Allowed

Bank of Baroda v. Gopal Kumar

DRT19 Mar 2026OA/377/2025

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 court determined the debt amount against three defendants, including a borrower, a guarantor, and a dealer, and issued a recovery certificate.

What did the court decide?

Determined the debt to be Rs.5,14,50,130/- with interest; issued Recovery Certificate; ordered attachment of hypothecated assets.

Bank of Baroda versus Gopal Kumar — Banking and Recovery | DRT (2026)

DRT. PATNA

OA 377 of2025jJl

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

¶5

Presiding Officer : Shri Kaushalendra Yadav

¶6

OA Case No. 377 of 2025

¶7

Bank of Baroda, Branch office at Hathidah Branch, N.H.80, Near Hathidah Police Station, Hathidah, Mokama, Patna 803301

¶8

. . . . . . . Applicant

¶9

¶10

(;opal Kumar, S/o Sri Kedar Prasad Sharma (Borrower), (PAN No. AGHPR5224Q)

¶11

Abhishek Kumar, S/o Sri Kedar Prasad Sharma (Guarantor), PAN No. FOMPK1859A.

¶12

Both residents of Village & P.O.- Walipur, P.S.- Piparia, District-

¶13

Lakhisarai, Bihar 8 1 1311

¶14

M/s Global Autowheels P. Ltd., NH-3 1, Papraur Chowk, Begusarai, 85 1210

¶15

b . . . . . . . Defendants

¶16

Lat

¶17

Present:

¶18

For the Applicant Shri Manish Kishore. Advocate For the Defendants None

¶19

Dated:19.03.2026

¶20

JUDGMENT

¶21

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 14.05.2025 against the defendants to recover its debts from defendants of Rs.5,14,50,130/-as on 02.05.2025 along with pendente-lite and future interest at the contractual rate from 03.05.2025with costs till realization.

¶22

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.

¶23

Defendant no.1 and 2 are engaged in road construction and mining activities and to meet out their requirements of commercial vehicles like Tipper

o):I:::'i:';La'

and excavator9 they approached the applicant bank for purchase of Six Tata Tipper and three Excavators. The defendant no.2 showed his interest to stand as guarantor to the loan facilities granted to the defendant no. 1.

¶28

Defendant no.1&2 approached the applicant bank for sanction of financial assistance of Rs.470 Lakh in order to purchase Six Tata Signa 5530.S 4x2 (Heavy Commercial Vehicle) and three Volvo Tracked Excavator by presenting an application in this behalf on 15.07.2024. The defendant no. 1 submitted quotation dated 18.07.2024 in respect of six tata Sigma 5530.54x2 issued by Global Autowheels P. Ltd. And Quotation dated 18.07.2024 in respect of three Volvo Excavator issued from Suchita Millenium Projects P. Ltd. Request for financial assistance of Rs.470 Lakh as term loan for purchase of construction and mining equipment i.e. 6 units of TATA SIGNA 5530.S4X2 and 3 units of VOLVO TRACKED EXCAVATOR was duly sanctioned by the Bank on 22.08.2024 after considering the business activities of the defendant no.1 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 and also hypothecated the equipments in favour of the applicant bank, details thereof have been given in OA

¶29

The defendant no.1 and 2 also executed a letter authorizing the Bank to make payment of Rs.470 Lakh directly to the dealers and consented that in default the loan amount may be recovered as Public Demand. Further the defendant no.1 after execution of loan agreement and undertakings requested the Branch Manager through letter dated 29.08.2024 to disburse the loan amount directly to the account of both the Dealers and the applicant bank in accordance with request of defendant no.1 released the term loan amount of Rs.470 Lakh in the saving account of Gopal Kumar from where Rs.182.20 Lakh was transferred to M/s Suchita Millenium Projects Pvt. Ltd. towards purchase of three Volvo Excavators and Rs.287.82 Lakh to M/s Global Automobiles P. Ltd. towards purchase of six TATA Signa. Both the dealers by separate letter dated 29.08.2024 confirmed remittance of full amount as per quotation after deducting margin money as acknowledged and requested to

¶30

\qb

¶31

D == T :eP:if;II :CL: : ab+

OA 377 of 2025jJl

DRT, PATNA

deliver the vehicles as per quotation and ensure creation of hypothecation in favour of the applicant bank.

¶36

M/s Suchita Millenium Projects P. Ltd. delivered three Volvo Excavators as per quotation and submitted necessary receipts in the Bank including Tax Invoices dated 3 1.08.2024 and copies of Insurance Policies dated 21.10.2024 in connection with the purchased three excavators and physical verification was also done.

¶37

The defendant no.1 and 2 were asked to furnish the invoices and other related papers concerning six TATA Signa Vehicles and the Vehicles for physical inspection and verification. Thereafter the bank was only informed that the said vehicles have not been delivered till date by the Dealer, the defendant no.3. Hence the applicant bank has informed that defendant no.3 that as per commitment, the amount of loan was remitted to your account but unfortunately you did not deliver the vehicles nor provided the pos-delivery documents for Bank’s record. Hence the bank vide letter dated 20.11.2024 requested to furnish post-delivery documents such as sale Certificate, Insurance Documents on urgent basis else reverse the full payment with interest in the account mentioned in the letter else bank would be constraints to initiate legal action for recovery of the same. The applicant bank has also requested the defendant no.1 vide letter dated 28.11.2024 to bring the said vehicles for physical verification and requested to submit delivery challans, invoice copies! insurance copies, certificate of registration but they did not response to such request.

¶38

The applicant bank by letter dated 29.01.2025 requested the Dealer9 the defendant no.3 who did not deliver six Tata Signa to the defendant no.1, to deliver the vehicles in question else return the full amount with interest else bank would initiate legal action. The defendant no.1 confirmed regarding nondelivery of six vehicles by the defendant no.3 and due to which his business has been affected badly. Despite such request the defendant no.39 the Dealer kept '"""' O / Hq\9

OA 377 of2025jJI

DRT, PATN A

Despite receipt of entire amount, the defendant no.3 failed to deliver vehicles hence the defendant no.3 ought to have refund the amount paid the cost of the six vehicles to the applicant bank immediately but the defendant no.3 failed to discharge moral and legal obligation in connivance with the defendant no.1 and 2 and misused the fund and failed to deliver the vehicles to the defendant no. 1.

¶43

After availing the sanctioned credit facilities, the deferidants 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 30.03.2025 .

¶44

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.

¶45

The total liability in the loan account is Rs.5,14,50,130/- as on 02.05.2025 with pendente-lite and future interest contractual rate from 03.05.2025 till the realization.

¶46

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 25.06.2025, 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. But the defendants have not appeared) hence9 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 the defendants on 14.08.2025 in “Prabhat Khabar” and Hindustan Times” newspapers.

¶47

Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case9 but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 22.12.2025 .

OA 377 of2025jJl

DRT, PATNA

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 Mukund Medhavi, Branch Manager of the applicant bank. The details of documents are as follows :

¶52

SI.No	Description Documents Photocopies	of	Date of Execution	Amount (in Lakh:	Signature Executants	of	1Ex./ Ann No
1to3	Loan applicatio proofs 'uotatrons	n, ID and	15.07.2024		Def.no.1&2		1 to3
4	Sr		2		Bank accepted def.no.1&2	Fa by
5	Loanagreement		28.08.2024	470.00	Def.no.1&2		5
6	Letter ofauthorit		28.08.2024	470.00	Def.no.1&2		6
7	PDCUndertakin	}	28.08.2024	470.00	Def.no.1&2		7
8	PDR		28.08.2024	470.00	Def.no.I&2		8
9	General form uarantee	of	28.08.2024	470.00	Def.no.2		9
10	Requestletter disbursement	for	29.08.2024	470.00	Def.no.1&2		10
11	Receipt		23.08.2024				11
12	ReceiDt		29.08.2024				12
13	Letter		29.08.2024		Bank		13
14	Letter		29.08.2024		Bank		14
15	Tax Invoices insurance policie	s and					15
16	Lettertodef.no.3		20.1 1.2024		Bank		16
17	Lettertode£no.1	&3	28.11.2024		Bank		17
18	Overdue defendants notice	to	24.01.2025		Bank		18
19	Lettertode£no.3		29.01.2025		Bank		19
20	TaxInvoices						20
21	Legalnotice		18.02.2025		Bank’sadv.		21
22	Legm		28.02.2025		Bank’sadv.		22
23	Repi ^ofnotice		13.03.2025		Def.no.1&2		23
24	Statement accounts	of			Bank		24

¶53

Heard arguments and perused the case record.

¶54

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

¶55

Q r p :1i11) ;%: : g = = W \A

OA 377 of 20251 Jl

DRT, PATNA

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.

¶60

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.

¶61

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.

¶62

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.03.2025, whereas the present application has been filed on 14.05.2025. 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.

¶63

Shri Mukund Medhavi, 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.

¶64

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.

¶65

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.

¶66

The rule 12 (11) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker's Books evidence

¶67

Hq>

¶68

Prdjfa let::::Ben O ebU nCeO,eN A

OA 377 of2025jJI

DRT, PATN A

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.

¶73

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 certibed 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.

¶74

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.

¶75

On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendants no.1 & 2 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 no.1 & 2 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.

¶76

In the present case, the applicant bank has sanctioned Term loan of Rs.470 Lakh to purchase the vehicles. The defendant no.1 and 2 also executed a letter authorizing the Bank to make payment of Rs.470 Lakh directly to the dealers and consented that in default the loan amount may be recovered as Public Dues. Further the defendant no.1 after execution of loan agreement and undertakings requested the Branch Manager through letter dated 29.08.2024 to disburse the loan amount directly to the account of both the Dealers and the applicant bank in accordance with request of defendant no.1 released the term loan amount of Rs.470 Lakh in the saving account of Gopal Kumar from where Rs.182.20 Lakh was transferred to M/s Suchita Millenium Projects Pvt. Ltd. towards purchase of three Volvo Excavators and Rs.287.82 Lakh to M/s Global Automobiles P. Ltd. (defendant no.3) towards purchase of six TATA Signa. Both the dealers by separate letter dated 29.08.2024 confirmed remittance of full amount. But M/s Global Automobiles P. Ltd. (Defendant no.3) has failed to

¶77

*/qM Pr8sldinK Ojficer Debts iocovorT Tribunn PATN/\

DRT, PATNA

OA 377 of 20251 Jl

deliver the vehicles in accordance with the quotations. Further Id. Counsel for the applicant bank has submitted that the loan amount of Rs.287.82 Lakh has been directly credited in the account of M/s Global Automobiles P. Ltd. (defendant no.3) towards purchase of six TATA Signa but the defendant no.3 has failed to deliver the vehicles and also failed to produce vehicles for inspection or verification before the applicant bank.

¶82

In view of the above circumstances, the defendant no.3 is also jointly and severally liable to pay the dues along with interest and other legal charges to the extent of credited amount of Rs.287.82 Lakh.

¶83

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 02.05.2025 has been proved to be Rs.5,14,50,130/- 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.

¶84

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.5,14,50,130/- along with pendente-lite and future interest @10.65% p.a. with compounded monthly rests from 14.05.2025(The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶85

ORDER

¶86

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.5,14,50,130/- along with pendente-lite and fbture interest @ 10.65% p.a. with compounded monthly rests from 14.05.2025 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶87

The defendant no.3 is also liable to pay the dues along with interest and other legal charges to the extent of credited amount of Rs.287.82 Lakh

bO\

DRT, PATNA

OA 377 of 20251 Jl

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

¶93

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.

¶94

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. 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 /Certificate holder fails to comply with directions of the Recovery Officer, the execution may be dismissed for non-prosecution.

¶95

The copy of this judgment be uploaded in the website of the Tribunal.

¶96

Parties are directed to appear before the Recovery Officer, DRT, Patna on 04.05.2026. The order be communicated accordingly.

¶97

Judgment signed, sealed, dated and pronounced in the open court on 19th day of March, 2026. day of March, 2026. 2026. n w //

¶98

19th day of March, 2026. day of March, 2026. 2026. n w // D i C t a t e d 1:JIt C 0 m e C t e d b y ][1[p][ e B //n =b # [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna Pr8sldin8 ojrtc4r Debts Recovery Tribun hl piITNA

¶99

,X''

¶100

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

¶101

DEBTS RECOVERY TRIBUNAL PATNA

¶102

¶103

2„d F1,„, (A. B & F Wi„g) K„p„,i Th,k., S,d,„, Ken&iya Karamchari Parisa'tGPOA),

¶104

Ashiana Digha R'”d, Patr"-tK>OCi25

RC No. 136/2026

Case No: OA/377/2025

In the Matter of:

(CH- 1) BANK OF BARODA BRANC'H OFFI(,.'-'E AT HATHIDAH BRANCH, N.H 80. NEAR HATHTDAH POLICE STATION) HATHIDAH. MOKAM A. PATNA ,BIHAR -803301

Applicant(s)

(CD- 1) GOPAL KUMAR

SON SRI KEDAR PRASAD SHARMA

¶114

Resident of Village and P.O.- Walipur9 P.S.- Piparla9

¶115

Lakhisarai,BIHAR -8 1 1 3 1 1

¶116

(CD- 2) ABHISHEK KUMAR

¶117

S/0_ SRI KEDAR PRASAD SHARMA RESIDENT OF VILLAGE AND P.0.- WALIPUR, P.S.- PIPARI A, DiSTRICT- LAKHISARAI BIHAR- 811311. (PANFOMPK1859A)

¶118

Dcfcndant(5)

¶119

(CD_ 3) M/S GLOBAL AUTOWHEELS P. LTD

¶120

H.0. NH 3 1, PAPRAUR CHWOK, BEGUSAk41 851210

¶121

ticate for Rs 514 R lurteen Lakhs Filjy Thousand lurElred ' !y_I

¶122

In terms of anal order dated 19/03/2026 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. 51450130.00 along with cost, expenses and interest from the 14/05/2025 i.e. date of filing / with efFective date of the OA/377/2025 and future interest from order date till the date of realisation in full) jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶123

CD Name
"":
OPAL KUMAR
ABHISHEK
KUMAR
M/S GLOBAL
AUTOWHEELS P,
LTD

¶124

Ii 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, 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 1 993. Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 04/05/2026,

¶125

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.

¶126

The defendant no. 3 is also liable to pay the dues along with interest and other legal charges to the extent of credited amount of Rs. 287.82 Lakh

¶127

This Certificate has been issued under my signature and seal of the Tribunal on this 20/03/2026

¶128

PRI OFFICER DEBTS RECOVERY TRIBUNAL PATNA Registrar Pr48tdnl O fic'' Debts Recovery Tribunal Patna DoDO RocovoIY TIBual PATHA

¶129

FORM NO. 10

¶130

+_.

¶131

[See Regulation 24(2)]

¶132

DEBTS RECOVERY TRIBUNAL PATNA

¶133

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

¶134

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 136/2026

Case No: OA/377/2025

Applicant(s): BANK OF BARODA

¶139

Versus

¶140

Defendant(s): GOPAL KUMAR

¶141

tem ofCosts	r
e	150000
r	ro
o	[0
-;	[0
e	@
'otal Costs:Rs	150000

Place: PATH

d /

PRESIDINEfOFFICER

DEBTS RECOVERTJTnnNA,,x

¶146

Date: 20/03/2026

¶147

Note: Strike out whichever is not apphcable

¶148

PATHa

Bank of Baroda v. Gopal Kumar

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Gopal Kumar

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

Punjab National Bank versus Bhavna Wajekar

International Asset Reconstruction Compant Pvt. Ltd. versus Ms. Trimurti Construction Developers and Builders

Punjab National Bank versus Mrs. Kuljeet Singh

Smt Ritu Raj versus Punjab National Bank

Icici Bank Limited versus Mr Mohammad Razzaq Alam

Mundhra Comfoware versus West Bengal Gramin Bank