Allowed

Hdfc Bank Limited v. Vikash Kumar (borrower)

DRT6 Sept 2025OA/572/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application under S.19 of the RDB Act for recovery of a commercial loan from defaulted borrowers who failed to appear. The debt amount was determined based on documentary evidence and the applicant's affidavit.

What did the court decide?

Recovery of Rs.39,07,015.86 along with pendente-lite and future interest; issue of Recovery Certificate under S.19(22) and attachment of assets.

Hdfc Bank Limited versus Vikash Kumar (borrower) — Banking and Recovery | DRT (2025)

OA 572 of20231JI

DRT, PATN A

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. 572 of 2023

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HDFC Bank Limited, branch office at 2nd Floor, Rajendra Ram Plaza, Exhibition Road, Patna 800 001

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. . . . . . . Applicant

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Vikash Kumar (Borrower), S/o Mahendra Prasad Kishun Saw, R/o Jungle Belddari Budhaul, Nawada, Near Hanuman Mandir, Nawada, Bihar- 805 1 10, PAN No.BNCPK2281F

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Also at-Gola road, Nawada, Imambara Gali, Gondapur, Nawada, Bihar 805 1 10

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Mahendar Prasad (Co-borrower/guarantor), S/o Kishun Saw, R/o Beldari, near Chamda Godam Nawada, Bihar, PAN No.EEZPPS5275P

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. . . . . . . Defendants

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Present:

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For the Applicant Shri S.K. Tiwari, Advocate Shri Vijay Kumar Rana, Advocate

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For the Defendants None

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Dated:06.09.2025

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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 07.11.2023 against the defendants to recover its debts from defendants of Rs.39,07,015.86 as on 09.05.2023 along with pendente-lite and future interest at the contractual rate from 10.05.2023 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 file the suit through various branches including the applicant.

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Defendants approached the applicant bank for sanction of commercial equipment retail loan vide loan application dated 30.01.2022 and after due consideration, the applicant bank has sanctioned Rs.42.20 Lakh and transferred

OA 572 of20231JI

DRT, PATNA

the amount on 08.02.2022 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 commercial equipments in favour of the applicant bank.

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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 06.03.2023 .

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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.39,07,015.86 as on 09.05.2023 with pendente-lite and future interest contractual rate from 10.05.2023 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 06.02.2024, 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 01.05.2024 in “Prabhat Khabar” newspaper.

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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 the defendants on 27.09.2024.

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OA 572 of 20231JI

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 Ms. Anjali Sinha, Legal Manager of the applicant bank. The details of documents are as follows:

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Sl.No	Description Documents Photocopie	s of	1 Date of Execution	1Amount 1 (in Lakh)	I Signature of I Executants I	1Ex./ [Ann. INo.
	PowerofAt	torne'	15.04.2023		Bankofficer
	Loan a sanction quotation statement	pplication, letter, key fact	30.01.2022	42.20	Defendantsand bank
3	Agreemen and irrevocable attorney, schedule fact general document,	t forloan guarantee, power of additional cumkey statement, insurance schedule	08.02.2022		e
4	Loandema notice	nd- recall	13.05.2023		Bank	4
5	Statemento	faccount			Bank	5

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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 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 of India.

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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.

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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

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OA 572 of2023jJ]

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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 06.03.2023, whereas the present application has been filed on 07.11.2023. 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.

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Ms. Anjali Sinha, Legal 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.

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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 (I1) 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 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 bankers’ books.–Subject to the provisions of this Act,' a certifIed copy of any entry in a banker’s book shaH in all legal proceedings 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 originai entry itself is now by law admissible, but not further or otherwise.

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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

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OA 572 of 2023jJI

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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 specific 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 09.05.2023 has been proved to be Rs.39,07,015.86 only by way of statement of account and affidavit. 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.39,07,015.86 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 07.11.2023 (The date of filing 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 Rs.39,07,015.86 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 07.11.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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OA 572 of2023jJl

DRT, PATNA

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 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.

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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.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 16.10.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 06tt1 day of September, 2025.

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Dictated &corrected by me.

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[KatlshalendraYadav] ’-' Presiding Officer DebtsIlbgpasw aPPJPl, Patna

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DObt8 Recovcr7 Trrburrnl PAIBA

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–=-==n•nH•H===••Inn====

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FORM NO. 9 [See Regulation 24( 1 )]

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DEBTS RECO\FERY TRIBUNAL PATNA

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

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RECOVER\’ CERTIFICATE UNDER SECTiON 19(2) RE,\D WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRLiPTC\’ ACT. 1993, AS ANIENDED FRONI TIME TO TIME.

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RC No. 284/2025 IN Case No: OA/572/2023

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In tIle b latter t)I (CH- 1 ) HDFC- BANK LIMITED BRANCH OFFICE AT 2ND FLOOR R AJF'NDRA Applicant(s) RAM PLAZA, EXHIBITION ROAD. PATN A ,BIHAR -o ––-- Versus -–--– Tu (CD- 1) VIKASH KUMAR (BORROWER) S/iI- Mahendra Prasad Kis;hun Sa\v R/o- J tllrFle Belddari Budhaul. Na\-ada. Near Han um:in Mit nd iI Nilu’adil .HIll AR -805 1 1 (1 Also At Defendant(s) GOLA ROAD. NAWADA. IMAMBARA GALI, GONDAPUR, NAWADA, BIHAR 805 1 10 (CD- 2) MAHENDRA PRASAD (COBOR RC) W ER/G U A RN ATO R ) SrO- KISHI JN SAW. R/O- 13F.LD ARI. NF AR (’FI AMD,\ C;ODA M N A\VA DA. bIll All. PAN NO. FF./PPS5275P

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Recover}:Certificate for Rs 3907015.86 1 Rupees Thirty Nine Lakhs Seven Thousund Fifteen And Paise EigUy Six OnI):

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In terms of final order dated 06/09/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant CCI'tificatc Holder Bank is entitled to l-ccover a sum of Rs. 3907015.86 along with cost, expenses and interest from the 07/1 ] /2023 1.c. date ol' tillllg / with effectIve date of the OA/572/2023 and fUture interest from order date till the date of realisation in Full. jointly or severaljy from the Celtificate Debtors, hereinafter referred to as:-

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CDNal11e	Loan I Type	Int iTypt’/Mode	Int. }Rate	Effective Date	Order Date	Anlount(Rs.)	Liabilit} Type	Intcresl (as 0 Order Date)	RC ,mount(Rs.)
IKASH KUMAR BOIIROWER)		tInl pt)UII d ntcrcst Monthly )	It)	17'11/3023	}06/u9/2025	13907015,86	lointly IAnd ISeverally		[3907015.86
MAHENDRA PRASAD (CO- BORROWF.R/GUARNATOR)		crest Monthty)	O	a/11/2023	106/09/2025	-l3907015.86	lointly FAnd ISeverdli		15.86

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In case of failure to pay the aforcnrcntioncd adjudicated amount within 30 days. same shall be recovered fI-om the sale of the mortgilgccYh}'pothccatcd assets as well as other personal movable/ Ilnlnovable assets of the certificate debtors

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The lnortgllgcd or hypothecatcd 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 RecoveI)' certificate issued under Section 19(22) of Rcc!)vel)’ of Debts and Bankruptcy Act 1 993. P:lrtics ilrc directed to appeilr before ASHISH KLJM AR . Recovery Otticer. DEBTS RECOVER\’ TRIBUNAL PATNA on 1( I o/202 The Rcco\cIV Officer shall rcillizc thc uml>nnt ils pcr this C'crtificate in the manner and mode prescribed under Sections 25 to 28 uf the Rccovel-v of Debts Duc to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above nanred C;crtincatc Debtors.

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Fhis C'crtilicate has hCI:n issued under nIV sigllaturc and seal of the Tribunal on this 10/09/2025

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._ .,, __ _RRESIDIN'GOFFICER DEBTS RECOVERY TRIBUNAL PATNA Presiding Oficu Debts Recovery TdbqQd PATaA

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Karpuri ’l'hakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashidna Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 284/2025

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IN Case No: OA/572/2023

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Applicant(s): HDFC BANK LIMITED

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Versus

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Defendant(s): VIKASII KUMAR (BORROWER)

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Sr. No	e	IAmountinRs
	Feeontheapplication	P2000
2	1	[0
	AdvocateFees	10
4	IComrnissioner/Receiver/Valuation/Security Fee	B
	liscellaneous Charges	Fo
	Total Costs:Rs	F2000

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Place: PATNA

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PH PRESIDIFG OFFICER

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Date: 10/09/2025

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Note: Strike out whichever is not dpplicable

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D E B T S ]B:J: C 0 v:==11IT:\I!!= f

Hdfc Bank Limited v. Vikash Kumar (borrower)

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Vikash Kumar (borrower)

Case brief

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What did the court decide?

What the court decided

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