Allowed

Canara Bank v. M/s Maa Durga Industries

DRT19 Jun 2026OA/417/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed Canara Bank's application under Section 19 of the RDB Act to recover dues from M/s Maa Durga Industries. The Tribunal accepted the bank's documentary evidence and affidavit, determined the total liability, and issued a recovery certificate.

What did the court decide?

Determined the debt at Rs. 35,45,632.01 and ordered a Recovery Certificate be issued for realization of the amount along with interest.

Canara Bank versus M/s Maa Durga Industries — Contract and Commercial Disputes | DRT (2026)

OA 417 of2024jJl

DRT, PATNA

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 417 of 2024

¶8

Canara Bank, Munger Branch, District- Munger- 811201

¶9

. . . . . . .Applicant

¶10

¶11

M/s Maa Durga Industries through its proprietor Mr. Ravish Kumar, Office at NH-80, Taliya Talab, Milki Chak, Munger- 811201

¶12

Mr. Ravish Kumar, (Proprietor of M/s Maa Durga Industries), S/o Nandeshwari Prasad Yadav, R/o Shayampur Road, Nayagaon, P.O.Basudeopur, Munger- 811202

¶13

. . . . . . . Defendants

¶14

Present:

¶15

For the Applicant Shri Nishant Kashyap, Advocate Shri-Jyoti Prakash, Advocate For the Defendants Shri Deepak Kumar, Advocate

¶16

Dated: 19.06.2026

¶17

JUDGMENT

¶18

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 30.07.2024 against the defendants to recover its debts from defendants of Rs.41,46,629/- as on 20.06.2024 along with pendente-lite and future interest at the contractual rate from 21.06.2024 with costs till realization.

¶19

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.

¶20

Defendant no.1 is a proprietorship firm engaged in the business of Rice Mill of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of Cash Credit of Rs.5 Lakh, vide loan application dated 23.01.2015, which was sanctioned by the applicant bank on 29.01.2015 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

KP.

OA 417 of 2024[JI

DRT, PATNA

executed various loan and security documents in favour of the applicant bank, details of which are given in OA

¶26

Defendants again approached the applicant bank for enhancement of Cash Credit of Rs.5 Lakh to Rs.10 Lakh, vide loan application dated 14.02.2017, which was sanctioned by the applicant bank on 17.02.2017 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 in favour of the dpplicant bank, details of which are given in OA

¶27

Defendants farther approached the applicant bank for sanction of KCC loan of Rs.1 Lakh for cultivation of crops, vide loan application dated 26.09.2017, which was sanctioned by the applicant bank on 26.09.2017 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 in favour of the applicant bank, details of which are given in OA

¶28

Defendants again approached the applicant bank for enhancement of Cash Credit of Rs.10 Lakh to Rs.15 Lakh, vide loan application dated 16.10.2017, which was sanctioned by the applicant bank on 16.10.2017 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 in favour of the applicant bank, details of which are given in OA

¶29

Defendants again approached the applicant bank for enhancement of Cash Credit of Rs.15 Lakh to Rs.20 Lakh, vide loan application dated 20.11.2018, which was sanctioned by the applicant bank on 20.11.2018 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 in favour of the applicant bank, details of which are given in OA

¶30

OA 417 of20241Jl

¶31

DRT, PATN A

¶32

Defendants further approached the applicant bank for sanction of additional Credit facility of Rs.5 Lakh under GECL scheme, vide loan application dated 09.06.2020, which was sanctioned by the applicant bank on 10.06.2020 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 in favour of the applicant bank, details of which are given in OA

¶33

Defendants again approached the applicant bank for enhancement of Cash Credit of Rs.20 Lakh to Rs.25 Lakh, vide loan application dated 08.10.2020, which was sanctioned by the applicant bank on 08.10.2020 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 in favour of the applicant bank, details of which are given in OA. Said facility was also renewed vide sanction letter dated 23.03.2022.

¶34

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 18.04.2023.

¶35

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.

¶36

The total liability in the loan account is Rs.41,46,629/- as on 20.06.2024 with pendente-lite and future interest contractual rate from 21.06.2024 till the realization.

¶37

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 13.09.2024, 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. Y,>

DRT, PATN A

OA 417 of20241JI

In response to the notice, the defendant no.2, who is proprietor of defendant no.1 has appeared by filing vakalatnama on 27.02.2025. However, on perusal of the order sheets, it appears that there is a report of Registrar of this Tribunal dated 15.09.2025 regarding completion of service upon the defendants and further reported regarding non-appearance of the defendants. And on that basis vide order dated 19.01.2026, the defendants were ordered to proceed ex-parte. Record shows that the paper publication notice dated 11.07.2025 has been returned to this Tribunal by Id. counsel for the applicant bank stating therein that the defendant no.1 is a proprietorship firm through the defendant no.2, who has already appeared in this case by filing vakalatnama on 27.02.2025.

¶42

In the present case, despite appearance of the defendants and opportunities, the defendants have failed to file their written statement within the statutory period hence the opportunity to file the same is closed.

¶43

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

¶44

SI.No	of Description Documents Photocopies	1Date of Execution	1Amount 1(in Lakh	Signature Executants	of	1Ex./ Ann No
1	Sanctionletter	9	5.00	Bank accepted defendants	Ta by
2	of Letter >roDrietorshi	06.02.2015		Defendants		2
	Fronote	06.02.2015	5.00	Defendants
	Request letter	06.02.2015	5.00	Defendants
	credit aah agreement	06.02.2015	5.00	Defendants
	Agreement	06.02.2015	5.00	Defendants
	FDi	06.02.2015	5.00	Defendants
	Sanction memorandum	12.02.2017	10.00	Bank accepted defendants	and by
9	o lroDrietorshi		10.00	Defgndants		9
	Pronote		10.00	Defendants
	e		10.00	Defendants

DRT, PATNA

OA 417 of20241JI

12	Agreement	17.02.2017	10.00	Defendants		12
13	Suppl.agreement	17.02.2017	10.00	Defendants		13
14	PDR	17.02.2017	10.00	Defendants		14
15	LoanaDDlication	26.09.2017	1.00	Defendants		15
16	Sanctio;I memorandum	26.09.2017	1.00	Bank accepted defendants	. and by	16
17	Agreement hyDothecation o		1.00	Defendants		17
18	LPC					18
19	PDR	26.09.2017	1.00	Defendants		19
20	Loanapplication	16.10.2017	15.00	Defendants		20
21	Sanction letter	16.10.2017	15.00	Bank accepted defendants	ma by
22	Letter lroDrietorshi of	16.10.2017		Defendants		22
23	Pronote	16.10.2017	15.00	Defendants		23
24	Letterofrenewal	16.10.2017	15.00	Defendants		24
25	Agreement	16.10.2017	15.00	Defendants		25
26	Su)	16.10.2017	15.00	Defendants		26
27	PDR	16.10.2017	15.00	Defendants		27
28	Loanapplication	20.11.2018	20.00	Defendants		28
29	Sanction letter	20.11.2018	20.00	Bank accepted defendants	and by	29
30	Letter 'roDrietorshi of	20.1 1.2018		Defendants		30
31	Pronote	20.11.2F8	20.00	Defendants		31
32	Letter ofrenewal	20.11.2018	20.00	Defendants		32
33	SuPpl.agreement	20.1 1.2018	20.00	Defendants		33
34	LoanaPI)m	09.06.2020	5.00	Defendants		34
35	Sanction letter		5.00	Bank accepted defendants	and by	35
3 6	Letter ofundertakin!	10.06.2020		Defendants		36
37	Agreement cum deed of	10.06.2020	5.00	Defendants		37
	hypothecation
38	Loanapplication	08.10.2m2	25.00	Defendants		38
39	Sanction letter	08.10.2020	25.00	Bank accepted defendants	and by	39
40	Letter ofrenewal	08.10.2020	25.00	Defendants		40
41	LetterofundertakinJ	08. 10.2020	25.00	Defendants		41
42	PDR	08.10.2020	25.00	Defendants		42
43	Linkletter	08. 10.2020	25.00	Defendants		43
44	Loanapplication	23.03.2022	25.00	Defendants		44
45	Sanctionletter	08.10.2020	25.00	Bank accepted defendants	and by	45
46	e		25.00	Defendar=		46
47	e			Defendants		47
48	2	}	25.00	Defendants		48
49	r		25.00	Defendants		49

OA ,417 of2024jJl

DRT, PATN A

Letter	20.03.2023	Bank
Recall notice	19.04.2023	Bank
Legalnotice	24.04.2023	Bank’sadv
Stat=		Bank
accounts

¶55

Heard arguments and perused the case record.

¶56

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.

¶57

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.

¶58

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.

¶59

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 18.04.2023, whereas the present application has been filed on 30.07.2024. 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.

¶60

Shri Vidyapati Thakur, Manager of the applicant bank has filed the affidavit in support of contents of application and the documents as evidence

DRT. PATN A

OA 417 of2024jJ1

and proved on oath the pleadings and documents of the applicant bank as stated above.

¶65

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.

¶66

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.

¶67

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.

¶68

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 an legal proceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions cmd 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.

¶69

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.

¶70

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

OA 417 of2024IJI

DRT, PATNA

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. In one loan account, the balance amount as on 20.06.2024 is Rs.31,75,503.71, in another loan account, balance amount as on 31.03.2024 is Rs.1,19,821/-, further in another loan account, balance amount as on 18.06.2024 is Rs.2,49,245.95 and in other loan account, balance amount as on 31.05.2024 is Rs.1,061.35, total due amount has been proved to be Rs.35,45,632.01 only by way of statement of accounts. There is nothing to prove the amount more than that disclosed in the aforementioned statements. As such this amount is recoverable till full and final realization of the claim.

¶75

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.35,45,632.01 along with pendente-iite and future interest @ 10% p.a. simple from 30.07.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of JustIce.

¶76

ORDER

¶77

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.35,45,632.01 along with pendente-lite and future interest @ 10% p.a. simple from 30.07.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶78

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

¶79

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 td/ __=='n--the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy

OA 417 of 2024jJl

DRT, PATNA

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.

¶84

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/CertifIcate Debtor ensures payment of the certifIcate amount in 6 months from the date of demand notice to the Certi$cate debtors. The Recovery OffIcer will issue demand notice to the Certificate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Cert$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.

¶85

Parties are directed to appear before the Recovery Officer, DRT, Patna on 03.08.2026. The order be communicated accordingly.

¶86

Judgment signed, sealed, dated and pronounced in the open court on 19th day of June, 2026.

¶87

Dictated &corrected by me.

¶88

[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

¶89

EQRNLNh!

¶90

DEBTS RECOVERY TRIBUNAL PATNA

¶91

[See Regulation 24(1 )]

¶92

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

I )EBTS C

RC No, 157/2026 IN

Case No: OA/417/2024

In the Matter of: (CH- 1) CANARA BANK MUNGER BRANCH, PATNA ,BIFIAR -0

¶97

Applicant(s)

¶98

To (CD- 1) M/S MAA DURGA INDUSTRIES Through its Proprietor Mr. Ravish Kumar, Office at NH- 80, Taliya Talab, Milki Chak, Mungu ,BIHAR -81 1201

¶99

Defendant(s)

¶100

(CD- 2) MR. RAVISH KUMAR (PROPRIETOR OF M/S MAA DURGA INDUSTRIES) S/0- NANDESHWARI PRASAD YADAV, R/0SHYAMPUR ROAD, NAYAGAON, P.0.BASUDEOPUR, MUNGER - 811202

¶101

RKovery C$rtjfiga@ for Rs 3545632.01 [ Rupees Thirty Five Lnkh$ FQrty Five ThQu$ands Six Hundred Thirty Two And Pai;e One Qnly_J

¶102

In terms of fInal order dated 19/06/2026 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. 3545632.01 along with cost, expenses and interest from the 30/07/2024 i.e. date of filing / with effective date of the OA/417/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶103

bellO	CDName	Loan Type	Int 'I)'pe/Mode	Int Rate	Effective Date	Order Date	Amount(Rs.)	Liability	Interest (aso Order Date)	RC lount(Rs.)	Remark
	M/SMAA DURGA INDUSTRIES		Simple Interest (Yearly )	10	[0/07/2024	'19/06/2026	'3545632.01	Fointly ly	Interest :Ason	:3545632.01
	MR. RAVISH R DURGA >USTRIES)		IfliTe it ly)	10	30/07/2024-	19/06/2026	3545632.01	lintly Severally	Interest	b545632.01

¶104

In case of failure to pay the aforementioned adjudicated amount within 30 days9 same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors.

¶105

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 OHcerT DEBTS RECovERy TRiBUNAL PATNA on 03/08/2026.

¶106

The Recovery Officer shall realize the amount as per this Certificate hI the marmer and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Acts 1993 (as amended from time to time) from the above named Certificate Debtors.

¶107

This Certificate has been issued under my signattue and seal of the Tribunal on this 20/06/2026

¶108

Ct D e b t sT: :1:eg :§uT::ffIIb a t n a IWIn!?it HPISDn, UST

¶109

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶110

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

¶111

DEBTS RECOVERY TRIBUNAL PATNA

¶112

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