Allowed

Punjab National Bank v. M/s Maa Laxmi Bhandar

DRT22 Jan 2026OA/470/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Patna adjudicated an application filed by Punjab National Bank to recover a debt of Rs. 25,05,744.74. The defendants failed to appear. Based on documentary evidence, the Tribunal determined the debt, granted a recovery certificate, and attached the mortgaged assets.

What did the court decide?

The defendants were ordered to pay Rs. 25,05,744.74 along with interest, and a recovery certificate was issued for realization of the debt and attachment of secured assets.

Punjab National Bank versus M/s Maa Laxmi Bhandar — Insolvency and Bankruptcy | DRT (2026)

¶1

OA 470 of 20241 Jl

¶2

DRT, PATN A

¶3

Debts Recovery Tribunal, Patna

¶4

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶5

Presiding Officer : Shri Kaushalendra Yadav

¶6

OA Case No. 470 of 2024

¶7

Punjab National Bank, branch office at Thakurhat, P.O.Sabar, Karmchat, Kaimur- 821101

¶8

. . . . . . .Applicant

¶9

Vs.

¶10

M/s Maa Laxmi Bhandar, a proprietorship concern represented through its proprietor Chandan Sah, Village- at Thakurhat. P.O.- Sabar, P.S.- Karmchat, Kaimur- 82 1101, PAN No. FWGPS7635 A

¶11

Chandan Sab, S/o Gopal Sah, Village- Thakurhat, P.O.- Sabar, P.S.Karmchat, Kaimur- 821101, PAN No.FWGPS7635 A

¶12

Vinod Kumar Singh, S/o Raj Nath Singh, Village- Bijra, P.O.- Sabah P.S.- Karmchat, Kaimur- 821101, PAN No. BYQPS3893 A

¶13

. . . . . . . Defendants

¶14

Present:

¶15

For the Applicant : Shri Manish Kishore, Advocate For the Defendants : None

¶16

Dated: 22.01.2026

¶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:2 1.09.2024 against the defendants to recover its debts from defendants of Rs.25,05,744.74 as on 31.08.2024 along with pendente-lite and future interest at the contractual rate from 01.09.2024with costs til] 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 of which defendant no.2 is the proprietor. Defendant no. 3 is the guarantor. Defendants approached the applicant bank for sanction of working capital of Rs.5 Lakh, vide loan application dated03.09.2015, which was sanctioned by the applicant bank on 10.12.2015on various terms and conditions, as stipulated in the sanction letter,

., r ,ldlllX VJlicee

dean @3TnTHbUBN

OA 470 of 20241 Jl

DRT, PATN A

which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents

¶28

Defendants again approached the applicant bank for sanction of credit facility of Rs.15 Lakh, vide loan application dated 03.01.2019, which was sanctioned by the applicant bank on 03.01.2019on 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 mortgage in favour of the applicant bank, details of which are given in OA.

¶29

Defendant no.2 requested the bank to restructure of the loan account in order to clear the overdue amount in view of RBI Guidelines during Covid 19 period and accordingly the applicant bank on 08.06.2020 granted Rs.2.50 Lakh by converting the component of overdue amount into term loan by opening an account.

¶30

4 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 10.05.202 1.

¶31

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.

¶32

The total liability in the loan account is Rs.25,05,744.74 as on 31.08.2024 with pendente-lite and future interest contractual rate from 01.09.2024 till the realization.

¶33

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 08.10.2024, 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.

¶34

Despite the service of registered summons/notices, 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

¶35

bI~

¶36

PresidinX OJitin DeDtB RecoverY Tdbw1a1 PATNA

DRT, PATNA

OA 470 of 2024[JI

to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 25.02.2025 .

¶41

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 Manoj Kumar Sah, Chief Manager of the applicant bank. The details of documents are as follows :

¶42

SI.No	Description Documents Photocopies of	1 Date of Execution	IAmount I (in Lakh)	I Signature of }Executants I	1Ex./ IAnn. INo.
	Loanapplication	03.09.2015	e
	a	10.02.2015	5
	Hypothecation agreement	10.12.2015	e
	)	14.12.2018	e
	r Sanctionletter	03.01.2019	a
6	Hypothecation agreernent	03.01.2019	e		6
7	r uarantee	03.01.2019	e		7
8	) deed	25.05.2017			8
	Letter	28.06.2019		Def.no.I&2	9
	Letter	28.06.2019		Def.no.I&2
	Recall notice	20.06.2021		Bank
	Balanceandsecurity confirmationletter	01.12.2021		Def.no.1&2
13	Legal notice	12.07.2024		Bank	13
14&15	a accounts of			Bank	14&15

¶43

Heard arguments and perused the case record.

¶44

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.

¶45

Presiding OOcer Debts RecoverY Tdbwld PATaA

OA 470 of 20241 Jl

DRT, PATNA

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.

¶50

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.

¶51

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 10.05.2021. Defendants have also executed balance and security confirmation letter on 01.12.2021, whereas the present application has been filed on 21.09.2024. 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.

¶52

Shri Manoj Kumar Sah, 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.

¶53

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.

¶54

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.

¶55

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.

¶56

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 certibed copy of any entry in a banker’s book

¶57

%]~

¶58

PresidIng Officer Deus xecovery TribwrAI PATRA

OA 470 of20241JI

ul\ 13 rA I :bril

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 non' by law admissible, but not further or otherwise.

¶63

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.

¶64

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

¶65

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 31.08.2024has been proved to be Rs.25,05,744.74 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

¶66

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.25,05,744.74 along with pendente-lite and future interest @13.25% p.a. with compounded monthly rests from 21.09.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶67

ORDER

¶68

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 toRs.25,05,744.74 along with pendente-lite and future interest @ 13.25% p.a.

¶69

V, r,eqjding Officer Debts aecovery Tab IWU PARMA

DRT, PATNA

OA 470 of 20241 Jl

with compounded monthly rests from 21.09.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶74

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

¶75

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.

¶76

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 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. The copy of this judgment be uploaded in the website of the Tribunal.

¶77

Parties are directed to appear before the Recovery Officer, DRT, Patna on 26.02.2026. The order be communicated accordingly.

¶78

Judgment signed, sealed, dated and pronounced in the open court on 22ND day of January, 2026.

¶79

Dictated &corrected by me.

¶80

[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna Pr+gjdilU Ob DebB Recovery Trbqn+I PATHA

¶81

FORM NO. 9

¶82

DEBTS RECOVERY TRIBUNAL PATNA

¶83

[See Regulation 24( 1)]

¶84

2nd Floor) (A. B & F WhIg) Karpui Tbaku Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

¶85

RECOVERY CERTIFICATE UNDER SECTION 19(7) R£AD WITH $£CTION 19(aa OF THE RECOVERY OF DEBTS & BANKRVPTe'Y ACT,m, AS AMENDED FROM TIME TO TIME.

RC No. 69/2026 IN

Case No: OA/470/2024

In the Matter oC

(CH- 1) PUNJAB NATIONAL BANK BRANCH OFFICE AT THAKURHAT, P.0.- SABAR, P.S.-KARAMCHAT, KAIMUR (BnABUA),BIHAR -821101

Applicant(s)

Versus

(CD- 1) M/S MAA LAXMI BHANDAR a Proprietorship Concern represented through its Proprietor Chandan Sab MUage- at Thakurhat, P.O.Saban P.S.- Karmchat. Kaimur (Bhabua),BIHAR -821 101

¶94

(CD- 2) CHANDAN SAH S/0- GOPAL SAH, VILLAGE- THAKURHAT, P.0.SABAR, P.S.- KARMCHAT, DISTRICT- KAIMUR821101

¶95

Defendant(s)

¶96

(CD- 3) VINOD KUMAR SINGH

¶97

S/0- RAJ NATH SINGH, VILLAGE- BIJRA, P.0.SABAR, P.S.- KARMCHAT, KAIMUR- 821101,

¶98

Recovery Certificate for Rs 25057&1.74 1 Rupees l\verity Five Lakhs Five Thousand Seven Hundred Forty Four And Paise Seventy Four Only]

¶99

In terms of final order dated 22/01/2026 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. 25057'H.74 along with cost, expenses and interest from the 21/09/2024 i.e. date of filing / with efFective date of the OA/470/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶100

Int.Hlode EffectiveIte Order:e !ount(Rs.: Liability as lrder0 I Amount(Rs.)RC ,emark
ly
13.25 1/09/2024 g22/01/2026 r44.74 74
13.25 1/09/2024 1/2026 74 }n 144.74
13.25 1/09/2024 1/2026 15744.74 IAnd on ;744.74

¶101

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

¶102

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 pwsIlance of the Recovery certificate issued WIder Section 19(22) of Recovery of Debts and Bankruptcy Act 1993.

¶103

Parties are directed to appear before MANOJ KUMAR , Recovery onioer, DEBTS RECOVERy TRIBUNAL PATNA on 26/02/2026

¶104

The Recovery Officer shall realize the amount as per this Certificate hr the mariner mId mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to BaIks and Financial Institutions Acl 1993 (as amended from time to time) from the above named Certificate Debtors.

¶105

This Certificate has been issued under my signature and seal of the Tribunal on this 04/02/2026

¶106

a. IJIII=111) e b t s 11Ef: 1: 1%l i b u n a 1 Pat na

¶107

PRESIDING OFFICER DEBTS RECOVERY PATNA D 8b=r :: :1 ::I $1 ::1:an • I

¶108

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

¶109

DEBTS RECOVERY TRIBUNAL PATNA

¶110

2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

¶111

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

¶112

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 69/2026

Case No: OA/470/2024

Applicant(s): PUNJAB NATIONAL BANK Versus

¶117

Defendant(s): M/S MAA LAXMI BHANDAR

¶118

Item ofCosts	lountinRs
)	m8
jr
AdvocateFees	b
e	[0
e	b
Total Costs:Rs.	:8000

¶119

Place: PATNA

¶120

PRESIDKG OFFICER Date: 04/02/2026 DEBTS RECOVERY TRIBUNAL PATNA

¶121

Note: Strike out whichever is not applicable

¶122

PresIding o fleet Debts Recovery Tdbund PATHA

Punjab National Bank v. M/s Maa Laxmi Bhandar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Maa Laxmi Bhandar

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

Coram

Case details

Similar cases

Central Bank of India versus MD Rafikul Islam and Anr.

Punjab National Bank versus Oly Pramanik

Bank of Baroda versus M/s S.K. Enterprises

Indian Bank versus Mrs Sonal Rathi Proprietor of M/S Rathi Commodities and Ors.

Idbi Bank versus M/s Rahul Electric

Bank of India versus M/s Humara Pump Ram Janki