Allowed

Icici Bank Limited v. M/s Kunal Petroleum

DRT25 Jul 2025OA/43/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed ICICI Bank's application under Section 19 of the RDB Act to recover a loan. The defendant did not specifically deny the loan utilization or execution of documents. The court accepted the bank's statement of account as prima facie evidence of the debt.

What did the court decide?

Recovery Certificate issued for Rs. 56,56,836/- along with pendente-lite and future interest at 10% p.a. simple from 15.01.2024 till realization.

Icici Bank Limited versus M/s Kunal Petroleum — Contract and Commercial Disputes | DRT (2025)

OA 43 of20241J]

DRT, PATNA

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶5

Presiding Officer : Shri Kaushalendra Yadav

¶6

OA Case No. 43 of 2024

¶7

ICICI Bank Limited, Zonal Office at 211d and 3'd Floor, Gulab Palace, Roop Alankar Jewellery, East Boring Canal Road, Patna

¶8

Kunal Petroleum, Proprietor- Nitesh Kunal, (Borrower), S/o Ram Balak Ray, Address- 0, Bochahan Muzaffarpur, Jhapha, Jhapahan, Near Jhaphan Over Bridge, Muzaffarpur-842004, PAN No.CZPPK7535L

¶9

. . . . . . . Defendant

¶10

Present:

¶11

For the Applicant Shri Prem Prakash, Advocate For the Defendant Shri Punyatma Tiwary, Advocate

¶12

Dated :25.07.2025

¶13

JUDGMENT

¶14

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 15.01.2024 against the defendant to recover its debts from defendant of Rs.56,56,836/- as on 11.01.2024 along with pendente-lite and future interest at the contractual rate from 12.01.2024 with costs till realization.

¶15

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.

¶16

3 . Defendant Mr. Nitesh Kunal is the sole proprietor of his proprietorship business in the name of Kunal Petroleum- a Petrol Pump, being the dealership of Indian Oil Corporation Ltd. and the defendant through digital login dated 28.05.2023, requested the applicant bank for overdraft facility and the applicant bank sanctioned Rs.7.5 Million at any one time, subject to terms and conditions set out in credit arrangement letter digitally acknowledged by the defendant on 06.06.2023. It was agreed therein that the account shallbe operated by the defendant only for the purpose of making payment to the corporate dealers of Indian Oil Corporation Ltd., towards purclpse ofPetrochemicals products from

h*I VD

OA 43 of2024jJ1

DRT, PATNA

time to time during the tenure of Credit Arrangement Letter i.e. 28.05.2024. To secure the loan facility, the defendant has also executed necessary documents.

¶22

After availing the sanctioned credit facility, the defendant became irregular in repayment of the 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 28.09.2023 .

¶23

Since, the defendant 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.

¶24

The total liability in the loan account is Rs.56,56,836/- as on 11.01.2024 with pendente-lite and future interest contractual rate from 12.01.2024 till the realization.

¶25

This Tribunal issued summon/notice copies of application & paper book to the defendant by registered/speed post on 07.02.2024, requiring him to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993 .

¶26

In response to the notice the defendant has appeared by filing vakalatnama on 19.03.2024 and has also filed written statement but has not specifically denied the utilization of loan amount sanctioned by the applicant bank and also not specifically denied regarding execution of loan documents. It has fbI:ther been stated that the applicant bank has charged excessive rate of interest and the allegations stated in the OA are not collect and requested to dismiss the OA.

¶27

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 Amit Verma, Manager of the applicant bank. The details of documents are as follows:

OA 43 of2024IJI

DRT, PATNA

Description Documents Photocopies of	of 1Date Execution	Signature Executants	of
Registration certificate	10.09.2018	Defendant
Credit arrangement letter,documenttrail certificate declaration key observationsheet	06.06.2023 21.08.2023	Bank Defendant	Ma
KyC form forNon individuals&TASC		Defendant
Oil Dealer and License
Loan recallnotice	09.10.2023
Statementofaccount

¶32

Heard arguments and perused the case record. During the course of arguments, there is no any specific denial on behalf of the defendant 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.

¶33

Ld. Counsel of applicant bank submitted that the defendant has 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.

¶34

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.

¶35

It has been established that defendant is living and carrying on the 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, VH

OA 43 of20241J]

DRT, PATNA

this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶40

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 28.09.2023, whereas the present application has been filed on 15.01.2024. 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.

¶41

Shri Amit Verma, 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.

¶42

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.

¶43

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.

¶44

The rule 12 (I1) 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.

¶45

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 shall 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.

¶46

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

OA 43 of 20241JI

DRT, PATNA

account, more so since the entries in the statement of account have not been challenged.

¶52

15 . On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendant has 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 defendant has executed loan documents, as stated in the application and proved by aforesaid evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor has pointed out any specific error and discrepancy in the Statement of Account.

¶53

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 11.01.2024 has been proved to be Rs.56,56,836/- only by way of statement of account as well as 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.

¶54

In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover from defendant of Rs.56,56,836/- along with pendente-lite and future interest @ 10% p.a. simple from 15.01.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶55

ORDER

¶56

In the result, the application of the applicant bank is allowed and debt is determined with costs against the defendant. The defendant is hereby, ordered to pay the applicant bank its debt amounting to Rs.56,56,836/- along with pendente-lite and future interest @ 10% p.a. simple from 15.01.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶57

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

OA 43 of 20241Jl

DRT, PATNA

Defendant is 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.

¶63

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 defendant, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant. 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.

¶64

Parties are directed to appear before the Recovery Officer, DRT, Patna on 03.09.2025. The order be communicated accordingly.

¶65

Judgment signed, sealed, dated and pronounced in the open court on 25th day of July, 2025.

¶66

Dictated &corrected by me.

¶67

[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

¶68

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

¶69

DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor> (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA)) Ashiana Digha Road, Patna800025

¶70

RC No. 248/2025 IN

¶71

Case No: QA/43/2024

¶72

In the Matter of: (CH- 1) ICICI BANK LIMITED ZONAL OFFICE 2ND AND 3RD FLOOR GULAB PALACE ROOP ALANKAR JEWELLERY, EAST BORING CANAL ROAD. PATNA ,BIHAR -800001

¶73

Applicant(s)

¶74

To (CD- 1) M/S KUNAL PETROLEUM Proprietor- Nitesh KunaI, S/o- Ram Balak Ray, Address- 0, Bochahan Muzaffarpur, Jhapha, Jhapahan, Near Jhaphan Over Bridge, Muzaffarpur ,BIHAR -842004

¶75

Defendant(s)

¶76

Recovery ('ertincate for Rs 5656836.00 1 Rupees Fifty Six Lakhs Fifty Six Thousands Eight Hundred Thirty Six Only J

¶77

In terms of final 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. 5656836.00 along with cost, expenses and interest from the 1 5/01/2024 i.e. date of filing / with effective date of the OA/43/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶78

Sr.noF! CDName	Loan rpe	Int. }I Type/Mol	iI in Rate	Effective i llDate	I Order Date	Amount(Rs.);	,iabili le	bterest g;d'£l Date)	IA„o:£(Rs.)I'„„„'ki
M/SKUNAL PETROLEUM		ISimpte Interest 1(Yearly)

¶79

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.

¶80

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 . Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 03/09/2025.

¶81

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.

¶82

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

¶83