Allowed

Bank of India v. Car Laundary

DRT23 Jun 2026OA/100/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Bank of India against a car laundry proprietour for a determined debt of Rs.20,69,052.15 plus interest, finding facts proved by bank documents and deeming defendants absent in person. The Tribunal issued a recovery certificate.

What did the court decide?

Debt of Rs.20,69,052.15 determined with 10% p.a. interest from filing date, recovery certificate issued under Section 19(22) to enforce payment via sale of assets.

Bank of India versus Car Laundary — Banking and Recovery | DRT (2026)

OA 100 of 2025tJI

DRT, PATNA

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

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Presiding Officer : Shri Kaushalendra Yadav OA Case No. 100 of 2025

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Bank of India, Anisabad Branch, Patna- 800002

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. . . . . . .Applicant

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Car Laundary, Proprietor- Nirbhay Kumar Roy, S/o Jalendra Paswan, Mahav'ir Colony, Near Anisabad, Patna 800002

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Nirbhay Kumar Roy, S/o Jalendra Paswan, Mahavir Colony, Near Anisabad, Patna 800002

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Santosh Satyarthi, Advocate For the Defendants Notre

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Dated:23.06.2026

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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 31.01.2025 against the defendants to recover its debts from defendants of Rs.26,70,268.15 as on 24.12.2024 along with pendente-lite and future interest at the contractual rate from 25.12.2024 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.

¶18

Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of term loan of Rs.13.50 Lakh and Cash Credit facility of Rs.2 Lakh, vide loan application dated 30.10.2019, which was sanctioned by the applicant bank on 30.10.2019 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents in favour of the applicant bank, details of which are given in OA. h / 'L/IAb

OA .100 of 20251 Jl

DRT, PATN A

Defendants again approached the applicant bank for sanction of additional limit of Covid 119 CESS loan of Rs.20,000/-, vide loan application dated 13.05.2020, which was sanctioned by the applicant bank on 13.05.2020 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 in favour of the applicant bank, details of which are given in OA

¶23

Defendants approached the applicant bank for sanction of additional GECL loan of Rs.2.70 Lakh, vide loan application dated 08.06.2020, which was sanctioned by the applicant bank on 08.06.2020 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 in favour of the applicant bank, details of which are given in OA

¶24

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 28.06.2022.

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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.26,70,268.15 as on 24.12.2024 with pendente-lite and future interest contractual rate from 25.12.2024 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 13.03.2025, 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 or{ered to publish the notice in newspaper and

'i/&

OA 100 of2025jJl

DRT, PATNA

subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 24.09.2025 in “Prabhat Khabar” and “Morning India” newspapers.

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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 30.01.2026.

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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 Divyanshu Kumar, Branch Manager of the applicant bank. The details of documents are as follows:

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SI.No	Descriptionof Documents PhotocoDies	Date of Execution	Amount (in Lakh)	Signatur Executa	eof nts	1Ex./ IAnn. No.
	Certificate
	PowerofAttorne-
	Loanapplication	28.10.2019	e 13,50 TL
	Photocopyof PAN
	Photocopy of Aadhar
6	Sanction letter	30.10.2019	a 13.50TL	ma I accepted defendants	by
7	Declaration and undertakin	30.10.2019	e	an
8	Declaration and undertakin	30.10.2019	e	a
	DPNote	30.10.2019	13.50	Defendants		9
	DPNote	30.10.2019	2.00	Defendants
	Hypothecationcum loanagreement	30.10.2019	13.50	Defendants
12	Hypothecationcum loanagreement	30.10.2019	e	as
13	PDR	30.10.2019	13.50	Defendants		13
14	PDR	30.10.2019	2.00	Defendants		14
15	MCLRagreement	30.10.2019	13.50	Defendants		15
16	MCLRAgreement	30.10.2019	2.00	Defendants		16
17	LoanaDDliM		.20,000/-	Defendants		17
18	Sanction letter	13.05.2020	.20,000/-	Bank. accepted defendants	and by	18

OA 100 of 20251JI

DRT, PATNA

19	L516	13.05.2020	Rs.20,000/-	Defendants		T
20	DP Note	13.05.2020	Rs.20,000/-	Defendants
21	PDR	13.05.2020	Rs.20,000/-	Defendants
22	RBLRAgreement	13.05.2020	Rs.20,000/-	Defendants
23	LoanaDDlm	08.06.2020	2.70	Defendants
24	Sanctionletter	08.06.2020	2.70	Bank accepted defendants	and by	24
25	L516	08.06.2020	2.70	Defendants		25
26	DPNote	08.06.2020	2.70	Defendants		26
27	Hypothecationcum loanagreement	08.06.2020	2.70	Defendants		27
28	PDR	08.06.2020	2.70	Defendants		28
29	RBLRAgreement	08.06.2020	2.70	Defendants		29
30	Acknowledgement ofdebt/securities	25.08.2022		Defendants		30
31	Acknowledgement ofdebt/securities	24.03.2023		Defendants		31
32	Acknowledgement ofdebt/securities	24.03.2023		Defendants		32
	Legal notice	16.01.2025		Bankadv.
	Statement of accounts			Bank

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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

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t h e P r e s e n t a P P 1 i c a t i o n +

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OA 100 of 2025jJI

DRT1 PATNA

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 31.01.2025. 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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Shri Divyanshu Kumar, 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 cert Bed 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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DRT, PATN A

OA 100 of 20251 Jl

On perusal of the application, documents, affidavit and ori 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 tha agreed terms and conditions for repayment with interest. The balance amount as on 29.09.2022 is one account is Rs.16,14,807.34, in another account balance amount as on 08.07.2022 is Rs.2,37,497.92, in other account balance amount as on 28.06.2022 is Rs.4,340/- and further in other account balance amount as on 28.06.2022 is Rs.2,12,406.89, totaling Rs.20,69,052.15 has been proved 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.20,69,052.15 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 3 1 .01.2025 (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 defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt amounting to Rs.20,69,052.15 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 31.01.2025 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

DRT, PATN A

OA 100 of2025jJI

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 adjudicajed 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 defendants, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants. The Recovery Of$cer will issue demand notice to the Cert$cate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Cert$cate holder fails to comply with directions of the Recovery oacer, the execution may be dismissed for non-prosecution. 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 04.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 23Fd day of June, 2026.

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,A/

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,'"

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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-Jn

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FORM NOt 9 [See Regulation 24( 1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floorp (A. B & F Wing) Karpu'i Thakw Sadan) Ken hiya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025'

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0 y OF DEE

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RC No. 172/2026 IN Case No: OA/100/2025

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In the Matter of: (CH- 1) BANK OF INDIA Applicant(s) ANISABAD BRANCH, PATNA ,BIHAR -800002 ––-- Versus –-–-To (CD- 1) CAR LAUNDARY Proprietor- Nirbhay Kumar Roy S/o- Jalendra Paswan Mahavir Colony Near Anisabad, Patna ,BIHAR -800002

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Defendant(s)

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(CD- 2) NIRBHAY KUMAR ROY SON OF JALENDRA PASWAN MAHAVIR COLONY NEAR ANISABAD PATNA 800002.

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In terms of final order dated 23/06/2026 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. 2069052.15 along with cost, expenses and interest from the 31/01/2025 i.e. date of filing / with effective date of the OA/100/2025 and future interest from order date till the date of realisation in fall, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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r.no	CD Name	Int. leType/Mode	Int. Rate	Effective Date	Order Date	aunt(Rs.	)LmP	Interest L£doe: Date)	RC lount(Rs.)	Remark
		ly)		1/01/2025	:026	i2.15	Jointly And Severally	lerest :E::
	F :iF::I=Y ROY	InTEI:::1 (Monthly )		1/01/2025	i/06/2026	.2069052.15	;Jointly And 'Severally	Date

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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 mongaged 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 are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 04/08/2026.

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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 24/06/2026

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PRES rG OFFICER DEBTS RECOVERY TRI AL PATNA

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_ Registrar

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D ej:1ibE;IE%eW:: n a

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FORM NO. 10

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[See Regulation 24(2)]

¶100

DEBTS RECOVERY TRIBUNAL PATNA

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

¶102

SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 172/2026

Case No: OA/100/2025

Applicant(s): BANK OF INDIA

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Versus

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Defendant(s): M/S CAR LAUNDARY

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temofCosts	:Amount inRs
Feeon the application	:29000
F;iii;iii;a–ni:+uMa;M)	0
AdvocateFees	'0
Commissioner/Receiver/Valuation/SecurityFee	0
McellaneousCharges	0
totale8it£:is	i2900d

¶111

Place: PATNA

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Date: 24/06/2026

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PRESID 6FFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Bank of India v. Car Laundary

Case brief

What is this about?

What did the court decide?

Bank of India v. Car Laundary

Case brief

What is this about?

What did the court decide?

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