Allowed

Bank of Baroda v. Mr Kumar Gaurav

DRT7 Sept 2026OA/39/2025

Case brief

AI extract

What is this about?

In this order of the Debts Recovery Tribunal, Patna, the applicant Bank of Baroda approached the Tribunal for recovery of a loan debt of Rs. 39,55,762.52 against two defendants who defaulted on term loans for purchasing commercial vehicles. After summons and published notice failed to elicit an appearance, the Tribunal proceeded ex parte. Relied upon documentary evidence and an affidavit proving the loan and interest due, the Presiding Officer allowed the application and issued a recovery certificate directing the defendants to pay the amount with future interest.

What did the court decide?

The defendants are ordered to pay the applicant bank Rs. 39,55,762.52 along with pendente-lite and future interest at 10% p.a. compounded monthly from 15.01.2025 till realization, with costs. A Recovery Certificate is to be issued for realization via sale of mortgaged assets.

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

OA 39 of2025jJl

DRT, PATNA

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav OA Case No. 39 of 2025

¶7

Bank of Baroda (erstwhile Vijaya Bank), BO- Muzaffarpur, DistrictMuzaffarpur

¶8

. . . . . . . Applicant

¶9

¶10

Mr. Kumar Gaurav, S/o Mr. Chandra Bhushan Mishra, R/o House No.31, Majhuli Pachdahi, P.S.- Sakra, Muzaffarpur, Bihar 843 1 19

¶11

Mr. Chandra Bhushan Mishra, S/o Late Ram Lakhan Prasad Mishra, R/o House No.31, Majhuli Pachdahi, P.S.- Sakra, Muzaffarpur, Bihar 843 1 19

¶12

. . . . . . . Defendants

¶13

Present:

¶14

For the Applicant Shri Jyoti Prakash, Advocate For the Defendants None

¶15

Dated:07.09.2026

¶16

JUDGMENT

¶17

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 15.01.2025 against the defendants to recover its debts from defendants of Rs.39,55,762.52 as on 30.12.2024 along with pendente-lite and future interest at the contractual rate from 31.12.2024 with costs till realization.

¶18

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.

¶19

Defendants approached the applicant bank for sanction of term loan of Rs.32 Lakh for purchasing of commercial vehicle, vide loan application dated 12.09.2018, which was sanctioned by the applicant bank on 02.11.2018 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 created mortgage in

¶20

PA IC/4 P, ,,iC)fl \ I ICal BOb XecOVOry Tnbunal 14'FH A

OA 39 of2025jJI

DRT, PATNA

favour of the applicant bank, details of which are given in OA. At the request of the defendants, the applicant bank has also sanctioned Rs.4.25 Lakh as Term Loan on 20.08.2020 under BCECL scheme, additional financial assistance of Rs.3,57,600/- under BCECL on 22.01.202 1 and another additional financial assistance of B.3.90 Lakh on 31.12.2021 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 created/extended mortgage in favour of the applicant bank, details of which are given in OA

¶25

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 01.05.2023 .

¶26

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.

¶27

The total liability in the loan account is Rs.39,55,762.52 as on 30.12.2024 with pendente-lite and future interest contractual rate from 31.12.2024 till the realization.

¶28

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. 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 26.07.2025 in “Hindustan” and “Hindustan Times” newspapers.

¶29

Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the

¶30

';film p,„laiRd hFea t)ebb hecovetV TTibuM P A') ' N

OA 39 of20251JI

DRT, PATNA

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 24.03.2026.

¶35

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 Durga Nath Jha, Chief Manager of the applicant bank. The details of documents are as follows:

¶36

Sl.No	Description Documents Photocopies of	1 Date of Execution	Amount (in Lakh'	Signatur Executants	eof	Ex./ Ann No
1	LoanaDDlication	12.09.2018	32.00	Defendants		1
2	Sanctionletter	02. 1 1 .2018	32.00	Bank accepted defendants	and by	2
3	Letter ofguarantee	02.1 1.2018	32.00	Defendantn	o.2	3
4	Loanagre hypothecationdeed	02.11.2018	32.00	Def.no.1		4
5	Photocopy of mortgagedeed	01.11.2018				5
6	Loanapplication	20.08.2020		Def.no.1		6
7	Sanctionletter	20.08.2020	4.25	Def.no.I		7
8	DPnote	20.08.2020	4.25	Def.no.1		8
9	General form of ,uarantee	20.08.2020	4.25	Def.no.2		9
10	LetterofundertakinJ	20.08.2020	4.25	Def.no.I		10
11	Declaration-cum- undertakings-cum- Authori	20.08.2020	4.25	Def.no.2		11
12	Declaration	20.08.2020	e			12
13	Extension of mortgage	20.08.2020	4.25	Def.no.2		13
14	Loan - cum hypothecation agreement	20.08.2020	4.25	Def.no.1		14
15	DPnote	31.12.2021	3.90	Def.no.I		15
16	Letterofundertakin1	31.12.2021	3.90	Def.no.I		16
17	Undertaking letter	31.12.2021	3.90	Def.no.1		17
18	Declaration-= undertakings-cum- Authori	31.12.2021	3.90	Def.no. I		18
19	Loan cum hypothecation agreement	31.12.2021	e			19
20	Ae ofliabilit	20.10.2021		Def.no.1		20
21	Acknowledgement ofliabili1	24.03.2022		Def.no.I		21
22	Overduenotice	30.05.2022		Bank		22
23	Demand notice	17.08.2024		Bank		23

Hq ry

bin Itocov9 ry i 'ly

DRT, PATNA

TNA
notice		02.09.2024	Bank
Statement	of		Bank
accounts

¶41

Heard arguments and perused the case record.

¶42

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 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.

¶43

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.

¶44

It has been established that defendants are living and carTying 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.

¶45

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 01.05.2023, whereas the present application has been filed on 15.01.2025. 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.

¶46

13 . Shri Durga Nath Jha, 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. b )K esidj T:T:

¶47

esidj T:T: Xocove+ ATfVA

DRT, PATN A

OA 39 of20251JI

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.

¶52

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.

¶53

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.

¶54

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 aU 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.

¶55

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.

¶56

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.

¶57

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 30.12.2024

¶58

pf,sthWI) it,u DebB Recovery TribUd PA rNA

OA 39 of2025jJl

DRT, PATNA

has been proved to be Rs.39,55,762.52 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.

¶63

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.39,55,762.52 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 15.01.2025 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶64

ORDER

¶65

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.39,55,762.52 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 15.01.2025 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶66

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

¶67

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.

¶68

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

e-HeI HInt v–TrlbUd

OA 39 of 2025[JI

DRT, PATNA

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 Cert$cate 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 Ofpcer, the execution may be dismissed for non-prosecution. The copy of this judgment be uploaded in the website of the Tribunal.

¶74

Parties are directed to appear before the Recovery Officer, DRT, Patna on 23.10.2026. The order be communicated accordingly.

¶75

Judgment signed, sealed, dated and pronounced in the open court on 07th day of September, 2026.

¶76

Dictated & corrected by me.

¶77

[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna areSiaaq o ficer BOhn Recovery Trlbun•i IATBA

¶78

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

¶79

DEBTS RECOVERY TRIBUNAL PATN A

¶80

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

¶81

RECOVERY CERTIFICATE UNDER SECTION 19(2) READ WITH $ECTION 19(232 OF THE RECOVERY OF DEBTS & BANI(RUPTeY ACT, 1993, AS AMENDED FRQM TIME TO TIME.

RC No. 299/2026 IN

Case No: OA/39/2025

In the Matter of:

(CH- 1) BANK OF BARODA BO MUZAFFARPUR,

¶86

Applicant(s)

¶87

MUZAFFARPUR ,BIHAR -0

¶88

––– Versus ---–

¶89

¶90

(CD- 1) MR KUMAR GAURAV SON OF CHANDRA BHUSHAN MISHRA R/O HOUSE NO.31 MAJHULI PACHDAHI P.S.Sakra,

¶91

MuzatTarpur ,BIHAR -843 1 19

¶92

Defendant(s)

¶93

(CD- 2) MR CHANDRA BHUSHAN MISHRA S/0 LATE RAM LAKHAN PRASAD MISHRA R/0- HOUSE NO 31 MAJHULI PACHDAHI. P.S.SAKRA, MUZAFFARPUR, BIHAR 843 119

¶94

RegQvery Certifigate fQr Rs 3955762l52 1 RPpew Thirty Nine Lakh s Fifty Five Thousands Seven Hundred Sixty TwQ And Pai$$ Fifty Two Qnly_I

¶95

In terms of final order dated 07/09/2026 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. 3955762.52 along with cost, expenses and interest from the 15/01/2025 i.e. date of filing / with effective date of the OA/39/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶96

L no	CDName	Loan I Type	Int. I Type/Mode	Int.I IRate	Effective Date	Order Date	lunt(RS.)	Liability Type	Interest E (as on Order Date)	RC IAmount(Rs.)	Remark
	KUMAR AURAV		:ompound lonthly)	10	115/01/2025	i07/09/2026	1955762.52	lointly Id Lly	nterest on lte	155762.52
			Interest onthly)	IO!	15/01/2025	107/09/2026	1955762.52	ointly verally		E3955762.52

¶97

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.

¶98

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 ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 23/ 1 0/2026

¶99

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.

¶100

This Certificate has been issued under my signature and seal of the Tribunal on this 11/09/2026

¶101

}L,' R+olett8r LnHa8

¶102

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA PrrHBaBR OOicer BoB Recovery TrGmO PAT BA

¶103

D e : hR::rE:5:1r3 :::11: : 1 =FiII I

¶104

¶105

FORM NO. 10

¶106

[See Regulation 24(2)]

¶107

DEBTS RECOVERY TRIBUNAL PATNA

¶108

2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA),

¶109

Ashiana Digha Road, Patna-800025.

¶110

SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 299/2026

Case No: OA/39/2025

Applicant(s): BANK OF BARODA (VIJAYA BANK) Versus

¶116

Defendant(s): MR KUMAR GAURAV

¶117

:tomofCosts	I Amount inRs
Fee onthe application	F2000
ProcessFees(Inc.Publication)	ro
.dvocateFees	[0
o	ro
MiscellaneousCharges	ro
TotalCosts:Rs	m2

Place: PATNA

PRESIDIVG OFFICER

Date: 11/09/2026

Note: Strike out whichever is not applicable

¶122

DEBTS RECOVERY TBIBUNAL PATN4 FrestdtnR OBicar

¶123

BOb Recovery Tnbnapt PATHA

Bank of Baroda v. Mr Kumar Gaurav

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Mr Kumar Gaurav

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

State Bank of India versus M/S R R Brothers

Canara Bank versus Deeyog Metal Pvt. Ltd.

Poonam Kushwaha versus Sammaan Capital Limited

Punjab National Bank versus M/S Pathania Poultry Farm

Bank of India versus Sh. Jaspal Singh

Punjab Gramin Bank versus Karnail Singh