Allowed

Central Bank of India v. Md. Adil

DRT29 Jun 2026OA/32/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application under Section 19 of the RDB Act against the legal heirs of a deceased borrower. The court determined the debt amount valid, dismissed the defense regarding lack of personal guarantee, and issued a recovery certificate.

What did the court decide?

Amount of Rs. 24,50,437.05 with interest and costs determined; recovery certificate issued; mortgaged assets attached.

Central Bank of India versus Md. Adil — Banking and Recovery | DRT (2026)

OA 32 of 20251 Jl

DRT, PATNA

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 32 of 2025

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Central Bank of India, Bahadurpur Chiknauta Branch, Vaishali- 843 104

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,Applicant

¶10

¶11

Md. Adil, S/o Late Md. Shahid Hussain, Village- Rasulpur Kawa, P.O.Kawadih, P.S.- Baligaon, District- Vaishali- 843 114

¶12

Md. Akil, S/o Late Md. Shahid Hussain, Village- Rasulpur Kawa, P.O.Kawadih, P.S.- Baligaon, District- Vaishali- 843 1 14

¶13

Nazrin, D/o Late Md. Shahid Hussain, Village- Rasulpur Kawa, P.O.Kawadih, P.S.- Baligaon, District- Vaishali- 843 114

¶14

Farin Shagufta, D/o Late Md. Shahid Hussain, Village- Rasulpur I(awa, P.O.- Kawadih. P.S.- Baligaon, District- Vaishali- 843 114

¶15

Shaista Jamal, W/o Late Md. Shahid Hussain, Village- Rasulpur Kawa, P.O.- Kawadih, P.S.- Baligaon, District- Vaishali- 843 114

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All are legal heirs of borrower Md. Shahid Hussain (deceased)

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. ..:.., Defendants

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Present:

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For the Applicant Shri Santosh Satyarthi, Advocate For the Defendants Shri Ram Kumar, Advocate

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Dated :29.06.2026

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JUDGMENT

¶22

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 24.12.2024 against the defendants to recover its debts from defendants of Rs.24,50,437.05 as on 16.06.2024 along with pendente-lite and future interest at the contractual rate from 17.06.2024 with costs till realization.

¶23

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.

¶24

The borrower Shahid Hussain approached the applicant bank for sanction of cash credit facility of Rs.25 Lakh, vide loan application dated 01.11.2022. which was sanctioned by the applicant bank on 22.11.2022 on h,

OA 32 of 2025IJ1

DRT, PATN A

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. The applicant bank has also renewed the loan account on 3 1.03.2024.

¶29

During the continuation of loan, the borrower Shahid Hussain died on 03.05.2024 leaving behind his wife and two sons and also two daughters as defendants above. The applicant bank has informed the legal heirs of borrower about the outstanding loan amount of borrower but they have failed to pay the dues of the applicant bank.

¶30

After availing the sanctioned credit facilities by the deceased borrower, the legal heirs of the deceased borrower 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 16.06.2024.

¶31

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.

¶32

The total liability in the loan account is Rs.24,50,437.05 as on 16.06.2024 with pendente-lite and future interest contractual rate from 17.06.2024 till the realization.

¶33

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 24.01.2025, 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.

¶34

In response, the defendants have appeared and filed their written statement admitting therein that the loan facility granted by the bank was availed under the CGTMSE Scheme by the deceased borrower without any personal guarantee of the legal heirs or any collateral security, but the applicant

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OA 32 of2025IJI

DRT, PATNA

bank has failed to invoke its remedies under the CGTMSE. The defendants have further stated that the legal heirs are not liable personally for the debts of the deceased unless they have inherited tangible assets beyond their personal use or unless they have stood as guarantors, which is not the case herein and requested to dismiss the OA.

¶40

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 Sanjay Kumar, Branch Manager of the applicant bank. The details of documents are as follows:

¶41

Sl.No	Descriptionof Documents Photocopies	Date of Execution	Amount (in Lakh:	ISignature 1Executant	s of	1Ex./ Ann No
1	Certificate under BBEActattached with OA			Bank		1
2	Letter of Authority attachedwith OA			Bank		2
3	m)cation	01.11.2022	25.00	Deceased Shahid H	borrower ussain	3
4	Photocopyof Aadhar			Deceased Shahid H	borrower ussain	4
5	Photocopyof PAN			Deceased Shahid H	borrower ussain	5
6	Udayam Registration Certificate					6
7	Registration certificate					7
8	Income taxreturn acknowledgement			Deceased Shahid Hu	borrower ssain	8
9	Sanction letter	22.11.2022	25.00	Bank and by borrower Hussain	aQcepted Deceased Shahid	9
10	Authority			Deceased Shahid Hu	borrower ssain	10
11	Supplementary agreement	21.11.2022	25.00	Deceased Shahid Hu	borrower ssain	11
12	DPnote	22.11.2022	25.00	Deceased Shahid Hu	borrower ssain	12
13	e varIatIon			Deceased Shahid Hu	borrower ssain	13
14	Letter ofconsent			Deceased Shahid Hu	borrower ssain	14
15	e UndertakinJ		25.00	Deceased ShahidHu	borrower ssain	15
16	LetterofWa=		25.00	Deceased ShahidHu	barrower ssain	16

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OA 32 of2025jJl

DRT, PATN A

Letter of continuity	122.11.2022	25.00	Deceased b(+mower Shahid Hussain
Statementofstock
CERSAIDetails
Renewal/review format	31.03.2024	25.00
Overdue notice	17.05.2024		Bank
Legaldemand notice	10.09.2024		Bankadv
Statementofaccoi			Bank

¶47

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 by the deceased borrower and further there is no any specific denial with regards to the execution of loan and security documents in favour of the applicant bank by the deceased borrower.

¶48

Ld. Counsel of applicant bank submitted that the deceased borrower 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.

¶49

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.

¶50

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.

¶51

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 16.06.2024,

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cep M'&u B&3TAT£ HDIUR£

OA 32 of2025IJl

DRT, PATNA

whereas the present application has been filed on 24.12.2024. 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.

¶58

Shri Sanjay Kumar, Branch 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.

¶59

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.

¶60

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.

¶61

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.

¶62

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 admissible, but not further or otherwise.

¶63

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.

¶64

On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the deceased borrower has applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment

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b\b Presll6n8 OJice' OebU RecoverY T11u Ah PATBA

OA 32 of2025jJ1

DRT, PATNA

of loan amount with interests etc., the deceased borrower has executed various loan documents, as stated in the application and proved by aforqsaid 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.

¶70

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 16.06.2024 has been proved to be Rs.24,50,437.05 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.

¶71

In my view9 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.24,50,437.05 along with pendente-lite and future interest @ 9% p.a. simple from 24.12.2024 (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.24,50,437.05 along with pendente-lite and future interest @ 9% p.a. simple from 24.12.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶74

It is made clear that as all the defendants are the legal representatives of the deceased borrower Shahid Hussain, hence they are liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from their deceased.

¶75

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

OA 32 of 20251 Jl

DRT, PATNA

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.

¶80

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 ofmortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants. However, no proclamation of sale will be issued, if the Defendant/Certi$cate Debtor ensures payment of the certi$cate amount in 6 months from the date of demand notice to the Cert Ocate debtors. The Recovery Of$cer will issue demand notice to the Certificate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Certi$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 .

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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 29tt' day of June, 2026.

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Dictated &corrected by me.

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna Prestdi8t Ofic•r D•bts Recovery THbwbe PATHA

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EQRNLNh! [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor1 (A. B & F Wing) Knrpuri Thakur Sadan. Kendriya Karamchni Pwism (GPOA), Ashian3 Digha Road, Patna-800025

¶88

RECOVERy CERTIFIeATE VNPFB SECTION 19(Z) READ WITH SECTIQN I91a) OF THE RECOVERY OF DEBTS & BAFKRVPTCY ACT! 1993, AS AMENDED FROM TIME{ TO TIME.

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RC No. 204/2026

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IN Case No: OA/32/2025

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in the Matter of: (CH- 1) CENTRAL BANK OF INDIA BAHADURPUR CHIKNAUTA BRANCH, Applicant(s) VAISH ALI ,BIHAR -843 104

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-–– Versus -––To. (CD- 1) MD. ADIL Late Md.Shahid Hussain Village. Rasulpur Kawa, P.O.- Kawadih, PS.- Baligaon, Vaishali ,BIHAR -843 1 14

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(CD. 2) MD. AKIL S/0- LATE MD. SHAHID HUSSAIN. VILLAGERASULPUR KAWA. P.0.- KAWADIH. P.S.- BALIGAON. DISTRICT- VAISHALI, PIN- 843 1 14.

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(CD- 3) NAZRIN D/0- LATE MD. SHAHID HUSSAIN. VILLAGERASULPUR KAWA, P.O.- KAWADIH, P.S.- BALIGAON, Defendant(s) DISTRICT- VAISHALI, PIN CODE- 843 1 14.

¶95

(CD- 4) FARIN SLLAGUFTA D/0- LATE MD. SHAHID HUSSAIN. VILLAGERASULPUR KAWA. P.0.- KAWADIH. P.S.- BALIGAON. DISTRICT- VAISHALI. PIN CODE- 843 1 14

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(CD- 5) SHAISTA JAMAL W/0- LATE MD. SHAHID HUSSAIN. VILLAGERASULPUR KAWA, P.0.- KAWADIH, P.S.- BALIG AON,

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DISTRICT- VAISHALI, PrN CODE. 843 1 14.

¶98

Thousands Frrnr Hundred ThirtyJgyIIIAallaiMMDMy_I

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R£wr£ryJ=£aiE£a!£hrtBt24£1143Z!!Ll_RgR£gtIulrayJwtLakhtlilly

¶100

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. 2450437.05 along with cost, expenses and interest from the 24/12/2024 i.e. date of filing / with effective date of the OA/32/2025 and future interest from order date till the date of realisation in full1 jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶101

Sr.no	CDName	Int. npc/Mode	Int. Rate	Effective Date	Order Date	lnt(Rs.)	:Liability Type	Interest(ason Order Date)	AmoS=(Rs.).Renlark
I	MD. ADIL	SinrplcInterest (Yoarly )			!6	:2450437.05		on	:2450437.05
l	MD. AKIL	SimpleInterest (Yearly )	9					:InterestAs on OrderDate	:2450437.05
3	NAZRIN	SimpleInterest (Yearly)	9	24/12/2024			Jointly And Severally	InterestAs on ;Order Date	:2450437.05
4	FARIN SHAGUFTA	SimpleInterest ,(Yearly )						Interest As on .Order Date	!2450437.05
5	SHAISTA JAMAL	,Simple Interest (Yearly)						Interest As on OrderDate	;2450437.05

¶102

In case of failure to pay the aforementioned adjudicated amount within 30 days1 same shall be recovered from the sale of the mongaged/hYpothecated assets as well as other personal movable/ Immovable assets of the certificate debtors

¶103

The moFtgagcd or hYpothccatcd assets to secure the loan in question are hereby attached and shall be subject to the final order under En:ccovuy procccding in pursuance of the Recovery certificate issued undcr Section 19(22) of Recovery oF Dcbts and Bankruptcy Act Panics are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 10/08/2026

¶104

The Recovery Otnccr 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.

¶105

It is made clear that as.all the defenfim}ts are the legal mpresentadves of the deceased borrower ShaHd Hwsain1 hence they are liable to paY the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from their decea'sed.

¶106

Thls Certificate has been issued under my signature and seal of the Tribunal on this 04/07/2026

¶107

¶108

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PAITqA

¶109

_ Registrar D e!!IrE:[:ifmg; n a

¶110

FORM NO. 10

¶111

[See Regulation 24(2)]

¶112

DEBTS RECOVERY TRIBUNAL PATNA

¶113

2nd Floor9 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025 .

¶114

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 204/2026

Case No: OA/32/2025

Applicant(s): CENTRAL BANK OF INDIA Versus

¶119

Defendant(s): MD. ADIL

¶120

	Item ofCosts	Amount inRs
	'ee ontheapplication	27000
$2.	ProcessFees(Inc. Publication)	EO
	AdvocateFees	E()
	Commissioner/Receiver/Valuation/SecurityFee	E()
	[scellaneous Charges	10
	TotalCosts:Rs	[27000

Place: PATNA

Date: 04/07/2026

L/’

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶125

Note: Strike out whichever is not applicable

Central Bank of India v. Md. Adil

Case brief

What is this about?

What did the court decide?

Central Bank of India v. Md. Adil

Case brief

What is this about?

What did the court decide?

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