Allowed

Bank of Baroda v. Mr Mahipal Sharma

DRT5 Sept 2026OA/453/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna adjudicated an application by Bank of Baroda to recover a loan of approximately Rs. 36.58 lakh from Mahipal Sharma. The defendant failed to file a written statement or rebuttal evidence despite opportunities. Relying on Rule 12(10) of the DRT Procedure Rules, 1993, and Rule 4 of the Banker's Books Evidence Act, 1991, the Tribunal accepted the bank's documentary evidence as prima facie true. The debt was determined, and a recovery certificate was issued ordering the realization of the dues through the sale of secured assets.

What did the court decide?

Debt of Rs. 36,58,661.65 determined with costs; Recovery Certificate issued directing Recovery Officer to realize amount via sale of assets by 22.10.2026.

Bank of Baroda versus Mr Mahipal Sharma — Banking and Recovery | DRT (2026)

OA 453 of20241JI

DRT, PATNA

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. 453 of 2024

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Bank of Baroda, Barh Branch, situated at NH-3 1, Opposite Savita Cinema, Barh, P.S.- Barh, Patna- 803213

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. . . . . . .Applicant

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Vs.

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Mr. Mahipal Sharma, son of Mr. Basudeo Sharma, residing at Jamunichak, P.O.- Barh, P.S.- Sarai, Barh, District- Patna- 803213, PAN No. CTEPS7439G

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. . . . . . . Defendant

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Present:

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For the Applicant Shri Shatrughan Prasad, Advocate For the Defendant Shri Nand Kishore 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 22.07.2024 against the defendant to recover its debts from defendant of Rs.36,58,661.65 as on 30.04.2024 along with pendente-lite and future interest at the contractual rate from 01.05.2024 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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3 . Defendant approached the applicant bank for sanction of term loan of Rs.17,97,530/-, vide loan application dated 10.08.202 1, which was sanctioned by the applicant bank on 10.08.2021 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facility defendant has executed various loan and security documents and hypothecated the vehicle in favour of the applicant bank, details of which are given in OA.

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Defendant again approached the applicant bank for sanction of term loan of Rs.9.50 Lakh for purchase of machine and cash credit facility of Rs.14.25

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L) fIt cel Pr Recovery ATNA

OA 453 of20241JI

DRT, PATNA

Lakh for working capital, vide loan application, which was sanctioned by the applicant bank on 20.01.2022 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facility defendant has executed various loan and security documents in favour of the applicant bank, details of which are given in OA.

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After availing the sanctioned credit facilities, the defendant 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 bark resulting in the account turning as NPA onI 1.03.2024.

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Since, the defendant 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.369589661.65 as on 30.04.2024 with pendente-lite and future interest contractual rate from 01.05.2024 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendant on 19.09.2024, requiring him to show_cause within 30 daYS of the service U/S 19 (4) of the Act & Rule of the DRT [Procedure] Rules9 1993

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In response to the notice, the defendant has appeared through his Id. Counsel bY filing vakalatnama on 09.12.2024 but has failed to file the written statement within the stipulated time and also failed to file the rebuttal evidence despite of the opportunities hence vide order dated 23.03.2026 opportunity R)r the same was closed. Hence on 27.07.20269 arguments were heard and the cue was reserved for orders/judgment and again 15 days’ time was granted to the defendant to file written notes of arguments but the same has also not been filed

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r\ Pres rai 1:R } iF p nI DebB Recovery 'Frll>WW PAT NA

OA 453 of20241Jl

DRT, PATNA

To prove its case9 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 Arvind Kumar, Chief Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description Documents o	a Execution	Amount I (in Lakh)	Signature of Executants	Ex./ Ann.
	Photocopies				No.
I	Loanapplication	8		Defendant	1
2	Sanctionletter	s		Bank and acceptedby defendant	2
2A	D P note	10.08.2021	Rs. 17,97,530/-	Defendant	2A
3	Attestationmemo	10.08.2021		Defendant	3
4	Letter ofinstalment	10.08.2021	Rs. 17,97,530/-	Defendant	4
5	Declaration cum undertakings cum authori	10.08.2021		Defendant	5
6	Instrument of hypothecationof vehicle	10.08.2021	Rs.17,97,530/-	e
7	Loanapplication		14.25CC 9.50 TL	e
7A	Sanction letter	20.01 .2022	14.25CC 9.50 TL	Bank and acceptedby defendant	7A
8	Attestation memo	20.01.2022		Defendant	8
9	DPnote	20.01 .2022	9.50	Defendant	9
10	Composite hypothecation agreement	20.01 .2022	9.50	Defendant	10
11	Declaration cum undertakings cum authorit			e
12	Letter ofinstalment	20.01.2022	9.50	e
13	Letterofauthori1	20.01.2022	9.50	Defendant	13
14	Draftundertakinf	20.01 .2022		Defendant	14
15	Attestationmemo-	20.01 .2022	14.25	Defendant	15
16	D P note	20.01 .2022	14.25	Defendant	16
17	Composite hyDothecation	20.01 .2022	14.25	Defendant	17
18	Diposit confirmationadvice				18
19	Declaration cum undertakings cum authori	20.01 .2022		Defendant	19
20	General	20.01.2022	14.25	Defendant	20
21	Letter ofcontinuina securl	20.01 .2022	14.25	Defendant	21
22	Letter ofundertakin!	20.01.2022	14.25	Defendant	22
2 3	Power ofattorne'	20.01.2022		Defendant	23
24& 25	Statementofaccount & affidavitof			Bank	24&25

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DRT, PATNA		OA 453 of 20241Jl
Ravindralaw
Recall notice	02.04.2024	Bank 26

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Heard arguments and perused the case record. During the course of arguments, there is no any specific denial on behalf of the defendant 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

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Ld. Counsel of applicant bank submitted that the defendant has 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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It has been established that defendant is living and carrying on the 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 n.20 lac's. Tbc applicant bank is functioning within the jurisdiction of this Tribunal. Therefi.)rep 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 submitI.ed that the applicant bank has declared the account as NPA on 11.03.20249 whereas the present application has been filed on 22.07.2024. Even9 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.

DRT, PATNA

OA 453 of2024jJI

Shri Arvind 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 certiped copy of any entry in a banker’s book shaH 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 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 defendant has applied R)r loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendant has executed various loan documents9 as stated in the application and proved by aforesaid evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor has pointed out any specific error and discrepancy in the Statement of Account.

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LrT Presiding O ficer DebB Recovery Tdbtm#1 PATNA

OA 453 of20241J I

DRTq 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. The balance amount till 30.04.2024has been proved to be Rs.36,58,661.65 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 defendant of Rs.36,58,661.65 along with pendente-lite and future interest @10% p.a. simple 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 defendant. The defendant is hereby, ordered to pay the applicant bank its debt amounting to Rs.36,58,661.65 along with pendente-lite and future interest @ 10% p.a. simple nom 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 defendant, be deducted in the claim amount, if not deducted.

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Defendant is 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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t \V jj ji' dr Debb Recovery Tribww PATNA

DRT, PATNA

OA 453 of2024jJI

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 defendant, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant. 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 Certificate 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 /CertiDcate holder fails to comply with directions of the Recovery Offcer, 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 o$g 0581 day of September, 2026. Dictated &corrected by me. ID [Kaushalendra Yadav] Presiding Officer Debts Recoyay TdINqMB bto rAGIA

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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 Floor7 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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RECOVERY CERTIFICATE UNDER SE(,’TION 19(7) READ WITH SECTION 19(a) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC No. 269/2026 IN

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Case No: OA/453/2024

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In the Matter of: (CH- 1) BANK OF BARODA BARH BRANCH SITUATED AT NH 31 OPPOSITE SAVITA CD+EMA BARH PS BARH PATNA ,BIHAR -0

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Applicant(s)

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To (CD- 1) MR MAHIPAL SHARMA SON OF MR BASUDEO SHARMA RESIDING AT VILLAGE AT Defendant(s) JAMUNICHAK, PO- Barh PS- Sarai, Barh, Patna ,BIHAR -803213

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Recovery Certificate for Rs 3658661.65 [ Rupee$ Thirty Six Lakhs Fifty Eight Thousands Six Hundred Sixty One And Paise Sixty Five Only_]

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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. 3658661.65 along with cost, expenses and interest from the 22/07/2024 i.e. date of filing / with effective date of the OA/453/2024 and future interest from order date till the date of realisation in

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full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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r.no!CDName	Loa lype	Int iType/Mod	Int. e!Rate	} Effective Date	Order Date	lount(Rs.)	LiabiHty1 Type	terest (aso Order Date)	RC lount(Rs.	Remar
		imple terest f(Yearly)	10	17/2024	105/09/2026	13658661.65	IFully	lterest IAs on iOrder Date	i658661.65

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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 ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA 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 Tribtural on this 09/09/2026

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA G. RegIstrar D 111111111EII= :!!!it; ii : I tAEIII&I Debts Recovery Tribunal, Fatal R,BT aqa UfaZWI, MT

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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 Padsar

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(GPOA), Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS