Allowed

Hdfc Bank Limited v. Mr. Prince Kumar

DRT5 Sept 2026OA/526/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application under Section 19 of the RDB Act filed by HDFC Bank to recover a loan of approx. Rs. 21.87 Lakhs from a borrower who failed to honor repayment terms. The tribunal rejected a belated written statement, upheld the debt amount supported by bank records, and issued a Recovery Certificate attaching mortgaged assets.

What did the court decide?

Recovery of Rs. 21,87,248/- along with interest @ 10% p.a. from 01.07.2025 and costs. Issuance of Recovery Certificate under Section 19(22) and attachment of mortgaged assets.

Hdfc Bank Limited versus Mr. Prince Kumar — Banking and Recovery | DRT (2026)

OA 526 of2025jJl

DRT, PATN A

Debts Recovery Tribunal, Patna

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B,.arpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 526 of 2025

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HDFC Bank Limited, branch office situated at Saharsa, Bihar 852201

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.Applicant

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Mr. Prince Kumar (Borrower), S/o Deepak Kumar Gupta, R/o Sonbarsha Raj, Ward No.03, Near Temple, Saharsa, Bihar 852129, PAN No. HDNPK0172G

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Defendant

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Present:

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For the Applicant Shri Prashant Kumar, Advocate Ms. Kumari Anjali, Advocate For the Defendant Mrs. Alka Panday, Advocate Shri Saharsh Shubham, Advocate

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Dated:05.09.2026

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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 01.07.2025 against the defendant to recover its debts from defendant of Rs.21,87,248/-as on 31.03.2025 along with pendente-lite and future interest at the contractual rate Brom 01.04.2025 with costs till realization.

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The application has been filed with the contention that the applicant bark, 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 approached the applicant bank for sanction of credit facility of Rs.25 Lakh under KGC allied indirect Term Loan scheme, vide loan application dated27.10.2023, and after due consideration, the applicant bank has sanctioned Rs.20,35,800/- on 10.11.2023 and the first part of the loan amount was disbursed on 23.11.2023 and the second part was disbursed on 03.05.2024on 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 in favour of the applicant bank, details of which are given in OA.

OA 526 of 20251J I

DRT, PATNA

After availing the sanctioned credit facilities, the defendant 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 03.07.2024.

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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.21,87,248/- as on 3 1.03.2025 with pendente-lite and future interest contractual rate nom 01.04.2025 till the realization.

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This Tribunal issued summon/notice copies of application & paper book to the defendant by registered/speed post on 01.08.2025, 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 the defendant has appeared though his Id. Counsel by filing vakalatnama on 20.02.2026 but he has not filed his written statement within the statutory period hence vide order dated 30.04.2026, it was observed that as the statutory period was already over for the written statement hence the opportunity for the same was closed and the defendant was granted an opportunity to file the rebuttal evidence against the evidence filed by the applicant bank in support of the OA but the same has not been filed by the defendant.

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The defendant has filed his written statement on 08.05.20269 for which the opportunity was already closed vide order dated 30.04.2026 hence it cannot be taken into consideration.

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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

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ecovel:f 'l'Ib2c'an PATtiA

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given evidence on affidavit by way of affidavit by Shri Pinaki Paul, Remedial Manager of the applicant bank. The details of documents are as follows:

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Description Documents PhotocoDies of	of 1Date Execution	Amount 1 (inLakh)	Signatur Executants	e of
Loanapplication	27.10.2023	25.00	Defendant
Sanctionletter	s		Bank accepted defendant	and by
Agreement forterm loan cum guarantee cumhyDothecation	23.11.2023	Rs.20,35,800/-	Defendant
Loanrecall notice	27.08.2024
of Statement with accounts certificate

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendant 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 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 acy)unt as NPA on 03.07.2024,

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Presiding O JTicet Debts Reco-,'e-=y Tak>al&’ FAT iiA

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whereas the present application has been filed on 01.07.2025. 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 Pinaki Paul9 Remedial 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 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 shaH 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 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 defendant has applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan

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Presiding OJJlceF IEII111) eH1[11111) t b = a iI:I= 11b1 1 1 [•HB) inn

OA 526 of2025jJI

DRT, PATNA

amount with interests etc., the defendant has 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 has 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 3 1.03.2025 has been proved to be Rs.21,87,248/- 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 defendant of Rs.21,87,248/- along with pendente-lite and future interest @10% p.a. simple from 01.07.2025 (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 to M.21,87,248/- along with pendente-lite and future interest @ 10% p.a. simple from 01.07.2025 (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 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

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Cq\ Presiding V dic'I Debts Recove'y 'r'liburw PATNA

OA 526 of 20251JI

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.

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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. However, no proclamation of sale will be issued, if the Defendant/CertifIcate Debtor ensures payment of the certifIcate amount in 6 months from the date of demand notice to the CertifIcate debtors. 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 by the applicant. If The Applicant /CertifIcate holder fails to comply with directions of the Recovery Of$cer, 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 22.10.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 05th day of September, 2026.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna Presiding OJicer DobU Reco-eW TIlbwISPATNA

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EQMNh9 [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, Patna800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(2) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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R(,' No. 276/2026 IN

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Case No: OA/526/2025

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In the Matter of: (CH- 1) HDFC BANK LIMITED BRANCH OFFICE SITUATED AT Applicant(s) SAHARSA ,BIHAR -852201 To, (CD- 1) MR. PRINCE KUMAR S/0 DEEPAK KUMAR GUPTA Defendant(s) R/O- SONBARSHA RAJ, Ward no. 3, Near Temple, Saharsa ,BIHAR -852 129

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RegQvery Certificate for Rs 2187248,00 1 Rupees Twenty One Lakh$ EigUy Seyen Thousands TwQ Hpndred Forty Eight Only_I

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In terms of final order dated 05/09/2026 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. 2187248.00 along with cost, expenses and interest from the 01/07/2025 i.e. date of filing / with effective date of the OA/526/2025 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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			Order Date	IAmount(Rs.)	tability	nterest :(as o Order Date)	RC ,mount(Rs.)	Rem
PRINCE KUMAR	,mple	10 >1/07/2025 l	05/09/2026,	12 187248.oo	IFuUy		187248

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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 ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 22/10/2026.

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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 09/09/2026

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA (Jb' Presiding Ofic€1 RegIstrar R©RiM 111111) eIb1E1111)11111111iI IE(b e %b:= 11FILEFUnBI

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Debts Recovery Tribunal1 Patna WI aqmt WfbMTW. InI

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA