Allowed

Bank of Baroda v. M/s Mahadeo Namkeen Udyog

DRT8 Apr 2025OA/496/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal upheld an ex-parte application by Bank of Baroda to recover a loan of approx. Rs. 27 lakhs from a defaulting proprietorship firm. The tribunal accepted the bank's evidence via affidavit and banker's books, confirmed jurisdiction and limit, and issued a recovery certificate.

What did the court decide?

Debt of Rs. 27,06,709.21 along with pendente-lite and future interest at contractual rates from 01.12.2020 to realization was ordered to be paid jointly and severally.

Bank of Baroda versus M/s Mahadeo Namkeen Udyog — Banking and Recovery | DRT (2025)

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DRT. PATN A

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OA +96 of 20221.11

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-81)01)25

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 496 of 2022

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Bank of Baroda. Patna Citv Branch. Patna 800 008

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. . . . . . . Applicant

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Mahadeo Namkeen Udyog, Proprietor Mr. San liv Kumar, son of Mr. VijaY Kumar Sinha. situated at Mohdlla- Budha Colony. P.S.- BOdha Colony. District and To\:n- Patna

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Mr. Sanjiv Kumar, S,'o Sri Vijay Kumar Sinha. resident of MohallaBimla Billa Apartnrent. C/ 4. Budha Colony. Ne,lr Gole Institute. P.o. & P.S.- Digha. District- Patna

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, . . , , , . Defendants

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Present:

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For the Applicant Shri ShatruIThan Prasad. Advocate For the Defendants None

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Dated : 08.04.2025

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JUDGMENT

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The Applicant bank has made this application u/s 19 of the Recover- of Debts and Bankruptcy Act. 1993 (here-in-after referred to as Act) on 22.12.2020 against the defenddnts to recover its debts from defendants of Rs.27.06.709.21 as on 30.11 .2020 along with pendente-lite and fUture interest at the contractual rate from 01.12.2020 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 cornpetent to file the suit through various branches including the applicant.

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Defendant no.1 is a proprietorship finn of \'hich defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of Term loan of Rs.10.35 Lakh and Cash Credit of Rs. 12.15 Lakh 'ide loan application for the business of Namkeen. u"hich \vere sanctioned b)’ the applicant bank on 08.02.2016 on various terms and conditions. as stipulated in the sanction letter. which \vere duly accepted by the defendants. To secure the loan facilities

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Presl dingY Often Debts Re., la .' v Tribunal

DRT. PATN A

OA 496 of 20221.11

defendants have executed various loan and security documents and also hypothecdted the stocks/movables in favour of the applicant bank.

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After a'ailing 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 29.09.201 8.

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Since. the defendants failed and neglected in spite of several relninders to make paynlent 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.27.06.709.21 as on 30.11.2020 with pendente-lite and future interest contractual rate fron1 01.12.2020 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 08.05.2023. requiring them to sho\v-cause within 30 days of the service LJ/s 19 (4) of the Act & Rule ol' the DRT [Procedure] Rules. 1993. But the defendants have not appeared. hence. the Registry of this Tribunal has ordered to publish the notice in ne\'spaper and subsequently. substituted selvice by publicdtion of noticc: by u-av of advertisement in newspaper \-as also made against the defendants on 07.02.2024 in "Dainik Bhaskar" newspaper.

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b. Despite the registered summons/notices and publication of notice in neu'spaper. the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been gjven 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 16.03.2024.

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To prove its case. the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also

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Presi by„ Deb is Recovery Trihunil PA FIU A

OA 496 of 20221.II

DRT. PATN A

given evidence on affidavit by \’ay of affidavit by Shri Arbind Kumar SIngh. Chief Manager of the applicant bank. The details of documents are as follow’s:

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SI.No	Description Documents Photocopies of	Date Execution of	Amount (in Lakh)	Sjgnature Executants of	IEx./ Ann No.
1	Loanapplication	30.06.20 1 5		Defendants	1
’)	Sanction letter	08,02.20 1 6	10.35	Bank	a
		08.03.2016
	Letterof sole broprietorship	08.02.2016		Defendants
5	-DP Note	08.02.2016	12.15 1 (i,35	Defendants	5
	I	08.02.2.016		Defendants	I
	securIty	08.02.2016	215	Defendants	-1
8	Composite h-pothecation aqFeenle11t	08.02.2016	12.15	Defendants	8
9	c undertakinus authority cum CU111	18.02.2016		Defendants	9
	Letterof undertaking	--	23SO	Defendants
	FTaBlaH		2050	Defend,Ints
	c		21.50	Defendants
13	Demandnotice	F05,12.2017		Bank
1+	Notice	01.02.2019		BaIA
15	Statementof account	--		Bank

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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 \vere 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 /conlpound 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 ol’ Reserve Bank of India.

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It is further submitted by Id. Counsel of applicant bank that there is no sta)’ 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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DRT. PATr\ A

OA 496 of 21)221.II

11 . 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 dpplication exceeded Rs.20 lacs. The applicant bank is functioning u'-ithin the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as u’ell as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the accoulrt as NPA on 29.09.2018. \'-hereas the present application has been filed on 22.12.2020. Even. it is counted for the purpose of Limitation. then it is established that the applicant bank has filed the case \;ithin the limitation period. As such. it is established that the present application has been filed u-ell n'ithin the period of limitation.

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Shri Arbind Kumar Singh. Chief Manager ol- the applicant bank has filed the affidavit in support of contents of application and the documelrts as evidence and proved on oath the pleadings and documents of the applicant bank as stated above

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Section 19(3 ) c)f 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 cI,lim.

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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 tIle applicant. the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or n’ho has on verification of the record su’orn the all-ida'it in respect of the contents of the application and the doc unrents ds evidence.

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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 applicdtion tiled under sub section 1 of section 19 by the applicant.

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Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof of entries in banker' bol)ks.–Sllllict-I lc) IIIt In'O\ISII)IIS CIf- IIIIS . It'/. CI CCI'IIf}CCI COPy tIf- CUI' CIIII'' III CI hCIIIkt'r's bt)tIR sllclll tII tIll legal I)rocccclings hc rt’cci-ccI CIS I)rilltcl .Rlcic critIc’IIce t).f' Tire t’lislellcc tIf st It'll c’Irlrv. cliIcI sllclll hc uclnliffccl tls evidc’IIce of- fIle nlclffc’rs. Tralrsclcti011s tltld tIccc)IIIrIS therciII rcccirc IULl iII ever' case

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DRT. PATN A

o'\ 496 ',t2022j-l1

\'+Icrc, arId it) the sonIC cxlcll! as. thc t)riRinal crllr' ilself' is ;/vrl' bY icr\ CIdllliSSihlC. bIlt Itt)I +llrther t)r t)tlrcrvisc

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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 sh,Ill 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 dnd 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 repa}'ment 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 eli-or 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 thc agreed terms and conditions for repayment u'ith interest. The balance amount till 30.11 .2020 has been proved to be Rs.27.06.709.21 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 clai nr .

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In m)- view. facts of the case stand proved by evidence of the applicant bank. Accordingly. the applicant bank is entitled to recover from defendants jointl' and severally of Rs.27.06.709.2 1 along with pendente-lite and future interest ' iI 1096 p.a. \'-ith compounded monthly rests from 22.12.2020 ( The date of l’iling of this OA) till realization. So the Iinal order may be passed according!)'. to nleet the ends of.justice.

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ORDER

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In the result. the dpplication of the applicant bank is allo\;cd and debt is determined \'-ith costs against the defendants. The defendants are hereby jointly and severdljy. ordered to pav the applicant bank its debt amounting to Rs.27.06.709.21 along with pendente-lite and future interest ' it' 1098 p.a. with

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viv

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P ;,IL$ A

OA 496 of 20221.II

DRT. PATN A

compounded monthly rests from 22.12.2020 (-FIle date of filing of this OA) till redlization 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 other\ise dealing with or disposing of the nrortgaged or hy])othecatcd or any other properties and assets u-ithout paying the aforcsdid 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 Recover' 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 C'ertificdte before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

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Let a certiIicate ot' recovery be dra\'n up forth\'-ith and put up I'or signatures in terms of provisions contained in Section 1 9(22) of the Act to be issued. on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Ofi'icer shall realize the amount ds per the certificdte in the manner and mode prescribed under the Act from the defendants. by sale of nlortgaged/ hypothecated assets as u’ell as other personal movable/inlnrovable assets of the defendants

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Parties are directed to appear before the Recoverv Officer. DRT. Patna on 19.05.2025. The order be communicated accordingly.

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Judgment signed. sealed. dated and pronounced in the open court on 08th day of April, 2025.

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Dictated &corrected bv me

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[KaushalendrdYadav] Presiding Officer Debts Recover' Tribunal. Paula

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j'OR!\1 NO. 9

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[See Regulation 24( 1 )]

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DEBTS RECOVER\’ TRIBUNAL PATN A

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2nd Floor. ( A. B & F \Vine) Karpuri Thdkur Sadan. Kendriya Karanrchari Parisrlr (GPOA), Ashiana Digha Road, Patna-800025.

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lil('o\ ER- ('EI tTI FICATE UNDER SECTION 19(Z) READ WITH SECTION 19(E) OF THE RECOVERY OF DEBTS & BANKRUPTCY AC'F9 19937 AS AMENDED FROM TIME TO TINIEo

RC No. 134/2025

Case No: OA/496/2022

In thc Matter of (CH- 1) BANK OF BARUDA PATN A CITY BRANCH

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Applicant( s)

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PATN A ,BIHAR -800008

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(CD- 1) M/S MAHADEO NAMKEEN UDYOG

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ProprIetor Mr Sanjiv Kumar. Son of Mr Vijay Krlmar Sinhil. Situated at Vlohallil- Brldha Colony. P.S.Btlcllli! Colony, Patnu ,BIHAR -80000 1

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Defendant(s)

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(CD- 2) MR. SANJIV KUMAR

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SON UF SRI VIJA\’ KUMAR SINHA. RESIDENT OF MOHALLA- BIA4L A VILLA APARTMENT, C/4. BUDHA COLONY. NEAR GOLE INSTITUTE,

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P.0. AND P.S. DIGI-IA. DISTRICT PATN A

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RccQvcry ('crtincate for R$ 2706709.21 1 Rupees T+verIty Seven Lakhs Six Thousand Seven Hundred Nine And Pai sr Twgnfy One Only I

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In terms of final order dated 08/04/2025 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. 2706709.21 along with cost, expenses and interest from the 22/12/2020 i.e. date of filing / with effective date of the OA/496/2022 and future interest from order date till the date of realisation in full. jointly or severally from the Certificate Debtors, hereinafter referred to

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4,'S yt : F{}:E):IS) UDYOG
4R, SANJIV KUMAR	pound Intcrcst 4onthly)	10	12/2020	1706709.21

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In case of failure to pay the aforementioned adjudicated amuunt 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 certificdte issued under Section 19(22) of Recovcl)' of Debts and Bankruptcy Act 1993

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Parties are directed to appear before ASHISH KUBI AR . Recovery Otticcr. DEBTS RECOVERY TRIBUNAL PATNA on 19/05/2025. 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.

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This Celtiticate has been issued under my signature and seal of the Tribunal on this 09/04/2025

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C?b1, PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATN A E) e b t S :::I:iI : :Taifr i b U n a 1 Paula i residing Ofic“ _' , ots RecoverY T11k>W“’i PATNA

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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

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

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SCI-IEDULL TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 134/2025

Case No: OA/496/2022

Applicant(s): BANK OF BARODA

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Versus

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Defendant(s): M/S MAHADEO NAMKEEN UDYOG

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	Item ofCosts	!Amount inRs
	Feeon the application	m3
12	jProcessFees(Inc. Publication)	EO
	.dvocateFees	HL
	Conlnlissioner/Receiver/Valuation/SecuriVFee	; 0
5	s ;es	O
	TotalCosts:Rs

Place: PATNA

PRESIDING OFFICER

Date: 09/04/2025

DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

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presiding OFccr D+bts F.3covery q' ' PATNA

Bank of Baroda v. M/s Mahadeo Namkeen Udyog

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Mahadeo Namkeen Udyog

Case brief

What is this about?

What did the court decide?

What the court decided

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