Allowed

Central Bank of India v. M/s Royal Enterprises

DRT22 Jan 2026OA/502/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by a bank to recover a debt of Rs.38,47,519.48 from corporate and individual borrowers who failed to appear. The Tribunal accepted bank affidavits and documents as prima facie evidence, confirmed jurisdiction, and issued a recovery certificate declaring the debt due jointly and severally.

What did the court decide?

Recovery certificate issued for Rs.38,47,519.48 with interest and costs; assets attached; recovery officer directed to realize dues.

Central Bank of India versus M/s Royal Enterprises — Contract and Commercial Disputes | DRT (2026)

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OA 502 of2024jJl

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DRT, PATN A

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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. 502 of 2024

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Central Bank of India. branch at Birla Mandir Road. Patna

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. . . . . . .Applicant

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Vs.

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M/s Royal Enterprises (Proprietor- Mrs. Sindhu Bala), Office Near Middle School. Sakri Gali. Sher Shah Road. Gulzarbagh. Patna 800007 (Bihar)

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Also at:- Nahar Par. Sakri Gali, Gulzarbagh, Patna 800007

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Mrs. Sindhu Bala, W/o Mr. Manoj Kumar, R/o Near Middle School, Sakri Gali, Sher Shah Road. Gulzarbagh. Patna 800007 (Bihar)

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Defendants

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Present:

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For the Applicant Shri Abhijeet Kumar, Advocate For the Defendants None

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Dated: 22.01.2026

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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) on07.10.2024 against the defendants to recover its debts from defendants of Rs.38,47,519.48 as on 12.09.2024 along with pendente-lite and future interest at the contractual rate from 13.09.2024with 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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Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of cash financial assistance of Rs.37.50Lakh vide loan application dated24.03.2022 (Cash Credit limit of Rs.30 Lakh and Term Loan of Rs.7.50 Lakh), which were sanctioned by the applicant bank on 25.03.2022 under general MSME Scheme 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. Thereafter,

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%~Preslait OSico Debts RecovefY Tdband) PATNA

DRT, PATN A

OA 502 of2024jJ I

the defendants requested the applicant bank for renewal of cash credit facility of Rs.30 Lakh vide application dated 29.04.2023. which was renewed by the applicant bank on 06.06.2023.

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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 17.06.2024.

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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.38,47,519.48 as on 12.09.2024 with pendente-lite and future interest contractual rate from 13.09.2024 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 14.11.2024, 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 on 24.01.2025, which was served by way of affixation of notice at the conspicuous part of the premises of the defendants and photographs of affixation has been attached with the affidavit filed on behalf of the applicant bank

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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 to file WS. hence. the Tribunal has passed an order to proceed exparte against the defendants on 18.07.2025 .

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

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Sl.No Description Date of Amount Signature of 1 Ex./ Documents Execution In Lakh Executants q Pr esl dine 'cet Oebb Roc'3veTY Tribunal PA TNA

DRT, PATN A

OA 502 of 20241 Jl

	PhotocoDies					No.
1	Loanapplication	24.03.2022	30.00 CC 7.50 TL	e
a		25.03.2022	30.00 CC 7.50 TL	a accepted defendants	by
	DP Note	26.03.2022	30.00	Defendants
	Letter ofcontinuit'	29.03.2022	30.00	Defendants
	e varIatIon	29.03.2022		Defendants
6	Letter of interest varlatron	29.03.2022		e
	Letter ofwaiver	29.03.2022	e
	Letter ofauthority	29.03.2022	e
	r agreement	29.03.2022	e
10	Agreement of Hypothecation	29.03.2022	e			10
11	O hypothecation agreement	29.03.2022	e			11
12	) agreement	29.03.2022	e	r
	Letter of renewal	29.04.2023		Defendants
	Sanction letter	06.06.2023	30.00	Bank accepted defendants	and by
	Legal notice	03.08.2024		Bank’sadv.
	Statement accounts of			Bank

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8 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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V'/1 \ /y' ' ' Presiding Omcef Debb Recovery Tribunal PATN A

OA 502 of2024jJl

DRT, PATN A

11 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 laos. 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 17.06.2024. 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 Bimlendu Kumar, Branch 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.

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14 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 under-

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S.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 adnritted 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 adnrissible, but not further or otherwise\al

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PrestiB8B O Ince D©bt9 Recovery Tdbuna) PATN A

OA 502 of 2024jJI

DRT. PATN A

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.

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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 12.09.2024has been proved to be Rs.38,47,519.48 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.38,47,519.48 along with pendente-lite and future interest @10% p.a. with compounded monthly rests 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 defendants. The defendants are hereby jointly and severally. ordered to pay the applicant bank its debt amounting toRs.38,47,519.48 along with pendente-lite and future interest (a 10% p.a. with compounded monthly rests from 07.10.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs V,

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Presiding Oficer Debts Recovery Tribunal PATNA

OA 502 of 2024jJl

DRT, PATN A

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 anal 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 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 27.02.2026. 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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/ // $xF [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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PresIding OfIce? Debts Recovery Tribund PATN A

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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) Mrpuri Tbaku Sadarp Kendriya Karamchari Padsm (GPOA), Ashiana Digha Road, Patna-800025.

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RECOVERY (-ERTIFI('ATE UNDER SECTION 19(a READ WITH SECTION 19( m OF THE RECOVERY OF DEBTS & BANKRUPTCy ACT 19% AS AMENDED FROM TIME TQ TIME?

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RC No, 63/2026 IN

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Case No: OA/502/2024

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In the Matter oE (CH- 1) CENTRAL BANK OF INDIA Applicant(s) BRANCH AT BIRLA MANDIR ROAD, PATNA ,BIHAR -0

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---– Versus –––

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To (CD- 1) M/S ROYAL ENTERPRISES (Proprietor Mrs. Sindhu Bala), Office Near Middle School, sakri Gali, sher shah road, Gulzarbagh, Patna ,BIHAR -800007

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Also At. NAHAR PAR. SAKRI GALI. GULZARBAGH, PATNA 800007

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Defendant(s)

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(CD- 2) MRS. SINDHU BALA W/O MR. MANOJ KUMAR, R/0 NEAR MIDDLE SCHOOL, SAKRI GALI, SHER SHAH ROAD, GULZARBAGH, PATNA- 800007 (BIHAR)

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Re99very G€rtifigate for R$ 3847$19,48 1_Mpee$ Thirty_Hght Lakh; Fg'ty $$vgr1 Th9y$a11lb Five H11rldred Nineteen And Paise FQrjy Eight (}nI}a

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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. 3847519.48 along with cost, expenses and interest from the 07/10/2024 i.e. date of filing / with effective date of the OA/502/2024 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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reno	CDN e	[Loan IType	Int. IType/Mode		Effective Date	Order Date	It(1F1ELII!!In) 10	! LTl1l:[y	’ason Irder	RC iI Amount(Rs.)
	ROYAL RISES		[onthly)	10	b7/10/2024	1/20261	138475 19.48	}intly Severally	on	1847519.48
	dRS. SINDHU		Interest Monthly )	10	l07/10/2024l2	2/01/20261	.7519.48	Fointly jseverany	lterest on O Date	b8475 19.48

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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 Officer, DEBTS RECOVERY TRIBUNAL PATNA on 27/02/2026

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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 Banks 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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Debt, bb)., Pat na

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA I,,„iding OOcet Debts RecoveIY Tlilw£nd PATNA

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FORM NO. 10 [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 (GPOA), Ashiana Digha Road, Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 63/2026

Case No: OA/502/2024

Applicant(s): CENTRAI. BANK OF INDIA Versus

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Defendant(s): M/S ROYAL ENTERPRISES

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Item ofCosts
mR;rIm
I
c
r Mm
e
TotalCosts:Rs,	m4

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Place: PATNA

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Date: 04/02/2026

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PRESIDI}jNbFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Central Bank of India v. M/s Royal Enterprises

Case brief

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Central Bank of India v. M/s Royal Enterprises

Case brief

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