Allowed

Bank of India v. M/s Kasturi Collection

DRT25 Jun 2026OA/111/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna disposed of an application by Bank of India under Section 19 of RDB Act against a defaulting borrower. Proceeding ex parte due to non-appearance, the court accepted the bank's documentary evidence and determined a debt of Rs.21,76,860.64, issuing a recovery certificate to realize the amount.

What did the court decide?

Determined debt of Rs.21,76,860.64 with interest; issued recovery certificate to realize the amount from sale of assets.

Bank of India versus M/s Kasturi Collection — Contract and Commercial Disputes | DRT (2026)

OA 111 of2025jJl

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. 111 of 2025

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Bank of India, Branch at Kanhauli Branch, Ram Janki Complex, Kanhauli, Muzaffarpur 842005

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. . . . . . .Applicant

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M/s Kasturi Collection through proprietor Mrs. Sarita Choudhary, Registered Address- Apna Market, Motijheel, Muzaffarpur842002, PAN No. BMYPC9479C

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Mrs. Sarita Choudhary, Wife of Mr. Anil Kumar Choudhary, resident ofNaya Tola, Speaker Chowk, District- Muzaffarpur- 842001, PAN No. BMYPC9479C

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. . . . . . . Defendants

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Present:

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

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Dated:25.06.2026

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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 06.02.2025 against the defendants to recover its debts from defendants of Rs.24,84,736.88 as on 26.11.2024 along with pendente-lite and future interest at the contractual rate from 27.11.2024 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.

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Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of cash credit facility of Rs.20 Lakh, vide loan application dated 26.03.2018 for trade of Readymade Garments and Hosiery Items, which was sanctioned by the applicant bank on 23.05.2018 under the CGSSI Scheme on various terms and

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DRT, PATN A

OA 111 of 20251JI

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.

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Defendants again approached the applicant bank for sanction of term loan (GECL) of Rs.3.80 Lakh on 31.07.2020 to manage her business, which was impacted due to Covid 19 and the applicant has sanctioned the same on 23.05.2018 under the CGSSI Scheme 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

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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 17.06.2024.

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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.24,84,736.88 as on 26.11.2024 with pendente-lite and future interest contractual rate from 27. 11.2024 till the realization.

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This Tribunal issued summons/notices copies of applic@tion & paper book to the defendants by registered/speed post on 20.03.2025, 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 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 05.06.2025 “Dainik Bhaskar” and “Hindustan Times” newspapers.

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OA lllof2025jJI

DRT, PATNA

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 04.11.2025 .

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

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Sl.No	of Description Documents Photocopies	Date of Execution	Amount (in Lakh:	of Signature Executants	1Ex./ Ann No
1	m) cationcum loanagreement	23.05.2018	rooT	Defendants	1
	mDa	23.05.2018	20.00	Defendants
	Declaration	23.05.2018	20.00	Defendants
	L516	23.05.2018	20.00	Defendants
	DDNote	23.05.2018	20.00	Defendants
	L435	23.05.2018	20.00	Defendants
	Acknowledgement ofdebt/securities	06.04.2021		Defendants
8	Acknowledgement ofdebt/securities	04.04.2024		Defendants	8
9	Supplemental loan cum hypothecation agreement	17.09.2020	3.80	Defendants	9
	Declaration	17.09.2020	3.80	Defendants	10
	D P Note	17.09.2020	3.80	Defendants	11
	L435	17.09.2020	3.80	Defendants'	12
	L440	17.09.2020	3.80	Defendants	13
	Acknowledgement ofdebt/securities	16.09.2023		Defendants	14
15	Legalnotice	19.06.2024 03.10.2024		Bank	15
16	of Statement accounts			Bank	16

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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

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OA 111 of 2025jJI

DRT, PATNA

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 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 17.06.2024, whereas the present application has been filed on 06.02.2025. 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.

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Shri Vijay Paswan, Chief 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.

OA 111 of 20251JI

DRT, PATN A

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 certiBed 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\v 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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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 dmount 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 in both the loan accounts has been proved to be Rs.21,76,860.64 (in one loan account, balance amount is shown Rs.20,83,261.22 upto 17.06.2024 and in another loan account, balance amount is shown Rs.93,599.42 upto 30.05.2024) 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

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Liv

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OA .1 11 of2025jJI

DRT, PATNA

jointly and severally of Rs.21,76,860.64 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 06.02.2025 (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.21,76,860.64 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 06.02.2025 (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.

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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 /Certi$cate holder

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OA 111 of2025jJl

DRT, PATN A

fails to comply with directions of the Recovery Of$cer, 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 05.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 25th 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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Presidint Often Debts Recovery Tribmd PATNA

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FQRM NOI 9

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[See Regulation 24( 1 )]

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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-800C)25.

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RECOVERY CERTIFICATE UNDER SECTION 19(a READ WITH SECTION 19(D2 OF THE RE(.’OVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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R£NgJ21ZZgZ6 IN

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Case No: OA/111/2025

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In the Matter of:
(CH- 1) BANK OF INDIA
BRANCH AT KANHAULI BRANCH. RAM JANKI Applicant(s)
COMPLEX, KANHAULI,
MUZAFFARPUR ,BIHAR -842005
To
(CD- 1) M/S KASTURI COLLECTION
Through its Proprietor Mrs. Sarita Choudhary
Registered Address- Apna Market Motijheel,
MuzafTarpur ,BIHAR -842002
Defendant(s)
(CD- 2) MRS. SARITA CHOUDHARY
WIFE OF MR. ANIL KUMAR CHOUDHARY
RESIDENT OF NAYA TOLA SPEAKER CHOWF,
DISTT- MUZAFFARPUR PIN 84200 ]
(PROPRIETOR OF THE FIRM/ BORROWER)

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Rugvery Cgrting#te &r R$ 2176860l64 .I RWpee$ WeljtY One LakhS Seventy Six ThQp$Hnd$ Eight HHn fIred Sixty And PRiSe Sixty Four OnI)a

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In terms of final order dated 25/06/2026 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. 2176860.64 along with c.ostI expenses and interest from the 06/02/2025 i.e. date of filing / with efFective date of the OA/111/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors) hereinaaer referred to as

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Interest
Loan Int.
Sr.no CD Name
Type Type/Mode R=k :Itjve Tad= : Amount(Rs); L TH:W . 8:£enr FAmou:KRs.) Remark
Date)
, 1 M/S KASTURICOLLECTION :CompoundInterest :10 ?06/02/2025 :25/06/2026 ,2176860.64 :And Jointly ies pn1„nterest 2176860.64
'(Monthly ) SeveHHy jg it:r
, MRS. SARITA CompoundInterest Jointly - '--ji;;t–eli;t
z CHOUDHARY
(Monthly )
1 0 0 W 0 2 /2 m 5 : 2 5 n W2 0 2 6 2 1 7 6 8 6 0 • 115yE1it jnJenny g :?::;2176860• IM

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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 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 .

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Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECovERY TRiBUNAL PATNA on 05/08/20.26

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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 Ac.tp 1993 (a's amended from time to time) from the above named Certificate Debtors.

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Thls Certificate has been issued under my signature and seal of the Tribunal on this 02/07/2026

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L*q:'

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PRESEDnqG OFFICER
DEBTS RECOVERY TRIBUNAL PAINA
Prestdi8: ojricer
Bebb Recovery Tab
PAT BA

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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. 191/2026

Case No: OA/111/2025

Applicant(s): BANK OF INDIA

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Versus

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Defendant(s): M/S KASTURI COLLECTION

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	temofCosts	tountinRs
	iFeeon the application	27000
2.	r	b
	AdvocateFges	[0
	Commissioner/Receiver/Valuation/SecurityFee	10
	[MiscellaneousCharges	to
	TotalCosts:Rs	:27000

Place: PATNA

PRESIDM OFFICER

Date: 02/07/2026

DEBTS RECOVERY TRIBUNAL PATNA

Bank of India v. M/s Kasturi Collection

Case brief

What is this about?

What did the court decide?

Bank of India v. M/s Kasturi Collection

Case brief

What is this about?

What did the court decide?

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