Allowed

Icici Bank Limited v. Shaikh Ayub

DRT27 Jan 2026OA/536/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's application under Section 19 of RDBA 1993 to recover a loan of Rs. 20.37 Lakhs. The court determined the debt amount including interest and issued a Recovery Certificate for its realization through the Recovery Officer and sale of mortgaged assets.

What did the court decide?

The bank was granted a Recovery Certificate to recover Rs. 20,37,299.47 with future interest, enforceable by sale of attached secured assets.

Icici Bank Limited versus Shaikh Ayub — Banking and Recovery | DRT (2026)

OA 536 of20241JI

DRT, PATNA

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 536 of 2024

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ICICI Bank Limited, Zonal Office at 2==d and 3'd Floor, Gulab Palace, near Panchmukhi Hanuman Mandir, East Boring Canal Road, Patna- 800001

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. . . . . . . Applicant

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Shaikh Ayub (Borrower/Mortgagor), S/o Shaikh Mudin, Address- Vill.Kunjbanna, PO- Parpainti, PS- Parpainti, Harinkol, District- Bhagalpur813209, Bihar, PAN No.AYRPA1659G

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Bibi Mahamunda, W/o Shaikh Ayub, Address- Kunjbanna, POParpainti, PS- Parpainti, Harinkol, District- Bhagalpur- 813209, Bihar, PAN No. HLVPM2458D

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Defendants

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Present:

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For the Applicant Shri Prem Prakash, Advocate For the Defendants None

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Dated :27.01.2026

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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) on24.10.2024 against the defendants to recover its debts from defendants of Rs.20,37,299.47 as on 03.10.2024 along with pendente-lite and future interest at the contractual rate from 04.10.2024with 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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3 . Defendants approached the applicant bank for sanction of Kisan Credit Card (KCC Loan) loan facility vide loan application dated19.06.2022 and after due consideration, the applicant bank has sanctioned Rs.20 Lakh vide sanction letter dated 20.07.2022on various terms and conditions, as stipulated in the sanction letter, which were duly accRpted Py the defendants. To secure the loan

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OA 536 of2024jJI

DRT, PATNA

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

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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 on07.06.2024.

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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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The total liability in the loan account is Rs.20,37,299.47 as on 03.10.2024 with pendente-lite and future interest contractual rate from 04.10.2024 till the realization.

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5 . This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 05.12.2024, 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. But the defendants have not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 22.02.2025 in “Hindustan” newspaper.

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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 11.07.2025.

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To prove its case, the applicant Bank has referred various certified photocopies of documents before this Trp\maI. The applicant bank has also

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OA 536 of2024jJl

DRT, PATNA

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

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Description Documents Photocopies of	of !Date Execution	Amount Lakh	Signature Executants
=)plication	19.06.2022	noT	DefeM
Sanctio-nletter	20.07.2022	20.00	Bank accepted defendants
HyDothecationdeed	20.07.2022	20.00	Defendants
Photocopyofsimple :edeed morI	10.08.2022
Dem;ida	14.05.2024
Loanrecallm	06.08.2024
Statementofaccount

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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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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.

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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 07.06.2024,

OA 536 of20241JI

DRT+ PAT'NA

whereas the present application has been filed on 24.10.2024. 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.

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13 . Shri Ashish Kumar, 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 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.

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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

OA 536 of20241J1

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.

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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 03.10.2024has been proved to be Rs.20,37,299.47 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.20,37,299.47 along with pendente-lite and future interest @10% p.a. simple nrom 24.10.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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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.20,37,299.47 along with pendente-lite and future interest @ 10% p.a. simple from 24.10.2024(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

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Li\

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IIIIIIN!111!111):{It!if): gbtEIIIIO

OA 536 of20241JI

DRT, PATNA

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 marmer 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 09.03.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 27th day of January, 2026.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer D e t s ==11?ieg!:$F:I::::I::b

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FORM NOt 9 [See Regulation 24( 1 )]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor1 (A. B & F Wing) Karpuri Thakur Sadan, Kenddya Karamchad Padsar (GPOA), Ashiana Digha Road, Patna-800025.

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RECOVERY CERTIFICATE UNDER SE('TION 19(7) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FRQ B4 TIME TO TIME.

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RC No. 77/2026 IN

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Case No: OA/536/2024

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In the Matter of: (CH- 1) ICICI BANK LIMITED ZONAL OFFICE AT 2ND AND 3RD FLOOR, GULAB PALACE, NEAR PANCHMUKHI HANUMAN MANDIR EAST BORING CANAL ROAD,

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Applicant(s)

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PATNA ,BIHAR -800001

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To, (CD- 1) SHAIKH AYUB S/o Shaikh Mudin MIL- Kunjbanna, P.O.- Parpainti, P.S.- Parpainti, Harinkol, Bhagalpur ,BIHAR -813209

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Defendant(s)

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(CD- 2) BIBI MAHAMUNDA

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W/0 SHAIKH AYUB. VILL-KUNJBANNA, POPARPArNTI. PS- PARPAINTI. HARINKOL.

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DISTRICT- BHAGALPUR- 813209, BIHAR

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R€99very CHtifitate fQr R; 2tD7299t47 1 RVpee$ Twenty LRkh; Thirty Sev€n Thop;and$ TwQ HpQdr€d Nin€ty Nine And

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Pai;e FQrty Seven OnlyJ

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In terms of final order dated 27/01/2026 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. 2037299.47 along with cost, expenses and interest from the 24/10/2024 i.e. date of filing / with effective date of the OA/536/2024 and future interest from order date till the date of realisation in fUll, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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nno	CDName	Int. IWpe/MOdel	Int :e	Effective	}rder Date	Lmount(Rs.)Lyeiljty	as ler	RC lount(Rs.	ReIna

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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 wlder Section 19(22) of Recovery of Debts and Bankruptcy Act 1993.

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Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRiBUNAL PATNA on 09/03/2026

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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 Act7 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 06/02/2026

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( /t,
\ / +
PRESIDING OFFICER
Registrar DEBTS RECOVERY TRIBUNAL PATTqA
Debts Recbvery Tribunal rH,raaf OD'"
Pat,ia
Debts RecoveIY TlibMt'’
PATN A

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FORM NO. 10

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[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

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R(' No. 77/2026 IN

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Case No: OA/536/2024

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Applicant(s): ICICI BANK LIMITED Versus

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Defendant(s): SHAIKH AYUB

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Sr.No	e	I Amount inRs
	m;iji;iTn	m3
2	maiL;iii	Dc
3	@vocateFees	@
	o tyFei	[0
	lime	@
	TotalCosts: Rs	m2

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Place: PATNA

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PRESIDrN&6FFICER

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DEBTS RECOVERY TWA% Wb

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Date: 06/02/2026

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Not,: Sdk, out which,v„ is .Ot ,pph„ble

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Debts ReTivTeii Tdbua&1

Icici Bank Limited v. Shaikh Ayub

Case brief

What is this about?

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Icici Bank Limited v. Shaikh Ayub

Case brief

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