Allowed

Canara Bank v. Avinash Kumar Mritunjay

DRT7 Sept 2026OA/300/2024

Case brief

AI extract

What is this about?

Ex-parte order in an application for recovery of debts to Canara Bank against Avinash Kumar Mritunjay for multiple unsecured loans and cheques. The defendant failed to appear. The Court, upon proof of documents and affidavit evidence, determined the principal debt amount and instructed the issue of a recovery certificate for realization of dues with interest and costs.

What did the court decide?

Debt determined and recovery certificate issued for Rs. 20,08,808/ along with pendency and future interest at 10% p.a. with compounded monthly rests from 24.05.2024 till realization, along with costs. Mortgaged assets attached.

Canara Bank versus Avinash Kumar Mritunjay — Specific Performance | DRT (2026)

OA 300 of 2024jJ1

DRT, PATN A

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. 300 of 2024

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Canara Bank, branch at Sheikhpura, CB, Prince Market Chandani Chowk, Old Registry Building, Kattar Chowk, Sheikhpura - 811105

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. . . . . . .Applicant

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Avinash Kumar Mritunjay, S/o Pramod Kumar Singh, resident of village & P.O.- Jaimangla, P.S.- Sirari, Sheikhpura- 811107, PAN No. BRVPM2858P

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. Defendant

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Present:

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For the Applicant Shri Manish Kishore, Advocate For the Defendant None

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Dated :07.09.2026

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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 24.05.2024 against the defendant to recover its debts from defendant of Rs.20,08,808/- as on 24.04.2024 along with pendente-lite and future interest at the contractual rate arom 25.04.2024 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 approached the applicant bank for sanction of term loan of Rs.2.69 Lakh for three-wheeler auto, vide loan application dated 19.07.2021, which was sanctioned by the applicant bank on 23.07.202 1 under CGTMSE scheme on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities defendant has executed various loan and security documents and also hypothecated the vehicle in favour of the applicant bank, details of which are given in OA

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Defendant again approached the applicant bank for sanction of cash credit facility of Rs.10 Lakh to start the manufacturing business of Water Bottle, vide loan application dated 27.08.202 1 and after due consideration, the

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OA 300 of 20241JI

DRT, PATNA

applicant bank has sanctioned Term Loan of Rs.7.30 Lakh and Cash credit of Rs.95,000/- on 27.08.2021 under CGTMSE scheme on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities defendant has executed various loan and security documents in favour of the applicant bank, details of which are given in OA. At the request of the defendant for renewal vide application dated 28.10.2022, the applicant bank has sanctioned Rs.10 Lakh on 28.10.2022 and again renewed/sanctioned Rs. 10 Lakh on 20.09.2023 .

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Defendant again approached the applicant bank for sanction of credit facility of Rs.1.75 Lakh to start the business of Animal Feed or fodder, vide loan application dated 27.10.2023 and after due consideration, the applicant sanctioned Rs.1.50 Lakh on 27.10.2023 under CGTMSE scheme on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities defendant has executed various loan and security documents in favour of the applicant bank, details of which are given in OA

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Defendant again approached the applicant bank for sanction of credit facility of Rs.1.60 Lakh to start the business of Dig the Pond for Fish Farming, vide loan application dated 26.12.2023 and after due consideration, the applicant sanctioned Rs.1.60 Lakh on 26.12.2023 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities defendant has 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 defendant 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 14.03.2024.

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Since, the defendant 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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h„

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PresIding Oflee Debts Recovery Tribunal }

OA 300 of2024jJl

DRT, PATNA

The total liability in the loan account is Rs.20,08,808/- as on 24.04.2024 with pendente-lite and future interest contractual rate from 25.04.2024 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendant by registered/speed post on 19.06.2024, 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 .

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Despite the service of registered summons/notices, the defendant has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant to defend the case, but he failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendant on 19.12.2024.

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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 Sanjeev Ranjan, Chief Manager of the applicant bank. The details of documents are as follows:

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SI'No	1Descriptionof Documents Photocopies	1Daten IExecution 1	ot I (in 1Lakh)	e 1 Executa I	nts	IMn. INo
	o	2f2.6	9	Defendant
	SancHo;1	2		Bank accepted defendant	and by
3	Deed HyDothecation o		2.69	Defendant		3
	Letter ofundertakin!	23.07.2021		Defendant
	BPDR	23.07.2021	2.69	DefendaL1
	Application form	27.08.2021	10.00	Defendant
	Sanction letter	27.08.2021	10.00	Bank accepted defendant	and by
8	Agreement deed hypothecation c of		7.30	Defendant		8
	BPDR	27.08.2021	7.30	Defendant		9
	Pronote	07.09.2021	10.00	Defendant
	Request facilit 0 for		10.00	Defendant
12	Cash agreement e		10.00	Defendant		12
	EbTR	07.09.2021	e
	Specimensignature card
15	Loan application	28.10.2022	10.00	Defendant		15

PPntam, OftH

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OA 300 of 20241JI

DRT, PATNA

16	1 Sanction letter	28.10.2022	10.00	Bank accepted defendant	and by	116
	Letter ofrenewal	28.10.2022	10.00	Defendant
	Loan application	20.09.2023	10.00	Defendant
	Sanction memorandum	20.09.2023	10.00	Bank accepted defendant	and by
	Letter ofrenewal	20.09.2023	10.00	Defendant
	Loan application	27.1 0.2023	1.75	Defendant
	Letter ofsanction	27.10.2023	1.50	Bank accepted defendant	and by
	Pronote	27.10.2023	1.50	Defendant
	Letter ofundertakin!	27.10.2023		Defendant
	Request for OD facilities	27.10.2023	1.50	Defendant
26	Agreementof hyDothecation	27.10.2023	1.50	e
	Loanapplication	26.12.2023	1.60	Defendant
	Sanction letter	26.12.2023	1.60	Bank accepted defendant	M by
29	Agreement hypothecation o		1.60	me
30	Letter undertakings o			Defendant		30
	BPDR	26.12.2023		Defendant
	Legal notice	30.03.2024		Bank’sadv.
to 37	Statement accounts of			Bank		10 37

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendant has 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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Q% ( IOIL Ptesldi8R Ofico bb kecovery nbund P+ ITrvA

OA 300 of 20241JI

DRT, PATNA

It has been established that defendant is living and carrying on the 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 14.03.2024, whereas the present application has been filed on 24.05.2024. 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 Sanjeev Ranjan, 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 shaH 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 law

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admissible, but not further or otherwise. U

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alot PPdSi o/iCI t II ATf'd. Keoovery Tl ibUIld '/\

DRT, PATNA

OA 300 of 2024jJI

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 defendant has 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 defendant has executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Accounts.

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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 24.04.2024 has been proved to be Rs.20,08,808/- 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 defendant of Rs.20,08,808/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 24.05.2024 (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 defendant. The defendant is hereby, ordered to pay the applicant bank its debt amounting to Rs.20,08,808/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 24.05.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs. n /

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OA 300 of 20241JI

DRT, PATNA

It is made clear that any amount deposited by the defendant, be deducted in the claim amount, if not deducted.

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Defendant is 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 defendant, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant. The Recovery OfDcer win 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 /CertifIcate holder fails to comply with directions of the Becovery OfDcer, 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 23.10.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 07th day of September, 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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+terlaq! OjIn Bebts Recoveq Trrbual PAr 64

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor1 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchad Parisar (GPOA), Ashiana Digha Road, Patna800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(2) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No1 288/2026

Case No: OA/300/2024

In the Matter of:

(CH- 1) CANARA BANK BRANCH AT SHEIKHPURA CB PRINCE MARKET CHANDANI CHOWK OLD REGISTRY BUILDING KATTAR CHOWK

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Applicant(s)

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SHEIKHPURA,BIHAR -8 11105

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----- Versus –-–--

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(CD- 1) AVINASH KUMAR MRITUNJAY . S/o- Pramod Kumar Singh Resident of Village and P.o.- Jaimangla P.S.Sirari.

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Defendant(s)

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Sheikhpum,BIHAR -8 11107

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Recovery Certificate for Rs 2008808.00 [ Rupee$ Twenty Lakhs Eight Thousand Eight Hundred Eight OnI)a

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In terms of final order dated 07/09/2026 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. 2008808.00 along with cost, expenses and interest from the 24/05/2024 i.e. date of filing / with effective date of the OA/300/2024 and future interest from order date till the date of realisation in fall, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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				Order Date	Iou nt(111:L151FB)	LV::by Interest (ason Order Date)	RC lount(Rs.)	Rem
AVINASH KUMAR !MRITUNJA	ICompound terest :Monthly )	10	}/05/2024		!o08808.oo	1Interest FAs on Irder IFuHy	1008808.00

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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. Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 23/10/2026.

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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 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 11/09/2026

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(i->.' ++916tr ir r A1:+

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA bb £tecovery TInt PATH/

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De81, epCO voa TrIBUnal. Pltna

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B'n W+Ntu'M. a

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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. 288/2026

Case No: OA/300/2024

Applicant(s): CANARA BANK Versus

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Defendant(s): AVINASH KUMAR MRITUNJAY

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Item ofCosts	I
'eeontheapplication	m2
Process Fees(Inc. Publication)	ro
AdvocateFees	[0
Commissioner/Receiver/Valuation/Seii;He	ro
MiscellaneousCharges	ro
TotalCosts: Rs	m2

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Place: PATNA

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\a/ PRESIDING-OFFICER

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Date: 11/09/2026

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Note: Strike out whichever is not applicable

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DEBTS RECOVERY TRIBUNAL PATNA PresidiaB o jien B•StB RHovorr Tnbuaa FATWA

Canara Bank v. Avinash Kumar Mritunjay

Case brief

What is this about?

What did the court decide?

Canara Bank v. Avinash Kumar Mritunjay

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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