Allowed

Indian Overseas Bank v. M/s Shambhu Namkeen

DRT31 Jan 2025OA/444/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank applicant's application for debt recovery under the RDB Act. Relying on documentary evidence and bank statements accepted as prima facie proof, the tribunal determined a liability of Rs. 30,29,906.51 against the respondents acting in their absence, issued a recovery certificate, and attached secured assets.

What did the court decide?

Issued a recovery certificate for Rs. 30,29,906.51 plus interest and costs; attached mortgaged assets to secure recovery.

Indian Overseas Bank versus M/s Shambhu Namkeen — Banking and Recovery | DRT (2025)

...

OA 444 of 20231.11

DRT.PATNA

Debts Recovery Tribunal, Patna Karpuri Tbakur Sadan, Aasbiana Digba Road Patna-800025

¶5

Presiding Officer : Shri Kaushalendra Yadav

¶6

OA Case No. 444 of 2023

¶7

Indian Overseas Bank. branch at Saboo Complex. Exhibition Road. P.S.Gandhi Maidan. District- Patna 800 00 I

¶8

....... Applicant

¶9

Vs.

¶10

1. Mis Shambhu Namkeen, Proprietor. Smt. Pinki Devi. Wlo Shambhu Kumar. At Suman Tola, Parsa Bazar. P.S.- Parsa Bazar. District- Patna 804453, PAN NO.DJFPD9728D

¶11

Smt. Pinki Devi, Wlo Shambhu Kumar. At Sumari Tola. Parsa Bazar. P.S.- Parsa Bazar, District- Patna 804453, PAN NO.DJFPD9728D

¶12

....... Defendants

¶13

Present:

¶14

For the Applicant Shri J. K. Roy. Advocate For the Defendants None

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Dated:31.0 1.2025

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JUDGMENT

¶17

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 11.09.2023 against the defendants to recover its debts from defendants of Rs.30,29,906.5l as on 31.07.2023 along with pendente-lite and future interest at the contractual rate from 01.08.2023 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 me the suit through various branches including the applicant.

¶19

Defendant no. I is a proprietorship firrn of which defendant no.2 is the proprietor. For establishment of a manufacturing unit of Namkeen product like Namkeen Bhujiya, Mixture and Chips and related items. the defendants submitted an online application on 26.05.2018 before the District Industries Center, Bihar, Patna to grant composite loan under PMEGP and the DIC Patna has considered the request of the defendants and forwarded the application to

¶20

Pres! ,,:::~ Cff;c~, Debt:: I::)::::>'l:lry Tribw.. "A'rNA

OA 444 of 20231JI

DRT,PATNA

the applicant bank for consideration of the application given by the defendants and the applicant bank has received the application of the defendants from DIC on 07.06.219. The competent authority of the applicant bank scrutinized in respect of the viability of the unit and sanctioned on 06.08.2019 for Cash Credit limit of Rs.9.50 Lakh by way of working capital and Rs.14.25 Lakh by way of Term Loan repayable with interest under PMEGP Scheme covered under CGTMSE Scheme on various terms 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 in favour of the applicant bank.

¶25

During the period of Covid 19, the defendants further made a requested to the applicant bank on 30.06.2020 for GECL Term Loan of Rs.3.50 Lakh and the same was sanctioned by the applicant bank vide sanction letter dated 01.07.2020 on various terms and conditions, as stipulated in the sanction letter. which was duly accepted by the defendants. To secure the loan facility defendants have executed various loan and security documents.

¶26

During the period of Covid 19, the defendants further made a requested to the applicant bank for FITL loan of Rs.0.81 Lakh and the same was sanctioned by the applicant bank vide sanction letter dated 31.05.2021 along with existing cash credit limit of Rs.9.50 Lakh, Terms loan of RS.14.25 Lakh and GECL Term Loan of Rs.3.50 Lakh on various terms and conditions. as stipulated in the sanction letter, which was duly accepted by the defendants. To secure the loan facility defendants have executed various loan and security documents. At the request of the defendants, the applicant bank has renewed the accounts vide sanction letter dated 24.03.2022.

¶27

After availing the sanctioned credit facilities, the defendants became irregular in repayment of their dues as per agreed terms and tailed 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 23.05.2022.

OA 444 of20231JI

DRT, PATNA

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

The total liability in the loan account is Rs.30,29,906.5l as on 31.07.2023 with pendente-lite and future interest contractual rate from 01.08.2023 till the realization.

¶33

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 12.10.2023, 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. 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 m newspaper was also made against the defendants on 13.06.2024 in "Hindustan' newspaper.

¶34

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 qefend 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 04.09.2024.

¶35

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 Prashant Kumar Sinha, Chief Manager of the applicant bank. The details of documents are as follows:

¶36

SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	,~ ot	- Ex.! Ann. No.
1	Loan application	26.05.2018	25,00	Defendants		1
2	Sanction letter	06.08.2019	9.50 CC 14.25 TL	Bank accepted defendants	and by	2
, -,	Revised DP Note	06,08.2019	9.50	Defendants		, "
4	Letter of continuity	06,08.2019	9.50	Defendants		4
5	Letter of hypothecation	06.08.2019	9.50 14.25	Defendants		5

OA 444 of 20231J I

DRT. PATNA

6	Revised DP Note	06.0S.2019	14.25	Defendants		6
7	Letter of undertaking	21.09.2019	14.25	Defendants		7 -
S	Agreement of Term loan and Hypothecation	21.09.2019	14.25	Defendants		S
9	Sanction letter	01.07.2020	3.50	Bank accepted defendants	and by	9 ---
10	Revised DP Note	01.07.2020	3.50	Defendants		10
11	Letter of undertaking	01.07.2020	3.50	Defendants		11
12	Term loan agreement	01.07.2020	3.50	Defendants		12
13	Sanction letter	31.05.2021	9.50 14.25 3.50 O.SI	Bank accepted defendants	and by	13 -
14	Revised DP Note	31.05.2021	0.81	Defendants		14
IS	Letter of undertaking	31.05.2021	0.81	Defendants		15
16	Sanction letter for renewal	24.03.2022	--	Bank accepted defendants	and by	16 .----
17	Demand notice	16.05.2023	--	Bank		17
18 to ISle	Statement of accounts	--	--	Bank		18 to 18/e

¶42

Heard arguments and perused the case record.

¶43

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.

¶44

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.

¶45

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,

¶46

~ a.fri el' '4'~ '-' ... ~ ~ ..", ""\ -~ -r Ttib'.l-,,\at Oo;;::;c,~.,_.' . _,:.) , -t'i'lo.~~~d.

¶47

OA 444ofl0231JI

¶48

DRT, PATNA

¶49

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

¶50

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 23.05.2022, whereas the present application has been tiled on 11.09.2023. 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 tiled well within the period of limitation.

¶51

Shri Prashant Kumar Sinha, Chief Manager of the applicant bank has tiled the atlidavit 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.

¶52

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.

¶53

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.

¶54

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 19by the applicant.

¶55

Section 4 of Banker's Books evidence Act, 1891 runs as under- S.4. Mode of proof of entries in bankers' books=-Subject to the provisions ofthis Act, a certified eopy ofany entry in a banker's hook shall in all legalproceedings be received as primafacie evidence ofthe existence "I such entry. and shall he admitted as evidence of' the matters. transactions and accounts therein recorded in every ('use where. and 10 the same extent as, the original entry itsei] is now hv IlIlI' admissible. butnotjUrther or otherwise.

¶56

As such the certified true copies of the documents are admissible 10 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

¶57

¶58

'resiling O.fflc'.' ebts Recovery TrlOuna" t) PATNA

OA 444 of20231JI

DRT, PATNA

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

¶63

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.

¶64

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 tor repayment with interest. The balance amount till 31.07.2023 has been proved to be Rs.30,29,906.51 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.

¶65

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.30,29,906.51 along with pendente-lite and future interest @ 10%p.a. with compounded monthly rests from 11.09.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

¶66

ORDER

¶67

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.30,29,906.51 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 11.09.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶68

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

OA 444 of 20231.11

DRT.PATNA

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/SubRegistrar to endorse the charge over the secured assets.

¶74

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.

¶75

Parties are directed to appear before the Recovery Officer. DRT. Patna on 11.03.2025. The order be communicated accordingly.

¶76

Judgment signed. sealed, dated and pronounced in the open court on 31,t day of January, 2025.

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Dictated &corrected by me.

¶78

r U,'I.-I> [Kaushalendra Yadav 1 Presiding Officer Debts Recopr;ilftlr~l?atna Oebts Reco'lery TribllO:lIt.. I'ATNA

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FORM NO 9 [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL. PATNA

¶81

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

¶82

RECOVERY CERTIFICATE UNDER SECTION 19(1) READ WITH SECTION 191m OF THE RECOYERY OFDEBIS & BANKRUPTCY ACT, 1993,AS AMENDED FROM TIME TO TIME.

RC No. 3712025

Case No: OAl44412023

In the Matter of:

(CH- I) INDIAN OVERSEAS BANK BRANCH AT SABOO COMPLEX, EXHIBITION ROAD, P.S.· GANDHI MAIDAN, PATNA.BIHAR ·ROOOOI

Applicant(s}

------ Versus ----

To,

(CD· I) MIS SHAMBHU NAMKEEN Proprietor Smt. Pinki Dcvi. W/o- Sbambhu Kumar. At Suman Tola, Parsa Bazar, P.S.- Parse Bazar, Patna ,BIHAR -t-\04453

¶92

Defendant(s}

¶93

(CD· 2) SMT PINKI DEVI W/O· SHAMBHU KUMAR. AT SUMARI TOLA. PARSA BAZAR. P.S.· PARSA BAZAR.

¶94

DlSTRICT- PATNA- R044S3

¶95

~ry Certificate (or Rs 302990651 [_Rupees Thirty ","hi Tn'cotY.NineThousands Nine Hundml 51,ADdraise Eifty One Only_1

¶96

In terms of final order dated 3110112025 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. 3029906.51 along with cost, expenses and interesl from the 1110912023 i.e. date of filing 1 with effective date of the OAl44412023 and future interest from order date till Ihe date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to 3S:-

¶97

Jr j" Inlerest
Loan Int. lot. I: Eftt.>ctive Order : i Liability (as on RC
'Is,.nol CD Name Type Type/Mode Rate, Date Date :Amollnt(Rs.):I ,ype T Order Amount(Rs.} Remark
.,.".".., J, ,.., ". j.. 1 Date)
!f\1/S 1 Compound I Jointly II... nerest
ISHAMBHU Interest • JO 111/()9/20233111/2o25 3029~~~~I .1"'"I. nd Iorde, I"" on 3029906.51
INAMKEEN .(Monthly) j .Severally Date
I' Interest
!SMT. PINKI . I ,Interest i', Compo:;d '.l iU !1111()9!2023'131/011202l)029906.51 ,::'tIY Ason 3029906.51
!DEVI
:1(Monthly) 1. --------- " L,':1 ~ ~~~->-...&;;;;;...!... Severallyg;r __ ..L----l

¶98

In case of failure 10 pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypolhecated assets as well as other personal movable! Immovable assets of the certificate debtors.

¶99

The mortgaged or hypothecated assets 10 secure the loan in question are hereby attached and shall be subject to the tinal 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 PATNA on 11/03/2025.

¶100

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 trom time to time) lr.un the above named Certificate Debtors.

¶101

This Certificate has-been issued under my signature and seal of the Tribunal on this 0110212025

¶102

PRESFFICER DEBTS RECOVERY TRIBUNA1:J:I'IA -, -~. ',~I"

¶103

FORM NO. 10

¶104

[See Regulation 24(2)]

¶105

DEBTS RECOVERY TRIBUNAL PATNA

¶106

2ndFloor, (A. B & F Wing)KarpuriThakurSadan,KendriyaKaramchariParisar (GPOA),AshianaDighaRoad,Patna-800025.

¶107

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶108

RC No. 3712025

¶109

¶110

Case No: OA/444/2023

¶111

Applicant(s): INDIAN OVERSEAS BANK Versus

¶112

Defendant(s): MIS SHAMBHU NAMKEEN

¶113

		AmountinRs.
i~:__	_[Iee onth_e'_lppliation	33000
		o
i13~	ilAdvocateFe~s_ __ _ _	o
4.	IICo_mmissioner!_~ecei,er/Valuation./~~~lIrity Fee	o
I		o
II~~~~~J[=	-Io-t~--:-l-C::c:-os-ts- : ::-_~ s~-----------"lrI3-3-0-00-------	'1

¶114

Place:PAfNA

¶115

Date: 01/02/2025

¶116

Note: Strikeout whicheveris not applicable

Indian Overseas Bank v. M/s Shambhu Namkeen

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. M/s Shambhu Namkeen

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

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Case details

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