Allowed

Bank of Baroda v. M/s Kumar and Kumar

DRT25 Jun 2026OA/512/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank of Baroda's application under Section 19 of the RDB Act to recover dues. The court accepted the bank's documentary evidence and affidavit despite the defendants' failure to file a written statement to establish the loan details, total dues of Rs. 28,54,258.07, and issuance of a recovery certificate.

What did the court decide?

Order that the defendants jointly and severally pay Rs. 28,54,258.07 along with interest @ 10% p.a. to the applicant, attach mortgaged assets, and issue a recovery certificate for immediate realizatio

Bank of Baroda versus M/s Kumar and Kumar — Banking and Recovery | DRT (2026)

DRT, PATNA

OA 512 of20251JI

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 . OA Case No. 512 of 2025

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Bank of Baroda, Branch Office at Danapur Branch, Saguna More, B.M. Complex. Patna- 80 1503, . . . . . . .Applicant

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1 M/s Kumar and Kumar, a Proprietorship Concern through its Proprietor Raj Kumar Gupta S/o Radha Prasad Gupta.. Bibiganj, Danapur Cantt, Patna- 801503

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2 Raj Kumar Gupta, S/o Radha Prasad Gupta PAN- AAWPG2224J [Borrower & Mortgagor]

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3 Savitri Devi, W/O Radha Prasad Gupta [Guarantor & Mortgagor] Both residents of Gupta Kunj, Bibiganj, Danapur, Dinapur-cumKhagaul, Patna, Bihar- 801503

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. . . . . . . . Defendants

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Present:

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For the Applicant Shri Manish Kishore, Advocate For the Defendants Shri Harsh Kaushal, Advocate Shri Kuldeep Thakur, Advocate Shri Pulkit Thakur, Advocate

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Dated:25.06.2026

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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 02.07.2025 against the defendants to recover its debts from defendants of Rs.28,54,258.07 as on 18.06.2025 along with pendente-lite and future interest at the contractual rate from 19.06.2025 with costs till realization.

¶19

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

Defendants approached the applicant bank for sanction of overdraft facility of Rs.30 Lakh, vide loan application, which was sanctioned by the

¶21

Lab * ’r*3:icling OBIcel e)'- I' Rei:TH THbud

OA 512 of 2025IJ1

DRT, PATNA

applicant bank on 29.03.2012 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 equitable mortgage in favour of the applicant bank, details of which are given in OA.

¶26

Defendants availed the credit facility smoothly till 2024 and time to time account was renewed and the defendants also acknowledged the liabilities by executing Letter of Acknowledgement of Debt in favour of Applicant Bank on 20.10.2014, 30.05.2017, 16.09.2019, 28.05.2020, 02.05.2023 and 12.12.2024 whereby they acknowledged their liability and promised to pay the same.

¶27

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 18.06.2025

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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.

¶29

The total liability in the loan account is Rs.28,54,258.07 as on 18.06.2025 with pendente-lite and future interest contractual rate from 19.06.2025 till the realization.

¶30

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 21.07.2025, 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.

¶31

In response to the notice, the defendants have appeared through their Id. Counsel by filing vakalatnama dated 09.09.2025 but the defendants have failed to fil their written statement within the statutory period hence vide order dated 19.01.2026, opportunity for the same was closed.

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t Do&b I,Uk' CJ rely Tribtura,... FATNA

OA 512 of2025jJl

DRT, PATNA

The defendants have filed their rebuttal evidence stating therein that the defendants have always intended to clear the dues but the bank refused to consider it and the loan account in question has ben forcefullp classified as NPA. The defendant no.2 has given an undertaking to restructure the installment of loan account in question vide representation dated 12.07.2025 but the same has not been considered by the bank and the applicant bank is not entitled to the recovery certificate as prayed for in OA.

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

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Sl.No	Description Documents PhotocoDies	of	Date Execution of	1Amount (in Lakh)	ISignatureof 1Executants I	1Ex./ IAnn. INo.
	m)Dlicatio	n	23.03.2012	e
	SanctionLetter		29.03.2012	3
	Letter of ProDrietorshi	Sole-	04.04.2012		Def.no.1&2
4&5	D.P. Noteand of Conti Securit'	Letter nuing	04.04.2012	e
6	Instrumr Hypothecati Goods	onof	04.04.2012	e	a
7	General For Guarantee	m of	04.04.2012	e		7
8&9	Declaration-cum Undertaking-cu Authority and Agreement	- m- PDR	04.04.2012	e		8&9
10to 13	Memorandu Entry along photocopy of dated05.08. and29.03.2008	mof with Sale 1977	04.04.2012	e		10 to 13
14	Declaration in matter ofMort by Deposit of Deeds in resp Immovable broDerties	the gage Title ect of	04.04.2012	e	ma
15	Letter Acknowledgem ofDebt	of ent	20.10.2014 30.05.2017 16.09.2019 28.05.2020 02.05.2023		e

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Prest din;PQ near fIah tJ Rn n.-'-'erTr ':'r?': -' , .'

OA 512 of2025jJ I

DRT, PATN A

		12.12.2024
e	Recall Notice	03.03.2025 21 .03.2025	16&17
18	Letter	15.04.2025& I 28.05.2025	18
19	DemandNotice	21.06.2025	19
20	of Statement		20

¶44

Heard arguments and perused the case record. During the course of arguments, there is no any specific denial on behalf of the defendants with regards to the sanction of loan facilities and its utilization and further there is no any specific denial with regards to the execution of loan and security documents in favour of the applicant bank.

¶45

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.

¶47

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 Tribuhal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶48

On the issue of Limitation. to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 18.06.2025, whereas the present application has been filed on 02.07.2025. Even, it is counted for the purpose of Limitation, thqn it) established that the applicant LatE

)

en- Tl5L'dUD

OA 512 of2025jJl

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.

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Shri Ritesh Kumar Verma, 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.

¶56

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.

¶57

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.

¶58

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 fbrnished along with application filed under sub section 1 of section 19 by the applicant.

¶59

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 an 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 no\v by law admissible, but not further or otherwise.

¶60

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 p/dyed by aforesaid evidence.

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DRT, PATNA

OA 512 of 20251JI

Defendants have neither denied the utilization of funds advance-d 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 18.06.2025 has been proved to be Rs.28,54,258.07 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.

¶68

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.28,54,258.07 along with pendente-lite and future interest @ 10% p.a. simple from 02.07.2025 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of Justrce.

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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.28,54,258.07 along with pendente-lite and future interest @ 10% p.a. simple from 02.07.2025 (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) ol Recozvery of Debts and Bankruptcy ,.rk@..,

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Oooh aecovery TribWU1 PATN A

OA 512 of 20251JI

DRT, PATNA

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. However, no proclamation of sale will be issued, if the Defendant/CertifIcate Debtor ensures payment of the certi$cate amount in 6 months from the date of demand notice to the Certi$cate debtors. The Recovery Officer will issue demand notice to the Certi$cate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /CertifIcate holder fails to' comply with directions of the Recovery OffIcer, the execution may be dismissed for nonprosecution. 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 05.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 25th day of June, 2026.

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Dictated &corrected by me.

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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FORM NQ, 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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ECOVERY (.-ERTIFI(-ATE UNDER SECTION 19(a READ WITH SECTIOJ

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BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC- No. 190/2026 IN

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Case No: OA/512/2025

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In the Matter of: (CH- 1) BANK OF BARODA BRANCH OFFICE AT DANAPUR BRANCH, SAGUNA MORE, B.M. COMPLEX, PATNA ,BIHAR -801503

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Applicant(s)

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(CD- 1) M/S KUMAR AND KUMAR a Proprietorship Concern through its Proprietor Raj Kumar Gupta, S/o Radha Prasad Gupta, Bibiganj, Danapur Cantt, Patna ,BIHAR -801503

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(CD- 2) RAJ KUMAR GUPTA S/0 RADHA PRASAD GUPTA RESIDENT OF GUPTA KUNJ BIBIGANJ, DANAPUR,DINAPURDefendant(s) CUM-KHAGAUL. PATNA, BIHAR- 801503.- PANAAWPG2224J AADHAR. 9498 1002 3305

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(CD. 3) SAVITRI DEVI

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W/0 RADHA PRASAD GUPTA [GUARANTOR AND MORTGAGOR] RESIDENT OF GUPTA KUNJ BIBIGANJ. DANAPUR. DrNAPuit-cuM-

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KHAGAUL, PATNA, BIHAR- 80 1503

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RegQvqry Certificate for Rs 2$54258,07 [ Rupees TwentlUght Lakh s Fifty Four ThQU sand$ Two Hundred FiftWght And Pai$e

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Seven OnlyJ

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In terms of final order dated 25/06/2026 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. 2854258.07 along with cost, expenses and interest from the 02/07/2025 i.e. date of filing / with efFective date of the OA/5 12/2025 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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Sr.n	o CDName	Hl=TypH£ode	Int. Rate	Effective Date	Order Date	Amount(Rs.	)LIE)T	: ::Tieq:: s	A m o IS ( Rsa)
1	M/S KUMAR AND KUMAR	Simple Interest (Yearly)	10	:02/07/2025	25/06/2026	2854258.07	Jointly And Severally	Interest As on Order Date	'2854258.07
2	RAJKUMAR GUPTA	Simple Interest (Yearly)	10	:02/07/2025	25/06/2026	2854258.07	JointlyAnd Severally	Interest As onOrder Date	'2854258.07
3	'SAVITRI DEVI	.Simple :Interest (Yearly)	I Ilo	;02/07/2025	25/06/2026	:2854258.07	ET::#	':::If;	.2854258.07

¶102

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

¶103

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

¶104

Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 05/08/2020,

¶105

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.

¶106

This Certificate has been issued under my signature and seal of the Tribunal on this 02/07/2026

¶107

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA 111111NbII1= :4jf:E ;iii1 X118

¶108

FORM NO. 10

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[See Regulation 24(2)]

¶110

DEBTS RECOVERY TRIBUNAL PATNA

¶111

2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

¶112

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

¶113

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 190/2026

Case No: OA/512/2025

Applicant(s): BANK OF BARODA

¶118

Versus

¶119

Defendant(s): M/S KUMAR AND KUMAR

¶120

	tem ofCosts	lount inRs
	bee on the application	f3 looo
2	iProcessFees(Inc. Publication)	Ed
	AdvocateFees	iO
	FCommissioner/Receiver/Valuation/SecurityFed	0
	,cellaneousCharges	0
	TotalCosts:Rs	31000

Place: PATNA

PRESIDIfG OFFICER

Date: 02/07/2026

DEBTS RECOVERY TRIBUNAL PATNA

¶125

Note: Strike out whichever is not applicable

¶126

PvestaiRg Omen Dab Recovery THbl\run PATN A

Bank of Baroda v. M/s Kumar and Kumar

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Kumar and Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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