Allowed

Indian Bank (Allahabad Bank) v. M/s Wooden Zone

DRT25 Jun 2026OA/137/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of a loan of Rs. 1.02 crore sanctioned to a proprietorship firm. The court held that the defendants were liable to repay the dues, interest, and costs based on documentary evidence and the admissibility of bankers' books.

What did the court decide?

Debt of Rs. 1,02,59,812 along with pendente-lite and future interest at 10% p.a. simple from 21.02.2025 till realization, with costs and issuance of Recovery Certificate.

Indian Bank (Allahabad Bank) versus M/s Wooden Zone — Contract and Commercial Disputes | DRT (2026)

DRT, PATNA

OA 137 of 2025jJl

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 137 of 2025

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Indian Bank (erstwhile Allahabad Bank), Bhagalpur Main Branch, lst Floor, Chandralok Shopping Complex, Ghantaghar, Bhagalpur, District- Bhagalpur812001

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. . . . . . . Applicant

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Vs.

¶11

M/s Wooden Zone through its proprietor Smt. Savita Jain, Wife of Late Sanjay Kumar Jain, registered office at- H.No.90, Ward No.28/37, Patal Babu Road, Bhagalpur, Bihar- 812002

¶12

Smt. Savita Jain, Wife of Late Sanjay Kumar Jain, resident of 6, Ganga },uit, MP D Road, Infront of TNB Collegiate, Na)'a Bazar, Bhagalpur812002. PAN No. ACCPJ 1591 M

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Mrs. Saroj Jain, Wife of Sri Anil Kumar Jain. resident of 258, MP D Road, Infront of TNB Collegiate, Naya Bazar, Bhagalpur- 812002, PAN No. APXPJ9756Q

¶14

Sri (;aurav Jain, Son of Late Sanjay Kumar Jain, resident of 6, Ganga Kuit, MP D Road, Infront of TNB Collegiate. Naya Bazar, Bhagalpur812002, PAN No. BVIPJ3764Q

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. . . . . . . Defendants

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Present:

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For the Applicant For the Defendants

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Shri Manoj Kumar, Advocate Shri Shyam Kishor Das, Advocate

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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 21.02.2025 against the defendants to recover its debts from defendants of Rs. 1,02,59,812/-as on 31.01.2025 along with pendente-lite and future interest at the contractual rate from 01.02.2025 with costs till realization.

¶22

C&) PresidinB Of-ice1 Debt, Recoveq Tdbun&I PATNA

OA 137 of 2025jJl

DRT, PATNA

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.

¶27

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 facility. The defendant no.1 through its proprietor Sanjay Kumar Jain (now deceased) approached the applicant bank for sanction of cash credit limit of Rs.40 Lakh for working capital in the retail shop of designed furniture, vide loan application dated 06.06.2016, which was sanctioned by the applicant bank on 16.06.2016 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 in favour of the applicant bank, details of which are given in OA

¶28

The defendant no.1 through its proprietor Sanjay Kumar Jain (now deceased) further approached the applicant bank for enhancement of cash credit limit of Rs.40 Lakh to Rs.85 Lakh for working capital requirement, vide loan application dated 03.07.2017, which was sanctioned by the applicant bank on 11.07.2017 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 in favour of the applicant bank, details of which are given in OA

¶29

During the continuity of loan, Sanjay Kumar Jain, proprietor of Mys Wooden Zone was died on 11.02.2019 and after the demise of Sanjay Kumar Jain, his wife Smt. Savita Jain, defendant no.2 has firstly approached the Joint Commissioner Sale Tax, Bhagalpur Circle for permission to grant Authorized Signatory of M/s Wooden Zone after the demise of her husband vide request letter dated 25.03.2019 and also in that request letter, she also submitted the NOC affidavit from other legal heirs of Late Sanjay Kumar Jain that they have no objection, if Savita Jain become the proprietor of M/s Wooden Zone, defendant no.I

¶30

After change of name ofproprietorship, Smt. Savita Jain, defendant no.2 is the new proprietor of defendant no.1, who has submitted Registration Presidin?VlficerSix I)eDU Recovery TlibWIO PATN A

OA 137 of 2025jJI

DRT, PATNA

Certificate for change of proprietor in the loan account. And the applicant bank vide sanction letter dated 23.04.2019 had changed the proprietor name as Savita Jain in place of Late Sanjay Kumar Jain and as per sanction letter dated 23.04.2019 Sri Gaurav Jain, son of Late Sanjay Kumar Jain, defendant nbo.4 has inducted new Guarantor in place of Savita Jain. To secure the loan facility, the defendant nbo.2 executed necessary loan documents and after that the defendant no.2 started operating the loan account from time to time. The defendants also executed the acknowledgement of debt on 11.10.2023 .

¶35

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 on3 1 .03.2021.

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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.1,02,59,812/- as on 31.01.2025 with pendente-lite and future interest contractual rate from 01.02.2025 till the realization.

¶38

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 11.04.2025, 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. In response to the notice, the defendant no.1,2 and 4 have appeared through their Id. Counsel by filing vakalatnama on 10.05.2025 but the defendant no.3 has not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and. subsequentlyp substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 21.05.2025 in “Hindustan” and “The Times of India” newspapers.

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%\b

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Presidin€ U#lc'1 1)ebU RecoverY TlibUFn1 PATNA

OA 137 of20251Jl

DRT, PATNA

Despite the registered summons/notices and publication of notice in newspaper, the defendant no.3 has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant no.3 to defend the case, but she failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against her on 12.08.2025 and as no written statement was filed by the appearing defendant no.1, 2 and 4 within the statutory period hence on 12.08.2025, their opportunity to file the same was closed.

¶45

In compliance of the order dated 23.11.2025, the defendant no.I & 2 have filed the rebuttal evidence stating therein that the defendant has regularly been repaying the amount of loan and in fact the amount of loan has last been paid up to 26.03.202 1 but the interest has been charged for the loan at exorbitant rate, which is in violation of the sanction terms. It has further been stated that the defendant had repeatedly approached the applicant bank for settlement of the loan account and had shown readiness and willingness to pay the legitimate dues. However, the applicant bank failed to consider the same. The defendant has requested to dismiss the OA.

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Written notes of arguments on behalf of defendant has also been filed taking the same plea as already taken in rebuttal evidence. However, there is no any specific denial on behalf of the defendants with regards to the utilization of loan facilities and execution of loan documents to the secure the loan facilities.

¶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 Mukesh Kumar Yadav, Chief IVlanager of the applicant bank. The details of documents are as follows:

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Description Documents Photocopies	of	1Date of Execution	Amount n Lakh	Signature of Executants
Loanapplication		06.06.2016	not	DeceasedSanjay KumarJain
Sanction letter		16.06.2016		Bank
Acknowledgement letter		01.07.2016		DeceasedSanjay KumarJain
DPNote		01.07.2016	40.00	DeceasedSanjay KumarJain
General letter HyDothecation	o			DeceasedMa KumarJain

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cel

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Pt Debt Recovery Tribunal rATN A

OA 137 of 20251 Jl

DRT, PATN A

6	Agreementof uarantee	1 01.07.2016	40.00	1Def.no.2&3	16
7	o		85.00	DeceasedS'anjay KumarJain	7
	Sanction letter	11.07.2017	85.00	Bank
	Acknowledgement ofsanction letter	11.07.2017	85.00	DeceasedSanjay KumarJain
10	DPNote	11.07.2017	85.00	DeceasedSanjay KumarJain	10
11	e hyDothecation		85.00	DeceasedSanjay KumarJain	11
12	Lee		85.00	Def.no.2&3	12
13	e			Sanjay Kumar Jain	13
14	Letter to Joint Commissioner with affidavits	25.03.2019		Def.no.2	14
15	Registration certificate				15
16	Sanction letterto changeofproprietor	23.04.2019		Bank	16
17	Acknowledgement ofsanction letter	23.04.2019		Def.no.2	17
	DPNote	23.04.2019	e		18
	General letter of HyDothecation	23.04.2019	e		19
	Letter ofguarantee	23.04.2019	e		20
	PDR	23.04.2019	e		21
	Acknowledgement ofdebt cumsecuri	11.10.2023	e		22
23	Legal notice	13.05.2021 03.12.2024		Bankadv.	23
24	Statement of accounts			Bank	24

¶55

Heard arguments and perused the case record. During the course of arguments, there is no any specific denial on behalf of the defendants with regards to the sanction of loan facilities and its utilization and further there is no any specific denial with regards to the execution of loan and security documents in favour of the applicant bank.

¶56

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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V* Pres I Debt: Rec;I e :;II!Pq ::: 1111 1!!LII PAT NA

OA 137 of 20251 Jl

DRT, PATN A

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 31.03.2021. The defendants have also executed letter of acknowledgement of debt-cum-security on 11.10.2023, whereas the present application has been filed on 21.02.2025. 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.

¶65

Shri Mukesh Kumar Yadav, 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

OA 137 of 2025jJI

DRT, PATN A

affidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 (1 1) 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@ed 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.

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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 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 31.01.2025 has been proved to be Rs.1,02,59,812/- 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.

¶78

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.1,02,59,812/- along with pendente-lite and future

. J:rq4=L„.

OA 137 of 20251 Jl

DRT, PATNA

interest @10% p.a. simple from 21.02.2025 (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.1,02,59,812/- along with pendente-lite and fbture interest @ 10% p.a. simple from 21.02.2025 (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.

¶88

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 CertiFcate debtors. The Recovery Of$cer will issue demand notice to the Cert$cate debtors only after the proof

1111111 \a)[h

OA 137 of 20251 Jl

DRT, PATNA

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 OffIcer, the execution may be dismissed for nonprosecution. 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

¶98

r reSiding C)ficel Debts Recovery Tribuna) PATNA

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'I Int

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor3 ( A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar CGPOA)t Ashiana Digha Road, Patna-800025'

¶103

E(,’o\ rDER SEeTION ,El AN

IE RECOV

RC No1 200/2026 IN

Case No: aA/137/2025

In the Matter of: (CH- 1) INDIAN BANK ( ALLAHABAD BANK) BHAGALPUR MAIN BRANCH, 1 ST FLOOR CHANDRALOK SHOPPING COMPLEX, GHANTAGHAR, BHAGALPUR,

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Applicant(s)

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BHAGALPUR ,BIHAR -8 1200 1

¶110

¶111

(CD_ 1) M/S WOODEN ZONE Though its Proprietor Smt. Savita Jain Wife of Late Sanjay-Kunu jah, Registered office at H.No.-90, Ward No 28/37. Patal Babu Road, Bhagalpur ,BIHAR -8 12002

¶112

(CD- 2) SMT. SAVITA JAIN WIFE OF LATE SANJAY KUMAR JAIN RESIDENT OF 6 GANGA KUIT MP D ROAD, rNFROIfr OF TNB COLLEGLATE NAYABAZAK BUAGALPUIL PINCODE- 812002.

¶113

Defendant(s)

¶114

(CD- 3) MRS. SAROJ JAIN WIFE OF SRI ANIL KUMAR JAIN RESIDENT OF 258 MP D ROAD. nqFROTW OF TNB (_'OLLEGIATE NAYA BAZAIL BHAGALPUR, PnqcoDE- 812002. GUARANTOR

¶115

(CD- 4) SRI GAURAV JAIN SON OF LATE SANJAY KUMAR JAIN RESIDENT OF 6 GANGA Kun MP D ROAD, rNFRONT OF TNB COLLEGLATE NAYA BAZAR BHAGALPUK PINCODE- 8 12002

¶116

&my CertincaQ for Rs 10259812,QQ [Mpe€s QIn Crore Two Lakh FiftyJbr£I!!ggwawgmb!!aU®dr£DruY_J

¶117

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. 10259812.00 along with cost, expenses and interest from the 21/02/2025 i.e. date of filing / with effective date of the OA/137/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶118

Sr.no	CD Name	Int. Type/Mode	Int. Rate	:Effective Date	Order Date	Amount(Rs	.)LVIT	Interest (as on Order Date)	AmoutIlt(Rs.)Remark
1	M/S WOODEN ZONE	'(fEll; )nterest i	lO	!21/02/2025	;25/06/2026	:10259812.00	pintly+nd Severally	U:ireersbJ:icon	’l0259812
2	SMT.SAVITA JAIN	.SimpleInterest :(Yearly)	10	:21/02/2025	:25/06/2026	}l0259812.oo	it::n:::ljnd	J;iE:sjljtion	il0259812
3	MRS. SAROJ JAIN	,SimpleInterest (Yearly )	10	21/02/2025	i25/06/2026	l0259812.oo	iIi:::IInd	;;iFITrsL;con	'l0259812
4	SRIGAURAV JAIN	SimpleInterest (Yearly )	10	.21/02/2025	:25/06/2026	: l0259812.oo	iT:: Ill;nd	(;Ii::b,t:011	-l0259812

¶119

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.

¶120

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 .

¶121

Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 05/08/2026.

¶122

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.

¶123

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

¶124

¶125

PRESIDING OFFICER C„ DEBTS RECOVERY TRIBUNAL PATNA _ Registrar PrestdiH: OII icH D e b t sMy WP a t n a Oebt8 Recovery Tribunal q"qq#NRmtq, qZ7F PATNA

¶126

FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor9 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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

¶131

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 200/2026

Case No: OA/137/2025

Applicant(s): INDIAN BANK (ALLAIIABAD BANK) Versus

¶136

Defendant(s): M/S WOODEN ZONES

¶137

Sr. No.	item ofCosts	]Amount inRs.
1.	}–&–iii;aii)ii:;lion	105000
12.	}ProcessFees(Inc. Publication)	jo
3.	AdvocateFees	10
:4	'Commissioner/Receiver/Valuation/SecurityFee	jo
5.	,MiscellaneousCharges	to
	:TotalCosts:Rs.	105000

¶138

Place: PATNA

¶139

PRESIDINGYFFICER Date: 02/07/2026 DEBTS RECOVERY TRIBUNAL PATNA

¶140

applicable Prestdia8 OFce! ' ' Bbb RecoVeTY IFabul' PATBA

¶141

Note: Strike out whichever is not applicable

Indian Bank (Allahabad Bank) v. M/s Wooden Zone

Case brief

What is this about?

What did the court decide?

Indian Bank (Allahabad Bank) v. M/s Wooden Zone

Case brief

What is this about?

What did the court decide?

What the court decided

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