Allowed

Bank of Baroda v. M/s S.K. Enterprises

DRT21 Jan 2026OA/327/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank of Baroda's application under Section 19 of the RDB Act. The Tribunal held that defendants executed loan and security documents and failed to repay dues totaling Rs. 25,56,991.59. Upon proof of documents and self-serving evidence, the Tribunal issued a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for recovery of Rs. 25,56,991.59 with future interest at 10% p.a. jointly and severally.

Bank of Baroda versus M/s S.K. Enterprises — Contract and Commercial Disputes | DRT (2026)

DRT, PATNA

OA 327 of 2024[J|

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025 Debts Recovery Tribunal, Patna

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Presiding Officer: Shri Kaushalendra Yadav OA Case No. 327 of 2024

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(Bhabhua)- 821103 Bank of Baroda, Bhabhua Branch, Police Station- Bhabhua, District- Kaimur

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..Applicant Vs.

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M/s S. K. Enterprises, situated at village- Sirsi Madhurana, Post Office- Chainpur, Police Station- Chainpur, District- Kaimur (Bhabhua), Pin-821110

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Smt. Sarita Kumari, wife of Sri Harishwar Dayal Singh, resident of village- Sahuka, Post Office- Shahuka, Police Station- Ramgarh, District- Kaimur (Bhabhua) 821110, PAN No. GQOPD2170J

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village- Dhanihari, Post Office and Police Station- Durgawati, DistrictKaimur- 821105

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1. Smt. Phool Kumari Devi, wife of Sri Vinod Kumar Singh, resident of

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....... Defendants

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Present: For the Defendant no.3: Shri Nand Kishore Singh, Advocate For the Applicant : Shri Animesh Ranjan, Advocate

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JUDGMENT Dated:21.01.2026

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07.06.2024 against the defendants to recover its debts from defendants of Rs.25,56,991.59 as on 10.05.2024 along with pendente-lite and future interest Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on at the contractual rate from 11.05.2024 with costs till realization. bank, is a body corporate, carries on the business and is competent to file the 1. The Applicant bank has made this application u/s 19 of the Recovery of 2. The application has been filed with the contention that the applicant suit through various branches including the applicant.

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2 DRT, PATNA approached the applicant bank for sanction of cash credit facility of Rs.20 Lakh proprietor. Defendant no. 3 is the guarantor of the loan facilities. Defendants and Term Loan of Rs.27.50 Lakh vide loan application dated 01.11.2022, which were sanctioned by the applicant bank on 12.11.2022 on various terms loan and security documents and also created equitable mortgage in favour of OA 327 of 2024[J] 3. Defendant no.1 is a proprietorship firm of which defendant no.2 is the the defendants. To secure the loan facilities defendants have executed various and conditions, as stipulated in the sanction letter, which were duly accepted by the applicant bank, details of which are given in OA.

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the account turning as NPA on 08.09.2023. 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 irregular in repayment of their dues as per agreed terms and failed to adhere to

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has been filed by the bank. to make payment of the dues recoverable to the bank, hence this application Since, the defendants failed and neglected in spite of several reminders

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10.05.2024 with pendente-lite and future interest contractual rate from 11.05.2024 till the realization.

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the defendants and also served to Defendant no.2 DRT [Procedure] Rules, 1993. Thereafter another notice was issued on to show-cause within 30 days of the service U/s 19 (4) ofthe Act & Rule of the 25.10.2024, which was served by affixing on the outer door of the residence of book to the defendants by registered/speed post on 28.06.2024, requiring them

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parte. despite service of notices hence the defendant no.1 and 2 are proceeded exхvakalatnama on 16.01.2025 but the defendant no.1&2 have not appeared

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DRT, PATNA

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statutory period hence she was granted opportunity to file the rebuttal evidence The defendant no.3 has failed to file her written statement within the but she has also failed to file the rebuttal evidence despite opportunities. However, arguments of ld. Counsels for the applicant bank and defendant were finally heard on 17.10.2025 and the case was reserved for orders/judgment.

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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 Chanchal Kumar, Senior Manager of the applicant bank. The details of documents are as follows:

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SL.No	Description Documents Photocopies of Date o Execution	f Amoun (In Lakh)	t Signature Executants	of Ex./ Ann.
2	Loan application 01.11.2022 Sanction letter 12.11.2022	20.00 CC 27.50 TL 20.00 CC 27.50	Def.no.1&2 Bank accepted def.no.1&2	No. 1 and 2 by
3	DP Note 12.11.	TL
4	2022 Letter of sole proprietorship 15.11.2022	47.50	Def.no.1&2 Def.no.1&2	3 4
5	Letter of continuing security 15.11.2022	20.00	Def.no.1&2	5
6	Composite hypothecation 15.11.2022 agreement	47.50	Def.no.1&2	6
7	Supplemental composite agreement 12.11.2022 of hypothecation	47.50	Def.no.1&2	7
8	Photocopy of sale deed 19.04.2017			8
9	Rent receipt 27.09.2022
10	Letter of 1		--	9
	confirmation of 5.11.2022 mortgage creation	47.50	Def.no.3	10
11	NEC
12	19.11.2022 NEC 15.10.2022		Def.no.1&2	11
13	Memorandum entry of 15.10.2022	47.50	Bank	12 13
14&15	Statement of -- accounts		Bank	14&15
16&17	Photocopy of postal receipts with legal notice 08.01.2024			16&17
18 &	Photocopy of postal 08.05.2024	B	ank's adv.	18&19

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4 19 notice receipts with legal DRT, PATNA OA327 of 2024[J|

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arguments, there is no any specific denial on behalf of the defendants with 8. Heard arguments and perused the case record. During the course of regards to the sanction of loan facilities and its utilization and further there is documents in favour of the applicant bank. no any specific denial with regards to the execution of loan and security

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secure the loan. Further, submitted that the claim of the bank has been proved the loan and utilized the same and also executed the various loan documents to 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 documentary evidence. All the transactions were entered in the ledger of the Ld. Counsel of applicant bank submitted that the defendants have taken by and do not run counter to the directives of Reserve Bank of India.

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stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for, inOA.

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the present application. this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon applicant bank is functioning within the jurisdiction of this Tribunal. Therefore, 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 11. It has been established that defendants are living and carrying on their

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counted for the purpose of Limitation, then it is established that the applicant that the present application has been filed well within the period of limitation. whereas the present application has been filed on 07.06.2024. Even, it is bank has filed the case within the limitation period. As such, it is established that the applicant bank has declared the account as NPA on 08.09.2023, 12. On the issue of Limitation, to prove it, the applicant bank has submitted

✓

OA 327 of 2024|J]

DRT, PATNA

as stated above. 13. Shri Chanchal Kumar, Senior 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

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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 ofall the documents relied on in support of the claim.

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the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the pay the claim made by the applicant, the tribunal may act upon documents as evidence. affidavit in respect of the contents of the application and the The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993, provides that if the defendant denies his liability to

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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 entry in a Banker's Books furnished along with application filed that Act, 1891 (18 of 1891) shall apply to a certified copy of an under sub section 1 of section 19 by the applicant.

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S.4. Mode of proof of entries in bankers’ books.—Subject to the provisions ofthis Act, a certified copy ofany entry in a banker's book Section 4 of Banker's Books evidence Act, 1891 runs as underadmissible, but notfurther or otherwise. existence of such entry, and shall be admitted as evidence of the shall in all legalproceedings be received as prima facie evidence ofthe 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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challenged. 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 As such the certified true copies of the documents are admissible in

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On perusal of the application, documents, affidavit and on consideration of Account. of the arguments, it is proved that the defendants have applied for loan and the bank nor have pointed out any specific error and discrepancy in the Statement 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

OA 327 of 2024[J]

DRT, PATNA

and conditions for repayment with interest. The balance amount till 10.05.2024 as mentioned in the O.A., was availed by the borrower under the agreed terms realization of the claim. The evidence discussed above goes to establish that the amount of loan aforementioned statement. As such this amount is recoverable till full and final There is nothing to prove the amount more than that disclosed in the has been proved to be Rs.25,56,991.59 only by way of statement of accounts.

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justice. realization. So the final order may be passed accordingly, to meet the ends of bank. Accordingly, the applicant bank is entitled to recover from defendants interest @ 10% p.a. simple from 07.06.2024 (The date of filing of this OA) till 17. In my view, facts of the case stand proved by evidence of the applicant jointly and severally of Rs.25,56,991.59 along with pendente-lite and future

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and severally, ordered to pay the applicant bank its debt amounting to Rs.25,56,991.59 along with pendente-lite and future interest @ 10% p.a. simple due and recoverable with costs. from 07.06.2024 (The date offiling of this OA) till realization of the entire sum determined with costs against the defendants. The defendants are hereby jointly In the result, the application of the applicant bank is allowed and debt is

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

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over the secured assets. certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Defendants are debarred from transferring, alienating encumbering or Act 1993. The applicant may submit the certified copy of this Judgment and the otherwise dealing with or disposing of the mortgaged or hypothecated or any the final order under the recovery proceedings in pursuance of the Recovery Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge 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

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DRT, PATNA 7

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Applicant(s)
FORM NO. 9
Case No: OA/327/2024
[See Regulation 24(1)]
RC No. 49/2026
BANKRUPTCYACT.1993. ASAMENDED FROMTI9 OFTHE
Defendant(s)
IN
RECOVERY CERTIFICATE UNDER SECTION 1 9(7).
9(7) READ WITH SECTION 19(22) OFTHE RECOVERY OF DEBTS &
Kaimur (Bhabua),BIHAR-821110
--Versus -
Situated at Village- Sirsi Madhurana, Post Office-
DEBTS RECOVERY TRIBUNAL PATNA
KAIMUR, PIN CODE-821105.
In the Matter of:
RAMGARH, DISTRICT-
- КАKAIMUR (BHABHUA)
PIN CODE-821110
2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.
To.
BHABHUA,
(CD-2) SMT. SARITA KUMARI
OFFICE-SHAHUKA, POLICE STATION-
KAIMUR (BHABUA),BIHAR -821103
I OF VILLAGE- SAHUKA, POST
BHABHUA BRANCH, POLICE STATION-
WIFE OF SRIHARISHWAR DAYAL SINGH
(CH- 1) BANK OFBARODA
POLICE STATION - DURGAWATI, DISTRICT-
Chainpur, Police Station-Chainpur,
(CD-3) SMT. PHOOL KUMARI DEVI
(CD-1) M/S S.K. ENTERPRISES
VILLAGE-DHANIHARI, POST OFFICE AND
WIFEOF SRI VINOD SINGH RESIDENT OF

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Fifty Nine Only
Recovery Certificate for Rs 2556991.59 | Rupees Twenty Five Lakhs Fifty Six Thousands Nine Hundred Ninety OneAnd Paise
date till the date ofrealisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-
In terms of final order dated 21/01/2026 passed by this Tribunal in the above mentioned case, it is ordered that the
interest from the 07/06/2024 i.e. date of filing/ with effective date of the OA/327/2024 and future interest from order
Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2556991.59 along with cost, expenses and

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on Order
2 Date
InterestAs
on Order
Jointly
Date)
RC
Interest As
on Order
And
Jointly
Severally
Order Amount(Rs.) Remark
And
(as on
2556991.59
Liability
Type
2556991.59
Order
Date
Interest
SMT. SARITА
Date
Sr.no
Amount(Rs.)
Severally
KUMARI
Effective
Jointly
Int.
Rate
M/S S.K.
Date
SMT. PHOOL
And
ENTERPRISES
Interest As
CD Name
KUMARI DEVI
Severally
07/06/2024 21/01/2026 2556991.59
10
Loan
10
10
Type/Mode
onOrder
Simple
2556991.59
Date
Int.
07/06/2024 21/01/2026 2556991.59
Type
(Yearly)
sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate
debtors. offailure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered fromthe
to time) from the above named Certificate Debtors.
Interest
Sections 25 to 28 ofthe Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time
The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the
final order under the
In case of f
Parties are directed to appear beforeASHISH KUMAR, Recovery Officer, DEBTS RECOVERYTRIBUNAL PATNA on 02/03/2026.
The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under
Recovery of Debts and Bankruptcy Act 1993.
(Yearly)
07/06/2024 |21/01/2026 2556991.59
(Yearly)
Interest
the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of
Simple
Interest
Simple

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G
Patna
Registrar
Debis Recovery Tribunal

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0
5.
Ο
3.
28000
4
28000
Fee on the application
2.
Item of Costs
Process Fees(Inc. Publication)
Total Costs: Rs.
Commissioner/Receiver/Valuation/Security Fee
Advocate Fees
Miscellaneous Charges
Amount in Rs.
Sr. No.
1.

Bank of Baroda v. M/s S.K. Enterprises

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s S.K. Enterprises

Case brief

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