Allowed

Indian Overseas Bank v. Neohumanistic Healthcare Pvt.Ltd.

DRT15 May 2025OA/442/2023

Case brief

AI extract

What is this about?

The DRT determined the applicants bank debt of Rs.56.20 Lakhs against a private limited company and its directors/guarantors. The court granted a recovery certificate and ordered attachment of assets for realization as per Section 19 of the RDB Act.

What did the court decide?

Recovery certificate issued for Rs.56,20,447/- with interest at 10% p.a. Debts determined against defendants jointly and severally; their assets attached for realization.

Indian Overseas Bank versus Neohumanistic… — Contract and Commercial Disputes | DRT (2025)

OA 442 of 2023jJl

DRT, PATNA

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 442 of 2023

¶8

Indian Overseas Bank, branch at Khaspur Branch, Near Khaspur Petrol Pump, MaIler, Patna 801502

¶9

. . . . . . . Applicant

¶10

Vs.

¶11

Neohumanistic Healthcare Pvt. Ltd. through its Directors, Regd. Office- 103, Block-D, NTPC Colony, Ashiana Nagar, Khajpura, Patna 800014 (Borrower)

¶12

Sri Shantivrata Verma, R/o House No.21, S.B.I. Colony, Phase-III, Near Punam Gas Godown, Ambedkar Path, Bailey Road, Patna 800014 (Guarantor)

¶13

Also at:- 302, Usha Nikunj Apartment, Ambedkar Path, Near Mahima Mandir, P.O.- B.V. College, Bailey Road, Patna 800014

¶14

Sir Sushil Kumar, R/o Flat No.103, Sita Ram Complex, behind Jagmanav ShI:ee Garden, Rukanpura, Bailey road, Patna 800013 (Guarantor)

¶15

. . . . . . . Defendants

¶16

Present:

¶17

For the Applicant Shri Sanjay Singh Thakur, Advocate For the Defendants None

¶18

Dated: 15.05.2025

¶19

JUDGMENT

¶20

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 12.09.2023 against the defendants to recover its debts from defendants of lb.56,20,447/- as on 31.08.2023 along with pendente-lite and future interest at the contractual rate from 01.09.2023 with costs till realization.

¶21

The application has been filed with the contention that the applicant bark, is a body corporate, carries on the business and is competent to file the suit through various branches including the applicant.

¶22

\4 s/

¶23

Presiding Ofice1 D8bb Recovery Tribwl+ PATNA

DRT, PATNA

OA 442 of 20231JI

3 . Defendant no.1 is a private limited company of which defendant no.2 and 3 are the Directors, who also gave their personal guarantee.

¶28

Defendant no. 1 through its Directors approached the applicant bank for sanction of Term Loan facility for setting up of Ultra Modern Dental clinic vide loan application dated 05.02.2018 and after due consideration, the applicant bank has sanctioned Term Loan of Rs.63.75 Lakh vide sanction letter dated 21.04.2018 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facility the defendants have executed various loan and security documents and also hypothecated the movables in favour of the applicant bank, details of which are given in OA.

¶29

Defendant no. 1 through its Directors again approached the applicant bank for sanction of another Term Loan facility for purchasing ultra modern dental clinic equipments vide loan application dated 01.08.2018 and after due consideration, the applicant bank has sanctioned another Term Loan of Rs.28 Lakh vide sanction letter dated 20.08.2018 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facility the defendants have executed various loan and security documents and also hypothecated the movables in favour of the applicant bank, details of which are given in OA.

¶30

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 21.05.2023 .

¶31

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.

¶32

Presiding Oficer Debts Recovery Tribunat PATNA

tar

OA 442 of 20231JI

DRT, PATFK

The total liability in the loan account is Rs.56,20,447/- as on 31.08.2023 with pendente-lite and future interest contractual rate from 01.09.2023 till the realization.

¶38

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 07.10.2023, 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. But the defendants have not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 01.02.2024 in “Dainik Bhaskar” newspaper.

¶39

Despite the registered summons/notices and publication of notice in newspaper, 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 24.02.2025 .

¶40

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 Ms. Arpita, Senior Manager of the applicant bank. The details of documents are as follows:

¶41

Sl.No	Description Documents Photocopies of	1Date of Execution	IAmount I(in Lakh)	ISignature 1Executants	of	1Ex./ Ann. No.
	Loanapplication	05.02.2018	65.00	Defendants
	Sanction letter	21.04.2018	63.75	Bank accepted defendants	and by
3	Term agreement o		63.75	Defendants		3
	Dm	21.04.2018	63.75	Defendants
	PDR	21.04.2018	63.75	Defendants
	Letter hyDothecation o		63.75	Defendants
7	Ar Loan and HyDothecation		63.75	Defendants		7
	Letter ofundertakin!	0		Defendants
	Guarantee	0		Defendantn	o.2

¶42

v$<

¶43

Presiding O$ice1 Debts Recovery Tribuna’ PATNA

OA 442 of 20231JI

DRT, PATNA

	agreement
10	Guarantee agreement	21.04.2018	e	1
	Lo)	01.08.2018	e
	Sanction letter	20.08.2018	a	accepted defendants	by
13	Term agreement loan	20.08.2018	e	1
14	DPNote	20.08.2018	e			14
15	PDR	20.08.2018	e			15
16	Letter hyDothecation of	20.08.2018	e 28.00			16
17	Letter ofundertakin!	20.08.2018	e			17
18	Guarantee agreement	20.08.2018	e			18
19	Guarantee agreement	20.08.2018	e	1
	a	17.06.2023		Bank
	Balance confirmationletter	30.03.2020		Defendants
	Revivalletter	30.01.2021		Defendants
	Balance confirmationletter	31.03.2020		Defendants
	Revivalletter	29.04.2020		Defendants
	Statementofaccount			Bank

¶48

Heard arguments and paused the case record.

¶49

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.

¶50

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.

¶51

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 laos. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore,

¶52

vhr

¶53

PresIding Ofice1 Debts RecoverY Ttibuna PATNA

OA 442 of20231JI

DRT, PATNA

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

¶58

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 21.05.2023. whereas the present application has been filed on 12.09.2023. 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.

¶59

Ms. Arpita, 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.

¶60

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.

¶61

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.

¶62

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.

¶63

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.

¶64

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

¶65

Itresiding ODI' '' DaB Recovery Trlouna PATNA

OA 442 of 20231JI

DRT, PATNA

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

¶70

15 . 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.

¶71

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 31.08.2023 has been proved to be Rs.56,20,447/- 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.

¶72

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.56,20,447/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 12.09.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶73

ORDER

¶74

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.56,20,447/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 12.09.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶75

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

V~(nr

OA 442 of2023jJI

DRT, PATN A

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.

¶81

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 mortgage(i/ 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.

¶82

Parties are directed to appear before the Recovery Officer, DRT, Patna on 25.06.2025. The order be communicated accordingly.

¶83

Judgment signed, sealed, dated and pronounced in the open court on 15th day of May, 2025.

¶84

Dictated &corrected by me.

¶85

[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal.Patna A Jsiaing''67it -; t)ebb Recovery TrIbute PATNA

¶86

FaRr\1 NO. 9

¶87

DEBTS RECOVER- TRIBUNAL PATNA

¶88

[See Regulation 24(1 )]

¶89

2nd FlooR ( A. B & F Wing) Kurpuri Thakur Sudan1 Kendriyu Karilmchuri Pilrisilr (GPOA), Ashianu Digllu Road, Pinna-8tH)025,

¶90

RECO-ERV CERTI PIOW UNDER SECTION II(Z) READ WITH SECTION 19(a) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No. 177/2025 IN

Case No: OA/442/2023

In the Matter of:

(CH- 1) INDIAN OVERSEAS BANK

¶95

131tAN('ll Al KIIASPUR BRANCH, NEAR KFIASPLIR PETRUL PUMP MANER, PAT'N A .BIHAR -801502

Applicant( s )

–-–- Versus ––---

(CD- 1) NEOHUMANISTIC HEALTHCARE PVT.LTD through its Directors. Regd. OfTice- 103, Block-D. NTPC Colony, Ashiyana Nagar. Khajpura, Patna ,BIHAR -800014

¶100

(CI)- 2) SRI SI-IANl-IVR ATA \’ERM A R'U- HOUSE NO.2 1. S.B.I. COLONY, PHASE III

¶101

NEAR PUNAM GAS GODOWN, AMBEDKAR PATH, BAILEY ROAD. PATN A- 800014

¶102

Defendant(s)

¶103

Also At

¶104

ALSO AT- 302, USH A NIKUNJ APARTMENT, AMBEDKAR PATH. NEAR MAHIMA MANDll{, P.0 B.V. COLLEGE. BAILEY ROAD. PATNA 8000 14

¶105

(CI)- 3) SkI SLISHIL KUMAR R 0- FLAT NO. 1 03, SITA RAM COMPLEX. BEHrND JAGMANAV SHREE GARDEN, RUKUNPURA.

¶106

BAILEY ROAD, PATN A- 800013

¶107

Recovery Certingate for R$ 5620447,OO [ Rupees Fifty Six Lakhs Twenty Thousand$ Four Hundred Forty Seven Only_I

¶108

In terms of final order dated 15/05/2025 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. 5620447.00 along with cost. expenses and interest from the !,'(19/2023 i.c. date of filing / with effective date of the OA,/442/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶109

	Int. : Int. iType/ModeIRate	IEffective il Date	Order Date	I n1o u n t(Rs+)	J L !!i1:( y	Interest O Order Date)	RC Re i Amount(Rs.)
iIEOHUbIANIS'1-1 (' HEALTHCARE PVT.LTD	10i	l12/09/2023	1l15/05/2025	10447.00	ly Ey	InterestAs Order Date	l562tP+47.00
	'O111 ntcrcst Monthly) o	il2/(19/2023	1 15/05/2025	,7.00	Ly
Rl SUSHIL KUMAR	otIll a Interest Monthly)			,7.00	ltly

¶110

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.

¶111

The mbrtgdged ur 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 certiticate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1 993.

¶112

Parties are directed to appear before MANOJ KUMAR . Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 25/06/2025,

¶113

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 Cellificate Debtors.

¶114

This Certificate has been issued under my signature and seal of the Tribunal on this 1 6/05/2025

¶115

;\, D&b D 1tt iSIa1rr i b L1 n a 1

¶116

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶117

P?nidint 08'icel Dabt8 Recovery Tnburw PATNA

¶118

FORM NO. 10

¶119

[See Regulation 24(2)]

¶120

DEBTS RECOVERY TRIBUNAL PATNA

¶121

2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

¶122

(GPOA), Ashiana Digha Road, Patna-800025 .

¶123

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 177/2025

Case No: OA/442/2023

Applicant(s): INDIAN OVERSEAS BANK Versus

¶128

Defendant(s): NEOHUMANISTIC HEALTHCARE PVT.LTD.

¶129

Item ofCosts	I Amount inRs
)	m
r
AdvocateFees
MiscellaneousCharges	Dc
TotalCosts:Rs	m5

¶130

Place: PATNA

¶131

Date: '1 6/05/2025

¶132

Note: Strike out whichever is not applicable

¶133

PRESIDI M/OFFICER DEBTS RECOVERY TRIBUNAL PATNA nest atIe OOca Debts RecovetY TdbunaJ PATNA

Indian Overseas Bank v. Neohumanistic Healthcare Pvt.Ltd.

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Neohumanistic Healthcare Pvt.Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Classic Steel Traders versus Indian Overseas Bank

M/s Exalt Educational Trust and others versus Union Bank of India

Ms Noor Enterprises and others versus Bank of India

Bank of Baroda versus Manoj Kumar Choudhary

Bank of India versus Kumar Shanu

State Bank of India versus Joseph Barnad C