Allowed

Idbi Bank Limited v. M/s Nirmala Enterprises

DRT3 Apr 2025OA/60/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed IDBI Bank's application under Section 19 of the RDB Act to recover a debt of Rs. 32.04 lakh. Relying on documentary evidence and the absence of defendant appearance, the Tribunal determined the amount due, attached secured assets, and directed the issuance of a Recovery Certificate.

What did the court decide?

The application was allowed; a Recovery Certificate was issued for Rs. 32,04,072.09 plus interest; assets were attached.

Idbi Bank Limited versus M/s Nirmala Enterprises — Banking and Recovery | DRT (2025)

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nRT. PATN A

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OA 60 of 20241.Jl

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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. 60 of 2024

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IDBI Bank Limited. Regional Office. Retail Recovery. 3"1 Floor. Sai Corporate Park. Rukanpura, Bailey Road. Patnd

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. . . . . . .Applicant

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M/s Nirmala Enterprises. Proprietor Sri Dinesh Kumar. C/o Nityanand Sinha. Ward No.08. Nai Bazar. Near Gurudwara, District- Buxar. Pin802 1 01 , PAN No.FGNPKC)580B

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Sri Dinesh Kumar Singh. Proprietor of M/s Nirmala Enterprises. S/o Late Nityanand Sinha. Village- Bdida Mural Buxar- 802127. PAN No.FGNPK0580B

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Jitendra Kr. Ro'. Advocate For the Defendants None

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Dated : 03.04.2025

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JUDGMENT

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1 . The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptc}’ Act. 1993 (here-in-after referred to as Act) on 29.01.2024 against the defendants to recover its debts from defendants of Rs.32.04.072.09 as on 11.01.2024 along with pendente-lite and future interest at the contractual rate from 12.01.2024 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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Defendant no.1 is a proprietorship firm engaged in the business of trading and wholesale business of mobile and other electronic items. of which defendant no.2 is the proprietor.

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_ %X,\ Pf nSl A' p'o OFten Debt ; ; -- -- -- T:;b%g I

OA 60 of 202+l.Jl

DRT, PATN A

Defendants approached the applicant bank for sanction of cash credit limit of Rs.25 Lakh 'ide loan application dated 18.06.2018. which was sanctioned by the applicant bank on 30.06.2018 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 created mortgage in favour of the applicant bank. details of which are given in OA.

¶25

Defendants again approached the applicant bank for enhancement of cash credit limit of Rs.25 Lakh to Rs.30 Lala. which \vas enhanced/ sanctioned by the applicant bank on 04.10.2019 on various terms and conditions. as stipulated in the sanction letter. which were duly accepted by the defendants. To secure the loan facilities defendants h,Ive executed various loan ,Ind securitv documents and also created/extended the mortgage in favour of the applicant bank. details of which are gi'en in OA. The said facility was renewed by the applicant bank time to time and lastly on 24.03.2023 .

¶26

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 29.08.2023.

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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.32.04.072.09 as on 1 1.01 .2024 with pendente-lite and future interest contractual rate from 12.01 .2024 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 06.03.2024. 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.

%\a

OA 60 of 202+l.J I

DRT. PATN A

the Registry of this Tribunal has ordered to publish the notice in ne\vspaper and subsequently. substituted service by publication of notice by wdy of advertisement in newspaper u-as also made against the defendants on 03,05.2024 in "Dainik Bhaskar" newspaper,

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Despite the registered summons/notices and publication of notice in ne\-spaper. 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 19.09.2024.

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To prove its case. the applicant Bank has referred various certified photocopies of documents before this Tribunal. 1-he applicant bank has also given evidence on affidavit b)’ way of affidavit by Shri Md. Trfan Azaln Khan. AGM of the applicant bank. The details of documents are as follows:

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Sl.No	Description Documents Photocopies of	1Date of Execution	Amount I (in Lakh)	ISignature Executants	o	n<br>Ann No.
	Loanapplication	18.06.2018	e
	Sanction letter	30.06.2018	a	accepted defendants	b'
	D Pnote	06.07.2018	e
	D P note deliverY letter	06.07.2018	e
	Facijity agreement	06,07,2018	e
	1 deed	06.07.2018	e
7	Declaration and undertaking	06.07.2018	e	s
7/A	c deed					7/A
7/B	MOE	06.07,2018	25.00	Defendants		7/B
8	Request letter of enhancement		30.00	Defendants		8
8/A	Sanction letter	04.10.2019	a	accepted defendants	and by	18/A
	DP Note	04.10.2019	e
	DP Note letter deliver)	04. 10.2019	e
11	Continuing letter securlty	04.10.2019	e	I
Il	Suppl, agreement facijity	04. 10.2019	e	I

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PFfS1'31'•q Officer Dc:t' - - 'qI 14 b + , e be

DRT. PATI\ A

OA 60 of 202+l.Jl

13	1 agreenr ent	10.2019	30.0	0Defenda	nts	13
	O		e
	a		a	accepted defendants	by
	DP Note	23.06.2021	30.00	Defendants
	DP Note delivery letter	23.06.2021	30.00	Defendants
18	Continuing security letter	23.06.2021	e	I
	Revivalletter	23.06.2021		Defendants
	Sanctionletter	30.08.2022	30.00	Bank accepted defendants	and by
a	ee		30.00	Bank accepted defendants	La by
	DP Note	24.03 ,2023	m	Defendants
	DP Note delivery letter	24.03.2023	30,00	Defendants
a4	Continuingsecurity letter	24.03.2023	e			24
	Revivalletter	d.03.2023		Defendants
	Recall notice	08,09.2023		Bank
	Demand notice	27.10.2023		Bank
	Statement accounts of			Bank

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Heard arguments and perused the case record.

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Ld. Counsel of dpplicant bank submitted that the defenddnts 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 bv Id. Counsel of applicant bank that there is no st,IV 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 lac:s. The

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vb-.A

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1)trIP! .CHI Once i Debt: : : : nT ' - ' 'n'-"r'lnaJ IIli AqA

DRT. PATN A

OA 60 of 20241.J I

applicant bank is functioning \-ithin 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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12 On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has decldred the account ds NPA on 29.08.2023, whereas the present application has been filed on 29.01.2024. Even. it is counted for the purpose of Limitation. then it is established that the applicant bank has filed the case u-ithin 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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13 Shri Md. Trfan Azam Khan. AGM 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 Ban]a'uptcy 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 docunrents as 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 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.–Sub jecl IO lhc pro\isioIIS tIf this Act. a certi.fied copy tIf- cmT entry in a banker’s bc)ok shall in all legal proceeclings he recei xed CIS prinIa .facie evidence of I IIe exisTence of such enlrv. cmd shall be udnritted as evidence of lhc nlcITters, Trutlsclclions cold accorltlts therein recorded in everY case \tllc’re. cllrct to The same exTenT CIS. the original c11lr' itself is no\t hv Ict\ Ltdnrissihle. but not further or other\’ise.

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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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Pt-St 11-q ePIC& Debt ’ ’ - - r, bunil

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OA 60 of 202+l.Jl

DRT. PATN A

business is not only admissible but shall be taken as the correct stdtenlent ot account. inore so since the entries in the stdteInent of account have not been challenged.

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On perusdl of the application. documents. affidavit and on consideration of the arguments. it is proved that the defenddnts 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 \=ith interest. The balance amount till 11.0 1.2024 has been proved to be Rs.32.04.072.09 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 vie\v. 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.32.04.072.09 along with pendente-lite and future interest 'a1 11.50% p.a. u-itIl compounded monthly rests from 29.01.2024 (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 \v'ith costs against the defendants. The defendants are herebY jointly and severally. ordered to pay the applicant bank its debt amounting to Rs.32.04.072.09 along with pendente-lite and future interest 'it' 11.50% p.a. with compounded monthly rests from 29.01.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

OA 60 of 20241 Jl

DRT. PATN A

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 an\’ other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or h)’pothecated 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 lndnner and mode prescribed under the Act from the defendants. by sale of nrortgaged/ hypothecated assets as \veII as other personal movable/immovable assets of the defendants

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Parties are directed to appear before the Recovery Officer, DRI'. Patna on 13.05.2025. The order be communicated accordingly.

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Judgment signed. sealed. dated and pronounced in the open court on 03"d day of April, 2025.

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Dictated &corrected bv me

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna Pf -?! ’'-' OTicei Debt3 . ' ' --r Tri:3\rnaI I Al aIA

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

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DEB’I'S REC"O\’E RY TRIBUNAL PA’I-NA

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

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IrRCOVFR\’ CEIITIrICATE UNDER SECTIOX 19(Z) READ WITII SECTION 19( B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT. 1993, AS ANIENDED FRONI TIME TO TIME.

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RC No. 77/2025 IN

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Case No: OA/60/2024

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Ill tIle Nlatter t)I (CH- 1 ) i DBI BANK LI NII-FED REGIONAL OFFICE RETAIL RECOVERY 3RD FLOOR SAI C'ORPC)RATE PARK RUKANPURA BAILE\’ ROAD bA-FN A ,BIHAR -8000 14

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Applicant(s)

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(CD- 1) M/S NIRNI ALA ENTERPRISES Proprietor Sri Dinesl1 Ktlmilr C/o- Nityanand Sinha. Ward No, OS. Nai Bazar. Near Gurud\yarn Rtl\ar.BIll AR -8 t)2 1 o I

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Defendant( s )

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(CD- 2) SRI DINESII KUMAR SINGll PROPI iiETOR OF NI/S NIRNI ALA

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ENTERPRISI IS . S//( )- LATE NITYAN AND SINHA, VILLAGE- BAIDA MURAR, BUXAR - PIN CODE- 802127

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Recovery Certificate for Rs 3204072.09 1 Rupees Thirty 'l-wo I.akhs Four Thousand Seventy 'I-\yo And Paise Nine Only

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In terms of final order dated 03/04/2025 passed by this Tribunal in the above lnentioned case, it is ordered that the Applicant Certilicate Holder Bank is entitled to recover a sum of Rs. 3204072.09 along with cost. expenses and interest from the 29/01/2024 i.e. date of filing / with efFective date of the OA/60/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter refcrred to as:-

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r.IIo	CD Nauru	Loan Type	Int. Type/Mode	Int. iRate	IEffective F Date
	hI/S !NIRMALA ENTERPRISES		:ulnpuund I lrtcrcst .Monthly)	11.50l	29/o ],'2024	13/04/2025	!04072.09	iJointty ,nd !Severally	@crest As on Order Datc	L204072.09
	SKIDINI'ISH i KUMAR iStNGH		'olnpound ntc rest Monthly )	1.50	l29/012024}	03/04/202	5F3204U72.09	[Jointly iAnd	nterest on	h2C)4072.09

¶98

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 ol the certificate debtors.

¶99

The lnortgaged 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 Recovely certificate issued undcr Section ] 9(22) of Recovery of Debts and Bankruptcy Act 1993. Parties are directed to appear before hI ANOJ KUBI AR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 1 3, 05/2025

¶100

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 Findncidl Institutions Act, 1993 (as amended from timc to time ) from the above named Certificate Debtors

¶101

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

¶102

II&IP n ReGistrar Debts Ret..IIvery Tribunal Patna

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PRESIDIEdoFrlcER DEBTS Rl''C-OVERY TRIBUNAL PATNA PI O a car Debt 'l'In Rl I / bl 49 Jb

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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) K,arpuri ’Fhakur Sadan, Kendriya Karamchari Parisar

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

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SCIIEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 77/2025

Case No: OA/60/2024

Applicant(s): IDBI BANK Versus

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Defendant(s): M/S NIRMALA EN'l-ERPRISES AND OTHERS

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Sr.No	Item ofCosts	r
	Feeon the application	m
		b
I	AdvocateFees	Ci
4	Commissioner/Receiver/Valuation/SecurityFee	hc
5	mIaneous aITFJ&	iu
	TotalCosts:Rs	m

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Place: PAI-NA

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Date: 04/04/2025

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Note: Strike out whichever is not applicable

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PRESIDladoFFICER q==

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DEBTS RECOVERY TRIBUNAL PATNA

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ptA, I ''-- T Ofncei DeLl: _ ecT - - -' - 'rund pill ,+ A

Idbi Bank Limited v. M/s Nirmala Enterprises

Case brief

What is this about?

What did the court decide?

Idbi Bank Limited v. M/s Nirmala 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

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