Allowed

Central Bank of India v. M/s Garden Enterprises

DRT14 Jul 2025OA/559/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal passed an order ex-parte against the defendants for default in appearance. The Tribunal adjudicated the debt of Rs. 24,67,210/- claimed by the Central Bank of India and issued a Recovery Certificate under Section 19(22) of the RDB Act, 1993, after finding the claim proved by documentary evidence. The Tribunal also attached the mortgaged assets.

What did the court decide?

Recovery Certificate issued directing the Recovery Officer to realize Rs. 24,67,210/- along with interest and costs by attachment and sale of mortgaged and other assets of the defendants.

Central Bank of India versus M/s Garden Enterprises — Banking and Recovery | DRT (2025)

OA 559 of 20231JI

DRT,PATNA

Debts Recovery Tribunal, Patna Karpuri Tbakur Sadan, Aasbiana DigbaRoad Patna,800025

¶5

Presiding Officer : Shri Kaushalendra Yadav

¶6

OA Case No, 559 of 2023

¶7

Central Bank of India, branch at Budh Marg, Police Station- Kotwali, town and District- Patna 800001

¶8

....... Applicant

¶9

Vs.

¶10

Mis Garden Enterprises, situated at Azmat Manzil, Nafish Colony, Bhikhna Pabari, Post Office- Bankipur, Police Station- Kadamkuan, District- Patna 800004

¶11

Mr, Tabish Helal, Son of Late Md. Helal Uddin resident of Azmat Manzil, Nafish Colony, Bhikhna Pabari, Post Office- Bankipur, Police Station- Kadamkuan, District- Patna 800004

¶12

....... Defendants

¶13

Present:

¶14

For the Applicant Shri Neeraj Kumar Singh, Advocate For the Defendants None

¶15

Dated: 14,07,2025

¶16

JUDGMENT

¶17

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 29.11.2023 against the defendants to recover its debts from defendants of Rs.24,67,210/- as on 25.11.2023 along with pendente-lite and future interest at the contractual rate from 26.11.2023 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 file the suit through various branches including the applicant.

¶19

Defendant no.I is a proprietorship firm of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of cash credit facility of Rs.21 Lakh and Term Loan of Rs.8.70 Lakh under Cent Sahyog Scheme for carrying on the business of manufacturing of packaging material vide loan application dated 25.05.2012, which were sanctioned by the applicant bank on 08.06.2012 on various terms and conditions, as stipulated in the sanction letter, which wer~ dul~ccepted by the defendants. To secure the 't\ '-\7

DRT,PATNA

OA 559 of2023!JI

loan facilities defendants have executed various loan and security documents and also hypothecated the stocks in favour of the applicant bank.

¶24

It has further been stated that term loan account of the defendants was closed as they had deposited the entire outstanding in the said term loan account. The defendants had also renewed the loan documents and executed various documents on 24.03.2018 and 07.12.2020 respectively.

¶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 29.12.2022.

¶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.24,67,210/- as on 25.11.2023 with pendente-lite and future interest contractual rate from 26.11.2023 till the realization.

¶28

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 20.01.2024, 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 in newspaper was also made against the defendants on 30.07.2024 in "Dainik Bhaskar" 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 vendants on 03.10.2024.

OA 559 of 2023!J!

DRT,PATNA

To prove its case, the applicant Bank has referred various certified photocopies of do~uments before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Jyoti Narayan Singh, Chief Manager of the applicant bank. The details of documents are as follows:

¶34

SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	Ex.! Ann. No.
1	Loan application	--	21.00- CC 8.70TL	Defendants	1
2	DPNote	25.05.2012	21.00	Defendants	2
3	Letter of continuity	25.05.2012	21.00	Defendants	3
4	Letter of Hypothecation	25.05.2012	21.00- CC 8.70TL	Defendants	4
5	Article of agreement	25.05.2012	8.70	Defendants	5
6	Process note Isanction letter	08.06.2012	21.00- CC 8.70 TL	Defendants	6
7	DPNote	24.03.2017	21.00	Defendants	7
8	Letter of continuitY	24.03.2017	21.00	Defendants	8
9	Agreement of Hypothecation	24.03.2017	21.00	Defendants	9
10	DPNote	07.12.2020	21.00	Defendants	10
11	Letter of continufu'_	07.12.2020	21.00	Defendants	11
12	Agreement of Hypothecation	07.12.2020	21.00	Defendants	12
13	Supplementary agreement	07.12.2020	21.00	Defendants	13
14	Statement of account	--	--	Bank	14
15&16	Tow postal receipts	--	--	--	15&16
17&18	Two legal notices	24.08.2023	--	Bank's adv.	17&18
8.	Heard arguments and p	erused the cas	e record.

¶35

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 Icompound 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.

¶36

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 ~A.

OA 559ofl023!J!

DRT.PATNA

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.

¶41

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 29.12.2022, whereas the present application has been filed on 29.11.2023. 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 filed well within the period of limitation.

¶42

Shri Jyoti Narayan Singh, Chief Manager of the applicant bank has filed 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.

¶43

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

¶44

The rule 12 (10) of the Debt Recovery Tribunal (procedure) Rules, 1993,providesthat if the defendantdenieshis liabilityto pay the claimmade by the applicant,the tribunalmay act upon the affidavitof the applicantwho is acquaintedwith the factsof the case or who has on verificationof the record sworn the affidavit in respect of the contents of the applicationand the documentsas evidence.

¶45

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 Booksfurnishedalong with applicationfiled undersubsectionI of section19bythe applicant.

¶46

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 of this Act, a certified copy of any entry in a banker's book shall in all legalproceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of 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 notfunher or otherwise.

¶47

As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of

OA 559 of 1023!J!

DRT.PATNA

business is riot 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

IS. 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.

¶53

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 25.11.2023 has been proved to be Rs.24,67,210/- 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.

¶54

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.24,67,210/- along with pendente-lite and future interest @ 9.50% p.a. with compounded monthly rests from 29.11.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

¶55

ORDER

¶56

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.24,67,210/- along with pendente-lite and future interest @ 9.50% p.a. with compounded monthly rests from 29.11.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶57

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

V",'1

DRT,PATNA

OA 559 of 2023!J!

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.

¶63

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. The Recovery Officer will issue demand notice to the Certificate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted. The copy of this judgment be uploaded in the website of the Tribunal.

¶64

Parties are directed to appear before the Recovery Officer, DRT, Patna on 25.08.2025. The order be communicated accordingly.

¶65

Judgment signed, sealed, dated and pronounced in the open court on 14thday of July, 2025.

¶66

Dictated &corrected by me.

¶67

// _f_ \A..\j\A [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

¶68

FORM NO.2 [See Regulation24(I)J

¶69

DEBTS RECOVERY TRIBUNAL PATNA

¶70

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

BC No. 216/2025

Cas. No: OAl559/2023

¶75

In the Matter of: (CH. I) CENTRALBANK OF INDIA BRANCHATBUDHMARG POLICE STATION KOTWALITOWNAND DISTRICT PATNA,BIHAR -800001

¶76

Applieant(s)

¶77

To,

¶78

(CD- I) MISGARDEN ENTERPRISES Situated at Azmat Manzil. Nafish Colony, Bhikbna Paban, Post Office Bankipur Police Station Kadamkuan Patna ,BIHAR -800004

¶79

Defendant(,)

¶80

(CD- 2) MR.TABISHHELAL SONOF LATEMD. HELALUDDIN. RESIDENT OF AZMATMANZIL.NAFISH COLONY, BHIKHNAPAHARI,POST OFFICE· BANKIPUR, POLICESTATION·KADAMKUANDISTRICT· PATNAPIN· 800004,

¶81

HmtmY. CertirVle for Rs 2467210,00 r RIpen Twegty FOlr I .khe SiltY.Sew,DUMPda1)m "114red Teg Only I

¶82

In terms of final order dated 14/07/2025 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. 2467210.00 along with cost, expenses and interest from the 291 1112023i.e. date of filing 1 with effective date of the OAl559/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as»

¶83

Sr.D	O CD Name	Lo•• "Iype	lot. TypeIMode	lot. Rate	Effective nate	Order nate	Amouot(Rs.)	UabWIy "Iype	Interest (as .. Order Date)	HC !Remark Amount(RI.)
'I I	MISGARDEN ENTERPRISES	i	ICompound Interest :(Monthly )	I 9.50 '	29/11/2023	141071202 . ,.	I _5_2467210.00	Jointly And Severally	IInterest As on ~rder Date	, 2467210.00
2	~,TABISH HELAL		!comPOund Interest Monthly)	.50	~9/1 112023	141071202	52467210.00	~tlY Severally	Interest ~OD ~rder Date	2467210,00

¶84

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 movable! Immovable assets of the certificate debtors.

¶85

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,

¶86

Parties are directed to appear before ASHISH KUMAR, Recovery Officer. DEBTS RECOVERY TRIBUNAL PATNA on 2510812025.

¶87

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.

¶88

This Certificate has been issued under my signature and seal of the Tribunal on this 16/0712025

¶89

PRESID~CER DEBTS RECOVERYTRIBUNALPATNA

¶90

Regis"",
Debt. Recovery Trlba
Patoa

¶91

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

¶92

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

¶93

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶94

RC No. 216/2025 IN

¶95

Case No: OAl559/2023

¶96

Applicant(s): CENTRAL BANK OF INDIA

¶97

Versus

¶98

Defendant(s): MIS GARDEN ENTERPRISES

¶99

Sr. No.	Item of Costs - .•. - ...........".,,.. .......•."-- .,---.-----,--,--,--.-- -- - ..	Amount in Rs.
J.	Fee on the application	27000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
4.	CommissionerlReceiverNaluationiSecurity Fee	0
5.	Miscellaneous Charges ___	0
	ITotal Costs: Rs.	127000

¶100

Place: PATNA

¶101

Date: 16/07/2025

¶102

PRESID~ICER DEBTS RECOVERY TRIBUNAL PATNA

¶103

Note: Strike out whichever is not applicable

Central Bank of India v. M/s Garden Enterprises

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/s Garden Enterprises

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

Hdfc Bank versus Ishu

Icici Bank Limited versus Dalbir

Jammu and Kashmir Bank Limited versus Ms Arbaz Fruit Company

Punjab National Bank versus Manjit Singh

State Bank of India versus Rajinder Singh

Sri Anurag Das Prop of Ms Suparna Industries and Anr. versus Punjab National Bank