Allowed

Bank of India v. M/s City In Mall

DRT19 Jun 2026OA/349/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank of India's application to recover a loan default. The court examined documentary evidence and affidavits, rejected the defence regarding unmentionable compound interest, determined the recoverable amount as 34,84,023.34, and issued a recovery certificate against the respondents.

What did the court decide?

Joint and several liability of delivery of 34,84,023.34 along with pendente-lite and future interest at 10% p.a. simple with costs and attachment/mortgaging of assets.

Bank of India versus M/s City In Mall — Banking and Recovery | DRT (2026)

DRT. PATNA

OA 349 of20231JI

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. 349 of 2023

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Bank of India, Gaya Branch, Devbishnu Apartment, IManjhway Kothi, Rang Bahadur Road, Gaya, District- Gaya 823001

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. . . . . . .Applicant

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Vs.

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M/s City in Mall, Registered address- House No.337/401, Ward No.49, Plot No.1271, Gopalganj Road, P.O.+P.S.- Buniyadganj, Gaya, Town and DistrictGaya- 823003 through its partners (PAN No. AAOFC43 17L)

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Pankaj Kumar, partner of M/s City in Mall, Son of Shri Ram Bachan Ram, resident at- Tekari Road, Kirani Ghat, Town & District- Gay& 82423 1 (PAN No.CROPK6447A)

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Sonu Kumar, partner of M/s City in MaII, Son of Shri Ram Bachan Ram, resident at- Tekari Road, Kirani Ghat, Town & District- Gay& 82423 1 (PAN No.EMYPK3902H

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. Defendants

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Present:

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For the Applicant For the Defendants

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Dr. Binod Bihari Sinha. Advocate Shri Dileep Kumar Jha, Advocate

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Dated:19.06.2026

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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 07.07.2023 against the defendants to recover its debts from defendants of Rs.40,46,550.63 as on 31.03.2023 along with pendente-lite and future interest at the contractual rate from 01.04.2023 with costs till realization.

¶21

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.

\QU,

OA 349 of20231JI

DRT, PATN A

Defendant approached the applicant bank for sanction of cash credit facility of Rs.30 Lakh, vide loan application dated 15.05.2019, which was sanctioned by the applicant bank on 28.05.2019 under CGTMSE Scheme 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. The request of the defendants, the applicant bank has also sanctioned a sum of Rs.3 Lakh under the Star GECL on 25.06.2020.

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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 30.08.202 1.

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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.40,46,550.63 as on 31.03.2023 with pendente-lite and future interest contractual rate from 01.04.2023 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 09.08.2023, 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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In response to the notice, the defendants have appeared by filing vakalatnama on 28.08.2023 and also filed written statement but the defendants have failed to file their rebuttal evidence despite opportunities. The defendants in their written statement, have admitted regarding sanction of CC facility of Rs.30 Lakh as well as Rs.3 Lakh under the scheme of NCGTS. The defendants further stated that the defendants have started the shop for Samrat Readymade

OA 349 of 20231 Jl

DRT, PATN A

Garments but due to Corona Pandemic entire business of the defendants stopped. Further stated that the applicant bank has charged compound compensation during the entire period of corona pandemic, which is illegal in eye of law and requested to dismiss the OA.

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To prove its case, the applicant Bank has referred va}ious certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Amit Kumar Sinha, Chief Manager of the applicant bank. The details of documents are as follows:

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SI.No	Descriptionof Documents Photocopies	1 Date of IExecution	Amount (in Lakh	Signature Executants	of	1Ex./ Ann No.
	o		noT	Defendants
	Sanctiol		30.00	Bank accepted defendants	and by
	D Pnote	28.05.2019	30.00	Defendants
	L435		30.00	Defendants
	MCLRAgreement	28.05.2019	m	Defendants
	PDR Agreement	28.05.2019	30.00	Defendants
	Hypothe loanagreement	28.05.2019	30.00	Defendants
	L516	28.05.2019	30.00	Defendants
	Acknowledgement ofdebt/securities	02. 11.2021		Defendants
	Loanapplication			Defenm
	Sanction letter	25.06.2020	3	accepted defendants	and by
12	DPnote	24.06.2020	e			12
13	Suppl.Loan hypothecation agreement c		-e			13
	Lem	01.04.2023		Bank
	Statement accounts			Bank

¶38

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.

¶39

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

DRT, PATNA

OA 349 of 20231 Jl

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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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.

¶47

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.08.2021, whereas the present application has been filed on 07.07.2023 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 Amit Kumar Sinha, 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 appljcant, the tribunal may act upon

V\\b

OA 349 of2023jJI

DRT, PATN A

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 applic4tion 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 Oed 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 law 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. In one loan account the balance amount till 04.03.2023 is Rs.31,75,558.37 and in another loan account till 30.08.2021 is Rs.3,08,464.97, total balance amount has been proved to be Rs.34,84,023.34 only by way of statement of accounts. There is nothing to prove the amount more than that disclosed in the aforementioned statements. As such this amount is recoverable till full and final realization of the claim.

OA 349 of 20231 Jl

DRT, PATN A

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.34,84,023.34 along with pendente-lite and future interest @ 10% p.a. simple from 07.07.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justlce.

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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.34,84,023.34 along with pendente-lite and future interest @ 10% p.a. simple from 07.07.2023 (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.

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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 defendants, by sale of mortgage(1/ hypothecated assets as well as other personal movable/immovable assets of the defendants. However, no proclamation of sale will be issued, if the Defendant/Certifcate Debtor ensures payment of the certiPcate amount in 6

OA 349 of2023jJl

DRT, PATNA

months from the date ofdemand notice to the Certificate debtors. The Recovery OfFcer will 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 /CertiDcate 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 03.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 19th day of June, 2026.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Of$cer Debts Recovery Tribunal, Patna

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor> (A. B & F Wing) Karpuri Thakru Sadanl Kencbiya Knamchad Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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ECOVERY CERTIFICATE UNDER SECTION 19(

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1 SECTION 19(22) 0 LE RECOVERY OF D

)ED FROM TIME TO TIM

R(' No. 163/2026

Case No: OA/349/2023

In the Matter of:

(CH- 1) BANK OF INDIA GAYA BRANCH. DEVBISHNU APARTMENT, MANJHWAY KOTHI, RANG, BAHADUR ROAD, GAYA.

Applicant(s)

GAYA ,BIHAR -823001

(CD- 1) M/S CITY IN MALL Through its Partners Registered address - House No. 337/401, Ward No .- 49, Plot no 1271, Gopalganj Road, PO and PS- Buniyadganj, Gaya, Town and DistrictGaya ,BIHAR -823003

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(CD- 2) PANKAJ KUMAR PARTNER OF M/S CITY IN MALL. SON OF SHRI RAM BACHAN RAM. RESIDENT AT- TEKARI ROAD, KIRANI GHAT, TOWN AND DISTRICTGAYA- 82423 1,

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Defendant(s)

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(CD- 3) SONU KUMAR PARTNER OF M/S CITY IN MALL. SON OF SHRI RAM BACHAN RAM, RESIDENT AT- TEKARI ROAD, KIRANI GHAT, TOWN AND DISTRICTGAYA - 82423 1,

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Recovery Certificate for Rs 3484023.34 [ Rupees Thirty Four Lakhs EigUy Four Thousand$ Twenty Three And Pai$e Thirty Four Qajy_J

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In terms of final order dated 19/06/2026 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. 3484023.34 along with cost, expenses and interest from the 07/07/2023 i.e. date of filing / with efFective date of the OA/349/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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Sr.n	o CDName	Hl= Int. Type/Mode	Int. Rate	Effective Date	Order Date	Liability	Interest(as on Order Date)
	M/S CITY .INMAI.L	({::Bl;rl)nterest	lo	-07/07/2023	: 19/06/2026	3484023.34 lointly And ly
2	PANKAJ KUMAR	N::ql;I)ntcmst	lo	07/07/2023	: 1	lointly And Ely
3	iSONU .KUMAR	(+T£; jnterest'	lo	07/07/2023	:19/06/2026	'3484023.34 Jointly And }Severally	InterestAs on Order ,Date	3484023.34

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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 .

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Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RE(_’OVERY TRIBUNAL PATNA on 03/08/2026. 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 20/06/2026

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I+ -- _ RegIstrar D ::1::1%WU:n a

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 163/2026

Case No: OA/349/2023

Applicant(s): BANK OF INDIA

¶114

Versus

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Defendant(s): M/S CITY IN MAT,L

¶116

ItemofCosts	!Amount inRs
'eeontheapMgiGI	!43do–d
'rocessFees(Inc.Publication)	ro
\dvocateFees	0
'Commissioner/Receiver/Valuation/SecurityFee	Fo
iMiscellaneousCharges	0
'otalCosts:Rs	t43000

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Place: PATNA

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Date: 20/06/2026

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PRESIDI&doFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Bank of India v. M/s City In Mall

Case brief

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Bank of India v. M/s City In Mall

Case brief

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