Allowed

Bank of India v. Kumar Shanu

DRT15 May 2025OA/79/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna adjudicated a loan recovery application filed by Bank of India against a borrower. The defendant failed to appear after summons and newspaper publication. Relying on documentary evidence and the defendant's silence, the Tribunal determined the debt of Rs. 25,42,286 along with interest and issued a Recovery Certificate.

What did the court decide?

Determined debt of Rs. 25,42,286/- along with interest; issued Recovery Certificate under Section 19(22) for realization by sale of assets.

Bank of India versus Kumar Shanu — Banking and Recovery | DRT (2025)

OA 79 of 20241J]

DRT, PATNA

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. 79 of 2024

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Bank of India, Branch at Sabour, Bhagalpur

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. . . . . . .Applicant

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Kumar Shanu (PAN- KFUPS1237A) (Borrower), Son of Sri Ajay Kumar Singh, present address- C/o Kailash Singh, at- Vikramshila Colony, Urdu Bazar, Bhagalpur- 813210

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Permanent Address- At Post- Badhoniya, P.S.- Sangrampur, District- Munger813321

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Place of business- At Ramshar Chowk, P.S.- Naya Bazar, Police StationJagdishpur, Disrict- Bhagalpur.

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. . . . . . . Defendant

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Present:

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For the Applicant For the Defendant

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Shri Ratnesh Nandan Sinha, Advocate None

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Dated: 15.05.2025

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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 22.08.2023 against the defendant to recover its debts from defendant of Rs.25,42,286/- as on 15.08.2023 along with pendente-lite and future interest at the contractual rate from 16.08.2023 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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3 . Defendant approached the applicant bank for sanction of Term Loan of Rs.9.50 Lakh and Cash Credit facility of Rs.14.25 Lakh in the year 2020 to set up an industry for manufacturing of Exercise Book and its binding under the PMEGP loan scheme, which were sanctioned by the applicant bank on 06.03.2020 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities defendant has executed various loan and security documents and also

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Fresidl Ilk U lflccr Debts Recovery Trrbwbhl PATNA

OA 79 of2024jJI

DRT, PATNA

hypothecated the movables in favour of the applicant bank. At the request of the defendant, the applicant bank has also sanctioned FITL (Covid) loan facility to the defendant.

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After availing the sanctioned credit facilities, the defendant became irregular in repayment of the 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 28.06.2022.

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Since, the defendant 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.25,42,286/- as on 15.08.2023 with pendente-lite and future interest contractual rate from 16.08.2023 till the realization.

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This Tribunal issued summon/notice copies of application & paper book to the defendant by registered/speed post on 22.02.2024, requiring him 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 defendant has 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 defendant on 09.07.2024 in “Dainik Jagran” newspaper.

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Despite the registered summons/notices and publication of notice in newspaper, the defendant has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant to defend the case, but he failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendant on 11.02.2025.

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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

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PresidiliB VIJ-ice1

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9 119 ][11111) 1E1nSII IIIL1Ht 13 iTiS11:: 1r n DWI IN

OA 79 of20241JI

DRT, PATNA

given evidence on affidavit by way of affidavit by Shri Sunny, Branch Manager of the applicant bank. The details of documents are as follows:

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Sl.No	Description Documents Photocopies To	Date of Execution	Amount (in Lakh)	Signature Executants	of	1Ex./ Ann No.
1	Loan application	06.03.2020	14.25 CC 9.50 TL	Defendant		1
2	a		14.25 CC 9.50 TL	Bank accepted defendant	aa by
3	DP Note	16.03.2020	14.25	Defendant		3
4	L435	16.03.2020	14.25	Defendant		4
5	L516	16.03.2020	14.25	Defendant		5
6	PDR	16.03.2020	14.25	Defendant		6
7	Hypothecationcum loanagreement	16.03.2020	14.25	Defendant		7
8	BPLR,r	16.03.2020	14.25	Defendant		8
9	DP Note	16.03.2020	9.50	Defendant		9
10	1- 435	16.03.2020	9.50	Defendant		10
11	L440	6		Defendant		11
12	RBLRagreement	16.03.2020	9.50	Defendant		12
13	PDR	16.03.2020	9.50	Defendant		13
14	L516	16.03.2020	9.50	Defendant		14
15	Hypothecation loanagreement cum	16.03.2020	9.50	Defendant		15
16	DPNo=	31.07.2021		Defendant		16
17	L435	31.07.2021		Defendant		17
18	L440	31.07.2021		Defendant		18
19	AgreementofFITL	31.07.2021	Rs. 14,830	Defendant		19
20	Stae			Bank		20
21	Acknowledgement ofdebt&securit1	15.03.2022		Defendant		21
22	Legal notice	07.01 .2023		Bank adv.		22
23	Alam letter	25.04.2023		Bank		23
8.	Heard argumentsand	perusedthe ca	serecord.

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Ld. Counsel of applicant bank submitted that the defendant has taken the loans and utilized the same and also executed the various loan documents to secure the loans. 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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p,„tdlig OWc”r Debts Recovery Tribtlna1 PAT NA

OA 79 of2024IJI

DRT, PATNA

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 defendant is living and carrying on his 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 28.06.2022, whereas the present application has been filed on 22.08.2023. 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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13 . Shri Sunny, Branch 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

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Presiding Ojficer Debts Recovery Tdbrun' PATNA

DRT, PATNA

OA 79 of20241Jl

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

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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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15 . On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendant has applied for loans and the bank had sanctioned the loans and to secure the loan and for repayment of loan amount with interests etc., the defendant has executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor has pointed out any specific error and discrepancy in the Statement of Accounts.

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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 tin 15.08.2023 has been proved to be Rs.25,42,286/- 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 defendant of Rs.25,42,286/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 22.08.2023 (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 defendant. The defendant is hereby, ordered to pay the applicant bank its debt amounting to Rs.25,42,286/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 22.08.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

hI{$:;£mN PATHA

OA 79 of2024jJI

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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Defendant is 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 defendant, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant. 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 25.06.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 15th day of May, 2025.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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

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DEBTS RECOVERY TRIBUNAL PATN A

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2nd bloor. ( A. B & F Wing) Karpuri Thai(ur Sadan. Kendriya Karamchari Pmisar (GPOA), Ashiana Digha Road, Patna-800025

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RECO\’ERY CERTIFICATE UNDER SECTION 19(Z) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No. 182/2025

Case No: OA/79/2024

In the Matter ot (CH- 1) BANK OF INDIA BRANCH AT SABOUR BHAGALPUR .BIHAR -848120

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Applicant(s)

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------ Versus --–---

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To (CD- 1) KUMAR SHANU O Son of Sri Ajay Kumar Singh present Address- C/o Kailash Singh, atVikramshila Colony, Urdu Bazar Bhagalpur8 ] 32 ] 0 Permdnent Address- At PostBadlltlnjya. P.S.- Sangralnpur. DistrictMullgcl'- $ 13321 Place of Business- At Ralnshar C’howk, P.S.- Naya Bazar, Police Station- .lagdishpur, Bhagalpur ,BIHAR -848-120

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Defendant( s)

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Recovery Certificate for Rs 2542286.00 1 Rupees Twenty Five Lakhs Forty Two Thousands Two Hundred UgUy Six OnI}=1

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In tel-Ins of final order dated 15/05/2025 passed by this Tribundl in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2542286.00 along with cost, expenses and interest from the 22/08/2023 i.e. date of filing / with effective date of the OA/79/2024 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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r. II o	CD Name	Loan :Type	Int. }Type/Modej	Int Rate	Effective Date	Order Date	IAmount(Rs.)	Liability: Type	ntcrest (ason Irder Date	RC IAmount(Rs.)	Relnar
	KUMAR SFIANU		'ompc)und Interest 41onthly)	1 0	:2/08/2023:	115/05/202	5l2542286.oo	itFully		.2286.00

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Ill case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgage(i/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 recavel)' proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 . PaNics are directed to appcar before I'IANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 25/06/2025.

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I-he Recovery Officer shall realize the amount as per this Certificdte 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 Certiticate Debtors.

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Fhis Certificate has been issued under my signature and seal of the Tribunal on this 16/05/2025

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r &b’ PRESIDING N/VFICER DEBTS RECOVERY TRIBUNAL PATNA E) e b t S !!:y:: ::fr:[1Tr i b U n 8 1 Pre,tIling OPcl” PaUla Dobtg RecoverY Tdbw+' PATNA

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dr/:’

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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. 182/2025

Case No: OA/79/2024

Applicant(s): BANK OF INDIA

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Versus

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Defendant(s): KUMAR SANU

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Item ofCosts	r
)	m2
Process Fees(Inc. Publication)	[0
AdvocateFees	:C)
Commissioner/Receiver/Valuation/SecurityFee	:()
MiscellaneousCharges	Dc
TotalCosts:Rs	m2

Place: PATNA

PRESIDING OFFICER

Date: 16/05/2025

Note: Strike out whichever is not applicable

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DEBTS RECOVERY TRIBUNAL PATNA

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Prestding Omcet Debb Recovery Tribuna' PATNA

Bank of India v. Kumar Shanu

Case brief

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Bank of India v. Kumar Shanu

Case brief

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