Allowed

Axis Bank Limited v. M/s Sterling India

DRT19 Jun 2026OA/46/2022

Case brief

AI extract

What is this about?

Axis Bank Limited applied to the Debts Recovery Tribunal for recovery of dues totaling Rs. 47,49,566.87 against M/s Sterling India and guarantors. As defendants did not contest, the Tribunal determined the liability on evidence and passed an order allowing the application with future interest.

What did the court decide?

Determined the debt at Rs. 47,49,566.87 plus interest and costs; issued a recovery certificate to the Bank.

Axis Bank Limited versus M/s Sterling India — Contract and Commercial Disputes | DRT (2026)

OA 46 of 20221 Jl

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. 46 of 2022

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Axis Bank Limited, SBB Loan Centre, 2nd Floor, Sita-Usha Square, Kankarbagh Main Road, Patna 800020, Bihar

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Vs HP

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1. M/s Sterling India (Borrower), Flat No.102, Block-82, Lotus Apartment, New Patliputra Colony. Patna 800013, Bihar

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Also at- Digha Railway Colony, Danapur, Patna 800011, Bihar

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Mr. Sunny Priyadarshi (Co-borrower), S/o Mr. Umesh Chandra Pandey, Flat No.102, Block-82, Lotus Apartment, New Patliputra Colony, Patna 8000 13, Bihar

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Mr. Shantanu Samdarshi (Guarantor), S/o Mr. Umesh Chandra Pandey, Flat No.102, Block-82, Lotus Apartment, New Patliputra Colony, Patna 800013, Bihar

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Present:

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For the Applicant Shri Anil Kumar. Advocate For the Defendants None

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Dated:19.06.2026

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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 14.12.2021 against the defendants to recover its debts from defendants of Rs.47,49,566.87 as on 27.07.2021 along with pendente-lite and future interest at the contractual rate from 28.07.2021 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 is a proprietorship firm engaged in the business of wholesale and retail trade of TMT Bars, Tubes and Wires of which defendant no.2 is the proprietor. Defendant no. 3 is the guarantor. Defendants approached the applicant bank for sanction of cash credit facility of Rs.50 Lakh, vide loan

DRT, PATN A

OA 46 of 20221 Jl

application. which was sanctioned by the applicant bank on 18.08.2012 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

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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 28.09.2013 .

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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.47,49,566.87 as on 27.07.202 1 with pendente-lite and future interest contractual rate from 28.07.2021 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 28.07.2022, 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 19.12.2022 in “Prabhat Khabar” newspaper.

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Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the 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 11.09.2024

ki,

OA 46 of 20221 Jl

DRT, PATNA

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 Akash Narain, Legal Manager of the applicant bank. The details of documents are as follows:

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SI'NQ	1Descriptionof Documents Photocopies	1Date of IExecution 1	1Amou 1(in 1Lakh)	r eo 1Executan I	ts	IAnn. INo
	Loanapplicatior	Te
	Lettero arrangement	)na 1	1	1 accepted defendants	and by
3	Power agreement f		50.00	Def.no.I&2		3
	r		50.00	De£no.1&2
	D Pnote–		50.00	Def.no.1&2
	l ofabsolutedeed
	e		50.00	Def.no.3
	ianctionM		50.00	Def.no.I&2
	e entry, Declarationcum confirmationdeed Recordofmortgage	129.10.2012	50.00	Def.no.I&2
10	Hypothecationo currentassets		50.00	Def.no.1&2		10
11	a	=
12	o		a
8.	Heard argumentsand	perused theca	serecord.

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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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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.

DRT, PATNA

OA 46 of 20221JI

The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is fbnctioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶42

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 28.09.2013. The defendants have also created equitable mortgage of their immovable properties at the time of sanction of loan facility, whereas the present application has been filed on 14.12.202 1. 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 Akash Narain, Legal 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 ofthe existence of such entry. and shall be adnlitted as evidence of the matters, transactions and accounts therein recorded in every case u'here, cmd 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

OA 46 of 20221 Jl

DRT, PATN A

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 24.04.2013 has been proved to be Rs.47,49,566.87 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.47,49,566.87 along with pendente-lite and future interest @ 12% p.a. with compounded monthly rests from 14.12.2021 (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.47,49,566.87 along with pendente-lite and future interest @ 12% p.a. with compounded monthly rests from 14.12.202 1 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

OA 46 of2022jJl

DRT, PATNA

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 O#cer 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 /Certificate holder fails to comply with directions of the Recovery Of$cer, 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 03.08.2026. The order be communicated accordingly.

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

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Dictated &corrected by me.

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$IJ. i\ q}\h

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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FORM NO. P

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24(1 )]

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

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RE('QVERY CERTIFICATE UNDER $ECTI q,IN 19(a READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY Ae!1 19939 AS AMENDED FROM TIME TO TIW•

RC NQ. 162/2026

Case No: OA/46/2022

In the Matter of:

(CH- 1) AXIS BANK LIMITED SBB LOAN CENTRE, 2ND FLOOR. SITA USHA

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Applicant(s)

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SQUARE KANKARBAGH MAIN ROAD, PATNA ,BIHAR -800020

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(CD- 1) M/S STERLING INDIA

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Flat No. 102 Block- 82 Lotus Apartment, New Patliputra Colony, Patna ,BIHAR -800013

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Also At

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DIGIIA RAILWAY COLONY, DANAPUR, PATNA 800011

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(CD- 2) MR. SUNNY PRIYARDARSHI (COBORROWER)

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S/O MR. UMESH CHANDRA PANDEY. FLAT NO 102. BLOCK- 82. LOTUS APARTMENT. NEW PATLUPTRA

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Defendant(s)

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COLONY, PATNA 800013, BIHAR

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(CD- 3) MR. SHANTANU SAMDARSHI

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(GUARARNTOR)

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S/O MR. UMESH CHANDRA PANDEY, FLAT NO 102, BLOCK-82. LOTUS APARTMENT. NEW PATLUPTRA

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COLONY, PATN A 800013, BIHAR

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Recovery Certificate for Rs 4749566.87 . 1 Rupees Forty Seven Lakhs Forty Nine Thousands Five Hundred Sixty Six And Paise Rigby Seven my_J

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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. 4749566.87 along with cost, expenses and interest from the 14/12/202 1 i.e. date of filing / with effective date of the OA/46/2022 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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Sr.n	o CD Name	Int. Type/Mode	Int. Rate	Effective Date	VaT	)A mo unt(Rso)	L?:: 0y	=II:={}}}e:	sA mo= (1(sB)Remark
	M/SSTERL ENGINDIA	Compound Interest (Monthly)	:12	14/12/2021	19/0 6/ 2026	:4 749 566B87 }	1:Cv 1: 111jn d ,''-''’'"'-/	+oT ::=11L S :Date	4749566o87
	:MR. SUNNY .PRIYARDARSHItco- .BORROWER)	Interest -Compound (Monthly )	'12	: 14/12/202 1	19/06/2026	'4749566.87			4749566.87
3	:MR. SFLANTANU SAMDARSHI (GUARARNTOR)	(Monthly ) .Compound Interest	'12	.14/12/2021	19/06/2026	4749566.87	It:ivn£:1jnd	:nt:iate:	4749566.87

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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 mongaged 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 .

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Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 03/08/2026

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The Recovery Officer shall realize the amount as per this Certificate hr the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Acl 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 Tribunal on this 20/06/2026

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['^{</sup> _ RegIstrar DeMmyWpltna ]PIRqdtNftlnvl,nqt}

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OUr

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 162/2026

Case No: OA/46/2022

Applicant(s): AXIS BANK LIMITED Versus

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Defendant(s): M/S STERLING INDIA

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Sr.No	:ItemofCosts	iAmountinRs
1	MtTeapplication	50006
2	}ProcessFees(Inc. Publication)	i()
i	.d;ocate Feei	io
4	mI-iT;o;er/Receive;FValuation/SecurityFee	0
5	{MiscellaneousCharges	0
	;Total Costs:Rs.	150000

Place: PATNA

n /

PRESIIiNG OFFICER

Date: 20/06/2026

DEBTS RECOVERY TIUBUNAL PATNA

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Note: Strike out whichever is not applicable

Axis Bank Limited v. M/s Sterling India

Case brief

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Axis Bank Limited v. M/s Sterling India

Case brief

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