Allowed

Hdfc Bank Limited v. Shankar Ganpati Engineering Consultancy Pvt. Ltd.

DRT17 Jan 2025OA/83/2023

Case brief

AI extract

What is this about?

In an application under Section 19 of the RDB Act, 1993, the Debt Recovery Tribunal allowed the bank's plea to recover dues. Proceeding ex-parte as the defendants contested via application denied the claim. The court determined the debt and ordered asset attachment for realization.

What did the court decide?

Debt and costs to be paid jointly and severally by the defendants along with interest; attachment and sale of mortgaged assets ordered.

Hdfc Bank Limited versus Shankar Ganpati… — Contract and Commercial Disputes | DRT (2025)

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OA 83 of20231JI

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DRT. PATNA

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Debts. Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 83 of 2023

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HDFC Bank Limited. branch office at 2nd Floor. Rajendra Ram Plaza. Exhibition Road. Patna 800 00I

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....... Applicant

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Vs.

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I. Shankar Ganpati Engineering Consultancy Pvt. Ltd., 56 Friends Colony. Road No.I, P.O.- Ashiana Nagar, P.S.- Rajeev Nagar. Patna 800025

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Abhijeet Shankar, Sio Vijay Shankar. 56 Friends Colony. Road No.1. P.O.- Ashiana Nagar, P.S.- Rajeev Nagar. Patna 800 025

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....... Defendants

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Present:

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For the Applicant Shri Ani! Kumar. Advocate For the Defendants None

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Dated: 17.01.2025

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JUDGMENT

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I. The Applicant bank has made this application uls 19 of the Recovery of Debts and Bankruptcy Act. 1993 (here-in-after referred to as Act) on 19.12.2022 against the defendants to recover its debts from defendants of Rs.43.77.920.77 as on 21.10.2022 along with pendente-lite and future interest at the contractual rate from 20.12.2022 with costs till realization.

¶17

The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to tile the suit through various branches including the applicant.

¶18

Defendants approached the applicant bank tor sanction of business loan as well as facility under CV GECL and after due consideration. the applicant bank has sanctioned business loan ofRs.50 Lakh and CV GECL loan facility of Rs.7,54,527/- vide sanction letters dated 30.10.2018 and 22.06.2020 respectively on various terms and conditions. as stipulated in the sanction letter. which were duly accepted by the defendants. To secure the loan facilities v.\ ')\

OA 83 0(20231,11

DRT,PATNA

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

¶23

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 05.08.2021.

¶24

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.

¶25

The total liability in the loan account is Rs.43,77,920.77 as on 21.10.2022 with pendente-lite and future interest contractual rate from 22.10.2022 till the realization.

¶26

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 22.02.2023, 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 18.08.2023in "Dainik Jagran" newspaper.

¶27

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 08.02.2024.

¶28

To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also

OA 8J of20231,11

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

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SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executant -	of s -	Ex.! Ann. No. --~
I	Loanapplications	09.10.2018 22.06.2020	85.00 Rs.7,54,527/-	Defendant	s	1 I----~
2	Sanctionletter	30.10.2018 22.06.2020	50.00 Rs.7,54,527/-	Bank accepted defendants	and by	2
3	Loan documents! Facility cum hypothecation agreementand other documents	30.10.2018 24.06.2020	50.00 Rs.7,54,527/-	Defendant	s	,.'
4	Loanrecallnotice	21.10.2022	--	Bank		4 --
5	Statement of accounts	--	--	Bank		5

¶34

Heard arguments and perused the case 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 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.

¶37

II. 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,

OA 83 of20231JI

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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 05.08.2021. whereas the present application has been filed on 19.12.2022. 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 Shubham Saurav, Legal Manager ofthe applicant bank has tiled 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.l9 (1) 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 claim made by the applicant,the tribunalmay act upon the affidavitof the applicantwho is acquaintedwith 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 documentsas evidence.

¶45

The rule 12 (II) of the aforesaid Rules, provides that the provisionscontainedin section4 of the Banker'sBooksevidence that Act, 1891(18 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Books furnishedalongwith applicationtiled 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.-Suh;ecl 10 the provisions of this Acl, a certified copy of any entry in a hanker's hook shall in all legal proceedings be received as primafacie evidence ofthe 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 bv law admissible. but notfurther or otherwise.

¶47

As such the certified true copies of the documents are admissible III 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.

DRT, PATNA

OA 83'of2023IJI

On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendants have applied tor 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.

¶52

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 21.10.2022 has been proved to be Rs.43,77,920.77 only by way of statement of accounts/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 [mal realization of the claim.

¶53

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.43,77,920.77 along with pendente-lite and future interest @ 10%p.a. with compounded monthly rests from 19.12.2022 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

¶54

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.43,77,920.77 along with pendente-lite and future interest (ill, 10% p.a. with compounded monthly rests from 19.12.2022 (The date of tiling of this OA) till realization of the entire sum due and recoverable with costs.

¶56

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

¶57

Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any

OA 83 of 20231JI

DRT, PATNA

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/SubRegistrar to endorse the charge over the secured assets.

¶62

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.

¶63

Parties are directed to appear before the Recovery Officer, DRT, Patna on 27,02.2025. The order be communicated accordingly.

¶64

Judgment signed, sealed, dated and pronounced in the open court on 17thday of January, 2025.

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Dictated &corrected by me.

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[Kausha endra Yadav 1 Presiding Officer Debts Recovery Tribunal, Patna

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FORM NO. 9

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·_

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24(1»)

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2nd Flour, (A. B & F Wing] Karpuri Thakur Sadan. Kendriya Karamchari Parisar (G~OA), Ashiana Digha Road, Patna-800025.

¶72

RECOVERY CERI IFICATE UNDER SECTION 19m READ WITH SECTION I9IW OFTHE RECOVERY OF DEBTS & BANKRUPTCY ACT,~, AS AMENDED FROM TIME TO TIME.

¶73

RC No, 16120Z5 TN

¶74

Case No: OA/83/Z023

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IIIthe Matter of (CH· I) HDFC BANK LIMITED BRANCH OFFICE AT2ND FLOOR RAJENDRA RAM PLAZA, EXHIBITION ROAD, PATNA,BIHAR ·80000 1

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Applicanl(s)

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----- Versus ------

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To, (CD- I) SIIANKAR GANPATI ENGINEERING CONSULTANCY PYT -LTD. 56 Friends Colony, Road No I, P.O.-Ashiana Nagar, P,S.- Rajeev Nagar, Patna .BIHAR Defendantts)

¶79

(CD· 2) ABHIJEET SHANKAR SID YIJAY SHANKAR. 56 FRIENDS COLONY . ROAn NO I. P.O.ASHIANA NAGAR. p.s.' RAJEEY NAGAR PATNA·800025

¶80

~)' Certificate (O[ Rs 43779211.77 l__Rypees Forty Three l,gkbs Seventy Seven BOYland, Nine HuOdred Iwenty_Agd ~~isc Seve.... t)' Seven OnIY_1

¶81

In terms of final order dated 17/01/2025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum ofRs. 4377920.77 along with cost, expenses and interest from the 19112/2022 i.e. date of filing 1 with effective date of the OAl83/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶82

s :1 CDName .Loan InL E Int. i Effective' Order I., LiabiUtyI~.::t, RC
,I'.no'l [Type Type/Mode:Rate, Date II Date rmount(Rs.) Type Order Amount(Rs.)Remark
-1iIANKAR''"I, J . rc~~~+, --+,---4'__ +D::.:::te)+ +-_
GANPATI icolupounu'l :. Jointly 'terest,
377920.77
I j~~~t{Iy 1~~~~~ty) ,10 jI9ll2'2022117/01/2025437792077 !!rallY~~~; !
r J: ~ ::'.:2c/2•._0_2..J2'1.1_7/_0_1/2_02_5.14_3_7_7_92_0.7_7. r: . _,3_7_7...J!J!..i( _ 92;V _ 0 _ .7_7-J1-_:I_IY.. .. lg::n::~,:;f;_t.
ccc..c ~ f?i;:

¶83

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 movablel Immovable assets of the certificate debtors.

¶84

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. Parties an: directed to appear before MANOJ KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 27'02/2025.

¶85

The Recovery Otlicer 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. .

¶86

17/0112025

¶87

PRE~G OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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¶90

[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 (OPOA), Ashiana Digha Road, Patna-800025.

¶93

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶94

RC No. 16/2025

¶95

¶96

Case No: OAl83/2023

¶97

Applicant(s): HDI<'CBANK LIMITED

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Versus

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Defendant(s): SHANKAR GANPATI ENGINEERING

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CONSULTANCY PVT. LTD.

¶101

.--,. - i~r.^No.	--_..- JItem of Costs	Amount inRs.
ID"- ..	_j ^{Fee on the application}	46000
_ i~:.	J^{Process Fees(Inc. Publication)}	0
1[3....•. ..........	^{Ji~\15)lItFee~} ......... .. ...,.,,-- ..,.,.. ,.,... ,-,.•. ---...	JO
__ . i[4. -•----	. .JComrni~~ioner/ReciverlValuationle.curity Fee	0
[5: .. _. ".	, :[!v1iscellaneousCharges	110 1
{ ."- iL •._-	.. ·lrotal Costs: Rs.	146000

¶102

Place: PATNA

¶103

Date: 17/01"12025

¶104

PRES~FFICER DEBTS RECOVERY TRIBUNAL PATNA

¶105

Note: Strike out whichever is not applicable

Hdfc Bank Limited v. Shankar Ganpati Engineering Consultancy Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Shankar Ganpati Engineering Consultancy Pvt. Ltd.

Case brief

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What did the court decide?

What the court decided

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