The DRT allowed the bank's application under section 19 of the RBI Act to recover dues. The tribunal found the defendants liable for the sanctioned loan amount and issued a Recovery Certificate for joint and several payment.
Order of recovery for Rs. 71,17,590/- along with pending and future interest at 10% p.a. and costs. A Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DRT. PATNA
OA 535 of 20231JI
Debts Recovery Tribunal, Patna
Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025
Presiding Officer : Shri Kaushalendra Yadav
OA Case No. 535 of 2023
Canara Bank, branch office at Hanuman Nagar. Patna, P.O. & P.S.- Hanuman Nagar, District- Patna 800 0020
....... Applicant
Vs.
1. Mis Shree Ram Imaging Centre, through its proprietor Mr. Devendra Kumar, Office at: OS 3 Virendram Complex, PNB Building. Opp. Doctors Colony. Patna 800020, Bihar
....... Defendants
Present:
For the Applicant Shri Nishant Kashyap, Advocate For the Defendants Shri Hemant Kumar Karn, Advocate
Dated: 17.01.2025
JUDGMENT
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 07.11.2023 against the defendants to recover its debts from defendants of Rs.7I,17,5901- as on 25.10.2023 along with pendente-lite and future interest at the contractual rate from 26.10.2023 with costs till realization.
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DRT, PATNA
OA 535 of 20231JI
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.
Defendants again approached the applicant bank for sanction of Term Loan of Rs.66.50 Lakh for purchasing of 3D Dental Scanning Machinery vide loan application dated 30.12.2020, which was sanctioned by the applicant bank on 11.02.2021 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.
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.
The total liability in the loan account is Rs.71,17,590/- as on 25.10.2023 with pendente-lite and future interest contractual rate from 26.10.2023 till the realization.
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3
DRT. PATNA
OA S3S of 20231J I
2.5% yearly. The applicant bank has simultaneously has initiated action under section 13(2) of the SAFAESI Act, 2002 by serving notice dated 24.08.2023. The defendants have replied it and wanted to pay the EMI and requested the applicant bank to restructure the loan with sufficient moratorium so that he can be in position to repay the loans, but the applicant bank has not replied to the letter/ representation of the defendants. It has further been stated that earlier also the defendants have availed credit facilities from the applicant bank and paid the dues in time. Hence the applicant bank should restructure the said loan facilities and provide sufficient time to the defendants to repay the same.
| SI.No | Description Documents Photocopies |
of | Date of Execution |
Amount (In Lakh) |
Signature Executants |
of | Ex.! Ann. No. |
|---|---|---|---|---|---|---|---|
| I | Loan application | 19.05.2017 | 14.00 | Defendants | ._- I |
||
| 2 | Sanction memorandum |
19.05.2017 | 14.00 | Bank accepted defendants |
and by |
2 | |
| 3 | Letter of underta | king | 19.05.2017 | 14.00 | Defendants | , .) |
|
| 4 | Letter of underta | king | 19.05.2017 | -- | Defendants | 4 | |
| 5 | Particulars machineries |
of |
31.05.2017 | -- | Defendants | 5 | |
| 6 | Hypothecation Machinerv |
Re:- | 19.05.2017 | 14.00 | Defendants | 6 | |
| 7 | Loan application | 30.12.2020 | 71.00 | Defendants | 7 | ||
| 8 | Sanction memorandum |
11.02.2021 | 66.50 | Bank accepted defendants |
and by |
8 | |
| 9 | Letter of underta | king | 11.02.2021 | 66.50 | Defendants | 9 | |
| 10 | Hypothecation agreement |
11.02.2021 | 66.50 | Defendants | 10 | ||
| 11 | Hypothecation Machinery |
Re: | 11.02.2021 | -- | Defendants | 11 | |
| 12 | Notices | 05.07.2023 31.05.2023 15.11.2022 18.05.2023 |
-- | Bank | 12 | ||
| 13 | Demand notice | 24.08.2023 | -- | Bank | 13 . |
||
| 14 | Legal notice | 14.09.2023 | -- | Bank's adv. | 14 | ||
| 15 | Statement accounts |
of | -- | -- | Bank | 15 |
4
OA 535 of20231JI
DRT,PATNA
5
OA 535 of20231JI
DRT.PATNA
and proved on oath the pleadings and documents of the applicant bank as stated above.
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 tribunal may act upon the affidavitof the applicantwho is acquaintedwith the facts of the case or who has on verification of the record sworn the aftidavit in respect of the contents of the applicationand the documentsas evidence.
The rule 12 (II) 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 Booksfurnishedalong with applicationtiled undersubsection1of section19bythe applicant.
Section 4 of Banker's Books evidence Act, 1891 runs as under- SA. Mode of proof of entries in bankers' books=-Subjectto the provisions of this Act. a certified copy of any entry in a banker's book shall in all legal proceedings be received as primafacie evidence of the existence of such entry. and shall be admitted as evidence of the mailers. transactions and accounts therein recorded in every case where. and to the same extent lIS. the original entry itself is now by law admissible. but notfurther or otherwise.
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.
6
OA 535 of 20231JI
DRT,PATNA
ORDER
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.71,17,590/- along with pendente-lite and future interest @ 10% p.a, simple from 07.11.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.
It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.
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.
7
OA 535 of 20231JI
DRT. PATNA
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.
Parties are directed to appear before the Recovery Officer. DRT. Patna on 27.02.2025. The order be communicated accordingly.
Judgment signed, sealed, dated and pronounced in the open court on
17thday of January, 2025.
Dictated &corrected by me.
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[KaushalendraYadav 1 Presiding Officer Debts Recovery Tribunal, Patna
£OBMNQ.2.
DEBTS RECOVERY TRIBUNAL PATNA
[See Regulation 24( 1)]
2nd Floor, (A, B & F Wing) Karpuri Thakur Sadun. Kendriya Karamchari parisur (GPOA), Ashian. Dig' 'a Road, p.tn.-8~:5:
RECOVERY CERTIFICATE !)NDER SECTION (9('1)~¥!iE:m'!rION 121Ul OF THE RE CoyER)' OF DEBTS "- . BANKB!!PTCYACT.Jm.lL---. _ FROM TIME TO TIME.
Be No. 2012025
IN Case No: OA/53512023
In the Matter of: (CH- I) CANARA BANK BRANCH OFFICE AT HANUMAN NAGAR. P,O, AND P,S.· HANUMAN NAGAR, PATNA,BIHAR·O
_____Versus -------
Applicant{s)
To, (CD. I) MIS SHREE RAM IMAGING CENTRE through its Proprietor Mr.DevendraKumar, office at- OS3 virendram Complex, PNB Building.Opp. Doctors Colony, Patna .BIHAR _~00020
Defendant(s)
(CO.2) MR: OEVENORA KUMAR SID. SHREE RAM PRASAD, RlO- L1G FLAT NO, 43, KANKARBAGH COLONY. KANKARBAGH AUTO STAND, KANKARBAGH, PATNA· 800020, BIHAR
~ Certificate for R. 7!l7S90'oU I Runees Seyenty One !.akh. Seventeen Thousand. Fjye Hundred NjndV OnlY J
In terms uffinal order dated 1710112025 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. 7117590,00 along with cost, expenses and . interest from the 0711112023 i.e. date of filing I with effective date of the OAf53512023 and future interest from order date till the date of realisation in full. jointly or severally from the Certificate Debtors, hereinafter referred to
as.-
interest
I, N ~Loanl Int. J IntJ En.ctive , OrderDate lA i RlOUR I(Rs.,)\ LiabilityType Order(as on Amounl(Bs.) RC Remarll
,Sr.no: CD. 1 ame T:Pl' Type/Mode Rate Datt' ' I Date) - ..--
l 1 -- _ .. Interest
I :iMiSSHit . J ,\RAI\1 . REF [ [InterestSimple 10 07/11/2023 17/01/2025 7117590,00 JointlyAodSeverally As onOrderDate 7117590
L J:~~~REING ..f earIY) _ .- i ... - ,Jointly InterestAs on
7117590
· '12 MR.OEVENORA R : rSimPle 1. I\ Interest(Yearly} 10 ,07/11/2U23,17/01/202517117590,00 . l _ ..-J; ' ..' - ." .., .. - "AndSeverany Order Dale
·L__. __IL KUMA , _' - " .. --- .. - .
In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgageQlhypothecated assets as wen as other personal movablel Immovable assets of the ·certificate debtors.
The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shan 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 Ofticer. DEBTS RECOVERYTRIBUNALPATNA on 27/U2/2025.
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 tirne) from the above named Certificate Debtors.
This Certificate has been issued under my signature and seal of the Tribunal on this 1710112025 'J::: .
. .v.,
Debts Recovery Tribunal
DEBTS RECOVERYTRIBUNALPATNJ\
Patna
FORM NO. 10 [See Regulation 24(2)]
•
DEBTS RECOVERY TRIBUNAL PATNA
2nd Floor, CA.B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-80002S.
SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS
RC No. 20/2025
IN
Case No: OAl535/2023
Applicant(s): CANARA BANK
Versus
Defendant(s): MIS SHREE RAM IMAGING CENTRE
| Iisr.No. |
IItem of Costs | Amount in Rs. |
|---|---|---|
| E:. ... [2. . .... |
.1ee:on the application . J~~o.cessFees(Inc. Publict~on) . |
74000 o |
| o | ||
| II~:. ...... |
JCO_l?missionerlReceiver/ValuationiSecurity Fee | o |
| ilf: | ·IMiscellaneous Charges | 10 |
| il . Ii. .. . |
j JI:r?talCosts: Rs.. |
174000 |
Place: PATNA
PRESIDIk:ER
Date: 17/01/2025
DEBTS RECOVERY TRIBUNAL PATNA
Note: Strike out whichever is not applicable
3 issues framed by the court
Whether the Debt Recovery Tribunal has territorial and pecuniary jurisdiction to try the application filed by the bank.
Whether the application filed by the bank is within the period of limitation.
Whether the defendants are liable to repay the outstanding amount along with interest and costs.
3 provisions across 3 enactments
Canara Bank
Shree Ram Imaging Centre
Devendra Kumar
Kaushalendra Yadav
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
