Allowed

Bank of Baroda v. M/s Aavir Enterprises

DRT25 Jun 2026OA/402/2024

Case brief

AI extract

What is this about?

Bank of Baroda filed an original application before the DRT, Patna to recover a debt of approx Rs. 80.70 Lakhs from M/s Aavir Enterprises and its proprietor. The court, hearing the case ex-parte, found the claim established by documentary evidence and the account statement under Rule 12 of DRT Rules and Section 4 of Banker's Books Evidence Act. The debt and interest were determined, and a Recovery

What did the court decide?

Recovery Certificate issued for Rs. 80,69,695/- along with pendente-lite and future interest at 10% p.a. from 24/06/2024 till realization.

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

OA 402 of20241JI

DRT, PATNA

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 402 of 2024

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Bank of Baroda, Branch at Gai Ghat, Patna through the ROSARB, Patna, First Floor Saryug Complex, Nehru Nagar, Patliputra, District- Patna

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. . . . . . .Applicant

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M/s Aavir Enterprises through its proprietor Vishal Raj, Flat No.504, Block Al Nutan Tower, Kankarbagh Colony More, Lohiya Nagar, Patna 800020, PAN No. AMVPR3 198M

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Vishal Raj, S/o Shyam Narayan Paswan, Flat No.504, Block Al Nutan Tower, Kankarbagh Colony More, Lohiya Nagar, Patna 800020

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Defendants

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Present:

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For the Applicant Shri Santosh Kumar Singh, Advocate For the Defendants None

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Dat'ed:25.06.2026

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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 24.06.2024 against the defendants to recover its debts from defendants of Rs.80,69,695/- as on 10.06.2024 along with pendente-lite and future interest at the contractual rate from 11.06.2024 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. 1

¶20

Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor and is a transport operator. Defendants approached the applicant bank for sanction of 92.50 Lakh and Bank Guarantor of Rs.7.50 Lakh for purchasing of three trucks, vide loan application, which were sanctioned by the applicant bank on 11.01.2019 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 trucks in favour of the applicant bank, details of

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OA 402 of 2024IJI

DRT1 PATNA

which are given in OA. All the three trucks were registered with the District Transport Office, Nalanda. At the request of the defendants, the applicant bank has also sanctioned additional working capital term loan of Rs.16 Lakh under BoB GECL Scheme on 31.07.2020 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. The defendants have also executed letter of acknowledgment of debt on 22.12.2021. Again at the request of the defendants, the applicant bank has also sanctioned additional working capital term loan of Rs.8 Lakh under BoB BGECL extension Scheme on 21.01.2022 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. The defendants have also executed letter of acknowledgment of debt on 22.12.2021.

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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 05.04.2022.

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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.80,69,695/- as on 10.06.2024 with pendente-lite and future interest contractual rate from 11.06.2024 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 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 .

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Despite the service of registered summons/notices, the defendants have not appeared before this Tribunal to con Lest the case. The sufficient time has

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DRT, PATN A

OA 402 of2024jJl

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 24.07.2025 .

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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 Animesh Kumar, Chief

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Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description Documents Photocopies of	1 Date of Execution	Amount (in Lakh'	Signature Executants	of	1Ex./ Ann No
1	Loanapplication	15.12.2018	021 TL 7.50 BG	Defendants		1
2	Sanctionletter	11.01.2019	92.50 TL 7.50 BG	Bank accepted defendants	ma by
3	e		92.50 TL 7.50 BG	Bank		3
4	Declaration cum undertakings cum authoriO	16.01.2019	92.50 TL 7.50 BG	Defendants		4
5	Letter ofdepositing fixed/short deDOsit	16.01.2019		Defendants		5
6	Instrument of Hypothecationof vehicle	16.01.2019	e			6
7	Counter indemnity for guarantee	16.01.2019		Defendants		7
8	General formof ,uarantee	16.01.2019	e 7.50			8
9	Form of Bank Guarantee	16.01.2019	e			9
10	DPNote	16.01.2019	e			10
11	Undertakinj	16.01.2019	e			11
12	Letter of sole lroDrietorshi	16.01.2019	e			12
1 3	Letter ofauthori-	16.01.2019	e			13
14	Letter ofinstrument with acceleration clause	16.01.2019	e			14
	Invoices
	RCs
	Sanctionletter	31.07.2020	16.00	Bank accepted defendants	and by
	AttestationMemo	31.07.2020	16.00	Bank
	Loan cum hypothecation agreement	31.07.2020	16.00	Defendants
20	Dm	31.07.2020	e			20

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3 1.07.2020q,

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OA 402 of2024jJI

DRT, PATN A

	Undertakin!		3 1.07.2020	16.00	Defendants
	Declaration undertakings authorit'	c currl	m		Defendants
23	e with accele clause	ration		16.00	Defendants	23
24	Letterof lroDrietorshi	s			Defendants	24
25	Lettero acknowledgem debt	entof			Defendants	25
	c				Defendants
	a			8.00	Defendants
	e			8.00	Defendants
	o hypothecation agreement			8.00	Defendants
	o			8.00	Defendants
	e with accele clause	ration		8.00	Defendants,
32	Declaration undertakings authorit	c cum			Defendants	32
33	Composite agreement		27.01.2022	8.00	Defendants	33
34	Letterof lroprietorshi	s			mendants	34
	Lettertobank		24.05.2024		Defendants
	Statement accounts				Bank
8.	Heard argumen	ts and	perused theca	serecord.

¶45

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.

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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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FAb Presiding OOcer Debts RecoveIY TdkwMJ PATNA

DRT, PATN A

OA 402 of 20241 Jl

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 05.04.2022, whereas the present application has been filed on 24.06.2024 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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Shri Animesh Kumar, 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 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.–Subject 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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OA 402 of2024jJl

DRT, PATN A

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 10.06.2024 has been proved to be Rs.80,69,695/- 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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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.80,69,695/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 24.06.2024 (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.80,69,695/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 24.06.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs

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OA 402 of20241JI

DRT, PATN A

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 of$cer witt issue demand notice to the Cert$cate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Certipcate holder fails to comply with directions of the Recovery Officer, 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 05.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 25tt1 day of June, 2026. vV „,'.._, „,„„..,,., „, ,„. „ /! A:\’'’

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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PrestdiBt ODcar Debts Recovery Tdbww PATRA

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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) Karpuri Thaku Sadan7 Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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RECOVERY ('ERTIFl<-ATE UNDER $ECTIQN 19(7) READ WITH $Ee'TIQN 19( a QF THE REeOVERY OF DEBTS mmQP ,m,

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RC No, 194/2026 IN Case No: QA/402/2024

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In the Matter of:

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(CH- 1) BANK OF BARODA BRANCH AT GAI GHAT, PATNA THROUGH THE ROSARB PATNA, FIRST FLOOR SARYUG COMPLEX. NEHRU NAGAR, PATLIPUTRA, PATNA ,BIHAR -800007

Applicant(s)

––- Versus –-––

(CD- 1) M/S AAVIR ENTERPRiSES through its Proprietor Vishal Raj, Flat No- 504, Block, Al Nuan Tower, Kankarbagh Colony More, Lohiya Nagar, Patna ,BIHAR -800020

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Defendant(s)

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(CD- 2) VISHAL RAJ S/0- SHYAM NARAYAN PASWAN, FLAT NO.504, BLOCK Al NUTAN TOWER, KANKARBAGH COLONY MORE, LOHIYA NAGAR, PATNA- 800020.

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Recovery Certificate for Rs 8069695.00 [ Rupees EigUy Lakhs Sixty Nine Thousands Six Hundred Ninety Five Only]

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In terms of final order dated 25/06/2026 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. 8069695.00 along with cost, expenses and interest from the 24/06/2024 i.e. date of filing / with effective date of the OA/402/2024 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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Cno	CDName	Loan lype	Int. }Type/Mode	Int. Rate	iEffective i Date	Order Date	ROunt®s.)	ELT!)P	Interest (as on Order Date)	RC Lmount(Rs.)	Remark
	AAVIR RISES		lund .Interest tonthly)	10	F/06/2024	25/06/2026		}intly d rerally	Interest :As on Order Date
			nterest Monthly )	10	24/06/2024			lointly Severally	nterest As on Order Date	8069695.00

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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.

¶98

Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 05/08/2026.

¶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 02/07/2026

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&\l RegIstrar hRH&31MMr8 Debts Recovery Tribunal,-patna mIT GRja$ 31fbBRq, q:aT

¶102

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10 [See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

¶105

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

¶106

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 194/2026

Case No: OA/402/2024

Applicant(s): BANK OF BARODA Versus

¶111

Defendant(s): M/S AAVIR ENTERPRISES

¶112

Item ofCosts	}Amount inRs
'eeon the application	83000
ocessFees(Inc. Publication)	io
AdvocateFees	io
}Commissioner/Receiver/Valuation/SecurityFee	gO
lscellaneousCharges	Eo
Totaldiiii;iiI	FRibad

¶113

Place: PATNA

¶114

PRESIDIN FICER Date: 02/07/2026 DEBTS RECOVERY TRIBUNAL PAT){A Presiding Oficer Note: Strike out whichever is not applicable 1)ebb Recov’ed)ribmo PATRA

Bank of Baroda v. M/s Aavir Enterprises

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Aavir Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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