Allowed

Indian Bank v. M.S. Enterprises

DRT31 Jan 2025OA/97/2024

Case brief

AI extract

What is this about?

The DRT allowed the Applicant Bank's application under Section 19 of the RDB Act for the recovery of Rs. 52.17 lakhs. The Tribunal, finding the defendantsfailed to appear, determined the debt amount including interest and issued a Recovery Certificate for realisation through sale of assets.

What did the court decide?

Recovery Certificate issued for joint and several payment of Rs. 52,17,677.75 with interest at 10% p.a. to be realized through sale of secured personal movable/immovable assets.

Indian Bank versus M.S. Enterprises — Banking and Recovery | DRT (2025)

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OA 97 of 20241JI

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. 97 of 2024

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Indian Bank (erstwhile Allahabad Bank), branch office at Patna Saheb Branch, Patna

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....... Applicant

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Vs.

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I. M.S, Enterprises, through its proprietor Amarjeet Singh, situated at Saraf Market, Chowk Patna City, PO + PS· Chowk Patna City, DistrictPatna- 800 008

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Sri Amarjeet Singh, proprietor of MS Enterprises, son of Late Sardar Mahendra Singh, Resident of Mohalla- Bare Ki Gali, Chowk Patna City. PO + PS· Chowk Patna City, District- Patna 800 008

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Sri Jacky Singh, son of Late Sardar Mahendra Singh, Resident of Mohalla- Bare Ki Gali, Chowk Patna City, PO + PS· Chowk Patna City. District- Patna 800 008

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Sri Gurmit Kaur, Wife of Amarjeet Singh, Resident of Mohalla- Bare Ki Gali, Chowk Patna City, PO + PS· Chowk Patna City. District- Patna 800008

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Sri Jaswinder Kaur, Wife of Late Sardar Mahendra Singh, Resident of Mohalla- Bare Ki Gali, Chowk Patna City. PO + PS· Chowk Patna City, Distrit- Patna 800 008

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....... Defendants

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Present:

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

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Dated:31,0 1,2025

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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 08.02.2024 against the defendants to recover its debts from defendants of Rs.52.17,677.75 as on 03.02.2024 along with pendente-lite and future interest at the contractual rate from 04.02.2024 with costs till realization.

¶22

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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~ • , •• "l 0 fficer :,' :.~; : ;:..; iT !,,:'y ,_\iJ t)e.'b~; ; ,:~.'" I ~\ 1/_' r '

OA 97 of20241JI

DRT.PATNA

Defendant no. I is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 to 5 are the guarantors of the loan facilities availed by the defendant no.2. Defendants approached the applicant bank for sanction of cash credit loan facility of Rs.15 Lakh vide loan application dated 12.07.2010. which was sanctioned by the applicant bank on 29.07.2010 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 movables/stocks in favour of the applicant bank.

¶29

Defendants again approached the applicant bank fix enhancement of cash credit loan facility upto Rs.20 Lakh vide loan application dated 30.06.2014. which was enhanced/sanctioned by the applicant bank on 30.06.2014 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 movables/stocks in favour of the applicant bank.

¶30

At the request of the defendants, the applicant bank has also sanctioned Rural Term Loan of Rs.1.70 Lakh on 24.12.2015 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 hypothecated the movables/stocks in favour of the applicant bank. The defendants have also executed letter of acknowledgement of debts on 14.05.2019 and requested the applicant bank vide their letter dated 09.02.2021 for grant of some time for realizing the loan amount.

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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 23.08.2018.

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Prest.atttg I' Offi Ice, Debt~ Recovery Tribunl!l I'ATNA

OA 97 of 20241JI

DRT. PATNA

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.52.17,677.75 as on 03.02.2024 with pendente-lite and future interest contractual rate from 04.02.2024 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 05.03.2024, requiring them to show-cause within 30 days of the service V/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 26.04.2024 in "Hindustan" 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 19.09.2024.

¶41

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 Bijendra Choudhary. Branch Manager of the applicant bank. The details of documents are as

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follows:

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SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
I	Loanapplication	12.07.2010	15.00	Def.no.I&2		I
2	Sanctionletter	29.07.2010	15.00	Bank --_.-		2 - - -
3	Acknowledgement letter	31.08.2010	--	Def.no.I&2		, .,
4	DPNote	31.08.2010	15.00	Def.no.I&2		[j---
5	General letter of hypothecation	31.08.2010 -	15.00 -----	Def.no.I&2 .------ -------		[5 16
--- 6	ADV24	31.08.2010	15.00	Def.no.I&2	-

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Presiding Officer Debts Recovery T~;1-:)11n,,' PATNA

OA 97 of20241JI

ORT, PATNA

7	Guarantee agreement	31.08.2010	15.00	Def.no.3 to 5 .	7
8	PDR agreements	31.08.2010	15.00	Defendants	8
9	Loan application	--	20.00	Defno.1&2	9 Ilil -
10	Sanction letter	30.06.2014	20.00	Bank	--- --
II	Acknowledgement letter	30.06.2014	--	Def.no.I&2	II
12 1---	General letter of Hypothecation	30.06.2014	20.00	Def.no.1&2	12 -.-~- ---
13	ADV.24	30.06.2014	--	Def.no.I&2	13
14	Guarantee agreement	30.06.2014	20.00	Def.no.3 to 5	14
15	PDR agreements	30.06.2014	20.00	Defendants	15
16	Legal notice	25.08.2018	--	Bank's adv.	16
17	Acknowledgement of debt	14.05.2019	--	Defno.1&2	17
18	Letter to bank for ors and time for repayments	09.02.2021	--	Def.no.2	18
19	Demand notice. Demand notice Lok Adalat notice	07.02.2019 11.10.2021 26.11.2021	--	--	19
20	Statement of accounts	--	--	Bank	20 -- - --- -

¶49

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 certiticate, as claimed for. in OA.

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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.

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Presiding Officer Debts Recovery Tribunal PATNA

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OA 97 of 20241JI

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DRT, PATNA

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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 23.08.2018. The defendants have written a letter to the applicant bank on 09.02.2021 requesting therein for OTS and for further granting six months time for repayment, whereas the present application has been tiled on 08.02.2024. 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 tiled well within the period of limitation.

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Shri Bijendra Choudhary, Branch Manager of the 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.

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Section 19(3) of the Recovery of Debts and Bankruptcy Act. 1993 provides that the application u/s S.19 (I) 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,providesthat if the defendantdenieshis liabilityto pay the claim made by the applicant,the tribunalmay act upon the affidavit of 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 applicationand the documentsasevidence.

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The rule 12 (II) of the aforesaid Rules, provides that the provisionscontainedin section4 of the Banker'sBooksevidence that Act, 1891(J 8 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Books furnishedalong with applicationtiled undersubsection1of section19bythe applicant.

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Section 4 of Banker's Books evidence Act, 1891 runs as under- SA. 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 he admitted as evidence of the mailers. transactions and accounts therein recorded ill everr case where. and to the same extent as, the original entrv itself is now bv 1(/11' admissible. hut notfurther or otherwise.

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OA 97 of20241JI

DRT,PATNA

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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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 03.02,2024 has been proved to be Rs.52,17,677.75 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.52,17,677.75 along with pendente-lite and future .interest @. 10%p.a. with compounded monthly rests from 08.02.2024 (The date of tiling of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

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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.52,l7,677.75 along with pendente-lite and future interest (iii 10% p.a. with compounded monthly rests from 08.02.2024 (The date of filing of this OA) till realization of the entire sum due and'recoverable with costs.

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\1:\ ("J

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p;l!sEding Officer 1)ebts Recovery Tri;:'(L."'" VATNA

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OA 97 of20241JI

DRT. PATNA

It is made clear that any amount deposited by the defendants. be deducted in the claim amount. ifnot 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/SubRegistrar 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.

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Parties are directed to appear before the Recovery Officer. DRT. Patna on 11.03.2025. The order be communicated accordingly.

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Judgment signed. sealed, dated and pronounced in the open court on 31st day of January, 2025.

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Dictated &corrected by me.

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~\.,I

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[Kaushalendra Yadav 1 Presiding Officer Debts Recovery Tribunal. Patna r/:!::',;" Ofji"'_ Debt:; Ro(:·'_)/:.:tj fi":(i:':l'..t l' .l'l'li.{1.,

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..'

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FOBMNQ 9 [See RtguJation 24(1)1

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan. Kendnya Katamchari Parisar (GPOA), Asbiana Digha Road, Patnll-800025 .

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• • •

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Be No 4012025 IN Cas. No: 0Al97/Z0Z4

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In the Matter of: (eH-., [NOlANBANK BRANCH OFFICE AT PATNA SAHES BRANCH, PATNA ,BIHAR ·800008

Applicant(s)

--Versus __

To,

(CD-I) M.S. ENTERPRISES through its Proprietor Amarjeet Singh. Situated at Saraf Markel, Chowk Patoa City,. P.O. and P.8.- Cbowle Patna City. Patna ,BIHAR -800008

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(CD- 2) SRI AMARJEET SINGH PROPRIETOR OF M.S. ENTERPRISES. SON OF LATE SARDAR MAHENDRA SINGH, RESIDENT OF MOHALLABARE KI GALI,CHOWK PATNA CITY, PO + PS- CHOWK PATNA CITY. DISlRICTPATNA 800008

¶100

(CD- 3) SRI JACKY SINGH, SON OF LATE SARDA MAHENDRA SINGH, RESIDENT OF MOHALLA· BARE KI GAll, CHOWK PATNA CITY. PO + PS- CHOWK PATNA CITY, DISTRICT- PATNA 800008

¶101

Defendant(s)

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(CI). 4) SRI GURMIT KUAR WlFE OF AMARJEET SINGH. RESIDENT OF MOHALLABARE Kl GALl, CHOWK PATNA CITY, PO + PS- CHOWK PATNA CITY. DISTRICT- PATNA 800008

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(CD- 5) SRI JASWtNDER KAUR, WIFE OF LATE SARDAR MAHENDRA SINGH, RESIDENT OF MOHALLA- BARE KI GALl, CHOWK PATNA CITY. PO + PS- CHOWK PATNA CITY, DISTRICT- PATNA 800008

¶104

BKRmY. c,[onqte (or 8. ,linn" I Rupca Fifty: TwQ I .'h, stvmtrcg DQlU,d, SixHgadRIISocp'YSnv "'ad blM Snp'Y f'IycOgly I

¶105

In terms of final order dated 31/0112025 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. 5217677.75 along with cost, expenses and interest from the 0810212024i.e. date of filing / with effective date of the 0AJ9712024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as»

¶106

r.no	CON_me ~ j ....	Int.TypeIMode _. ____	Inf. Rate	Effective Date ._..	Onler Dote .._.	fAmoUDf(Rs •	•_ Liability Typ.	Interest (asO. OrderD.te)	RC Amount(lb.)
1	;M.S. ENTERPRISES	!Compound Interest (Monthly)	10	I"lW2I2024	3110112025	5217677.75	Jointly And Severally	lntere8t As on Pnla-Dato	5211677.75
2	SRI AMARJEET 'SINGH	ompounu Interest (Monthly)	10	1"810212024	31101/2025	5217677.75	iJuintly Anc1 Severally	Interest As on Order Dale	5217677.75
	SRI JACKY SINGH,	r.::0mpoundInterest Monthly)	10	1""=024	31/011202S	5217671.75	Jointly And Severally	lntcn:st As on ~Dato	5217671.75
4	,SRI GURMIT 'KUAR	Compound Interest (Moothly)	10	8/02/2024	31/0112025	S217677.75	JointlyAnd SeveraJly	Interest As on ~rDale	S217617.75
s	,SRI JASWINDER ,iKAUR,	ompound Interest (Monthly)	10	810212024	3110112025	5217677.75	Jointly And Severally	Interest As on Order Date	5217677.75

¶107

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgagedlhypothecated assets as well as other personal movable! Immovable assets of the certificate debtors.

¶108

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.

¶109

Parties are directed to appear before ASIDSH KUMAR . Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 1110312025.

¶110

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.

¶111

This Certificate has been issued under my signature and seal of the Tribunal on this 03/02/2025

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PRES~CER DEBTS RECOVERY TRIBUNAL PAINA

¶113

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

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DEBTS RECOVERY

¶115

TRIBUNAL PATNA

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2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (OPOA),

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Ashiana Digha Road, Patna-800025.

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-~.- ---- .-._.--------

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 40/2025

¶121

¶122

Case No: OA/97/2024

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Applicant(s): INDIAN BANK

¶124

Versus

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Defendant(s): M.S. ENTERPRISES

¶126

Sr. No.	--- _.. - - - Item of Costs	Amount in Rs.
1.	Fee on the application	55000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
4.	CommissionerlReceiverNaluationiSecurity Fee	0
5.	IMiscellaneous Charges	10
	Total Costs: Rs.	1155000

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Place: PATNA

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	PRESIDIN~C	ER
Date: 03/02/2025	DEBTS RECOVERY TRIBUNA . . P:'",__	L PATNA C fT,·c·r " , _._e-
Note: Strike out whichever is not applicable

Indian Bank v. M.S. Enterprises

Case brief

What is this about?

What did the court decide?

Indian Bank v. M.S. 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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