Allowed

Icici Bank Limited v. M/s Shyam Traders

DRT23 Jun 2026OA/109/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by ICICI Bank Limited under Section 19 of the RDBA, 1993, to recover a loan of Rs. 5.85 Crores plus interest from a borrower and guarantors who failed to appear. Relying on banker's books evidence and the defendants' absence, the Tribunal determined the debt and issued a recovery certificate.

What did the court decide?

Debt of Rs. 5,85,49,785.29 along with interest at 8.25% p.a. granted; Recovery Certificate issued; properties attached.

Icici Bank Limited versus M/s Shyam Traders — Banking and Recovery | DRT (2026)

OA 109 of 20251 Jl

DRT, PATN A

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav OA Case No. 109 of 2025

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ICICI Bank Limited, Zonal Office at 3rd Floor, Gulab Palace, Roop Alankar Jewellery, East Boring Canal Road, Patna 800001

¶8

. . . . . . . Applicant

¶9

Vs.

¶10

M/s Shyam Traders, represented through sole proprietor (Borrower), Pawan Kumar Agarwal, Address- C/05, Marketing Yard, POGulabbagh, District- Purnea, Bihar- 854326, PAN No. ADGPA8055 J

¶11

Pawan Kumar Agarwal, (Proprietor/Borrower/Guarantor), S/o Baijnath Agarwal, Address- Ward No.36, P.S.- Sadar, PO- Gulabbagh, Hansda Road, Nagar Nigam, District- Purnea, Bihar 854301, PAN No. ADGPA8055.T

¶12

Nikhil Agarwal (Guarantor), S/o Pawan Kumar Agarwal, AddressWard No.36, P.S.- Sadar, PO- Gulabbagh, Hansda Road, Nagar Nigam, District- Purnea, Bihar-854301, PAN No.APPPA9582H

¶13

Shashi Agarwal, (Mortgagor/Guarantor), W/o Pawan Kumar Agarwal, Address- Ward No.36, P.S.- Sadar, PO- Gulabbagh, Hansda Road, Nagar Nigam, District- Purnea, Bihar-854301, PAN No. AFMPA9189H

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. Defendants

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Present:

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For the Applicant Shri Prem Prakash, Advocate For the Defendants None

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Dated :23.06.2026

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JUDGMENT

¶19

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 03.02.2025 against the defendants to recover its debts from defendants of Rs.5,85,49,785.29 as on 03.01.2024 along with pendente-lite and future interest at the contractual rate from 04.01.2024 with costs till realization

DRT, PATNA

OA 109 of 2025IJ1

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.

¶24

Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 is the sone of defendant no.2 and the defendant no.4 is spouse of defendant no.2. Defendants approached the applicant bank for sanction of Overdraft (OD) facility, vide loan application and after considering the request of defendants, the applicant bank has sanctioned OD facility of Rs.4 Crore vide sanction letter dated 30.12.2020 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 and also created equitable mortgage in respect of landed properties in favour of the applicant bank, details of which are given in OA.

¶25

At the request of the defendants, the said OD facility was renewed and enhanced on 22.06.2022 to Rs.5.01 Croes from Rs.4 Crores 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/extended equitable mortgage in respect of landed properties in favour of the applicant bank, details of which are given in OA.

¶26

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 30.10.2023 .

¶27

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.

¶28

The total liability in the loan account is Rs.5,85,49,785.29 as on 03.01.2024 with pendente-lite and future interest contractual rate from 04.01.2024 till the realization. ~ ,

JAb

DRT. PATN A

OA 109 of2025jJl

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 09.04.2025, 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 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 22.08.2025 in “Dainik Jagran” and “Hindustan Times’' newspapers.

¶34

Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before thig 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 29.01.2026

¶35

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 Shashank Shree, Manager of the applicant bank. The details of documents are as follows:

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SI.No	Descriptionof Documents Photocopies	Date of Execution	Amount (in Lakh	Signatureof Executants	Ex./ Ann No.
	PowerofAttorne'	08.01.2025		Bank
	Creditarrangement letter	30. 12.2020	400no	Bankandaccepted bydef.no.I&2
	Facilityagreement	30.12.2020	400.00	Def.no.I&2'
	Unattested deed of HyDothecation	30.12.2020	400.00	De£no.I&2
5	Guarantee agreement	30. 12.2020	400.00	Def.no.2m	5
6	PIe deed along with declaration				6
	Valuationreport
	Renewal credit arrangement letter	22.06.2022	501.00	BankaIme bydef.no.I&2
9	Suppl amendatoryfacility agreement	24.06.2022	400.00 101.00		9
10	Supplementaldeed ofhyDothecation	24.06.2022	501.00	Def.no.1&2	10
11	Guarantee	24.06.2022	501.00	Def.no.2.3&4	11

iI'

OA 109 of2025jJl

DRT, PATN A

eernent
Mortgage declaration	24.06.2022	Def.no.4
Valuationreport
Loan recallnotice	13.10.2023	Bank
of Statement accounts		Bank

¶42

Heard arguments and perused the case record.

¶43

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 fbnctioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶46

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.10.2023, whereas the present application has been filed on 03.02.2025. 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.

OA 109 of2025jJI

DRT? PATNA

Shri Shashank Shree, 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.

¶51

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.

¶52

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.

¶53

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.

¶54

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 no\' by law admissible, but not further or otherwise.

¶55

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.

¶56

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

OA 109 of 2025jJl

DRT, PATN A

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 02.01.2025 has been proved to be Rs.5,85,49,785.29 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.

¶61

In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover fr9m defendants jointly and severally of Rs.5,85,49,785.29 along with pendente-lite and future interest @ 8.25% p.a. with compounded monthly rests from 03.02.2025 (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.5,85,49,785.29 along with pendente-lite and future interest '@ 8.25% p.a. with compounded monthly rests from 03.02.2025 (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

OA 109 of 20251 Jl

DRT, PATN A

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 Cert Bcate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /CertifIcate holder fails to comply with directions of the Recovery OfDcer, the execution may be dismissed for non-prosecution. The copy of this judgment be uploaded in th9 website of the Tribunal.

¶70

Parties are directed to appear before the Recovery Offic9cDRT, 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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Dictated &corrected by me.

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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FQRPI NQ. 9 [See Regulation 24( 1 )]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor1 (A. B & F Wing) Kalpwi Thakur Sadan! Ken&iya Karamchari Padsar (GPOA), Ashiana Digha Road, Patna'800025.

RC No. 173/2026

Case No: OA/109/2025

In the Matter of:

(CH- 1) ICICI BANK LIMITED ZONAL OFFICE AT 3RD FLOOR, GULAB PALACE, ROOP ALANKAR JEWELLERY, EAST BORING CANAL ROAD,

Applicant(s)

PATNA ,BInAR -800001

-––- Versus

(CD- 1) M/S SHYAM TRADERS Represented through Sole Proprietor Borrower Pawan Kumar Agarwal Address- C/05, Marketing Yard, PO - Gulabbagh, Purnia ,BIHAR -854326

¶88

(CD- 2) PAWAN KUMAR AGARWAL PROPRIETOR/BORROWER/GUARANTOR SON OF BAIJNATH AGARWAL ADDRESS- WARD NO 36 PS SADAR PO- GULABBAGH FLANSDA ROAD N AGAR NIGAM DISTT- PURNEA BIHAR 854301

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Defendant(s)

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(CD. 3) NIKHILAGARWAL

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GUARANTOR S/0- PAWAN KUMAR AGARWAL

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ADDRESS- WARD NO 36 PS SADAR PO- GULABBAGH

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HANSDA ROAD NAGAR NIGAM DISH- PURNEA

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BIHAR 854301

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(CD-4) SHASHI AGARWAL MORTGAGOR/GUARANTOR W/0- PAWAN KUMAR AGARWAL ADDRESS - WARD NO 36 PS SADAR POGULABBAGH HANSDA ROAD NAGAR NIGAM DISHPURNEA BIHAR 854301 .

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Recovery Certifi£Rte for Rs 58549785l29 IJup£e S FiYe Crore Ejghty FiYe LRkh$ Forty Nine ThQq land$ SeYen Hundred Ejghty Five And PRise Twenty Nine Only_I

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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. 58549785.29 along with cost, expenses and interest from the 03/02/2025 i.e. date of filing / with effective date of the OA/109/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶98

Sr.no	' CD Name				\Ino u nt1I1:1s• )	;][JTi;! !1IIby	: 1:::::itIE::)	nJfIMoIS ]la
I						:iF::1(yr1d	A As on	;549785.29
I 2	rWANKUMAR kGARWAL	Interest (Monthly		}3/02/2025		Jointly And ly	'Interest As on OrderDate	58549785.29
3				.03/02/2025	.23/06/2026 58549785.29	ilplntly.find Severally	InterestAs on Order Date	58549785.29
'4	AIBIIIAL	,Compound ,Interest (Monthly )	8.25	:03/02/2025	:23/06/2026 i58549785.29	ilolntly.fInd Severally	Hi::sba:on	58549785.29

¶99

In case of failure to pay the aforementioned adjudicated amount within 30 days1 same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors

¶100

The mortgaged or hypothecated assets to secure the loan in question are hereby attached md shall be subject to the fh,11 order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993

¶101

Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRiBUNAL PATNA on (N/08/2026

¶102

The RecoverY Officer shall realize the amount as per this Certificate in the manner and mode prescribed tender 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.

¶103

This Certificate has been issued under my signature and seal of the Tribunal on this 24/06/2026

¶104

PRESIbHG OFFICER DEBTS RECOVERY IRrBUNAL PAllqA

¶105

kb RegIstrar hRH&NMHl+ albtl Re€overy Tribunal, Patni 7IMH@Ufb8IWt Un

¶106

FORM NO. 10

¶107

[See Regulation 24(2)]

¶108

DEBTS RECOVERY TRIBUNAL PATNA

¶109

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

¶110

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

¶111

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶112

RC No. 173/2026 IN

¶113

Case No: OA/109/2025

¶114

Applicant(s): ICICI BANK LIMITED Versus

¶115

Defendant(s):^{M/S SIIYAM TRADERS}

¶116

Sr. No.

¶117

	tAmount inRs.
Feeon theapplication	150500
ProcessFees(Inc. Publication)	0
Advo JiG--FI a	gO
Commissioner/Receiver/Valuation/SecurityFee	0
lscellaneous Charges	;0
TotalCosts:Rs	i-56366

¶118

Place: PATNA

¶119

Date: 24/06/2026

¶120

PRESIDrMoFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶121

Note: Strike out whichever is not applicable

Icici Bank Limited v. M/s Shyam Traders

Case brief

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Icici Bank Limited v. M/s Shyam Traders

Case brief

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