Allowed

Indian Bank (Allahabad Bank) v. M/s Indu Industry

DRT8 Sept 2025OA/650/2024

Case brief

AI extract

What is this about?

The Dear Recovery Tribunal, Patna allowed an ex parte application filed by Indian Bank to recover a debt of Rs. 2,68,56,703.01 plus interest from defaulting borrowers and guarantors, relying on documentary evidence and bankers' book entries.

What did the court decide?

Recovery certificate drawn for Rs. 2,68,56,703.01 with interest @ 11.25% p.a. from filing date until realization from the defendants jointly and severally.

Indian Bank (Allahabad Bank) versus M/s Indu Industry — Banking and Recovery | DRT (2025)

OA 650 of 2024jJI

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. 650 of 2024

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Indian Bank (erstwhile Allahabad Bank), SAM Vertical Patna, at House No.41, Road No.5, Patel Nagar, District- Patna

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,Applicant

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M/s Indu Industry through its proprietor Mr. Gyandeep Kumar, Son of Sri Barun Kumar Singh, At- B-30 (Old) & B-13 (New), Industrial Area Dollar, P.O.- Laxmisagar, P.S. + District- Darbhanga- 846009

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Mr. Gyandeep Kumar, Proprietor of M/s Indu Industry, Son of Sri Barun Kumar Singh, resident at- Thana Chawk, Purani Bazar, PO + PSLakhisarai, District- Lakhisarai- 811311

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Also at- resident at Near Alpana Market, Flat No.301, Lokpiriya Apartment, P.O.+ P.S.- Patliputra Colony, District- Patna 800013

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Sri Praveen Kumar, Son of Sri Barun Kumar Singh, resident at- Thana Chawk, Purani Bazar, PO + PS- Lakhisarai, District- Lakhisarai- 811311

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Sri Barun Kumar Singh, Son of Late Ram Chandra Prasad Singh, resident at- Thana Chawk, Purani Bazar, PO + PS- Lakhisarai, DistrictLakhisarai- 811311

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Manoj Kumar, Advocate For the Defendants None

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Dated :08.09.2025

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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 12.12.2024 against the defendants to recover its debts from defendants of Rs.2,68,56,703.01 as on 20.09.2024 along with pendente-lite and future interest at the contractual rate from 21.09.2024 with costs till realization

OA 650 of2024jJI

DRT, PATN A

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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3 . Defendant no. 1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 & 4 are the guarantors of the loan facilities. Defendants approached the applicant bank for sanction of Cash credit facility of Rs.120 Lakh and Term Loan of Rs.151.50 Lakh vide loan application dated 26.04.2014 for business trading of manufacturing of winding wire nail and barbed wire, which was sanctioned by the applicant bank on 27.03.2015 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.

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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 04.02.2020.

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It has been further stated that the applicant bank in continuance of initiating SARFAESI proceedings sale notice dated 13.12.2023, has sold one of the mortgaged properties on 29.12.2023 and a sum of Rs.49,68,816/- has been realized and adjusted in the loan account.

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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.2,68,56,703.01 as on 20.09.2024 with pendente-lite and future interest contractual rate from 21.09.2024 till the realization.

OA 650 of20241JI

DRT, PATNA

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 27.12.2024, 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. Notice dated 10.02.2025 has also been served by way of affixation of notice on conspicuous part of the resident/shop of the defendants.

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Despite the service of registered summons/notices and also by way of affixation of notice on conspicuous part of the resident/shop of the defendants, 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 20.06.2025

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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 Shri Manoj Kumar, Chief Manager of the applicant bank. The details of documents are as follows:

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Sl.N	a1 Description of Documents Photocopies	1 Date ofI I Execution I	I 1(inLakh) I	IExecuta I	ntsIAnn. INo.
	o	2
	a	21	TL 120.00 CC
3	Letter of acknowledgement	23.04.2015		Def.no.1&2	3
	DPnote	28.04.2015	e
	ADV -2	28.04.2015	e
	ADV-24	28.04.2015	e
	Hypothecation agreement	28.04.2015	e
8	e agreement	28.04.2015	e		8
9	Guarantee agreement	28.04.2015	e		9
	r	28.04.2015	e
	e guarantor or mortgager on affidavit	28.04.2015	e
12	Photocopy ofsimple mortgagedeed	25.04.2015			12
13	e	05.02.20:		Bank	13

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/a\

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Presiding Oficet Debts Recovery Tribunal PATNA

OA 650 of20241JI

DRT, PATN A

14	Possession notice	18.12.2020	Bank	14
15	Sale notice	13.12.2023	Bank	15
16	Certificateofsale	06.06.2024	Bank	16
17	lal notice	23.09.2024	Bank’sadv,	17
18	a		Bank	18

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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 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 04.02.2020. It has been stated that the defendants executed balance confirmation letters through deposited amount time to time in their cash credit loan account of Rs.5 Lakh lastly on 03.02.2024, whereas the present application has been filed on 12.12.2024. 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.

q/iR

DRTq PATNA

OA 650 of 20241JI

Shri Manoj Kumar, 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.

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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 (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.–Subject to the provisions of this Act, a certified copy of any entry in a banker’s book shall 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 original 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 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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I,:/?He OPc., Debts R ec )v erV TrlbWW PATaA

OA 650 of 2024jJI

DRT, PATNA

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 20.09.2024 has been proved to be Rs.2,68,56,703.01 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.2,68,56,703.01 along with pendente-lite and future interest @ 11.25% p.a. with compounded monthly rests from 12.12.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice. 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.2,68,56,703.01 along with pendente-lite and future interest @ 11.25% p.a. with compounded monthly rests from 12.12.2024 (The date of filing 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 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.

vg%

DRT. PATN A

OA 650 of 20241JI

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 20.10.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 08th day of September, 2025. x//

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Dictated &corrected by me.

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)Qr( {, [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna Presiding Often Debts Recovery Tribunal PATNA

FORM NO. 9

DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24( 1 )]

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

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RECOVERY CERTIFICATE UNDER SE('TI( PN 19(2) READ WITH SEC:TION 19(12) OF THE RECOVERY OF DEBTS & BANKRIJPTCY ACT, L9D, AS AMENDED FROM TIME TO TIME.

RC No. 306/2025

Case No: OA/650/2024

In the Matter of:

(CH- 1) rNDiAN BANK (ALLAHABAD BANK) SAM VERTICAL PATN A. AT HOUSE NO. 41, ROAD NO,

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Applicant(s )

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5, PATEL NAGAR, PATN A ,BIHAR -800023

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––-- Versus

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(CD- 1) M/S INDU INDUSTRY

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Through its Proprietor Mr, Gyandeep Kumar, Son of Sri Barun Kumar Singh, At-B-30(Old) and B-13 (New), industrial area Donar P.O.- Laxmisagar. P.S.- and District

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Darbhunga ,BIHAR -846009

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(CD- 2) MR. GYANDEEP KUMAR

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PROPRIETOR OF M/S INDU INDUSTRY, SON OF SRI BARUN KUMAR SINGH. RESIDENT AT- THANA CHAWK. PURANI BAZAR, PO + PS. LAKHISARAI,

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DISTRICT. LAKHISARAI- 811311

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Also At

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RESIDENT OF NEAR ALPANA MARKET FLAT NO 301 LOKPIRIYA APARTMENT PO AND PS PATLIPUTRA COLONY DISTRICT PATNA 8000 1 3

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Defendant(s)

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(CD- 3) SRI PRAVEEN KUMAR SON OF SRI BARUN KUMAR SINGH, RESIDENT ATTH ANA ('HAWK, PURANI BAZAR, PO + PS-

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LAKHISARAI, DISTRICT- LAKHISARAI- 8 11311

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(CD- 4) SRI BARUN KUMAR SINGH

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SON OF LATE RAM CHANDRA PRASAD SINGH,

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RESIDENT AT- THANA CH AWK. PURANI BAZAR. PO + PS- LAKHISARAI, DISTRICTLAKHISARAI811311

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Recovery C’erfifi£at€ for Rs 26856703.01 1 Rupees Tw(I C'rorg $ixt)j,jght !£akhs Fjfty Six TboyFands Seven Hundred Three And PRiSe One Only_I

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In terms of final order dated 08/09/2025 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. 26856703.01 along with cost, expenses and interest from the 12/12/2024 i.e. date of filing / with effective date of the OA/650/2024 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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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..

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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.

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Parties are directed to appear before ASHISH KUMAR . Recovery Officer. DEBTS RECOVERY TRIBUNAL PATNA on 20/ 10/2025

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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 1 1/09/2025

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t.-
1 1)1!111b)B 1 {ifa E:qr i b U n a 1
Patna

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PRESIDING OFFICER
DEBTS RECOVERY TRIBUNAL PATNA

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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) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 306/2025

Case No: OA/650/2024

Applicant(s): INDIAN BANK (ALLAHABAD BANK) Versus

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Defendant(s): M/S INDU INDUSTRY

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Item ofCosts	r
'eeontheapplication	15
ProcessFees(Inc.Publication)
AdvocateFees	[0
Commissioner/Receiver/Valuation/SecurityFee	[0
e	[0
TotalCosts: Rs	150000

Place: PATNA

PRESI biG OFFICER

Date: 11/09/2025

Note: Strike out whichever is not applicable

Indian Bank (Allahabad Bank) v. M/s Indu Industry

Case brief

What is this about?

What did the court decide?

Indian Bank (Allahabad Bank) v. M/s Indu Industry

Case brief

What is this about?

What did the court decide?

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