Allowed

Indian Bank (Allahabad Bank) v. M/s Shitla Cement

DRT22 Jan 2026OA/509/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed a bank's application under Section 19 of the RDB Act for recovery of a debt of ₹35,28,929.89. The defendants failed to appear and contest the case after being summoned. The Tribunal confirmed the jurisdiction and limitation position, accepted the bank's documentary evidence, and determined the debt amount.

What did the court decide?

The defendants were ordered to pay the debt amount of ₹35,28,929.89 along with pendente-lite and future interest at 10.25% p.a. from 30.09.2024 till realization, with costs.

Indian Bank (Allahabad Bank) versus M/s Shitla Cement — Banking and Recovery | DRT (2026)

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OA 509 of 2024 1 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 Kaushalendra Yadav

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OA Case No. 509 of 2024

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Indian Bank (erstwhile Allahabad Bank), branch at Oriental College, Nai Sadak. (.,ujari Bazar. Nawab Bahadur Road, Patna City, Patna 800 007

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. . . . Applicant

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M/s Shitla Cement through its proprietor Sri Sujeet Kumar, situated at Mehandiganj Kushwaha Chawk, Gulzarbagh, Patna City- 800 008

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Sri Sujeet Kumar. Proprietor of M/s Shitla Cement. S/o Late Prahlad Mahto. Resident at + P.S.- Mehandiganj, P.O.- JhaugarIi. Patna 800008

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Sri Bhubneshwar Prasad, S/o Faujdari Shah, resident at + PSMehandiganj. P.O.- Jhauganj, Patna 800008

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Smt. Malti Devi, W/o Late Prahlad Mahto. resident at + PSMehandiganj, P.O.- Jhauganj, Patna 800008

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. . . . . . . Defendants

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Present:

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

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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) on30.09.2024against the defendants to recover its debts from defendants of Rs.35,28,929.89 as on 03.09.2024 along with pendente-lite and future interest at the contractual rate from 04.09.2024with 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. Defendant no. 3 & 4 are the guarantor of the loan facilities. Defendants approached the applicant bank for sanction of cash credit facility

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OA 509 of 2024 IJI

DRT, PATN A

of Rs.5 Lakh vide loan application dated08.01.2013 for business trading of retail building material shop. which was sanctioned by the applicant bank on 25.01.2013on 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 equitable mortgage in favour of the applicant bank, details of which are given in OA.

¶27

Defendants again approached the applicant bank for enhancement of cash credit facility of Rs.5 Lakh upto Rs.9 Lakh vide loan application dated 09.12.2013 for business trading of retail building material shop, which was sanctioned by the applicant bank on 12.12.2013on 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/extended equitable mortgage in favour of the applicant bank. details of which are given in OA.

¶28

Defendants again approached the applicant bank for enhancement of cash credit facility of Rs.9 Lakh upto Rs.18 Lakh vide loan application dated 02.09.2016 for business trading of retail building material shop9 which was sanctioned by the applicant bank on 20.09.2016on 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/extended equitable mortgage in favour of the applicant bank, details of which are given in OA. The defendants have also executed acknowledgement of debt dated 29.06.202 1 and 13.07.2022 respectively.

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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 23.11.2018.

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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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D eb: ::!!!!I ! i =: tunb N

OA 509 of 2024 IJl

DRT, PATN A

The total liability in the loan account is Rs.35,28,929.89 as on 03.09.2024 with pendente-lite and future interest contractual rate from 04.09.2024 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 26.10.2024, 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. Notice dated 17.01.2025 issued by the Tribunal has also been served on the conspicuous part of the residence and business unit of the defendants and also by the hand delivery of notice with receiving by the defendants and some photographs have also been annexed with the affidavit of Shri Prashant Mishra, Branch Manager of the applicant bank.

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Despite the registered summons/notices and publication of notice in newspaper. 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 30.07.2025.

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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 Prashant Mishra9 Branch Manager of the applicant bank. The details of documents are as follows :

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SI.No	Description Documents Photocopies	of1Dateof Execution	IAmount 1 (in Lakh)	ISignature IExecutants	no	Ann No.
	o		5.00	De£no.I&2
	a		5.00	Bank
	e Hypothecation		5.00	De£no.1&2
4	r PDR		5.00	e and Vishwajit Kumar	one
	Loan application	109.12.2013		Def.no.1&2		B
	a		9.00	Bank		B/1
	o		9.00	Def.no.1&2		n/
	A		9.00	Defno.1&2		B/3
	A		9.00	Def.no.1&2		B/4
	e hypothecation		9.00	Def.no.1&2		B/5

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>/341 , ,(?’ O R-i cet

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Debts I,ecovery TribuneI PATNA

OA 509 of 2024 1 Jl

DRT, PATN A

1	42	12.12.2013	9.00	Def.no.l&2 One Vish Kumar	and wajit	IB/6
o	a			e One Vish Kumar	wajit
1 3	Agreement PDR t		9.00	e One Vish Kumar	wajit
14	Loanapplication	02.09.2016	18.00	Def.no.I&2		C
15	Sanction letter	20.09.2016	18.00	Bank		C/1
16	DPnote	20.09.2016	18.00	Def.no.1&2		C/2
17	General letterof Hypothecation	20.09.2016	18.00	Def.no.I&2		C/3
18	t	20.09.2016	e			C/4
19	r PDR	20.09.2016	e			C/5
20	Letter ofmortgager confirming deposit of titledeed	20.09.2016	e			C/6
	Undertakin1	20.09.2016	e			C/7
	e recital		e			C/8
2 3	Photocopy ofsale deed with other papers	05.03.2016				D serIes
24	Acknowledgement ofdebt	29.06.2021 13.07.2022		Def.no.I&2		E
	Demand notice	20. 10.2021		Bank
	Legal notice	14.05.2024		Bankadv.
	Statement of accounts			Bank		series

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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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yd) Presiding Oficet Debts Recovefy Tlibwl;al PATNA

OA 509 of 2024 1 Jl

DRT1 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 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 23.11.2018. whereas the present application has been filed on 30.09.2024. 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.

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Shri Prashant Mishra. Branch 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 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 admitted as evidence of the nratters, transactions and accounts therein recorded in every case

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1 F • rhI VIIi cel BUBba I'o:TH TdbUd

OA 509 of 2024 1 Jl

DRT, PATN A

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

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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 03.09.2024has been proved to be Rs.35,28,929.89 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.35,28,929.89 along with pendente-lite and future interest @10.25% p.a. with compounded monthly rests from 30.09.2024 (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 toRs.35,28,929.89 along with pendente-lite Td future interest @ 10.25% p.a.

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PresIding Of'icer t>BOW Recovery Tribuna) PATNA

OA 509 of 2024 1 JI

DRT, PATNA

with compounded monthly rests from 30.09.2024 (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.

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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 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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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna Pr d >laing Often Debts Recovery TdbM PATNA

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FCIRN! NOt 9 [See Regulation 24( 1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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

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RECOVERY CERTIFICATE UNDER $E(.'TION IP(a READ WITH SECTION 19(nz OF THE RECOVERY OF DEBTS & BANIgtUPTCYACTtW? AS AMENDED FIU?M TIME TQ T!&t£•

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B£NgJ2ZZ92£ IN

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Case No: OA/509/2024

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In the Matter of: (CH- 1) INDiAN BANK (ALLAHABAD BANK) BRANCH AT ORIENTAL COLLEGE, NAI SADAK, Applicant(s) GUJARI BAZAR, NAWAB BAHADUR ROAD, PATNACITY, PATNA ,BIHAR -800007

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–– Versus ––To

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(CD- 1) M/S SHITLA CEMENT Through its Proprietor Sri Sujeet Kumar, Situated atMehandiganj Kushwaha Chauk, Gulzarbagh, Patna City, Patna ,BIHAR -800008

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(CD- 2) SRI SUJEET KUMAR PROPRIETOR OF M/S SHITLA CEMENT. S/0- LATE PRAHALAD MAHTO. RESIDENT AT AND P.S MEHANDIGANJ, P.0.- JHAUGANJ, PATNA- 800008

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Defendant(s)

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(CD- 3) SRI BHUBNESHWAR PRASAD S/0 FAUJDARI SHAH. RESIDENT AT AND P.S.MEHANDIGANJ, P.0.- JHAUGANJ, PATNA- 800008

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(CD- 4) SMT. MALTI DEVI

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W/0- LATE PRAHLAD MAHTO. REsiDENr AT AND

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P.S.- MEHANDIGANJ, P.0.- JHAUGANJ. PATNA800008

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ReggKry CerttHgate for R; $$2892949 [ Rupee$ Thjrty Fi'e Lakh s TwentyJjght Thousands Nine Hundred Twenty Nine A.d P,be

¶103

UgbR IViqe QrllyJ

¶104

In terms of final order dated 22/01/2026 passed by this Tribunal in the above mentioned case, it is ordered that the AppHcant Certificate Holder Bank is entitled to recover a sum of Rs. 3528929.89 along with cost! expenses and interest from the 30/09/2024 i.e. date of filing / with effective date of the OA/509/2024 and future interest from order date till the ate of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:_

¶105

lrderlate lunt(Rs.) 'r Amount(Rs.)IC ReIna
528929.89 B528929.89
0
528929.89 i528929.89
{WAR ro 1/2021 1528929.89 1528929.89
aT. MALTI DEVI H528929.89 1528929.89

¶106

In case of failure to pay the aforementioned adjudicated amowrt within 30 days! same shall be recovered from the sale of the moFtgaged/hYpothecated assets as well as other personal movable/ Immovable assets of the certificate debtors.

¶107

The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final gc:eF under the KcovwY proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. - - ’ ---- '

¶108

Panes an directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TMBUNAL PAINA on 26/02/2026

¶109

The Recovery Officer shall realize the amourt as per this Certificate in the manner and mode prescdbed mder Sections 25 to 28 of the RecoverY of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) homthe above named Certificate Debtors. ' ' - – -– – ’- –- ’

¶110

Thls Certificate has been issued under my siWature and seal of the Tribunal on this 04/02/2026

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P
DEBTS RECOVERY TRIBUNAL PAINA
Debts
REilty4,
Pat na

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¶113

FORM NO. 10

¶114

[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. 72/2026

Case No: OA/509/2024

Applicant(s): INDIAN BANK (ALLAHABAD BANK) Versus

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Defendant(s): M/S SHITLA CEMENT

¶124

r. No	ItemofCosts	I
	;iii-iiimc=	m3
I	=F;iiiiii:
i	c
	r vmmi-tm
	e
	moms

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Place: PATNA

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PRESIDING OFFICER

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Date: 04/02/2026 DEBTS RECOVERY TRIBUNAL PATNA

¶128

Note: Strike out whichever is not applicable

¶129

Pr est dilII of\co Debts Recovery Tribunal PATNA

Indian Bank (Allahabad Bank) v. M/s Shitla Cement

Case brief

What is this about?

What did the court decide?

Indian Bank (Allahabad Bank) v. M/s Shitla Cement

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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Parties & counsel

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Case details

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