Allowed

Central Bank of India v. Mrs. Abha Lakhotia

DRT22 Jan 2026OA/501/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Central Bank of India against the legal heir of a deceased borrower. The tribunal determined the principal debt and ordered recovery with interest, attaching the mortgaged and hypothecated assets.

What did the court decide?

The defendant is ordered to pay Rs. 73,44,948/- along with pendente-lite and future interest @ 10% p.a. simple from the date of filing till realization, with attached assets subject to recovery procee

Central Bank of India versus Mrs. Abha Lakhotia — Banking and Recovery | DRT (2026)

DRT, PATN A

OA 501 of 20241 Jl

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. 501 of 2024

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Central Bank of India. Moradpur Branch, Patna

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Vs.

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Mrs. Abba Lokhotia, Legal heir and W/o Late Anil Kumar Lakhotia (Proprietor of M/s Maheshwari Distributors), R/o Flat No.34, Sarswati Apartment, S.P. Verma Road. Patna (Bihar)- 800008, PAN No.ALNPL2960N

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. . . . Defendant

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Present:

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For the Applicant For the Defendant

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: Shri Nishant Kashyap, Advocate : Dr. B.K. Singh. Advocate

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Dated: 22.01.2026

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JUDGMENT

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1 . 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) on07.10.2024 against the defendant to recover its debts from defendant of Rs.73,44,948/- as on 20.08.2024 along with pendente-lite and fbture interest at the contractual rate from 21.08.2024with 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 . Anil Kumar Lakhotia (now deceased) and proprietor of M/s Maheshwari Distributor, engaged in the business of retail & wholesale of medicines approached the applicant bank on 27.10.202 1 with an application for total financial assistance of Rs.90 Lakh and the applicant bank had sanctioned the total financial assistance of Rs.90 Lakh on 08.11.2021 under the MSME Scheme on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities defendant has executed various loan and security documents.

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Plrstdlbt Ogle+ a,bt, RecoverY TUbu-d PATNA

OA 501 of 2024FJI

DRT, PATNA

It has further been stated that when the authorities of the applicant bank visited the business premises of Anil Kumar Lakhotia for inspection, then it was found that the borrower Anil Kumar Lakhotia was deceased hence his legal heir was made as defendant

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After availing the sanctioned credit facility, the borrower became irregular in repayment of the 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 10.06..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.73,44,948/- as on 20.08.2024 with pendente-lite and future interest contractual rate from 21.08.2024 till the realization

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This Tribunal issued summon/notices copies of application & paper book to the defendant by registered/speed post on 14.11.2024, requiring him to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules. 1993 .

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In response to the notice, defendant has appeared by filing vakalatnama on 02.12.2024 and filed written statement as well as Written notes of arguments admitting therein that the defendant is the legal heiress and wife of Late Anil Kumar Lakhotiya, Proprietor of M/s Maheshwari Distributors. It has farther been stated that the defendant has not executed any loan document either in her individual capacity or in jointness and came to know about the factum of sanction of loan from perusal of OA. The defendant has not inherited any property much less immovable property of her husband and therefore her name deserves to be expunged as defendant in the OA. The recovery suit against the defendant is not maintainable and requested to expunge the name of the defendant. n / \bA\

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p„,laing OOco Debts RecoverY Tdb\maI PATN A

OA 501 of 2024jJl

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 Vishal Kumar, Branch Senior Manager of the applicant bank. The details of documents are as follows:

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SI.No	Descriptionof Documents Photocopies	Amount (in Lakh)	}Signature 1Executant	s	of	Ex./ Ann No.
1	I		Decea Kumar prop. Mahesh Distribut	sed Lak wari ors	Anil hotia, of	1
2	a	90.00	Bank an by Dec Kumar prop. Mahesh Distribut	d acc eased Lak wari ors	epted Ann hotia, of	2
/1J	o	90.00	Decea Kumar prop. Mahesh Distribut	sed Lakh wari ors	Anil otia, of	aJ
4	e varIatIon		Decea Kumar	sed Lakh	Anil otia,	4
			prop. Maheshw Distribut	ari ors	of
5	e	90.00	Decea Kumar prop. Maheshw Distribut	sed Lakh ari ors	Ann otia, of	5
	e		Bank’sad	v.
	Statementofaccount		Bank

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Heard arguments and perused the case record. During the course of arguments, the defendant has admitted that she is the legal representative of deceased borrower Ann Kumar Lakhotia, Prop. of Maheshwari Distributors and further submission is that she has not inherited any property and requested that her name may be expunged as defendant from the C). A.

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Ld. Counsel of applicant bank submitted that the deceased borrower Ann Kumar Lakhotia, prop. of Maheshwari Distributors 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

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VaT C)/' PresidIng O©cet DeM Recovery TdbwraJ PATN A

OA 501 of 20241 Jl

DRT, PATNA

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 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.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 10.06.2024, whereas the present application has been filed on 07.10.2024. 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.

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Shri Vishal Kumar, Branch Senior 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

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r ,..1 .%'a#... Debts RecoverY TdbultaJ PAT NA

DRT1 PATN A

OA 501 of 20241 Jl

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 n'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 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 deceased borrower Anil Kumar Lakhotia, prop. of Maheshwari Distributors has 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 deceased borrower Ann Kumar Lakhotia, prop. of Maheshwari Distributorshas executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendant has 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 deceased borrower under the agreed terms and conditions for repayment with interest. The balance amount till 20.08.2024has been proved to be Rs.73,44,948/- 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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t regt dIng OfIc,F Debts RecoveV TribwriJ PATh A

OA 501 of 20241 Jl

DRT1 PATNA

In the present case the defendant is the legal representative of the deceased borrower Anil Kumar Lakhotia, prop. of Maheshwari Distributors hence the defendant is liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from her deceased husband.

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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.73,44,948/- along with pendente-lite and future interest @10% p.a. simple from 07.10.2024 (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 toRs.73,44,948/- along with pendente-lite and future interest @ 10% p.a. simple from 07.10.2024(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 the defendant is liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from her deceased husband.

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It is further 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

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\t/’ryA \ ry' O iIRCaF beLts Recovery Tribuna! PATNA

DRT, PATNA

OA 501 of 20241 Jl

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 defendant, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant. 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.

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

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

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna Presidin8 OfTen D8bt8 Recovery Tribunal PATNA

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FORM NO. 9 [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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

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RE€'QVERY CERTIFI(.'ATE UNDER SECTION 19(Z) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No. 62/2026

Case No: OA/501/2024

In the Matter of (CH- 1) CENTRAL BANK OF INDIA MORADPUR, BRANCH PATNA ,BIHAR -0

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Applicant(s)

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(CD- 1) MRS. ABHA LAKHOTIA Legal heir and W/o- Late Anil Kumar Lakhotia (Proprietor of M/s Maheshwari Distributers) R/o Flat No. 34, Sarswati Apartment, S. P. Verma Road Patna ,BIHAR -800008

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Defendant(s)

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RegQvery Certifigate for Rs 7344948,00 [ Rupee$ Seventy Three LRkh; Forjy FQur Tho II$and$ Nine

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Hyndred FQrtyUghf Only_]

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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. 73'Y948.00 along with cost, expenses and interest from the 07/10/2024 i.e. date of filing / with effective date of the OA/501/2024 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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rl	CDN le	ILoan ITYpe	Int Ie/Mod	e	Effective Date	Order Date	It(Rs.) IAmo	iabili rpe	nteres 0 >rder	RC It(Rs.) 10	Remar}
	ABHA LAKHOT		le lterest ’early)	10	r/10/2024	1/2026	l7344948.00	IFuny	[nterest on Irder	144948

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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 MANOJ KUMAR , Recovery Officer1 DEBTS RECOVERy TRiBUNAL PATNA on 26/02/2026.

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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 Barks 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 Tribunal on this 04/02/2026

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( L I
Debts EEgIs::.ST.\b\no
Pat iIa

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA Presiding Of-ten Debts Recovery Tribunal PATNA

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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, 62/2026

Case No: OA/501/2024

Applicant(s): CENTRAL BANK OF INDIA Versus

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Defendant(s): MRS. ABHA LAKHOTIA

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e	I
ii;iiii	[7–aaid
i:–pInEali
AdvocateFees	iE
	@
e	@
mI Costs:Rs	m6

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Place: PATNA

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Date: 04/02/2026

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PRESIDING OFFICER

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DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

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D IFLI!111) b 1):: 1;jeI? i!II?;i= n 4)

Central Bank of India v. Mrs. Abha Lakhotia

Case brief

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Central Bank of India v. Mrs. Abha Lakhotia

Case brief

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