Allowed

Bank of India v. M/s Monika Khad Beej Bhandar

DRT23 Jun 2026OA/473/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 RDB Act to recover a loan debt of Rs. 29,08,945 along with interest and costs from the proprietors and guarantor after finding the evidence of non-repayment and established jurisdiction and limitation. A recovery certificate was issued.

What did the court decide?

Recovery certificate issued for Rs. 29,08,945/- with interest at 10% p.a. from the date of filing until realization.

Bank of India versus M/s Monika Khad Beej Bhandar — Contract and Commercial Disputes | DRT (2026)

OA 473 of 20251 Jl

DRT, PATN A

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 473 of 2025

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Bank of India, branch situated at lst Floor of Sharan Complex, at Motihari, District- West Champaran

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. . . . . . . Applicant

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Vs.

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M/s Monika Khad Beej Bhandar (Proprietorship firm), represented through its proprietor Bir Lakhan Prasad Yadav, at village- Parauliya, Post- Rulahi, Suryapur, Jhakhara Pipra Kothi, District- East Champaran845429

¶12

Bir Lakhan Prasad Yadav, son ofYogendra Prasad Yadav, resident of village- Parauliya, Post- Rulahi, Suryapur, Jhakhara Pipra Kothi, District- East Champaran- 845429, PAN No. AFFPY6526H

¶13

Reeta Devi, wife of Bir Lakhan Prasad Yadav, village- Parauliya, PostRulahi, Suryapur, Jhakhara Pipra Kothi, District- East Champaran845429, PAN No. EAWPD204 IC

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Ratnesh Nandan Sinha, Advocate For the Defendants Shri Dharam Deepak Vishwas, Advocate

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Dated:23.06.2026

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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 16.05.2025 against the defendants to recover its debts Bom+defendants of Rs.29,08,945/- as on 15.01.2025 along with pendente-lite and fbture interest at the contractual rate from 16.01.2025 with costs till realization.

¶20

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.

OA 473 of 20251JI

DRT, PATNA

Defendant no. 2 in the year 2008 approached the applicant for sanction of agricultural loan / KCC to meet the requirements of his agricultural works and the bank had sanctioned Rs.50,000/- on 19.11.2008 and thereafter also sanctioned CC facility of Rs.9 Lakh, Vehicle Loan of Rs.6.50 Lakh, business loan of Rs.5 Lakh, Housing Loan of Rs.11 Lakh, Star GECL loan of Rs.1.60 Lakh on different dates 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 hypothecated the vehicles as well as movables and also created mortgage in favour of the applicant bank, details of which are given in OA

¶25

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 on28. 11.2023 .

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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.

¶27

The total liability in the loan account is Rs.29,08,945/- as on 15.01.2025 with pendente-lite and future interest contractual rate from 16.01.2025 till the realization.

¶28

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 17.07.2025, 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. 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 05.12.2025 in “Prabhat Khabar” and Times of India” newspapers.

b\k

OA 473 of 20251 Jl

DRT, PATNA

The defendants have appeared and filed their written statement admitting therein that the defendant no.1 is a proprietorship firms, which deals in business of seeds and fertilizer and the firm through its proprietor, approached the applicant bank, Motihari Branch and requested for financial assistance and total 06 types of loan was borrowed. It has further been stated that the bank has been charging interest by compounding at monthly rest, whereas the sanctioned letter is silent on monthly compounding of interest. The applicant bank has wrongly declared the accounts as NPA on two different occasions and charged interest and capitalized the same in violation of settled law and requested to dismiss the OA.

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

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SI.No	Descriptionof Documents Photocopies	Date of Execution	IAmount 1 (in Lakh)	Signature Executants	of	1Ex./ Ann No.
	LoanaDDlication	03.02.2016	9.00	Def.no.2
	Sanctionletter		9.00	Bank
	DPNote	04.04.2016	9.00	Def.no.2
	Hypothecationcum loanagreement	04.04.2016	9.00	Def.no.2
	Agreement	04.04.2016	9.00	Def.no.2
	Deedofguarantee	04.04.2016	9.00	Def.no.3
	Acknowleme ofdebt/security	02.03.2017 01.01.2020 29.12.2022		Def.no.2
	Loanapplication	08.06.2020	1.60	Def.no.2		9
	Unconditional undertakin	09.06.2020	1.60	Def.no.2		10
	D P Note	09.06.2020	1.60	Def.no.2
	Hypothecationcum loanagreement	09.06.2020	1.60	Def.noi
	Deedofguarantee	09.06.2020	1.60	Def.no.3
	Acknowledgement ofdebt/ securit	05.06.2023		Def.no.2
	Loanapplication	01.09.2008	Rs.50,000/-	Def.no.2
	Sanctionletter	19. 1 1 .2008	Rs.50,000/-	Bank accepted def.no.2	and by
			Rs.50.000/-	Def.no.2
	) loanagreement		Rs.50,000/-	Def.no.2
18	Ackno\meI			e

V,\k

OA 473 of 20251 Jl

DRT, PATN A

	ofdebt/security	20.04.2013 20.07.2015 30.10.2017 09. 10.2020 05.10.2023
o			6.50	Defendants		20
nan	ctio iIletter	06.08.2021	6.50	Bank accepted' defendants	and by	21
21	DPNote	13.07.2021	6.50	Def.no.2		22
22	L440	13.07.2021		Def.no.2		23
23	Hypothecation agreement	13.07.2021	6.50	Def.no.2		24
24	Acknowledgement ofdebt/securit	10.07.2024		Def.no.2		25
25	Loan aDDlicatioi	05.09.2019	5.00	Defendants		26
26	SanctioII letter	20.12.2019	5.00	Bank accepted defendants	and by	27
27	DPNote	23.12.2019	5.00	Defendants		28
28	L434	23.12.2019	5.00	Defendants		29
29	L440	23.12.2019	5.00	Defendants		30
30	Term agreement loan	25.09.2019	5.00	Defendants		3 1
31	Acknowledgement ofdebt/ securit'	21.12.2022		Defendants		32
32	Housing loan aDDlication			Defendants		33
33	Sanction letter	13.02.2017	11 .00	Bank accepted defendants	and by	34
34	DPNote	13.02.2017	11.00	Defendants		35
35	L440	13.02.2017		Defendants		36
36	Agreement forhome loan	13.02.2017	11.00	Defendants		37
37	Agreement	13.02.2017	11.00	Def.no.2		38
38	MCLRagreement	13.02.2017	11 .00	Defendants		39
39	Acknowledgement ofdebt/securiO	01.02.2020 03.01.2023	11 .00	Defendants		40
40	Photocopy oftitle deed					41
41	Oralascent	13.02.2017	11.00	Defendants		42
42	Statement of accounts			Bank		43& 44

¶41

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

OA 473 of 2025jJI

DRT, PATN A

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. 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.

¶48

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 28.11.20239 whereas the present application has been filed on 16.05.2025. 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.

¶49

Shri Abhijeet Kumar, Chief Manager of the applicant bark 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.

¶50

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.

DRT. PATN A

OA 473 of 20251 Jl

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 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 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 .

¶59

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 15.01.2025 has been proved to be Rs.29,08,945/- 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. h / . Va>

OA 473 of2025jJl

DRT, PATN A

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.29,08,945/- along with pendente-lite and future interest @10% p.a. simple from 16.05.2025 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of Justrce.

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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.29,08,945/- along with pendente-lite and future interest @ 10% p.a. simple from 16.05.2025 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶66

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 mortgage(i 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, - ro proclamation of sale will be issued, if the

DRT, PATN A

OA 473 of 20251 Jl

Defendant/Certipcate Debtor ensures payment of the certifIcate amount in 6 months from the date of demand notice to the CertiDcate debtors. The Recovery Of$cer will issue demand notice to the Certi$cate 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 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 04.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 23Fd day of June, 2026.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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FORM NOt 9 [See Regulation 24( 1 )]

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DEBTS RECOVERY TRIBUNAL PATN A

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2„d Fl..,, (A. B & F wi.g) K„p„,i Th'k"' S'd”',K'ndriya KMamchad PadsM(GPOA)' A;llh” Die!'?.IV:..T:

FTP

1 Mm M

RC No. 174/2026 IN

Case No: OA/473/2025

In the Matter of:

(CH- 1) BANK OF INDIA BRANCH SITUATED AT 1 ST FLOOR OF SHARAN COMPLEX AT MOTIHARI,

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Applicant(s)

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PASHCHIM CHAMPAh\N ,BIHAR -845429

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––– Versus ---––

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(CD_ 1) M/S MONIKA KHAD BEEJ BFIANDAR (Proprictorship Firm) represented through its Proprietor Bir [,aHran Prasad Yadav, at Mllage- Parauliya, PostRuldri, Suyapur, Jhakhara Pipra Kothi, Purba Champaran ,BIHAR -845429

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(CD- 2) BIR LAKHAN PRASAD YADAV SON OF YOGENDRA PRASAD YADAV RESIDENT OF VILLAGE- PARAULIYA POST- RULAHI, SURYAPUR. JHAKH ARA, PIPRA KOTHI, DISTRICTDefendant(s) EAST C'HAMPARAN - 845429, PAN- AFFPY6526H

¶93

(CD 3) REETA DEVI WIFE OF BIR LAKHAN PRASAD YADAV (GUARANTOR), VILLAGE- PARAULIYA, POSTRULAHI. SURYAPUR, JHAKHARA, PIPRA KOTHI, DISTRICT- EAST CHAMPARAN- 845429, PAN NOEAWPD204 IC

¶94

B£Hu£ryJ[AwLTyMyMLabWgyMmy_1

¶95

In terms of final order dated 23/06/2026 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder BM is entitled to recover a sum of Rs. 2908945.00 along with cost, expenses and interest from the 16/05/2025 i.e. date of filhrg / with effective date of the OA/473/2025 and future interest from order date till the date of realisation in full> jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶96

Sr.n	o CDName	Int. T)Te/Mode
1	M/S MONll(A KHADBEEJ BHANDAR		10		23/06/2026	5.00	lintly And 'erally	As .F)1::Ker '
2	BIRLAKHAN PRASAD YADAV	(Yearly )	10	16/05/2025	t/06/2026	b5.00	lintlyAnd Ly	Interest As Order :Date
3	REETADEVI	imple Interest (Yearly )	10	16/05/2025	1/06/2026	1945.00	ly	ltcrclstAs on Order Date

¶97

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.

¶98

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.

¶99

Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 04/08/2026.

¶100

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.

¶101

This Certificate has been issued under my signature and seal of the Tribunal on this 24/06/2026

¶102

¶103

P biNG OFFICER DEBTS RECOVERY TRiBUNAL PATNA

_ Re91$trIP ’;H:F1

FORM NO. 10

[See Regulation 24(2)]

¶108

DEBTS RECOVERY TRIBUNAL PATNA

¶109

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

¶110

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 174/2026

Case No: OA/473/2025

Applicant(s): BANK OF INDIA Versus

¶115

Defendant(s): M/S MONIKA KHAD BEEJ BHANDAR

¶116

ItemofCosts	!AmountinRs
'eeontheapplication	32000
'rocessFees(Inc.Publication)	0
dvocateFees	0
IC	10
iscellar;gbl;leil;r£i£	id
fit;It&Ts;--fi	Bi–0%

¶117

Place: PATNA

¶118

Date: 24/06/2026

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PRESIDIN 'FICER DEBTS REC'OVERy TRIBUNAL PATTqA

¶120

Note: Strike out whichever is not applicable

Bank of India v. M/s Monika Khad Beej Bhandar

Case brief

What is this about?

What did the court decide?

Bank of India v. M/s Monika Khad Beej Bhandar

Case brief

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