Allowed

Hdfc Bank Limited v. Prabhat Yadav

DRT4 Apr 2025OA/443/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by HDFC Bank Limited against Prabhat Yadav and Champa Devi for the recovery of a loan amounting to Rs. 25,60,009.91 along with interest, costs, and future interest, based on documentary evidence proved ex-parte.

What did the court decide?

Recovery of Rs. 25,60,009.91 along with pendente-lite and future interest at 12% p.a. compounded monthly from filing date until realization, with issuance of a Recovery Certificate under Section 19(22

Hdfc Bank Limited versus Prabhat Yadav — Contract and Commercial Disputes | DRT (2025)

•

OA 443 of20221JI

DRT,PATNA

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

¶5

Presiding Officer : Shri Kaushalendra Yadav

¶6

OA Case No. 443 of 2022

¶7

HDFC Bank Limited, branch office at Rajendra Ram Plaza, 2nd Floor, Exhibition Road, Patna 800 00 I

¶8

....... Applicant

¶9

Vs.

¶10

Prabhat Yadav (Borrower), Sio Yogendra Yadav, Barchhi Bigha, PostGiriyak, District- Nalanda, Near Primary School, Barchhi, Bihar Sharif, Bihar- 803109, PAN NO.AZCPY732IH

¶11

Champa Devi (Guarantor), Wlo Yogendra Yadav, Barchhi Bigha, PostGiriyak, District- Nalanda, Bihar Sharif, Near Primary School, Barchhi, Bihar Sharif, Bihar- 803109, PAN No.CEDPD3176H

¶12

....... Defendants

¶13

Present:

¶14

For the Applicant Shri Anil Kumar, Advocate For the Defendants None

¶15

Dated:04.04.2025

¶16

JUDGMENT

¶17

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 19.07.2022 against the defendants to recover its debts from defendants of Rs.25,60,009.91 as on 12.05.2022 along with pendente-lite and future interest at the contractual rate from 13.05.2022 with costs till realization.

¶18

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.

¶19

Defendants approached the applicant bank for sanction of loan facility of Rs.18.60 Lakh and after due consideration, the applicant bank has sanctioned a sum of Rs.18.55 Lakh on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants.

¶20

'list ~ Ifl ' \Jt' . 1)eD\i Recover! :: .J"'" k'A'U••

OA 443 of 20221JI

DRT,PATNA

To secure the loan facilities defendants have executed various loan and security documents

¶25

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 30.04.2022.

¶26

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.

¶27

The total liability in the loan account is Rs.25,60,009.91 as on 12.05.2022 with pendente-lite and future interest contractual rate from 13.05.2022till the realization.

¶28

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 22.03.2023, 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 III newspaper was also made against the defendants on 13.03.2024 in "Prabhat Khabar" newspaper.

¶29

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 18.07.2024.

¶30

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 Md. Aasif Khan.

OA 443of20221JI

DRT,PATNA

Branch Manager of the applicant bank. The details of documents are as follows:

¶35

SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature of Executants	Ex.! Ann. No.
I	Photocopy of PAN Cards	^..	..	Defendants	I ----
2	Loanapplication	11.02.2019	Rs.19,27,284/·	Defendants	2
3	Agreement for loan andguarantee	25.02.2019	Rs.l9,27,284/·	Defendants	, J
4	Disbursementmemo	25.02.2019	Rs.l9,27,284/·	Defendants	4
5	Statementof account	--	--	Bank	5
6	Loanrecallnotice	12.05.2022	--	Bankadv.	6

¶36

Heard arguments and perused the case record.

¶37

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.

¶38

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 for, in OA.

¶39

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.

¶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 30.04.2022, whereas the present application has been filed on 19.07.2022. Even, it is counted for the purpose of Limitation, then it is established that the applicant

¶41

gbt: d'~::,;c-);"/~rJ' 'rc:»: . kb,:l'... 't,l'

OA 443of20221JI

DRT,PATNA

bank has filed the case within the limitation period. As such, it is established that the present application has been tiled well within the period oflimitation.

¶46

Shri Md. Aasif Khan, Branch Manager of the applicant bank has tiled 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.

¶47

Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application uls S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

¶48

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 tribunalmay act upon the affidavitof the applicantwho is acquaintedwith the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of the applicationand the documentsas evidence.

¶49

The rule 12 (11) of the aforesaid Rules, provides that the provisionscontainedin section4 of the Banker's Booksevidence that Act, 1891(18 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Books furnishedalongwith applicationfiled undersubsectionI of section19bythe applicant.

¶50

Section 4 of Banker's Books evidence Act, 1891 runs as under- SA. 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 a' primafacie evidence 'if the existence of such entry, and shall be admitted as evidence 'If 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.

¶51

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.

¶52

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 v.~ by aforesaid evidence.

¶53

J~>Pa[l~}:':~i'(:://"f\I;_ ),QJab~ ;"j':"'"\J)?:','_ b-k").)>I'~.

OA 443 of 20221J I

DRT,PATNA

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.

¶58

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 12.05.2022 has been proved to be Rs.25,60,009.91 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.

¶59

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.25,60,009.91 along with pendente-lite and future interest @ 12%p.a. with compounded monthly rests from 19.07.2022 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

¶60

ORDER

¶61

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.25,60,009.91 along with pendente-lite and future interest @ 12% p.a. with compounded monthly rests from 19.07.2022 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶62

It is made clear that any amount deposited by the defendants, be deducted in the claim amount, ifnot deducted.

¶63

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

¶64

Debtc "':"'<::''·.i-'-,.~, ,.<. j' '_!.J.J k),~;,)"..,/. '

•

•

OA 4430f20221JI

DRT. PATNA

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.

¶71

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.

¶72

Parties are directed to appear before the Recovery Officer, DRT, Patna on 14.05.2025. The order be communicated accordingly.

¶73

Judgment signed, sealed, dated and pronounced in the open court on 04 th day of April, 2025.

¶74

Dictated &corrected by me.

¶75

[KaU~~~YadaV 1 Presiding Officer Debts Recovery Tribunal, Patna

¶76

fr17(lSl/l~,.,,., o ffl ('C _QoJJ\i - ',}:d;;' »r: J:' j/);~,'i 1.)J·,

¶77

FORM NO, 9 [See Regulation 24(I)J

¶78

DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. B & F Wing) Karpuri Thakur Sedan, Kendriya Karamchari Parisar (GPOA). Asbiana Digha Road, Patna-KOOO2S.

Ii: Ii:

RC No, IOsn025

Case No: OA/443/2022

¶83

In the Matter of:

¶84

(CH- I) HDFC BANK LIMITED

¶85

BRANCH OFFICE AT RAJENDRA RAM PLAZA 2ND FLOOR, EXHIBITION ROAD, PATNA,BIHAR -800001

¶86

Applicant(s)

¶87

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

¶88

To, (CD-I) PRABHAT YADAV, Slo Yogendra Yadav Barchhi Bigha, Post- Giriyak, District- Nalanda, Near Primary School, Barchhi, Bihar Sharif, Nalanda ,BIHAR -H031 09

¶89

Defendant(s)

¶90

(CD- Z) CHAMPA DEVI (GUARANTOR) WIO YOGENDRA YADAV BARCHHI BIGHA, POST- GIRIYAK, DlST- NALANDA, BIHAR SHARIF NEAR PRIMARY SCHOOL, BARCHHI BIHAR SHARIF, BIHAR - 803109

¶91

RecoverY. Certificate for Rs 2560009.91 l...J!..u.p..es TwentY. Five Lakh5 Sixty, Thollsands Nine And Paise NinetY. One Only_)

¶92

In terms of tinal order dated 04/04/2025 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. 2560009,91 along with cost, expenses and interest from the 19/07/2022 i.e. date of tiling 1 with effective date of the OAl443/2022 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶93

Sr.ne	i CD Name '	lLoan Type	Int. Type/Mode	i : Int. 'Rate i '	~ Errt!ctive Date	Order Date	.Amount(Rs.) ;	Liability, Type	Illnterest (as on ! Order ' Date)	~ j RC Amuunt(Rs.)	t 1 IRt!mllfki i ,
II	PRABHAT YADAV	I	Compound Interest (Monthly)	12	1910712022	0410412025	2560009.91	ointly And Severally	Interest As on iJorder tnare	560009.91
2	CHAMPADEVI (GUARANTOR)		Compound Interest (Monthly)	!12	, 1910712022	04/0412025	^2560009.91	ointly lAnd Severally	ilnterest [As on :Order [Date	I ^560009,9t	~

¶94

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgagedlhypothecated assets as well as other personal movablel Immovable assets of the certificate debtors.

¶95

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 ASHISH KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 14/05/2025.

¶96

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. .

¶97

This Certificate has been issued under my signature and seal of the Tribunal on this 05/04/2025

~""

, vistrar

.ounal

V

¶102

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA off^;.:' j ",'" f^"'S (,,0 ',' ., .. ' )\1·.~J. • ~f \ j' • Reca,!e.) oe'pts ?.I"£L~~

¶103

FORM NO. 10 [See Regulation 24(2)]

¶104

DEBTSRECOVERYTRIBUNALPATNA

¶105

2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

¶106

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 108/2025

Case No: OA/443/2022

Applicant(s): HDFC BANK LIMITED

¶111

Versus

¶112

Defendant(s): PRABHAT YADAV

¶113

~r.No.	1Item of Costs	Amount inRs.
1.	Fee on the application	28000
2. . .	Process Fees(Inc. Publ~cation) .. _.	0 .
3.	Advocate Fees	0
4.	CommissionerlReceiverNaluationiSecurity Fee	0
~ .	Miscellaneous Charg~s	0
	ITotalCosts: Rs. .	1128000 I

Place: PATNA

PRESIDING OFFICER

Date: 05/04/2025

Note: Strike out whichever is not applicable

¶119

DEBTS RECOVERY TRIBUNAL PATNA

¶120

t'l'sst(!.h'?0 !fie. Debto Recovery ',':i" ..,,,. FA'l'.,A

Hdfc Bank Limited v. Prabhat Yadav

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Prabhat Yadav

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

Rajeev Thyagarajan versus Hdb Financial Services Ltd.

Canara Bank versus M/s Real Infra

Bank of Baroda versus M/s Vansh Enterprises

Raju Kumar and Raju Kumar Gupta and Raju Prasad versus Hdfc Bank

Canara Bank versus M/S Abhisheniya Dredging Private Limited

Yes Bank versus Rishab Sachan