Allowed

Indian Bank (Allahabad Bank) v. Ms Dolphin Electronics

DRT19 Jun 2026OA/528/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act. Distinguishing regarding limitation and maintainability, the court found the account turned NPA within the limitation period. Uncontradicted documentary evidence established the loan liability. The court determined the debt as Rs. 1.21 crores, ordered payment with interest, and issued a Recovery Certificate

What did the court decide?

Debt of Rs. 1,21,67,907 with pendente-lite and future interest @ 10% p.a. allowed; Recovery Certificate issued to realize amount from sale of mortgaged or other assets.

Indian Bank (Allahabad Bank) versus Ms Dolphin Electronics — Execution and Attachment | DRT (2026)

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DRT. PATN A

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OA 528 of 20241 Jl

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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. 528 of 2024

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Indian Bank (erstwhile Allahabad Bank), SAM Vertical, District- Patna

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. . . . . . .Applicant

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M/s Dolphin Electronics through its proprietor and registered office at Marwari Tola Lane Bhagalpur, District- Bhagalpur, Bihar- 812001

¶11

Sarita Sah, wife of Late Raj Kumar Sah, resident of 4B Rana Tower, near Mount Asisi School (Jr), Post- Bhagalpur City, Jagdishpur, DistrictBhagalpur, Bihar- 812002, PAN No. AOGPS3452L

¶12

Pankaj Kumar Jha, Son ofDukhi Bhanjan Jha, resident of Shail Bah, Aliganj, Bhagalpur, Bihar 812003 (Guarantor)

¶13

Muskan Soni, daughter of Late Raj Kumar Sah, resident of 4B Rana Tower, near Mount Asisi School (Jr), Post- Bhagalpur City, Jagdishpur, District- Bhagalpur, Bihar- 812002 (legal heir of Late Rajkumar Sab)

¶14

Nidhi Soni, daughter of Late Raj Kumar Sah, resident of 4B Rana Tower, near Mount Asisi School (Jr), Post- Bhagalpur City, Jagdishpur, District- Bhagalpur. Bihar- 812002 (legal heir of Late Rajkumar Sab)

¶15

Ayushman Sah through its legal heir Smt. Sarita Sah, daughter of Late Raj Kumar Sah, resident of 4B Rana Tower, near Mount Asisi School (Jr), Post- Bhagalpur City, Jagdishpur, District- Bhagalpur, Bihar812002 (legal heir of Late Rajkumar Sah)

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Defendants

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Present:

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For the Applicant Shri Sachindra Kr. Tiwari, Advocate For the Defendant no.2,4,5&6 Shri Prashant Kumar, Advocate

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Dated: 19.06.2026

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JUDGMENT

¶21

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

OA 528 of2024jJl

DRT, PATNA

23.10.2024 against the defendants to recover its debts from defendants of Rs.1,21,67,907/-as on 05.10.2024 along with pendente-lite and . future interest at the contractual rate from 06.10.2024 with costs till realization.

¶27

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.

¶28

Defendant no.1 is a proprietorship firm through borrower namely Raj Kumar Sah (since deceased). The defendant no.2 and 3 are the guarantors and the defendant no. 4 to 6 are the legal heirs of the late Raj Kumar Sah, deceased borrower.

¶29

The deceased borrower Raj Kumar Sah, being proprietor of defendant no.I approached the applicant bank for enhancement/sanction of cash credit facility of Rs.9.50 Lakh to Rs.80 Lakh on 09.02.2015 for smooth running of trading of electrical & electronic items, which was sanctioned by the applicant bank on 26.02.2015 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.

¶30

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 on30.09.2022.

¶31

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.

¶32

The total liability in the loan account is Rs.1,21,67,907/- as on 05.10.2024 with pendente-lite and future interest contractual rate ftom 06.10.2024 till the realization. „ /' tAP

OA 528 of2024jJl

DRT, PATN A

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 20.11.2024, 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.

¶37

In response to the notice, the defendants no. 2,4, 5 and 6 have appeared and filed their written statement. Despite the registered summons/notices, rest of the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to them to defend their case, but they failed to appear and to file WS, hence, rest of the defendants are proceeded ex-parte.

¶38

The defendant no.2,4,5 and 6 have filed their written statement stating therein that the applicant bank has filed the present OA u/s 19(1) of the RDB Act, which is not maintainable as the same should have been filed under section 13(10) of the SARFAESI Act, 2002 in view of the fact that the applicant bank sold one of the mortgaged properties and recover substantial amount by selling out one of the mortgaged properties. It has further been stated that the applicant bank has failed to bring on record the detailed account statement since beginning (i.e. from the year 2004 when the original loan was started till filing of the instant OA and requested to dismiss the OA.

¶39

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

¶40

Description Documents Photocopies	of Date Execution	Amount (in	Signature of lab Executants
Notesheet	07.10.2024		Bank
Loanapplication	09.02.2015	80.00	Def.no.1 and deceasedborrower Raj Kr.Sah
Sanction letter	26.02.2015	80.00	Bank
Acknowledgement ofsanction letter	27.02.2015		Def.no.1 and deceasedborrower Raj Kr.Sah
DPnote	27.02.2015		Def.no.i and deceasedborrower Rai Kr.Sah
PDR	27.02.2015	80.00	Def.no.2&3

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QA 528 of 20241 J

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DRT, PATNA

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e hypothecation		80.00	Def.no.1 and deceasedborrower Rai Kr.Sah
of Agreement arantee	27.02.2015	80.00	Defno.2and3
Letter ofmortgager confirming deposit of titledeedswith Photocopy ofsale deed	27.02.2015	80.00	ma Def.no.1 deceasedborrower Raj Kr.Sa:h
Demand notice	19.10.2022		Bank
Legalnotice	18.09.2024		Bank’sadv
Statementofaccount			Bank

¶44

Heard arguments and perused the case record. In the written statement filed on behalf of the defendant no 2,4 5 & 6, 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.

¶46

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 Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application. \ / VbA \ P

OA 528 of 20241 Jl

DRT, PATNA

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.09.2022, whereas the present application has been filed on 23.10.2024. 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.

¶52

Shri Manoj 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.

¶53

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.

¶54

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.

¶55

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.

¶56

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 cm)' 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 matters, transactions and accounts therein recorded in even case where, and to the same extent as, the original entry itself is now by law admissible, but not further or otherwise.

¶57

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.

DRTq PATN A

OA 528 of 20241 Jl

On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendant no.2,3 along with deceased borrower Raj Kumar Sah 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 defendant no.2,3 along with deceased borrower Raj Kumar Sah 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.

¶62

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 05.10.2024 has been proved to be Rs.1,21,67,907/- only by way of statement of accounts along with account closure enquiry. 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.

¶63

In the present case, the defendant no. 4 to 6 are the legal representatives of the deceased borrower Raj Kumar Sah hence the defendant no. 4 to 6 are liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from their deceased.

¶64

The defendant no.2 is also liable being legal representative of the deceased borrower Raj Kumar Sah to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties hom the deceased.

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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.1,21,67,907/- along with pendente-lite and future interest @10% p.a. simple from 23.10.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of Justrce.

DRT, PATN A

PA 528 of 20241 Jl

ORDER

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.1,21,67,907/- along with pendente-lite and future interest @ 10% p.a. simple from 23.10.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶71

It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

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The defendant no.2 is also liable to pay the dues of the applicant bank with interest and other legal charges being legal representative of the deceased borrower Raj Kumar Sah to the extent of inherited properties from the deceased.

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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;he certificate in the manner

DRT, PATNA

OA 528 of 20241 Jl

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/Certi$cate Debtor ensures payment of the certifIcate amount in 6 months from the date of demand notice to the CertiDcate debtors. The Recovery Of$cer 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 /Certifcate 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 03.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 19th 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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EQRNLNL! [See Regulation 24(1 )]

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DEBTS RECOVERY TIUBUN AL PATN A

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2nd FM (A. B & F Wing) KmpM Tbakw SaM Kendriya KaruncMI Puisw (GPOA), Ashiana Digha Road, Patna-800025

tFICATE UND

EAD WITH !

,N )El) FROb

¶93

RC No. 160/2026 IN

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Case No: OA/528/2024

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In the Matter of: (CH- 1) INDIAN BANK (ALLAHABAD BANK) SAM VERTICAL. PATNA ,BIHAR +)

Applicant(s)

-– Versus .–---

(CD_ 1) MS DOLPHIN ELECTRONICS Through itS Proprietor, registered Office at Marwari Tola lane Bhagalpur

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Bh3galpur ,BIHAR -812001

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(CD. 2) SARITA SAH

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ivIFE 6F LATE RAJ KUMAR s AH RESIDENT OF 4B RANA TOWER. NEAR MOUNrASlsi SCHOOL, (JR) POST BHAGALPUR CITY. JAGDISHPUR, DISTRICT- BHAGALPUR.

¶103

BIHAR - 8 12002.

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(CD- 3) PANKAJ KUMAR JnA SON OF DUKHI BHANJAN JHA, RESIDENT OF SHAIL BAH, ALIGANJ, BnAGALPUR, BIHAR 812003 (CUARANTOR)

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(CD- 4) MUSKAN SONI DAUGHTER OF LATE RAJ KUMAR SAH, RESIDENT OF 4B RANA TOWER. NEAR ASISI SCHOOL (JR), POSTBHAGALPUR CITY. JAGDISHPUR, DISTRICT- BHAGALPUR. BIHAR- 8 12002. (LEGAL HEIR OF LATE RAJKUMAR SAH)

¶106

DefendInt(s)

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(CD- 5) NIDHI SONI

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bAUG IITER OF LATE RAJ KUMAR SAH. RESIDENT OF 4B RANA TOWER NEAR ASISI SCHOOL (JR), POSTBHAGALPUR CITY. JAGDISHPUR, DISTRICT- BHAGALPUR

¶109

BIHAR_ 8 12002 (LEGAL HEIR OF LATE RAJKUMAR SAR)

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(CD- 6) AYUSHMAN SAH

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THROUGH ITS LEGAL HEIR SMT. SARITA SAH, DAUGHTER OF LATE RAJKUM AR SAH. RESIDENT OF 4B RANA TOWER. NEAR MOUNTASISI SCHOOL(JR), POST BHAGALPUR ('lWl JAGDISHPUR. DISTRICT- BHAGALPUR, BIHAR- 812002

¶112

(LEGAL HEIR OF LATE RAJKUMAR SAH)

¶113

In terms of final order dated 19/06/2026 passed by ths Tribunal in are above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 12167907.00 along with cost, expenses and interest from the 23/10/2024 i.e. date of filing / with effective date of the OA/528/2024 and hrture interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereInafter referred to as:-

¶114

Sr.no	CD Name	IntType/Mode	Int. Rate	Effective Date	Order Date	Amount(Rs.)	.Liability Type	Interest (as on Order Date)	AmD:Int(Rs.)Remark
1	MSDOLPHIN ELECTRONICS	Simple Interest (Yearly)	10	23/10n024	,19/06/2026	12167907.oo	;iT\T::If}nd	Interest As on Order Date	12 167907
2 IVVVr	SARITA SAH	Simple Interest (Yearly)	10	23/ 10/2024	19/06/2026	12167907.oo	;e.e:IfInd	Interest As on Order Date	12167907
3	PANKAJ KUMARJlIA	Simple Interest (Yearly)	10	23/ 100024	19/06/2026	12167907.oo	!!!\T:El'I)nd	interest As on Order Date	12167907
	MUSKAN SONI	Simple Interest (Yearly)	10	23/ 10/2024	,19/06/2026	1216 7 9 0 7e00	!!!i\T: :1]:1jnd	Interest As on Order Date	12167907
5	NIDHISONI		10	;;/ii/21);1'	::9/ok/2026	12167907.oo		interest As on Order Date	12167907
6	AYUSHMANSAH	Simple Interest (Yearly)	10	23/ 10/2024	119/06/2026	12167907.oo	'H=ljnd	Interest As on Order Date	12 167907

¶115

In case of failure to pay the aforementioned adjudicated amount within 30 days. same shall be recovered from the sale of the mortgagcd/hypothecated assets as well m other personal movable/ Immovable assets of the certificate debtors.,

¶116

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. Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PAI'N A on 03/08/2026,

¶117

¶118

It is made further clear that the defendant no. 4 to 6 are liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from their deceased. The defendant no.2 is also liable to pay the dues of the applicant bank with interest and other legal charges being legal representative of the deceased borrower Raj Kumar Sah to the extent of inherited properties from the deceased.

¶119

This Certificate has been issued under my signature and seal of the Tribunal on this 22/06/2026

¶120

¶121

DEBTS RECOVERY PATNA

¶122

FORM NO. 10 [See Regulation 24(2)]

¶123

DEBTS RECOVERY TRIBUNAL PATNA

¶124

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

¶125

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

¶126

SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 160/2026

Case No: OA/528/2024

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

¶132

Defendant(s): MS DOLPHIN ELECTRONICS

¶133

Sr.No	Item ofCosts	:AmountinRs
	Feeontheapplication	124006
2	)rocessFees(Inc.Publication)	0
3	AdvocateFees	0
	tmion/Security Fee-	;0
5	Miscellaneous Charges	:0
	Total Costs:Rs	124000

Place: PATM

Date: 22/06/2026

PRESIbIN6 OFFICER DEBTS RECOVERY TRIKJNAL PATNA

¶138

Note: Strike out whichever is not applicable

Indian Bank (Allahabad Bank) v. Ms Dolphin Electronics

Case brief

What is this about?

What did the court decide?

Indian Bank (Allahabad Bank) v. Ms Dolphin Electronics

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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