Allowed

Bank of Baroda (Vijaya Bank) v. M/s Kishan Enterprises

DRT19 Mar 2026OA/121/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Bank of Baroda to recover dues totaling Rs. 27,23,464.88 along with interest from a proprietorship firm and guarantors. The Tribunal proceeded ex-parte as defendants failed to appear, found the claim valid based on bank documents, and issued a recovery certificate.

What did the court decide?

Recovery of principal debt of Rs. 27,23,464.88 with future interest at 10% p.a. from date of filing, plus realization from mortgaged assets via Recovery Officer.

Bank of Baroda (Vijaya Bank) versus M/s Kishan Enterprises — Banking and Recovery | DRT (2026)

OA 121 of20231JI

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. 121 of 2023

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Bank of Baroda (erstwhile Vijaya Bank), Khaspur Branch, Khaspur, P.O. + P.S.- MaIler, Patna 801108

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. . . . . . .Applicant

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Vs.

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M/s Kishan Enterprises, Proprietor Mr. Kishor Kumar Mishra, situated at village- Gyaspur, P.O. and P.S.- MaIler, District- Patna- 801108

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Mr. Kishor Kumar Mishra, Son of Late Birendra Mohan Mishra, residing at village- Gyaspur, P.O. and P.S.- Maner. District- Patna801108

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Mrs. Namita Mishra, wife of Mr. Kishor Kumar Mishra, situated at village- Gyaspur, P.O. and P.S.- Maner, District- Patna- 801108

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Vasant Kumar Mishra, son of Mr. Ravi IShankar Mishra, residing at e

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village- Gyaspur, P.O. and P.S.- MaIler, District- Patna- 801108

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. . . . Defendants

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Present:

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For the Applicant Shri Shatrughan Prasad, Advocate For the Defendant no.3&4 Shri Ajay Prasad, Advocate Shri Abhijeet Kumar, Advocate

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Dated:19.03.2026

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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 17.11.2022 against the defendants to recover its debts from defendants of Rs.27,23,464.88 as on 31.10.2022 along with pendente-lite and future interest at the contractual rate from 01.11.2022with 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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/?a siding aMeT! Op _ r. ReCOVery TtM=naI , A'r N A

OA 121 of2023jJl

DRT, PATNA

Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 & 4 are the guarantors of the loan facilities. Defendants approached the applicant bank for sanction of cash credit facility of Rs.9.50 Lakh, vide loan application, which was sanctioned by the applicant bank on 07.09.2017 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.

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Defendants again approached the applicant bank for sanction of cash credit facility of Rs.20 Lakh, vide loan application dated 07.09.2019, which was sanctioned by the applicant bank on 07.09.2019 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 and also created mortgage in favour of the applicant bank, details of which are given in OA

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Defendants further approached the applicant bank for sanction of another cash credit facility of Rs.1 Lakh, vide loan application, which was sanctioned by the applicant bank on 29.07.2020 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.

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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 bark resulting in the account turning as NPA on 28.09.202 1.

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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.

DRT, PATNA

OA 121 of 20231 Jl

The total liability in the loan account is Rs.27,23,464.88 as on 31.10.2022 with pendente-lite and future interest contractual rate from 01.11.2022 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 16.01.2024, 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. Notice was again issued to the defendants, which was served by way of affixation of notice on the conspicuous part of the residence of the defendants and some photographs of the affixation of notice has also been annexed with the affidavit filed on 06.03.2025 .

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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 07.05.2025 .

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Thereafter the defendant no. 3 & 4 have appeared through their Id. Counsel by filing vakalatnama on 16.09.2025 only but after filing vakalatnama none has appeared for the defendants.

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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 Sanoj Kumar, Chief Manager of the applicant bank. The details of documents are as follows:

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Description of Documents PhotocoDies	Date of Execution	Amount (in Lakh)	Signature Executants	of	nx Ann No
Loan applications and other 1 ][ 1SII	07.09.2017 01.03.2019	9.50 20.00	Defendants
Sanctionletter	07.03.2019	20.00	Bank accepted defendants	Ma by
Sanctionletter	07.09.2017		Bank accepted defendants	ma by
c letter			Bank		4
Loana: r		e

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Vga p,„tdH8 Oji“' Debts Recov9tY TnbunB' p XT NA

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OA 121 of 2023H

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DRT, PAT I

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hyDothecationdeed
Lianagreementcum hypothecationdeed		e
Letter ofguarantee	07.03.2019	20.00	Def.no.3&4
Demandnh	7		Bank
of Letter acknowledgementof debt	01.11.2020		Defno.3
of Statement accounts

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The applicant bank has also filed photocopy of deed of absolute sale dated 20.05.2008 on 15.02.2023.

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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 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 28.09.2021, whereas the present application has been filed 17.11.2022. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has

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p,a,i ding C) IIic„ Deb3 %TAT=:Trlbul'1"

DRT1 PATM

OA 121 of 2023U

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 Sanoj Kumar, 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.

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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 certifIed copy of any entry in a banker’s book shall in all legal proceedings be received as primafacie 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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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.

vwK)

DRTl PATNA

OA 121 of 20231 Jl

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 31.10.2022 has been proved to be Rs.27,23,464.88 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.27,23,464.88 along with pendente-lite and future interest @10% p.a. simple from 17.11.2022(The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of Justrce.

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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.27,23,464.88 along with pendente-lite and future interest @ 10% p.a. simple from 17.11.2022 (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 against 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

OA 121 of 20231 Jl

DRT, PATNA

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. However, no proclamation of sale will be issued, if the Defendant/Certificate Debtor ensures payment of the certificate amount in 6 months from the date of demand notice to the Certificate debtors. The Recovery Officer will issue demand notice to the Certificate 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 Officer, 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 04.05.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 19th day of March, 2026. %YP

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%YP ’'/\N+ * \q~

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna Pre8taa8 OFcar Debts Recov6tY TIU111na ' rATS A

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FORM NO. 9 [See Regulation 24( 1 )]

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DEBTS RECOVERY TRIBUNAL PATN A

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2nd Floor! (A. B & F Wing) Karpuri Thaktu Sadan. Kendriya Karamchari Parisar (GPO A), Ashiana Digha Road Patna-800025'

SECTION

RC No. 135/2026

Case No: OA/121/2023

In the N’latter of:

(CH- 1) BANK OF BARODA (VIJAYA BANK) KHASPUR PAIIqA BRANCH, KHASPUR- P.0. AND P.S.MANER,

Applicant(s)

PATNA ,BIHAR -0

(CD- 1) M/S KTSH AN ENTERPRISES . Mr. Kishor Kumar Mishra

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Situated at Village- Gyaspur, P.O. and P.S.- Mancr, Patna .BIHAR -801108

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(CD- 2) MR. KISHOR KUMAR MISHRA SON OF LATE BIRENDRA MOHAN MISHRA RESIDING AT VILLAGE- GYASPUR, P.0. AND P.S.- MANER DISTRICT- PATNA - 801108

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Dcfcndant(5)

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(CD- 3) MRS. NAMITA MISHRA WIFE OF MR. KISHOR KUMAR MISHItA SITUATED AT VILLAGE- GYASPUR, P.0. AND P.S.- N4ANER,

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DISTRICT- PATNA- 80 1 108

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(CD- 4) VASANT KUMAR MISHRA SON OF MR RAVI SHANKAR MIHSRA RESIDING AT

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VILLAGE- GYASPUR, P.0. AND P.S.- MANER,

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DISTRICT- PATNA- 80 1108

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Recovery Certificate for Rs 2723464.88 1 Rupees Twenty Seven Lakhs Twenty Three ThQu$and$ FQur Hundred Sixty Four And Pai ie EigUy Ught Only^I

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In terms of final order dated 19/03/2026 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. 2723464.88 along with cost, expenses and interest from the 17/11/2022 i.e. date of filing / with effective date of the OA/121/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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CDName	Type/Mod	Int.	Effective		lunt(Rs.)			RC Amount(Rs.)
,Tgl'’i:Tg-ii IN SES		0	17/11/2022	119/03/2026	12723464.88	ly	bS on	.88
			17/11/2022	1 19/03/2026	12723464.88			.88
		O	17/11/2022	1 19/03/2026		ly	on
	impleInterest (Yearly)	10	17/11/2022]	19/03/2026

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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 mortgagecVhypothecated 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 MANOJ KUMAR , Recovery Ofticer, DEBTS RECOVERY TRIBUNAL PATNA on 04/05/2026 The Recovery OtTicer 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 20/03/2026

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P DEBTS RECOVERY TRiBUNAL PATNA

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a11 b B {£3LibaI \ r i b U n & t

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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. 135/2026

Case No: OA/121/2023

Applicant(s): BANK OF BARODA (VIJAYA BANK) Versus

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Defendant(s): M/S KISIL4N ENTERPRISES

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	temofCosts	I
	Feeontheapplication	30000
2	r	[0
	dvocateFees	[0
		ro
i	iscellaneousCharges	ro
	TotalCosts: Rs	m3

Place: PATM

Date: 20/03/2026

\ / PRESIDIM OFrICER

DEBTS RECOVERY TRIBUNAL PATNA

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][\1r 0 t e : S tr i k e 0 U t ICIIVr h i C h e V e r i S n OIt aP P I i C ab 1 e

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%b: ::He IT : :: UnI I PATNA

Bank of Baroda (Vijaya Bank) v. M/s Kishan Enterprises

Case brief

What is this about?

What did the court decide?

Bank of Baroda (Vijaya Bank) v. M/s Kishan Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Coram

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