Allowed

State Bank of India v. M/s Ghar Laxmi

DRT5 Sept 2026OA/387/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna allowed an application filed by State Bank of India to recover dues of Rs. 23,80,717.16 from two defaulting borrowers. As the defendants failed to appear despite summons and newspaper publication, the Tribunal proceeded ex-parte. Relying on the Banker's Books Evidence Act and the DRT Procedure Rules, the Tribunal admitted the bank's affidavit and ledger entries as sufficient proof of liability. The court determined the debt, interest, and costs, issuing a Recovery Certificate to attach and sell the mortgaged assets.

What did the court decide?

Recovery Certificate issued for Rs. 23,80,717.16 including pendente-lite and future interest at 12% p.a. from 22.07.2024 till realization, with attachment of mortgaged assets.

State Bank of India versus M/s Ghar Laxmi — Banking and Recovery | DRT (2026)

OA 387 of2024jJI

DRT, PATN A

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

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 387 of 2024

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State Bank of India, ADB Branch, Ujjain Tola, Bettiah, Dist.–West Champaran through the Stressed Assets Recovery Branch, 2nd Floor, Patna Main Branch Building, West of Gandhi Mai(ian, Patna

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. . . . . . . Applicant

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Vs.

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M/s Ghar Laxmi, Proprietorship firm, business at Harivatika Chowk, Bettiah, P.O. & P.S.- Bettiah, District- West Champaran- 845438, Bihar

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Pankaj Kumar Singh, Proprietor/Mortgagor, M/s Ghar Laxmi, S/o Kameshwar Prasad Singh, resident of Quarter No.1, Gandak Colony-1, District- West Champaran- 845438, Bihar

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. . . . . . . Defendants

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Present:

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For the Applicant Shri A.K. Sharan, Advocate For the Defendants None

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Dated:05.09.2026

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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 22.07.2024 against the defendants to recover its debts &om defendants of Rs.23,80,717.16 as on 09.04.2024 along with pendente-lite and future interest at the contractual rate from 10.04.2024 with costs till realization.

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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.

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Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of cash credit limit of Rs.20 Lakh, vide loan application dated 15.11.2018 for running of their business of General Store, which was sanctioned by the applicant bank on 17.12.2018 on various terms and conditions, as stipulated in the sanction

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hq Presiding Oji cel T ribw\a3 Debts Rcc'J7eq/ p ATI gA

OA 387 of 20241JI

DRT, PATNA

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. At the request of the defendants, the applicant bank has also sanctioned GECL limit of Rs.5.97 Lakh on 3 1.05.2020 in Covid- 19

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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 on29.06.2023 .

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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.23,80,717.16 as on 09.04.2024 with pendente-lite and future interest contractual rate from 10.04.2024 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 22.08.2024, 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, 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 the defendants on 22.11.2025 in “Dainik Jagran” and “Hindustan Times” newspapers.

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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 case, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 18.03.2026

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PTpqi dine OfFicer Debts Rec _,v3ry 'rribwIe1 PATNA

OA 387 of 20241 Jl

DRT, PATN A

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 Manoj Kumar Ojha, Chief Manager of the applicant bank. The details of documents are as follows:

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Sl.No	Description Documents Photocopies	of	1Date of Execution	Amount (in Lakh	Signature Executants	of	1Ex./ Ann No.
	Loanapplicatio	n	15.11.2018	noT	Defendants
	Letter arrangement	o		20.00	Bank accepted defendants	and by
3	Agreementof cumhyDothecat	loan ion	17.12.2018	20.00	Defendants		3
4	Guarantee agreement		17.12.2018	e			4
	FbI		17.12.2018	e
	Photocopy deed of	sale
	RentreceiDt
	Letter confirmation creation of mort	! of for	18.12.2018	e
	Cersai details						9
	Offer letter		31.05.2020		Bank accepted defendants	ma by
11	Letter arrangement	o		20.00 3.97 2.00	Bank accepted defendants	ma by
12	DPNote		01.06.2020 04.06.2020	3.97 2.00	Defendants		12
13	Supplemental agreement of cumhyDothecat	loan ion	01 .06.2020	5.97	Defendants		13
14	Guarantee agreement		01 .06.2020	e			14
	PbR		01.06.2020	e
	Letter confirmation extention mortgage	of for of	01.06.2020	e
17	RevivilM		02.06.2021		Defendants
18to20	Statement II accounts Interest chart cale	of with ation			Bank		10 20
21	Legalnotice		04.03.2024		Bank’sadv.		21

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants have taken

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the loan and utilized the same and also executed the various loan documents to

DR.T! PAl-'NA

OA 387 of 20241 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.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 29.06.2023, whereas the present application has been filed on 22.07.2024. 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.

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13 . Shri Manoj Kumar Ojha, 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 applicant, the tribunal may act upon

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OA 387 of 2024jJI

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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 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 application 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.–4ubject 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 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. The balance amount till 09.04.2024 has been proved to be Rs.23,80,717.16 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

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fIres 1 Jl q•IP O#jcer en-rea T TiburlaJ Debt: -’ PATH A

OA 387 of2024jJI

DRT, PATNA

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.23,80,717.16 along with pendente-lite and future interest @12% p.a. with compounded monthly rests from 22.07.2024 (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.23,80,717.16 along with pendente-lite and future interest @ 12% p.a. with compounded monthly rests from 22.07.2024 (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 mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants. The Recovery Officer will issue demand notice to the Certificate

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Presiding O}icer DrbEts Recover/ TribWW PATNA

DRT, PATNA

OA 387 of2024IJl

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 Of$cet, the execution may be dismissed for non-prosecution. 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 22.10.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 05th day of September, 2026.

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Dictated &corrected by me

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'qL'$

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna Pr est di nEt :qswH Do!)ts ReccY tY i

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floorp (A. B & F Wing) Knrpuri Thaku Sadan, Kendriya Karamchari Padsar (GPOA), Ashiana Digha Road, Patna-800025

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UNDER SECTION 19f7) READ OVERY OF DEBI

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& BANKRUPTeY ACT, 1993, AS AMENDED FROM TIME TQ TIME.

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R(,' No. 263/2026 IN Case No: OA/387/2024

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In the Matter oe (CH- 1) STATE BANK OF INDIA ADB BRANCH UJJAIN TOLA BETrIAH DISTWEST CHAMPARAN THROUGH THE STRESSED ASSETS RECOVERY BRANCH 2ND FLOOR PATNA MAIN BRANCH BUILDING WEST OF GANDHI MAIDAN, PATNA ,BIHAR -0

Applicant(s)

––– Versus –-––

(CD- 1) M/S GHAR LAXNfI Proprietorship Firm business at- harivatika Chowk, Bettiah. P.O. and P.S.- Bettiah,

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Pashchim Champaran ,BIHAR -845438

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(CD- 2) PANKAJ KUMAR SINGH (PROPRIETOR / MORTGAGOR) M/S GHAR LAXMI, S/0- KAMESHWAR PRASAD SINGH, RESIDENT OF- QUARTER NO.- 1. GANDAK COLONY.1, DISH- WEST

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Defendant(s)

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CHAMPARAN- 845438

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Rpg}very Certificate for Rs 2380717.16 1 Rupee$ Twenty ThreF Lakhs EigUy ThQp;ands $even Hundred Seventeen And

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Paise Sixteen OnI)J

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In terms of final order dated 05/09/2026 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. 2380717.16 along with cost, expenses and interest from the 22/07/2024 i.e. date of filing / with effective date of the OA/387/2024 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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			mount(Rs.)	Liability Type	Interest I(aso Order Date)	RC ,mount(Rs.)
	Interest 'onthly)		)7/2024'l05/09/2026l2380717.16	bintly IAnd	IDate	17.16
KUMAR S[NGH ROPRIETOR/ 'ORTGAGOR)	FInterest :Monthly )	12

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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. Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 22/10/2026

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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 09/09/2026

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(hb RegIstrar RvHH Debts Recovery Tribunal1 PI fm WrB®NMHWL REn

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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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