Allowed

Canara Bank v. Vinita Sinha

DRT31 Jan 2025OA/500/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal (Patna) allowed an application filed by Canara Bank to recover a loan of Rs. 32,42,684/- plus interest from three borrowers who failed to create a mortgage and defaulted on payments. The Tribunal proceeded ex-parte against the absent defendants, relying on documentary evidence and certified account statements, and issued a Recovery Certificate.

What did the court decide?

Order to recover Rs. 32,42,684/- along with interest and costs; Debt Debtors jointly and severally liable; Imprisonment barred; Recovery certificate issued.

Canara Bank versus Vinita Sinha — Contract and Commercial Disputes | DRT (2025)

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OA 500 of20231JI

DRT, PATNA

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 500 of 2023

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Canara Bank, Swarajpuri Branch, Gaya

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....... Applicant

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Vs.

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I. Vinita Sinha, (PAN No.A YGPS6042N), Borrower, resident of 358, A.P. Colony. Near Saraswati Kunj Apartment. Asha Singh More. P.O. & P.S.- Gaya. District- Gaya- 823001

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Abhinash Sinha (PAN No.DNVPS0977K), Co-borrower. Son of Shri Ajit Kumar Sinha, resident of 358, A.P. Colony. Near Saraswati Kunj Apartment. Asha Singh More, P.O. & P.S.- Gaya. DistrictGaya823001

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Shri Ajit Kumar Sinha (PAN- AYQPS6044L). Co-borrower. Son of Late Shyam Deo Prasad, resident of 358, A.P. Colony, Near Saraswati Kunj Apartment, Asha Singh More, P.O. & P.S.- Gaya, District- Gaya823001

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....... Defendants

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Present:

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For the Applicant Shri Ratnesh Nandan Sinha, Advocate For the Defendants None

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Dated:31.01.2025

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JUDGMENT

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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 15.09.2023 against the defendants to recover its debts from defendants of Rs.32,42,684/- as on 19.07.2023 along with pendente-lite and future interest at the contractual rate from 20.07.2023 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 competent to tile the suit through various branches including the applicant.

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Defendant no. 1, who is a Medical Practitioner and the defendant no.2 and 3, who are son and husband of defendant no. I stood as co-borrower of loan, approached the applicant bank for sanction of housing loan of Rs.3l Lakh

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P;IsUing Offiur Debts Recovery TriblllW PATNA

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OA SOO of 2023IJ I

DRT, PATNA

for purchasing a Flat at Jaipur vide loan application which was sanctioned by the applicant bank on 04.01.2016 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. To further secure the loan facility, the detendants had to create equitable mortgage of Flat, details thereof have been given in OA.

¶30

Even after disbursement of entire -loan amount of Rs.31 Lakh, the borrowers failed to create mortgage in favour of the applicant bank and on some pretext or others till date, they have delayed the creation of mortgage in favour of bank. The defendants have also executed letter of acknowledgement lastly on 31.12.2021.

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After availing the sanctioned credit facility. 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 16.06.2023.

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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.

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The total liability in the loan account is Rs.32,42.684/- as on 19.07.2023 with pendente-lite and future interest contractual rate from 20.07.2023 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 01.11.2023. 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 m newspaper was also made against the defendants on 17.01.2024in "Prabhat Khabar" newspaper.

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Pres' :,',';."Officer Debts :-...:.-, ----"~,. r"i' ;;·:ll"ol..aJ l"...'Ml ....~

OA SIlOof 20231JI

DRT,PATNA

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 tile WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 05.10.2024.

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To prove its case, the applicant Bank has referred various certitied photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Ravindra Prasad. Senior Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
I	Loan application	05.12.2015	34.00	Defendants		I
2	Sanction memorandum	04.01.2016	31.00	Bank accepted defendants	and by	2
3	Pronote	04.01.2016	31.00	Defendants		0.'
4	Take delivery letter toDPN	04.01.2016	31.00	Defendants		4
5	PDR agreement	04.01.2016	31.00	Defendants		5
6	Loan account opening specimen	04.01.2016	--	Defendants ,	' -~	I ~_ ,
7	Housing loan agreement	04.01.2016	31.00	Defendants		7 J
8	Agreement to sell	26.02.2015	--	--	....--_	8 .---~-
9	Statement of account	--	--	Bank		9
10	Letter of acknowledgement of debt and security	02.01.2019 31.12.2021	--	Defendants		10 ----
II	Authority letter	24.08.2023	--	Bank		11

¶42

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 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 ofTndia.

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Presiding Officer Debts RecoV8,YTribuna' l'Al'l~A

OA 500 of2023IJI

DRT,PATNA

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.

¶49

II. 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.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 16.06.2023. whereas the present application has been filed on 15.09.2023. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has tiled the case within the limitation period. As such, it is established that the present application has been filed well within the period of limitation.

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Shri Ravindra Prasad, Senior 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.

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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.

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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 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.

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The rule 12 (II) 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 tiled under sub section I of section 19by the applicant. Section 4 of Banker's Books evidence Act, 1891 runs as under- S.4. Mode of proof of entries in hankers' books=-Subioc: lu Iii" provisions of this .Act..a certified COl) of any entry in a hunker 's book

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l'reslding OfJic~r Oebts Rccoyery TnoU-'\al FATNA

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OA 500 of 20231,11

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DRT, PATNA

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shall in all legalproceedings he received asprimafacie evidence ofth« existence o( such entry. and shall he admitted as evidence of the matters. transactions and accounts therein recorded in eve,},'case where. and 10 the same extent as. the original entrv itsellis now by law admissible. but notfurther or otherwise.

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As such the certified true copies of the documents are admissible III 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.

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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 specitic error 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 the agreed terms and conditions for repayment with interest. The balance amount till 19.07.2023 has been proved to be Rs.32,42,684/- 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.

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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.32,42,684/along with pendente-lite and future interest @ 9.65% p.a. with compounded monthly rests from 15.09.2023 (The date of tiling of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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ORDER

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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

•

OA 500 of 20231.11

DRT,PATNA

Rs.32,42,684/along with pendente-lite and future interest (d! 9.65% p.a. with compounded monthly rests from 15.09.2023 (The date of tiling of this OA) till realization 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 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 fmal 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.

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Let a certiticate 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.

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Parties are directed to appear before the Recovery Officer, DRT. Patna on 11.03,2025. The order be communicated accordingly.

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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.

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a 1/ MI"\ [Kaushalendra Yadav 1 Presiding Officer Debts Recovery Tribunal. Patna Presiding 0 fflce» Oebts Recoyery TribtUla, I'ATNA

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·,

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FORMNQ 9 [See Regulation 24( I)]

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DEBTS RECOVERY TRIBUNAL PATNA

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

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RECOVERY CERTIFICATE UNDER SECTION IYC'llREAD WITH SECTION 19(W OF THE RECOVER)' OF DEBTS & RANKR"PTCYAcr,~AS AMENDEDFROM TIME TO TIME.

BC No. 44!202S

Case No: OAlS0012023

In the Maner of: (CU- I) CANARABANK Applicant(s) SWARAJPURI BRANCH GAYA ,BIHAR -82300 I

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.----- Versus -----••

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To. (CO. I) VIN[TA SINHA 0 Wife ofShri Ajit Kumar Sinha Resident of 358, A.P. Colony, Near Saraswari Kunj Apartment. Asha Singh More, P.O. and P.S.- Gaya Gaya ,BIHAR -82300 I

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(CD.2) ABH[NASH S[NHA (CO· BORROWER) SON OF SHRI AJlT KUMAR S[NHA, RES[DENT OF 358,A.P. COLONY NEAR SARAWATI KUNI APARTMENT, ASHA SINGH MORE. P.O. AND P.S.Defendant(s) GAYA, DISTRICT- GAYA- 823001

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(CD· 3) SHR[ AI[T KUMAR SINHA (CO· BORROWER) SON OF LATE SHYAM DEO PRASAD, RESIDENT OF 358, A.P. COLONY NEAR SARAWAT[ KUNJ APARTMENT. ASHA SINGH MORE, P.O. AND P.S· GAYA. DISTRICT· GAYA - 823001

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lkwHrY. Certificate for Rs 3241684.00 I Ruom TbirtY.Two La", fortY. Two Thouypd, Sb Hugdn;d JighJY- Four Only_)

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In terms of final order dated 31101/2025 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. 3242684.00 along with cost, expenses and interest from the 15109/2023 i.e. date of filing 1 with effective date ofthe OAl500/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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r---'I I -- ~ , Interest
Sr.D CD Name LoanType TypeIModeInt. RateInt. EffectiveDate OrderDate Amount(Rs.) LtablUtyType Order(as on Amount(Ra.)RC Remark
Date) ,
Compound Jointly IntcrestAs
[ .VINITA SINHA nterest .65 [510912023 31/0112025 3242684.00 And on Order ~242684.oo
<Monthly) __ ._ ... Severally Date --
ABHINASH !Compound Jointly Interest As
2 BORROWER}S[NHA(C()" ... nterestMonthly} .65 15/0912023 31/0112025 2426H4.00 AndSeverally ~:;oo 242684.00.._ ..
3 SHRlAJlTKUMAR SINHA !compoundnterest .65 15/0912023 31/0[12025 3242684.00 And oinlly /nterestk;on Order 242684.00
(CO·BORROWER) Monthly) , 'Severally Date

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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. 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 or Debts and Bankruptcy Act 1993. Parties are directed to appear before ASH ISH KUMAR. Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 11/03/2025. 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 Certificate has been issued under my signature and seal of the Tribunal on this 06/02/2025 G~, Registrar DEBTS RECOVERY Debts RCCYicry Trih,,~,l P[llia

¶95

PREFF[CER DEBTS RECOVERY TRIBUNAL PATNA Prcsidir:g Officer Dobts TIc:o",,-er:' Tr;"''!ln.1t· ~)A.'T':-J'l,

¶96

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

¶97

DEBTS RECOVERY TRIBUNAL PATNA

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶100

RC No. 44/2025

¶101

¶102

Case No: OAl500/2023

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Applicant(s): CANARA BANK

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Versus

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Defendant(s): VINITA SINHA

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Sr. No.	Item of Costs .	Amount inRs.
I.	Fee on the applicatio~	~OOO
2.	Process Fees(Inc. Publication)	0
3.	[Advocate Fees	0
4.	IICommissionerlReceiverNaluationiSecurity Fee	0
5.	[Miscellaneous Charges -	10 1
[ -...-	ITotal Costs: Rs. j -. .------	35000

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Place: PATNA

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Date: 06/02/2025

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Note: Strike out whichever is not applicable

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PRESID~ICER DEBTS RECOVERY TRIBUNAL PATNA P;,slding Office, Oebt3 Recovery 'I'ribuns PATNA

Canara Bank v. Vinita Sinha

Case brief

What is this about?

What did the court decide?

Canara Bank v. Vinita Sinha

Case brief

What is this about?

What did the court decide?

What the court decided

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