Allowed

Icici Bank Limited v. Panna Lal Dal Mill Pvt. Ltd.

DRT29 Jun 2026OA/302/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed ICICI Bank's application under Section 19 of the Recovery of Debts and Bankruptcy Act for recovery of Rs. 1.86 crores owed by Panna Lal Dal Mill Pvt. Ltd. and its directors. The debt was determined based on bank records as no specific denial was made by the respondents, and a recovery certificate was issued.

What did the court decide?

Debt of Rs. 1,86,38,453.77 with interest and costs was adjudicated and a recovery certificate was issued.

Icici Bank Limited versus Panna Lal Dal Mill Pvt. Ltd. — Specific Performance | DRT (2026)

DRT, PATNA

OA 302 of 2022jJl

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 302 of 2022

¶8

ICICI Bank Limited, zonal office at Plot No. 6B, Sahdeo Mahto Marg, S.K. Puri, Boring Road, Patna 800001

¶9

. . . . . . .Applicant

¶10

Vs.

¶11

Panna Lal DaI Mill Pvt. Ltd., a company incorporated under the Companies Act, 2013, having its registered office at Gardaniya Chowk, Jadhua, P.S.- Hajipur, Town- Hajipur- 844102, Bihar, through its Director Priyanka Soni, wife of Chandan Kumar, resident of Karanpur, Town/Village- Karanpur, Anchal- Hajipur, District- Vaishali- 844121, Bihar, PAN No. AAICP222 IM

¶12

Priyanka Soni, wife of Chandan Kumar, resident of Karanpur, Town/Village- Karanpur, Anchal- Hajipur, District- Vaishali- 844121, Bihar, PAN No. FPMPS7854J

¶13

Chan(Ian Kumar, son of Late Panna Lal Sah, resident of Karanpur, Town/Village- Karanpur, Anchal- Hajipur, District- Vaishali- 844121, Bihar, PAN No. AYNPK8168Q

¶14

Birju Kumar, Son ofLaxmi Sah, Nawadakhurd, Sadullahpur, Vaishali844102, Bihar, PAN No. HMIPK7685G

¶15

. . . . . . . Defendants

¶16

Present:

¶17

For the Applicant Shri Neelanj an Chatterjee, Advocate Shri Sahil Kumar, Advocate For the Defendants Shri Shatrughan Prasad, Advocate

¶18

Dated:29.06.2026

¶19

JUDGMENT

¶20

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 09.05.2022 against the defendants to recover it$ debts from defendants of \A'

DRT, PATN A

OA 302 of 20221 Jl

Rs.1,86,38,453.77 as on 31.03.2022 along with pendente-lite and future interest at the contractual rate from 01.04.2022 with costs till realization.

¶25

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.

¶26

Defendant no.1 is a Company and the defendants no. 2 to 4 are the directors of the defendant no.1 company. Defendants approached the applicant bank for sanction of overdraft facility of Rs.2 Crore for meeting the working capital requirements of the company and the defendants no. 2 to 4 being directors stood as guarantors to the credit facility and extended their personal guarantee. Pursuant to the loan application, the applicant bank has sanctioned overdraft facility of Rs.1.80 Crores on various terms ahd 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 equitable mortgage in favour of the applicant bank, details of which are given in OA

¶27

The defendants had availed loan facility from Canara Bank prior to obtaining from the applicant bank. The applicant bank upon sanction of the loan facility aforesaid took over the loan from Canara Bank.

¶28

After availing the sanctioned credit facilities, the defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 28.02.2022.

¶29

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.

¶30

The total liability in the loan account is Rs.1,86,38,453.77 as on 31.03.2022 with pendente-lite and future interest contractual rate from 01.04.2022 till the realization.

¶31

¶32

p,,,Iding OD'" Debts RecoverY Tdbwlel PA'lINI

OA 302 of 20221 Jl

DRT, PATN A

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 06.06.2022, 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.3 has appeared through his Id. Counsel by filing vakalatnama on 05.07.2022 but the defendant no.1,2 and 4 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 them on 14.02.2023 in “Dainik Jagran” newspaper. .

¶37

Further in response to the notice, the defendant no.1,2 and 4 have appeared through their Id. Counsel by filing vakalatnama on 16.03.2023. But the defendants have not filed their written statement within the statutory period hence right to file the written statement stood closed. However, the defendant no.3 has filed affidavit admitting therein that he is one of the directors of the defendant no.I company and also admitted that the defendants had applied for taking loan of Rs.2 Crores but the applicant bank has sanctioned Rs.1.80 Crores as overdraft amount only. It has fbrther been stated that the applicant bank has no any right to demand any money from this defendant and requested to dismiss the OA.

¶38

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 Ashish Kumar, Relationship Manager of the applicant bank. The details of documents are as follows:

¶39

Description Documents PhotocoDies		Date of Execution	Amount (in Lakh	of Signature Executants
Loanapplication		13.01.2020	moro	Def.no.I&2
Sanctionletter		31.01.2020	180.00	Bank and by accepted def.no.1,2and4
Letter oftakeove loan	rof	31.01.2020		and Bank de£no.1,2&4
Declaration Undertaking creatIon	for for	31.01.2020	180.00	Def.no.1,2,3&4

¶40

Debts Recovery Tribunat PAT&y„S

DRT. PATNA

OA 302 of2022jJI

permanent security Irrevocable power of attorney Indemnity cum declaration
Photocopy of of indenture mortgagealong with other lers	04.03.2020
Guarantee	31.01.2020	e
Loanrecallnotice	04.03.2022		Bank
of Statement attached accounts withsupplementary affidavit			Bank

¶45

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.

¶46

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.

¶47

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.

¶48

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. n / + EA\b

OA 302 of2022jJl

DRT, PATN A

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 28.02.2022, whereas the present application has been filed on 09.05.2022. 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.

¶53

Shri Ashish Kumar, Relationship 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.

¶54

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.

¶55

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.

¶56

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.

¶57

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 no\v by law admissible, but not further or otherwise.

¶58

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.

/_&’

OA 302 of 20221 Jl

DRT, PATNA

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.

¶64

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 31.03.2022 has been proved to be Rs.1,86,38,453.77 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.

¶65

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.1,86,38,453.77 along with pendente-lite and future interest @ 10% p.a. simple from 09.05.2022 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of JustIce.

¶66

ORDER

¶67

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.1,86,38,453.77 along with pendente-lite and future interest @ 10% p.a. simple from 09.05.2022 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶68

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

¶69

Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortg/aged or hypothecated or any

¶70

{.b-

¶71

Prestdia: OJice1 Debts RecoverY TIibm-1 PATNA

OA 302 of 20221 Jl

DRT, PATNA

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.

¶76

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 cert$cate amount in 6 months from the date of demand notice to the Certificate debtors. The Recovery Officer will issue demand notice to the Certificate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Certi$cate holder fails to comply with directions of the Recovery Of$cer, the execution may be dismissed for nonprosecution. The copy of this judgment be uploaded in the website of the Tribunal.

¶77

Parties are directed to appear before the Recovery Officer, DRT, Patna on 10.08.2026. The order be communicated accordingly.

¶78

Judgment signed, sealed, dated and pronounced in the open court on 29tt1 day of June, 2026.

¶79

Dictated &corrected by me.

¶80

[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna PresIding OF:ceF Debts Recovery TribUnal PATNA

¶81

EQRMLNb9 [See Regulation 24(1 )]

¶82

DEBTS RECOVERY TRIBUNAL PATNA

¶83

2nd Floor9 (A. B & F Wing) Karl)uri Thakur Sadan, Kendriya Karamchari Parisu (GPOA), Ashiana Digha React Patna-800025

¶84

RE(.'QVERY CERTIFICATE UNDER SECTION 19(2) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTeYACTI !9939 AS AMENDED FRQM TIME TO TIMEt

R(,' No. 217/2026 IN

Case No: OA/302/2022

In the Matter oe

(CH- 1) ICICI BANK LIMITED

¶89

ZONAL OFFICE AT PLOT NO. 6B, SAHDEO MAHTO MARG, S.K. PURI, BORING ROAD. PATNA ,BIHAR -800001

Applicant(s)

.-–-- Versus

(CD- 1) PANNA LAL DAL MILL PW. LTD a company incorporated under the company act 2013, having its registered office at Gardaniya Chowk, Jadhua, P.S.- Hajipur, Town - Hajipur, 84+102 Bihar, through its Director Priyanka Soni, Wife ofChandan Kumar, Resident ofKaranpur, Town/Village- Karanpur, Anchal- Hajipur, Vaishali ,BIHAR

¶94

(CD- 2) PRIYANKA SONI WIFE OF CHANDAN KUMAR, RESIDENT OF KARANPUR. TOWN/VILLAGE- KARANPUR. ANCHAL- HAJIPUR, DISTRICT- VAISHALI- 844121, BIHAR.

¶95

Defendant(s)

¶96

(CD- 3) CHANDAN KUMAR

¶97

SON OF LATE PANNA LAL SAH, RESIDENT OF KARANPUR. TOWN/VILLAGE- KARANPUR,

¶98

ANCHAL- HAJIPUR, DISTRICT- VAISHALI-844121, BIHAR

¶99

(CD- 4) BIRJU KUMAR

¶100

SON OF LAXMI SAH. NAWADAKHURD.

¶101

SADULLAHPUR, VAISHALI- 844 102, BIHAR

¶102

R£cQvery Certifigate fOr RS 18638453l77 1 Rupees One Crore EigUy Six L++kbs Thjrtyaght Thousand i FQpr Hpndred Fifty Three And

¶103

Paise $w£nty Seven Onjy]

¶104

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. 18638453.77 along with cost, expenses and interest from the 09/05/2022 i.e. date of filing / with effective date of the OA/302/2022 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶105

Sr.n	o CD Name	Int. Int. Type/ModeIRate	.Effective i Date	Order Date	,Amount(Rs	.)LTiT	Interest(as on Order Date)	AnjouLt(Rs.)'Remark
	PANNA LAL DAL MILLPVT LTD	I::1; ]\nterestlo	:09/05/2022	!9/06/2026	:18638453.77	'JointlyAnd ,Severally	R::ersbJleon	:18638453.77
i2	PRIYANKA SONI	:+Tab;I)ntcrcst }10	:09/05/2022	29/06/2026	:18638453.77	:tELn::ljnd	'::::crsSJ:tseon	:18638453.77
;3	CHANDAN .KUMAR	N=;ql;I)nteregIIO	!09/05/2022	!29/06/2026	118638453.77	;I:bn::ljnd	\U:::ersbJ:tseon	i18638453.77
i4	BIRJU KUMAR	?€:=1;1)nterest 110	!09/05/2022	19/06/2026	:18638453.77	;!!:nI1;l1)nd	Xi:TElco Il	:18638453.77

¶106

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.

¶107

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.

¶108

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

¶109

The Recovery Ofticer 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.

¶110

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

¶111

(\ _ Registrar

¶112

PRESlbfNG OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶113

O T; E;F:re q:IIM=i n a

¶114

FORM NO. 10 [See Regulation 24(2)]

¶115

DEBTS RECOVERY TRIBUNAL PATNA

¶116

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

¶117

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 217/2026

Case No: OA/302/2022

Applicant(s): ICICI BANK LIMITED Versus

¶122

Defendant(s): PANNA LAL DAL MILL PVT. LTD

¶123

Item ofCosts	,Amount inRs
Feeon theapplication	150000
Process Fees(Inc. Publication)	:0
Ad;8cai8-P&;	0
Commissioner/Receiver/Valuation/Secme	go
,scellaneous Charges
TotalCosts:Rs.	150000

¶124

Place: PATNA

¶125

Date: 03/07/2026

¶126

PRESIDIN(SbfFICER DEBTS RECOVERY TRIBUNAL PATNA

¶127

Note: Strike out whichever is not applicable

Icici Bank Limited v. Panna Lal Dal Mill Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Panna Lal Dal Mill Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus M/s Kasturi Collection

Icici Bank Limited versus M/s Easy M Telesystems

Bank of India versus M/s Victual Lounge

State Bank of India versus M/s Ex Servicmen Canteen

Bank of Baroda versus Mrs. Pallavi Kumari

Bank of Baroda versus M/s Human Care Pharma