Allowed

Canara Bank v. M/s Ambe Enterpries

DRT9 Jul 2026OA/483/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Patna allowed an application filed by Canara Bank under Section 19 of the RDB Act u/s 19 to recover dues of Rs. 54,96,224.78. The bank proved its case through loan documents and account statements, as defendants appeared ex parte. The Tribunal passed an ex parte order determining the debt and issuing a recovery certificate.

What did the court decide?

Recovery of Rs. 54,96,224.78 along with pendente-lite and future interest at 10% p.a. from the applicants, with a Recovery Certificate issued.

Canara Bank versus M/s Ambe Enterpries — Banking and Recovery | DRT (2026)

OA 483 of 20241 Jl

DRT, PATN A

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 483 of 2024

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Canara Bank, Boring Road-II Branch, Opposite A.N. College, Patna, P.S.SrikHshnapuri, District- Patna 800001

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. . . . . . .Applicant

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Vs.

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M/s Ambe Enterprises, situated at Bibiganj, Dalwar Road, Danapur, Police Station- Danapur, District- Patna 801503

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Mrs. Nisha Devi, wife of Mr. Tapan Kumar Singh, resident ofMohallaMaida Toli, Devi Choura, Bibiganj, Danapur Cantonment, Police Station- Danapur, District- Patna 801503, PAN No. EDAPD5740R

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. . Defendants

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Present:

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For the Applicant Shri Om Prakash Nagmani, Advocate For the Defendants None

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Dated:09.07.2026

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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 26.09.2024 against the defendants to recover its debts from defendants of Rs.54,96,224.78 as on 22.08.2024 along with pendente-lite and future interest at the contractual rate from 23.08.2024 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.

¶20

Defendant no.1 is a proprietorship firm engaged in wholesale trader of detergent, soap etc of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of OCC facility of Rs.13.75 Lakh, vide loan application dated 05.04.2022, which was sanctioned by the applicant bank on 17.05.2022 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan

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OA 483 of 20241JI

DRT, PATNA

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

¶26

Defendants again approached the applicant bank for enhancement of OCC facility of Rs.13.75 Lakh to Rs.25 Lakh, vide loan application dated 23.09.2022, which was enhanced/sanctioned by the applicant bank on 23.09.2022 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 mortgage in favour of the applicant bank, details of which are given in OA

¶27

Defendants again approached the applicant bank for enhancement of OCC facility of Rs.25 Lakh to Rs.50 Lakh, vide loan app.lication dated 06.05.2023, which was enhanced/sanctioned by the applicant bank on 19.06.2023 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 mortgage in favour of the applicant bank, details of which are given in OA

¶28

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 28.03.2024.

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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.54,96,224.78 as on 22.08.2024 with pendente-lite and fbture interest contractual rate from 23.08.2024 till the realization

DRT, PATNA

OA 483 of 2024jJI

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 30.10.2024, 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. Thereafter again notice was issued to the defendants on 18.12.2024, which was served by way of affixing it at a conspicuous part of the resident/office of the defendants. Photographs of affixing the notice has been attached with the affidavit filed on behalf of the applicant bank.

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Despite the 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 to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 12.08.2025 .

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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 Ms. Sangeeta Kumari, Senior Manager of the applicant bank. The details of documents are as follows:

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Descriptionof Documents Photocopies	1Date of IExecution 1	1Amount 1(in 1Lakh	Signatur Executants	eof
o	a3.	5	Defendants
Sanctiorl			Bank accepted defendants	and by
Loanapplication	2		Defendants
Sanctionletter	2		Bank accepted defendants	and by
LoanaDDlication	i5		Defendants
Sanctionletter	6		Bank accepte defendants	and dby .
Pronote	17.05.2022	13.75	Defendants
Pronote	23.09.2022	25.00	Defendants
Pronote	23.06.2023	25.00	Defendants
SuPPl.agreement	23.06.2023	50.00	Defendants
Rotocopno deed
Rentreceipt
Taxreceipt
CODyofmutation

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OA 483 of2024jJI

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15	Non-Encumbrance certificate			15
16	of Statement accounts		Bank	16
17&18	Legal noticewith ostal recei	20.04.2024	Adv.ofbank	17&18

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Heard arguments and perused the case record.

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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. 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.

¶47

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 28.03.20249 whereas the present application has been filed on 26.09.2024. 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.

¶48

Ms. Sangeeta Kumari, Senior Manager of the applicant bank has filed the affidavit in support of contents of application and the documents as

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OA 483 of2024jJl

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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.

¶56

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

OA 483 of2024jJl

DRT, PATN A

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 22.08.2024 has been proved to be Rs.54,96,224.78 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 tin 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.54,96,224.78 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 26.09.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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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.54,96,224.78 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 26.09.2024 (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 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. G / Not)

DRT, PATN A

OA 483 of2024jJI

Let a certificate of recovery be drawn up forthwith aId 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 mortgage(i/ 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 by the applicant. If The Applicant /Certi$cate holder fails to comply with directions of the Recovery Of$cer, the exe Futon 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 24.08.2026. The order be communicated accordingly .

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Judgment signed, sealed, dated and pronounced in the open court on 09th day of July, 2026.

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Dictated & corrected by me.

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q \D \ A L/"

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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FORM NOI 9

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24( 1 )]

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

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RE('OVERY CERTIFICATE UNDER $E(,'TION IP(Z) READ WITH SE(,'TIQN IP( a OF THE RE(.'QVERY QF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FRQ Bt TIME TO TIME,.

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RC No. 240/2026 IN Case No: OA/483/2024

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In the Matter of:

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(CH- 1) CANARA BANK BORING ROAD- II BRANCH, OPPOSITE A.N. COLLEGE, PATNA. P.S.- SRIKRISHNAPURI, PATNA ,BIHAR -800001

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Applicant(s)

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(CD- 1) M/S AMBE ENTERPRIES Situated at Bibiganj, Dalwar Road, Danapur, Police Station- Danapur, Patna ,BIHAR -801503

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(CD- 2) MRS. NISHA DEVI WIFE OF MR. TAPAN KUMAR SINGH. RESIDENT OF MOHALLA- MAIDA TOLI, DEVI CHOURA. BIBIGANJ. DANAPUR. CANTONMENT. POLICE STATION - DANAPUR, DISTRICT- PATNA- 801503

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Defendant(s)

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Rg99v€ry Certtfitate for Rs 5496224 t78 1 Rupge$ Firty Foyr Lakbs Njnety Six TbQH sand; TwQ Hyndnd Tye!!!y Four And Pals$ $everlty_Ught Only_I

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In terms of final order dated 09/07/2026 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. 5496224.78 along with cost? expenses and interest from the 26/09/2024 i.e. date of filing / with effective date of the OA/483/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors> hereinafter referred to as:-

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r.no	CDName	Loan Type	Int i Type/Mode	Int. ,Rate	Effective Date	Order Date	LmountCM.)	;LTP	Interest } 8:doi Date)	RC Amount(Rs.)	;Remark
	M/S AMBE ES							IY Y	Interest Ason C Date	:5496224.78
	DEVi1HA							lintly 'erally	lterest :::doer; Ite	b96224.78

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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 .

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Parties are directed to appear before ASHISH KUMAR ! Recovery OfTicerp DEBTS RECOVERy TRiBUNAL PATNA on 24/08/2026

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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 Acl 1993 (ai 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 Trjbhnal on this 09/07/2026

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PRESIDIBMFFICER DEBTS RECOVERY TRIBUNAL PAINA

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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 Parisar

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 240/2026

Case No: OA/483/2024

Applicant(s): CANARA BANK

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Versus

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Defendant(s): M/S AMBE ENTERPRIES

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	Item ofCosts	F Amount inRs
	'eeon the application	57000
	}ProcessFees(Inc. Publication)	to
	AdvocateFees	io
	[C8mmissioner/Receiver/Valuation/Security Fee	b
5	[iscellaneous Charges	Fo
	Total Costs: Rs	[57000

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Place: PATNA

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Date: 09/07/2026

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PRESIDINPOFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Canara Bank v. M/s Ambe Enterpries

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s Ambe Enterpries

Case brief

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What did the court decide?

What the court decided

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