Allowed

Punjab National Bank v. Sitaram Paswan Shastri

DRT5 Sept 2026OA/41/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna, allowed an application by Punjab National Bank for recovery of Rs. 30,39,548 against three respondents. The respondents, including heirs of deceased borrowers, failed to specifically deny the loan utilization or account entries. The Tribunal upheld the bank's claim based on documentary evidence and the Banker's Books Evidence Act, allowing recovery with interest and attaching mortgaged assets. A recovery certificate was issued.

What did the court decide?

Recovery of Rs. 30,39,548 along with interest at 9.05% p.a. simple from 16.01.2025 till realization. Joint and several liability ordered. All mortgaged/hypothecated assets attached. Recovery certificate issued for enforcement.

Punjab National Bank versus Sitaram Paswan Shastri — Contract and Commercial Disputes | DRT (2026)

OA 41 of20251JI

DRT, PATN A

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. 41 of 2025

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Punjab National Bank, Branch Office at Par Nawada, District Nawada,

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,Applicant

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1 Sitaram Paswan Shastri, S/o Kelas Paswan, (PAN No. BFKPP3642D], resident of Sandohro, P.O. Bhadokhara, P.S. Nardiganj, Nawada, 805 123.

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Rubi Kumari, W/o Prahalad Paswan [PAN-EABPK4151D], Resident of Karma, Punthar, Nawada, 805 103 .

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Sharda Devi, W/o Late Dilip Kumar, Resident of Patel Nagar, Adarsh Colony, Gondapur, Nawada, 805110.

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Manish Kishore, Advocate For the Defendant no.1&2 Shri S.K. Singh, Advocate Ms. Bandana Singh, Advocate

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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 16.01.2025 against the defendants to recover its debts from defendants of Rs.30,39,548/-as on 31.12.2024 along with pendente-lite and future interest at the contractual rate from 01.01.2025 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 and 2 are the guarantors and the Defendant no. 3 is the heir of borrowers namely Dilip Kumar and Dewanti Devi who died after disbursement of loan amount. Devanti Devi stood as co-borrower who

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Presiding Officer Debts Recover/ Tribwriu PAT i~IA

OA 41 of 2025jJI

DRT, PATNA

mortgaged her property and after her death it devolves upon her husband defendant no. 1.

¶28

Original borrowers Dilip Kumar and Devanti Devi required financial assistance for construction of house under Housing Loan scheme of the Applicant Bark and approached before the applicant bank. Thus, the Original Borrowers for such facilities presented an application alongwith ID proof for Housing Loan on 23.02.2018. The defendants no.1 and 2 as guarantors also submitted their application declaring themselves to take liability as guarantors.

¶29

Loan proposal of the defendants after due appraisal was duly sanctioned on 23.02.2018 with the terms and conditions incorporated therein. Accordingly, the Applicant Bank communicated regarding sanction of housing loan amount of Rs.24 Lakh through the sanction letter dated 23.02.2018 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 equitable mortgage in favour of the applicant bank, details of which are given in OA

¶30

Sharda Devi, the defendant No.3 in pursuance of letter dated 30.04.2021 issued from PNB Metlife intimating about repudiation of death claim on the life of Dilip Kumar presented a letter before the Branch Manager narrating as well as acknowledging therein the liability in respect of housing loan availed by her husband and repayment made by her to keep the account healthy. Sharda Devi informed the Bank by letter dated 29.11.2021 regarding death of Dilip Kumar (Borrower) alongwith death certificate of Dilip Kumar. Sharda Devi also acknowledged the liability of Dilip Kumar and consented to adjust the Fixed Deposit amount lying in the name ofDilip Kumar.

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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 30.11.2022.

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DRT, PATNA

OA 41 of 2025jJI

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.30,39,548/- as on 31.12.2024 with pendente-lite and future interest contractual rate from 01.01.2025 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 17.02.2025, 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. In response to the notice the defendant no.I & 3 have appeared by filing vakalatnama on 26.03.2025, but the defendant no.2 has 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 defendant no.2 on 31.05.2025 in “Dainik Jagran” and “The Times of India” newspapers .

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Despite the registered summon/notice and publication of notice in newspaper, the defendant no.2 has not appeared before this Tribunal to contest the case hence the defendant no.2 is proceeded ex-parte.

¶41

The defendant no.1 & 3 have filed their written statement admitting the loan facility granted by the applicant bank to the defendants. It has further been stated that the husband of the defendant no.3 also took the insurance policy and the home loan account was linked with the insurance policy. The husband of defendant no.3 regularly paying the monthly installment and suddenly he fell ill on 17.07.2019 and he died under the treatment in C.M.C., Vellore on 27.10.2020. The defendant no.3 made a claim before the Insurance Company but the same was rejected on 30.04.2021. Thereafter she filed a Consumer Complaint No. 110 of 2023 before the District Consumer Dispute Redressal Commission-cum-District Consumer Forum, Nawada against the Insurance Company. The applicant bank has also initiated the SARFAESI action and taken possession of the secured assets. Being aggrieved with the action of the

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OA 41 of20251Jl

DRT, PATNA

bank, the defendant no.3 has filed a Writ application before the Hon’ble Patna High Court being CWJC No.193 12 of 2024 but during pendency of the said writ petition, the applicant bank has filed the present OA and also issued sale notice under the SARFAESI Act for e-auction on 29.03.2025. Interim protection regarding not confirming the e-auction sale granted on 28.03.2025 was extended vide order dated 15.04.2025 and 06.05.2025. The Writ is still pending for adjudication and to avoid multiplicity of the judgment before the Hon’ble Patna High Court and Tribunal, the OA proceedings may be kept in abeyance. Written notes of arguments has also been filed on behalf of the defendant no.1 and 3 raising the same pleas as already raised in written statement.

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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 Mantu Kumar, Branch Manager of the applicant bank. The details of documents are as follows:

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SI'Nc	) I Description of Documents PhotocoDies	1 Date of I Execution	I Amount I (inLakh)	Signatureof Executants	Ex./ Ann No
Tor				Def.no. 1&2 and deceased Dilip Kumar & Dewanti Devi	I
2	o noteand Sanction letter		24.00	Bank	2
3	r Hypothecation		24.00	e Dilip Kumar & Dewanti Devi
4	Agreementof =uarantee	23.02.2018	24.00	e
5	Letter alongwith Photocopy of sale deed Affidavit and undertakin’	23.02.2018 30.03.2014 06.01.2018	24.00	c DewantiDevi
	Lettertobank	30.04.2021		Def.no.3
	Lettertobank	29.1 1.2021		Def.no.3
	Notice	01.12.2022		Bank
	Letter to def.no.3	05.08.2023		Bank
	Demand notice	17.08.2023		Bank
	Statementofaccount	As on 31.12.2 024	Rs.30,39,548.06/	Bank

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I •

DRT. PATNA

OA 41 of20251JI

Heard arguments and perused the case record. In the written statement as well as in the written arguments, there is no any specific denial on behalf of the defendant no.I & 3 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.

¶56

Ld. Counsel for the applicant bank has submitted that the defendant no.3 has approached the Hon’ble Patna High Court by filing CWJC No. 13912 of 2024 against the dispute regarding the insurance claim and also against the SARFAESI measures initiated by the applicant bank and in the said Writ the Hon’ble High Court has ordered not to confirm the sale in favour of the highest bidder.

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On the other hand, it is intimated by the Id. Counsel for the applicant bank that the sale could not take place due to absence of bidder. He further submitted that the Hon’ble Patna High Court has not granted any stay in respect of the proceedings of the present OA and requested to issue recovery certificate for the claim amount as there is no any denial on behalf of the appearing defendants regarding utilization of loan amount and creation of security in favour of the applicant bank.

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Ld. Counsel of applicant bank submitted that the defendantno.I & 2 along with deceased Dilip Kumar & Dewanti Devi 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 bala 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 bark 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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~'aq

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Presiding Ofice, Debts Recovery Tribunw PATH A

DRT, PATNA

OA 41 of 20251JI

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.

¶66

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.11.2022, whereas the present application has been filed on 16.01.2025. 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.

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Shri Mantu Kumar, 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.

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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 fbrnished 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 under_ S.4. Mode of proof of entries in bankers’ books.–Subject to the provisions of this Act, a certijed 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

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Presiding Oficer Debt3 Rec-”.’-’ 'r’;-„’- L

PA'r'i \

OA 41 of2025jJl

DRT, PATNA

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 no. I & 2 along with deceased Dilip Kumar & Dewanti Devihave 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 along with deceased Dilip Kumar & Dewanti Devi 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.

¶81

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 31.12.2024 has been proved to be Rs.30,39,548/- 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 the present case, as the defendant no.3 is the legal representative of the deceased borrower Dilip Kumar hence, she is liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from her deceased husband.

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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.30,39,548/- along with pendente-lite and future interest @9.05% p.a. simple from 16.01.2025 (The date of filing of this OA) till realization. So the final order may be passed accordingly) to meet the ends of Justice. n /

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DRT, PATNA

OA 41 of2025jJ1

ORDER

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 IB.30,39,548/- along with pendente-lite and future interest @ 9.05% p.a. simple &om 16.01.2025 (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 the defendant no.3 is liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from her deceased husband.

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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. However, no proclamation of sale will be issued, if the Defendant/Certi$cate Debtor ensures payment of the certifIcate amount in 6 months from the date of demand notice to the Certipcate debtors. The Recovery

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OA 41 of2025jJI

DRT, PATNA

OffIcer will issue demand notice to the Certifcate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Certi$cate 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 22.10.2026. The order be communicated accordingly.

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

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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Presiding C) jrice r D ;bts Recovery TribwnJ PATNA

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FORM NO. 9

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24(1)]

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2nd Floor1 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA)t Ashiana Digha Road9 Patna-800025'

mIFTm

RC No. 256/2026

Case No: OA/41/2025

In the Matter of: (CH- 1) PUNJAB NATIONAL BANK Applicant(s) BRANCH OFFICE AT PAR NAWADA, NAWADA ,BIHAR -805 1 12

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To (CD- 1) SITARAM PASWAN SnASTRI SON OF KELAS PASWAN RESIDENT OF SANDOHRO P.O. Bhadokham P.S Nardiganj, Nawada ,BIHAR -805 123

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(CD- 2) RUBI KUMARI

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W/0- PRAHALAD PASWAN RESIDENT OF KARMA PUNTHAR NAWADA 805 103.

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Defendant(s)

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(CD- 3) SHARDA DEVI

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W/0- LATE DILIP KUMAR RESIDENT OF PATEL

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NAGARADARSH COLONY GONDAPUR

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NAWADA 805 1 10

¶122

khs Thi ine Thousand

¶123

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. 3039548.00 along with cost, expenses and interest from the 16/01/2025 i.e. date of filing / with effective date of the OA/41/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶124

Loan Int
noI CD Name
Type I Type/Mode
(Yearly )
(Yearly )
(Yearly )

¶125

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered hom the sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors

¶126

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 cgniHcate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 .

¶127

Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNM PATNA on 22/10/2026.

¶128

The Recovery Ofticer shall realize the amount as per this Certificate in the manner and made 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.

¶129

It is made clear that the defendant no.3 is liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from her deceased husband.

¶130

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

¶131

PRESIb ING OFFICER DEBTS RECOVERY TRiBLmAL PATNA eX, Presiding O Jice1 RegIstrar t) 1111 1E111) 1EbI!I!I IiIIIIIb e :\bea t1b11 1fjIE)inB HHHH Debts Recovery Tribunal, Patna

¶132

gEaRS,B UMKWI, qZqT

¶133

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. 256/2026

Case No: OA/41/2025

Applicant(s): PUNJAB NATIONAL BANK Versus

¶142

Defendant(s): SITARAM PASWAN SHASTRI

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	temofCosts	i Amount inRs
	'eeon theapplication	m3
	'rocessFees(Inc. Publication)	[0
3	/	ro
	\|ro
5	s	Fo
	Total Costs:Rs	Fm

Place: PATNA

PRESIDlfG OFFICER

Date: 09/09/2026

DEBTS RECOVERY TRIBUNAL PATNA

¶148

p _ ,_ rca/’ a.aT

¶149

Note: Strike out whichever is not applicable

Punjab National Bank v. Sitaram Paswan Shastri

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sitaram Paswan Shastri

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

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Case details

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