000
12	iProcess rc~s(lnc. Publication)	0
1[4:	. !Commissioner/Receiver/ValuationlSecnrityFee	0
	i .. JT?tal Costs':.:;.R;;;s. ....~......~...~.~...~~~~~~~~_.a;2;;.;9..;0.;	.0.;.0 ...IJ

Place: PAl"NA

PRESIDING OFFICER

Date: 01102/2025

DEBTS RECOVERY TJPWID*# ~Hr

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Oebt:; Ro::;:,-.".:-,-·~' "7::ibu...."1aJ

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Note: Strike out whichever is not applicable

Canara Bank v. M/s Mahalaxmi Saree

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s Mahalaxmi Saree

Case brief

What is this about?

What did the court decide?

What the court decided

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