Allowed

Punjab National Bank v. M/s Mona Enterprises

DRT29 Jun 2026OA/532/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank’s application under Section 19 of the RDB Act to recover Rs. 26,59,158.95 from the defendants, who admitted the loan but claimed financial crisis. The court rejected the limitation defense and determined the debt.

What did the court decide?

The defendants are ordered to pay Rs. 26,59,158.95 along with pendente-lite and future interest @ 10% p.a. from 23.10.2024 till realization with costs.

Punjab National Bank versus M/s Mona Enterprises — Contract and Commercial Disputes | DRT (2026)

OA 532 of20241JI

DRT, PATNA

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 532 of 2024

¶8

Punjab National Bank, BO- Bir Chand Patel Marg Branch, District- Patna

¶9

. . . . . . .Applicant

¶10

¶11

M/s Mona Enterprises through its proprietor Smt. Mona Kumari, registered office at MEQTE Sales and Services Private Limited, at Alinagar Colony, New bypass Patna, Bihar 800002 (Proprietorship firm)

¶12

Smt. Mona Kumari, wife of Ajay Kumar, resident of Alinagar Colony, New bypass, Ward No.24, House No.2250/214 Circle No.10A, Patna, Bihar 800002 (Proprietor/Borrower), PAN No. DGPPK0364B

¶13

. . . Defendants

¶14

Present:

¶15

For the Applicant For the Defendants

¶16

Shri Sachindra Kumar Tiwari, Advocate Shri Abhijeet Kumar, Advocate

¶17

Dated:29.06.2026

¶18

JUDGMENT

¶19

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 23.10.2024 against the defendants to recover its debts from defendants of Rs.26,59,158.95 as on 30.09.2024 along with pendente-lite and future interest at the contractual rate from 01.10.2024 with costs till realization.

¶20

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.

¶21

Defendant no.1 is a proprietorship firm engaged in the business of medical surgical items of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of cash credit facility of Rs.25 Lakh, vide loan application dated 26.12.20 17, which was sanctioned by the applicant bank on 29.12.2017 under CGTMSE Scheme on various terms and conditions, as stipulated in the sanction lette}, which were duly accepted by the

¶22

\d\b

¶23

p„,Ian: Ojic"

¶24

!I •L1:11)1ES IEIbe :iE:1 g1F Ir1 :)tIE1=1n)

OA 532 of2024jJl

DRT1 PATNA

defendants. To secure the loan facilities defendants have executed various loan and security documents in favour of the applicant bank, details of which are given in OA

¶29

Defendants again approached the applicant bank for renewal of cash credit facility of Rs.25 Lakh, vide loan application dated 15.06.2021, which was sanctioned by the applicant bank on 14.07.2021 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 in favour of the applicant bank, details of which are given in OA. The applicant bank has also sanctioned GECL facility of Rs.5 Lakh, which is reflected at page 5 1 ofAnnexure- 9 of OA.

¶30

Defendants again approached the applicant bank for renewal-cumreduction of cash credit facility of Rs.25 Lakh to Rs.20 LQkh, vide loan application, which was sanctioned/reduced by the applicant bank on 04.02.2023 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 in favour of the applicant bank, details of which are given in OA

¶31

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 20.07.2023 .

¶32

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.

¶33

The total liability in the loan account is Rs.26,59,158.95 as on 30.09.2024 with pendente-lite and future interest contractual rate from 01.10.2024 till the realization. (\ /. VALv

OA 532 of 20241 Jl

DRT, PATNA

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.

¶38

In response to the notice, the defendants have appeared by filing their vakalatnama on 06.02.2025 and also filed written statement admitting therein the loan facilities i.e. Cash Credit of Rs.25 Lakh as well as GECL (FITL) facility sanctioned by the applicant bank to the defendants and further admitted that said CC limit was reduced to Rs.20 Lakh. It has further been. stated that the installments have been paid without any delay or deviation, reflecting the answering defendants unwavering commitment to maintain financial discipline. It has further been stated that the financial crisis faced by the defendants directly impacted the cash flow, leading to irregularities in repayment of the loan availed from the applicant bank. Further that the applicant bank has failed to understand the need for providing opportunity of hearing before classification of an account as NPA and the claim of the applicant bank on the alleged dues is exorbitant and not in accordance with the terms of the agreement 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 Sinha, Chief Manager of the applicant bank. The details of documents are as follows:

¶40

of Description Documents Photocopies	of Date Execution	Amount n Lakh	Signature Executants of	1Ex./ Ann No
Powerofattorne'	26.12.2019		Bank
Registration certificate				2
LoanaDDlication	26.12.2017	25.00	Defendants
Modelsanctionletter	29.12.2017	25.00	Bank accepted defendants
DPnote	29.12.2017	25.00	Defendants
Letter of continujty	29.12.2017	25.00	Defendants
cementofpledge	29.12.2017	25.00	Defendants
LoMDlication	15.06.2021	25.00	Defendants
Sanction of renewal	14.07.2021	25.00	Bank accepted defendants

¶41

¶42

D111111111): :::::XI : :=U1W +

OA 532 of 20241 Jl

DRT, PATN A

Hypothecation agreement	14.07.2021	25.00	1Defendants
Mastera lment	14.07.2021	25.00	Defendants
Sanction letter	04.02.2023	20.00	Bank accepted defendants
Notice	25.07.2023		Bank
Legal notice	01.05.2024		Bank’sadv
Statement accounts of			Bank

¶47

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.

¶48

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.

¶49

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.

¶50

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 laos. 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.

¶51

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 20.07.2023, whereas the present application has been filgi on 23.10.2024. Even, it is

%\h

OA 532 of 2024jJI

DRT, PATN A

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.

¶57

Shri Manoj Kumar Sinha, 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.

¶58

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.

¶59

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.

¶60

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 applicqtion filed under sub section 1 of section 19 by the applicant.

¶61

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 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.

¶62

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.

¶63

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 \d>

OA 532 of 20241 Jl

DRT, PATNA

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.

¶68

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 30.09.2024 has been proved to be Rs.26,59,158.95 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.

¶69

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.26,59,158.95 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 JustIce.

¶70

ORDER

¶71

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.26,59,158.95 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.

¶72

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

¶73

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 shajl be subject to the final order under the recovery proceedings in pursuance of the Recovery \

¶74

LIA\b

¶75

freSiding U$1Ce1 DaB Re:Tia TIDun?"

OA 532 of 20241 Jl

DRT, PATN A

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.

¶80

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 certifcate amount in 6 months from the date of demand notice to the Certi$cate debtors. The Recovery Of$cer witt 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 OffIcer, the execution may be dismissed for nonprosecution. The copy of this judgment be uploaded in the website of the Tribunal.

¶81

Parties are directed to appear before the Recovery Officer, DRT, Patna on 10.08.2026. The order be communicated accordingly.

¶82

Judgment signed, sealed, dated and pronounced in the open court on 29th day of June, 2026.

¶83

1IF

¶84

Dictated &corrected by me.

¶85

,I My;'/~ [Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna Presiding UB it„ B•bts Recovery Tribu a PATRA

¶86

FORM NO. 9 [See Regulation 24(1 )]

¶87

DEBTS RECOVERY TRIBUNAL PATNA

¶88

2nd Floorp (A. B & F Wing) Fhrpui Thakur Sadan, Kendriya Karamchari Padsm (GPOA), Ashiana Digha Road, Patna'800025.

¶89

RECOVERY CERTIFICATE UNDER SECTION 19(a READ WITH SE(.'TION 19(a OF THE RECOVERY OF DEBTS & BANKRUPTCYACT9 19939 AS AMENDED FROM TIME TO TIME•

RC No. 214/2026 IN

Case No: OA/532/2024

In the Matter of:

(CH- 1) PUNJAB NATIONAL BANK BO- BIR CHAND PATEL MARG BRANCH, PATNA ,BIHAR -0

¶94

Applicant(s)

¶95

¶96

(CD- 1) M/S MONA ENTERPRISES Through its Proprietor Smt. Mona Kumari Registered OfFice at MEQTE Sales and Services Private Limited at Alinagar Colony, New bypass, Patna ,BIHAR -800002

¶97

Defendant(s)

¶98

(CD- 2) SMT. MONA KUMARI

¶99

WIFE OF AJAY KUMAR RESIDENT OF ALINAGAR COLONY, NEW BY PASS, WARD NO- 24. HOUSE NO-2250/2 14 CIRCLE NO-IOA, PATNA BIHAR- 800002

¶100

R€govery C€rtifigat$ fgr R$ 2659158,95 1 Rypee$ Twenty Six Lakh$ Filty Nine ThQusands One Hundred Fifty Eight And Pajge Njnety Five Onjy_I

¶101

In terms of final order dated 29/06/2026 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. 2659158.95 along with cost, expenses and interest from the 23/10/2024 i.e. date of filing / with effective date of the OA/532/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶102

Sr.no	CD Name	Loal ie	Int. :Type/Mode	Int. -Rate	Effective Date	Order Date	nounqRi„)]	W:y	Interest . 8:£enr Date)	AmoSS(Rs.) ^Remark
	M/S MONA ENTERPRISES					:026	12659158.95	}intly lverally	Interest Date	2659158.95
	MT. MONA		i ?: : fJit 'early)	10	23/10/2024	126	:2659158.95		;Date	1659158.95

¶103

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/ Inunovable assets of the certificate debtors.

¶104

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 PATTqA on 10/08/2026

¶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 Bar&s and Financial Institutions Acl 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 03/07/2026

¶107

PRESIDING OFFI(_'ER DEBTS RECOVERY TRIBUNAL PATNA

¶108

cI!>b _ RegIstrar

¶109

D :!!!irW n;;;n a

¶110

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

¶111

DEBTS RECOVERY TRIBUNAL PATNA

¶112

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

¶113

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶114

RC No. 214/2026 IN

¶115

Case No: OA/532/2024

¶116

Applicant(s): PUNJAB NATIONAL BANK Versus

¶117

Defendant(s): M/S MONA ENTERPRISES

¶118

	temofCosts	}Amount inRs
	'eeon theii)IMo–IT	r29000
	'rocessFees(Inc. Publication)	10
	dvocateFees	!0
	Commissioner/Receiver/Valuation/Security Fee	0
5	iscellaneousCharges	Eo
	'otal Costs: Rs	E29000

¶119

Place: PATNA

¶120

Date: 03/07/2026

¶121

PRESID bFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶122

Note: Strike out whichever is not applicable

Punjab National Bank v. M/s Mona Enterprises

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Mona Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus M/s Kasturi Collection

Icici Bank Limited versus M/s Easy M Telesystems

Bank of India versus M/s Victual Lounge

State Bank of India versus M/s Ex Servicmen Canteen

Bank of Baroda versus Mrs. Pallavi Kumari

Bank of Baroda versus M/s Human Care Pharma