Allowed

Central Bank of India v. M/s Shahil Traders

DRT22 Jan 2026OA/503/2024

Case brief

AI extract

What is this about?

The DRT allowed an application under Section 19 of the RDB Act by Central Bank of India against proprietors of a flex printing business for a loan default totaling Rs. 35.88 lakh. The tribunal issued an ex-parte order after the defendants failed to appear, relying on bank documents and averaging the account as uncontroverted evidence, and directed the issuance of a recovery certificate.

What did the court decide?

Order directing joint and several payment of Rs. 35,88,161.21 with interest at 11% per annum; issuance of Recovery Certificate; attachment of mortgaged assets.

Central Bank of India versus M/s Shahil Traders — Banking and Recovery | DRT (2026)

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OA 503 of 20241 Jl

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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 KaushalendraYadav

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OA Case No. 503 of 2024

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Central Bank of India. Birla Mandir Road Branch. Patna

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. . . . . . . Applicant

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M/s Sahil Traders (Proprietor: Mrs. Zinat Perween). Office at G/8 Ground Floor, Grand Chandra Apartment, Fraser Road, Patna 800001

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Mrs. Zinat Perween. W/o Md. Iqbal. r/o Khqjoor Bana. Chaudhrv Tola. Patna City. Patna 800 006

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Nishant Kashyap, 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.35,88,161.21 as on 12.09.2024 along with pendente-lite and future interest at the contractual rate from 13.09.2(i24with costs till realization.

¶18

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.

¶19

Defendant no.1 is a proprietorship Hrm engaged in the business of flex printing (Printing directly onto textiles, nexographic plastic, glass metal, wood and ceramics of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of cash credit limit of Rs.20 Lakh and Term Loan of Rs.3 Lakh, vide loan application dated(11.07.2019. which were sanctioned by the applicant bank on 07.06.2018under General MSME Schemeon various terms and conditions, as stipulated in the sanction letter. which were duly accepted by the defendants. To secure the loan facilities

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OA 503 of 20241 Jl

DRT, PATN A

defendants have executed various loan and security documents. Further to rehabilitate the business affected due to the nationwide lockdown during Covid-19. the borrower requested the applicant bank through an application dated 01.06.2020 for sanction of additional financial assistance of Rs.3.50 Lakh under Cent ECLG Scheme. which was sanctioned by the applicant bank on 03.06.2020.

¶25

Further on the request of the defendants. the cash credit limit of Rs.20 lakh was enhanced to Rs.30 Lakh vide sanction letter dated 28.12.2020 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. The defendants through letter dated 17.03.2023 requested the applicant bank to renew its cash credit limit of Rs.30 Lakh, which was renewed and sanctioned 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.

¶26

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 'on2 5.09.2023 .

¶27

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.

¶28

The total liability in the loan account is Rs.35,88,161.21 as on 12.09.2024 with pendente-lite and future interest contractual rate from 13.09.2024 till the realization.

¶29

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 28.10.2024, requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the

OA 503 of 2024jJI

DRT1 PATN A

DRT [Procedure] Rules. 1993. Due to none-appearance, the notice dated 24.01.2025 was again issued and served by way of affixation of notice at the conspicuous part of the defendants' premises and some photographs of the affixation of notice has also been annexed with the service report on affidavit of Shri Abhijeet Kumar. Authorized Advocate of Bank.

¶34

Despite the registered summons/notices as well as by way of affixation of notice at the conspicuous part of the defendants’ premises, 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 18.07.2025.

¶35

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

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SI.No	of Description Documents Photocopies	[Date of Execution	Amount (inLakh)	ISignature IExecutants	of	FEx./ Ann No.
	Loanapplication	01.07.2019	e
	a	07.06.2018	a CC 3.00 TL	Iaccepted 1defendants	and by
	DPNote	07.06.2018	e
	Letter ofcontinuit'	07.06.2018	e
	e varlatr on	07.06.2018	e
	Letter ofwaiver	07.06.2018	e
	Term loan agreement	07.06.2018	e
8	Agreementof hypothecation	07.06.2018	e			8
9	) agreement	07.06.2018	e			9
10	) WCTL	I	3.50	Defendants		10
11	Sanction letter	01.06.2020	3.50	Bank accepted defendants	ma by
				Defendants
	e varlatlon			Defendants
	r		3.50	Defendants
	a		3.50	Defendants

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¶38

PtnlaIn OInca ts Recovery TUbaInI PATNA

1)RT. PATN A

OA 503 of 20241 Jl

Sanction advice	28.12.2020	30.00	Bank accepted defendants
DPNote	28.12.2020	30.00	Defendants
Letterofcontinuit	28.12.2020	30.00	Defendants
Agreement hyDothecation	28.12.2020	30.00	Defendants
Supplementary agreement	28.12.2020	30.00	Defendants	20
e	17.03.2023		Defendants	21
Sanction letter	17.03.2023	30.00	Bank	22
Legal notice	05.08.2024		Bankadv	23
a accounts			Bank	24

¶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

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.

¶46

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 25.09.2023, 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

Va\

OA 503 of 2024jJI

DRT, PATN A

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.

¶53

13 . Shri Bimlendu Kumar. 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.

¶54

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.

¶55

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 certibed copy of any entry in a banker’s book shall in all legal proceedings be received as primafacie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case \'here, and to the same extent as, the original entry itself is now by law admissible, but not fUrther or other\,ise.

¶58

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.

¶59

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.

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%~ r,csi Jing OPce1 9ebe, RecoverY TdbUInl PATHA

OA 503 of2024jJl

DRT, PATN A

Defendants have neither denied the utilization of hInds 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 12.09.2024has been proved to be Rs.35,88,161.21 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.35,88,161.21 along with pendente-lite and future interest @ 11% 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 to Rs.35,88,161.21 along with pendente-lite and future interest @ 11% 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.

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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

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\v(N Vr/ Prerlding ODce? Debts Rec.veIY Tlibwu! PATMA

OA 503 of 20241 Jl

DRT, PATN A

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

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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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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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Prestdlag Ofieee OahU ReeloVen TlibunnJ P ATM/n\

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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, PaUla-800025.

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RECOVERY CERTIFICATE UNDER $EeTION 19(7) READ WITH $E(.'TIQN 19(O2 OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC No1 61/2026 IN

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Case No: OA/503/2024

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In the Matter of: (CH- 1) CENTRAL BANK OF INDIA BIRLA MANDIR ROAD BRANCH, PATNA ,BIHAR -0

Applicant(s)

-––- Versus –––-

(CD- 1) M/S SHAHE TRADERS (Proprietor: Mrs. Zinat Perween), Office at- G/8 Ground Floor, Grand Chandra Apartment, Frazer Road. Patna ,BIHAR -800001

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Defendant(s)

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(CD- 2) MRS. ZINAT PERWEEN w/o- MD. IQBAL, R/0- KHAJOOR BANA, CHAUDHRY TOLA. PATNA CITY. PATNA800006.

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R€govery C€Nifjg gIt for Rs 3588161.21 . I_Rapem Thirty Five Lqkbs EjghtyJjght ThQH$and; One Huodred Sixty One And PaiseTweaty One Onjy_J

¶96

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. 3588161.21 along with cost, expenses and interest from the 07/10/2024 i.e. date of filing / with effective date of the QA/503/2024 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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	'0 'onthly )	11	r/10/2024 1/202 B588161.21	rerally	IAson FOrder	1588161.21
IT PERWEEN	lterest [onthly)	11	b588161.21	ointly Ely	nI IAson IOrder	1588161.21

¶98

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 mongaged 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 Institutioru 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 signattue ald seal of the Tribunal on this 04/02/2026

¶102

Lr'

¶103

f\bund Debts t:gj::YaT Patna

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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' i'st Ji I}g OfIcer 'b& Recovery TribuJ,/ O PATiQA

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FORM NO. 10

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[See Regulation 24(2)]

¶108

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

¶111

RC No. 61/2026 IN

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Case No: OA/503/2024

¶113

Applicant(s): CENTRAI J BANK OF INDIA Versus

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Defendant(s): M/S SHAHIL TRADERS

¶115

Sr.No	[temofCosts	I
	)	m3
	r	b
3	c	B
4	6	in
	e	@
	'otal Costs:Rs.	m3

¶116

Place: PATNA

¶117

Date: 04/02/2026

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PRESID [CER DEBTS RECOVERY TRIBUNAL PATNA

¶119

Note: Strike out whichever is not applicable

¶120

/, .'! ': :

¶121

T ): JILIJII I iIIr11111 & a Q PATxYA : ;F: Ty;I :Jw&BI&'

Central Bank of India v. M/s Shahil Traders

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/s Shahil Traders

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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Case details

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