Allowed

Bank of Baroda v. M/s Balajee Coal Depot

DRT29 Jun 2026OA/126/2025

Case brief

AI extract

What is this about?

Bank of Baroda applied to define a debt against M/s Balajee Coal Depot and others. After Defendants failed to appear, the Tribunal examined bank documents and determined the principal amount as ₹66,40,206.90 with interest, issuing a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for ₹66,40,206.90 with interest at 10% p.a. from 19.02.2025 till realization.

Bank of Baroda versus M/s Balajee Coal Depot — Banking and Recovery | DRT (2026)

DRT, PATN A

OA 126 of 20251 Jl

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. 126 of 2025

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Bank of Baroda, B.O.- Muzaffarpur, District- Muzaffarpur

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. . . . . . . Applicant

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M/s Balajee Coal Depot, through its proprietor Mr. Mukund Kumar, Office at- Village & Post- Chandarhatti, Kudhani, Muzaffarpur- 844 120 (Bihar)

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Mr. Mukund Kumar, S/o Mr. Late Jai Kumar, R/o Village & PostChandarhatti, Kudhani, Muzaffarpur- 844120 (Bihar)

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Mrs. Rupak Kumari, W/o Mukund Kumar, r/oVillage & PostChandarhatti, Kudhani, Muzaffarpur- 844120 (Bihar)

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. . . . . . . Defendants

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Present:

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

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Dated :29.06.2026

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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 19.02.2025 against the defendants to recover its debts from defendants of Rs.70,27,606.96 as on 01.02.2025 along with pendente-lite and future interest at the contractual rate from 01.02.2025 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.

¶20

Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 is the guarantor. Defendants approached the applicant bank for sanction of Term Loan of Rs.28.90 Lakh to purchase a 14wheeler Mahindra Blazo 37 Ton diesel Vehicle, vide loan application

La\u

Preslant OPen

PA 126 of2025jJl

DRT, PATN A

date(114.09.2016, which was sanctioned by the applicant bank on 14.09.2016 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 vehicle in favour of the applicant bank, details of which are given in OA

¶27

Defendants again approached the applicant bank for sanction of working capital Loan of Rs.36 Lakh, vide loan application dated 25.01.2018, which was sanctioned by the applicant bank on 25.01.2018 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 and hypothecated the vehicle in favour of the applicant bank, details of which are given in OA.

¶28

Defendants again approached the applicant bank for renewal and enhancement of the OD facility of Rs.36 Lakh to Rs.50 Lakh, vide loan application dated 12.02.20219, which was sanctioned by the applicant bank on 12.02.2019 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 aid also created mortgage in favour of the applicant bank, details of which are given in OA.

¶29

In order to rehabilitate the business affected due to the nationwide lockdown during Covid-19, the applicant bank offered a pre-approved loan of Rs.11.50 Lakh under the GECL scheme to the defendants and thereafter the applicant bank sanctioned the pre-approved loan of Rs.11.50 Lakh under the GECL scheme vide sanction letter dated 16.10.2020 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 mortgage in favour of the applicant bank, details of which are given in OA.

¶30

Again, in order to rehabilitate the business affected due to the nationwide lockdown during Covid- 19, the applicant bank offered a preapproved loan of Rs.4.30 Lakh under the GECL scheme to the defendants and

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OA 126 of2025jJl

DRT1 PATNA

thereafter the applicant bank sanctioned the pre-approved loan of Rs.4.30 Lakh under the GECL scheme vide sanction letter dated 16.10.2020 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 mortgage in ,favour of the applicant bank, details of which are given in OA

¶36

At the request of the defendants, the applicant bank also sanctioned a Term Loan of Rs.2.68 Lakh on 19.02.2021. The defendants also acknowledged their debt & liability by e3xecuting a letter of acknowledgement of debt dated 30.12.2023.

¶37

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 on27.05.2024.

¶38

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.

¶39

The total liability in the loan account is Rs.70,27,606.96 as on 01.02.2025 with pendente-lite and future interest contractual rate from 02.02.2025 till the realization.

¶40

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 24.03.2025, 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 03.09.2025 in “Prabhat Khabar” and “Hindustan Times” newspapers.

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PtegtdRt OPen OebB ReIY#: trUe

DRT, PATNA

OA 126 of2025jJI

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 case9 but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 25.11.2025

¶47

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 Durga Nath Jha, Branch Chief Manager of the applicant bank. The details of documents are as follows:

¶48

SI.No	Description Documents Photocopies of	1 Date of Execution	Amount (in Lakh	Signature Executants	of	1Ex./ Ann No.
	Loanapplication	14.09.2016	n8i	Def.no.2
	Sanctio;1=	14.09.2016	28.90	Bank accepted def.no.2	and by
3	Loanagreement cum hyDothecationdeed	14.09.2016	28.90	Def.no.2		3
4	Photocopy of mortgagedeed	18.01.2018				4
	Loan application	25.01.2018	36.00	Defendants
	Sanction letter	25.01.2018	36.00	Bank accepted defendants'	and by
	PDR	25.01.2018	36.00	Def.no.2
	Letter of Lien	25.01.2018	36.00	Def.no.2
	Letter ofguarantee	25.01.2018	36.00	Def.no.3
	Loanagreement cum hypothecationdeed	25.01.2018	36.00	Def.no.I&2		10
11	Sanction letter of renewal cum enhancement	12.02.2019	a	- accepted defendants	by
12	Letter ofguarantee	12.02.2019	e
13	Supplementary agreement	12.02.2019	e			13
14	A1) approved loan	16.10.2020		Def.no.1&2		14
15	Lee	16.10.2020	11.50	Bank accepted + Def.no.2	and by	15
	Undertakin$	16.10.2020	11.50	Def.no.1&2
	Declaration cum undertakings cum authorit'	16.10.2020	11 .50	Defendants
18	General formof uarantee	1	5			18
	Declaration	16.10.2020	e
	Extension of	16.10.2020	e

¶49

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Ppe$f£ting C)Bcn DobB RelYgl TribuluU

OA 126 of2025jJI

DRT, PATNA

	mortgage
21	Loan hypothecation agreement	cum	16.10.5020	e
22	Application fo aDDrovedloan	rpre-	16.10.2020		Def.no.I&2	22
	Letterofsancti	on	16.10.2020	e
	DPNote		16.10.2020	e
	Letterof install	ment	16.10.2020	e
	Declaration undertakings authorit'	cum cum	16.10.2020	e
27	Loan hypothecation agreement	cum	16.10.2020	e		27
28	Letter acknowledgem debts	of entof	30.12.2023		Def.no.2	28
	Demand notice		26.06.2024		Bank
	Legalnotice		02.09.2024		Bank’sadv.
	Statement accounts	of			Bank

¶55

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. h /1 b\b

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p,esidint OBic'1 DUB RecoverY TdbwW – PATNA

DRT, PATN A

OA 126 of2025IJI

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 27.05.2024, whereas the present application has been filed on 19.02.2025. 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.

¶64

Shri Durga Nath Jha, Branch 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 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 la\v 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. %>

DRT, PATNA

OA 126 of 20251 Jl

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 has been proved to be Rs.66,40,206.90 only by way of statement of accounts (in one loan account balance is shown Rs.5,47,584.75 upto 27.05.2024, in another loan account balance is shown Rs.57,41,510.79 upto 02.11.2024, in other loan account, balance is shown Rs.2,55,555.68 upto 27.05.2024 and further in other loan account, balance is shown Rs.95,555.68 upto 27.05.2024). There is nothing to prove the amount more than that disclosed in the aforementioned statements. 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.66,40,206.90 along with pendente-lite and future interest @10% p.a. with compounded monthly rests from 19.02.2025 (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.66,40,206.90 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 19.02.2025(The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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Prestdint OIicH D©bt• Recovery Tribun+) PATNA

OA 126 of 20251 Jl

DRT, PATNA

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 mortgage(1/ hypothecated assets as well as other personal movable/immovable assets of the defendants. The Recovery OffIcer will issue demand notice to the Certi$cate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Certi$cate holder fails to comply with directions of the Recovery Ofpcer, 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 10.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 29th 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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PresIding OfDebtS Recovery , , i . PATNA

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2.d FI,„,

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(A. B & F wi„g) Karpuri Thakur Sadan, Kendriya KaramGhari Parisar (GPOA)) Ashiana Digha Road) Patna-800025.

¶95

FICATE UNDER SECTION 19(7) READ WITH SECTION 19(a2 OF TH

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BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC NO. 207/2026

Case No: OA/126/2025

In the Matter of: (CH- 1) BANK OF BARODA BO- MUZAFFARPUR, MUZAFFARPUR ,BIHAR -0

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Applicant(s)

¶102

To (CD- 1) M/S BALAIEE COAL DEPOT Though its Proprietor Mr. Mukund Kumar Office atMllage and Post Chandarhatti, Kudhani, MuzafFarpur ,BIHAR -844120

¶103

(CD- 2) MR. MUKUND KUMAR S/0- MR. LATE JAI KUMAR R/O VILLAGE AND POST CHANDARHATri, KUD}IANI, MUZAFFARPUR - 844120 BIHAR

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Defendant(s)

¶105

(CD- 3) MRS. RUPAK KUMARI W/0- MR. MUKUND KUMAR, R/0- VILLAGE AND POST- CHANDARFIATTI KUDHANI, MUZAFFARPUR- 844120 BIHAR.

¶106

Recovery Certificate for Rs 6640206.90 1 Rupees Sixty Six Lakhs Forty Thousands Two Hundred Six And Pajge Ninety OnlyJ

¶107

In terms of final order dated 29/06/2026 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. 6640206.90 along with cost, expenses and interest from the 19/02/2025 i.e. date of filing / with effective date of the OA/126/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶108

Sr.n	oCDName	H= WhodB	Int. Rate	Effective Date	Order Date	1!!![1rno unt(IE11sp)	LT:tr	: ::TeRe : s	A m o S 1[1E1:LsH)
I	M/S BALAJEE COAL DEPOT	.Compound 'Interest (Monthly)	10	19/02/2025	;29/06/2026	:6640206.90	:!!Eli-	dire=	Lfs :6640206.90
2	MR MUKUND KUMAR	Compound Interest (Monthly)	10	19/02/2025	'29/06/2026	:6640206.90	eva: :1{1}[1d	:F=f S	:6640206.90
3	MRS.RUPAK KUMARI	'Compound Interest (Monthly)	10 ;	19/02/2025	.29/06/2026	,6640206.90	::: ::111}[1d	:it ed:= rS	6640206.90

¶109

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

¶110

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.

¶111

Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TIUBUNAL PATNA on 10/08/2026.

¶112

The Recovery Officer shall realize the amount as per this Certificate in the manner and made 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.

¶113

This Certificate has been issued under my signature and seal of the Tribural on this 03/07/2026

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

rt _ Registrar

D ei::1riSkm:: n a

FORM NO. 10

[See Regulation 24(2)]

¶119

DEBTS RECOVERY TRIBUNAL PATNA

¶120

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 207/2026

Case No: OA/126/2025

Applicant(s): BANK OF BARODA Versus

¶126

Defendant(s): M/S BALAJEE COAL DEPOT

¶127

:emofCosts	\mount inRs
}FeeonTheiI;bmi	i73006
bX8=F;;iTi:l+IIUi–c;iiiITS	:0
.dvocate Fees	to
:Comrnissioner/Receiver/Valuation/SecurityFee	;0
iscellaneousCharges	10
'otalCosts:Rs	!73000

¶128

Place: PATNA

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Date: 03/07/2026

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PRESIDING FICER DEBTS RECOVERY TRIBUNAL PATNA

¶131

Note: Strike out whichever is not applicable

Bank of Baroda v. M/s Balajee Coal Depot

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Balajee Coal Depot

Case brief

What is this about?

What did the court decide?

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