Allowed

Uco Bank v. M/s Kiran Enterprises

DRT5 Sept 2026OA/538/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Patna, allowed the applicant bank's application for recovery of dues under Section 19 of the RDB Act. After issuing summons and substituting service via newspaper publication following the defendants' non-appearance, the Tribunal proceeded ex parte. Relying on documentary evidence, including the bank's ledger and statement of account, and the absence of challenges to the figures by the absent defendants, the Tribunal determined the principal debt along with interest at 11.50% p.a. and issued a Recovery Certificate.

What did the court decide?

Joint and several debt of Rs. 24,89,303.25 with pendente-lite and future interest at 11.50% p.a. from filing date till realization; Recovery Certificate issued and execution assets attached.

Uco Bank versus M/s Kiran Enterprises — Banking and Recovery | DRT (2026)

OA 538 of 2025jJI

DRT, PATN A

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. 538 of 2025

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UCO Bank through its Branch Manager Bettiah Branch, DistdctWest Champaran. . . . . . . . Applicant

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Vs.

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Ms Kiran Enterprises through its proprietor Mr. Ajay Kumar, registered office-Station Chowk, Near V Mart, Bettiah, West Champaran, Bihar, 845438 (Borrower/Proprietorship Firm).

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Mr. Ajay Kumar, Son of Suresh Lal, Patna Purani Gudari Naya Bazar Chowk, Bettiah, West Champaran, Bihar- 845438. PAN NoBIQPK0272F (Borrower/Proprietor).

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An'ind Kumar, son of late Kashi Nath Prasad, resident of Madhukunj Colony, Baswariya, Bettiah, West Champaran, Pincode-845438. Permanent Address:- Amaithiya, PO-Machharganwa, PS- Yogapatti, Manchhar, Ganwa, West Champaran, Bihar, 845452, PAN no. CGVPK1448P (Guarantor)

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Sh. Virendra Pratap Singh, son of Bhanu Pratap Singh, resident of Sonarpatti, Christian Quarter Bettiah, West Champaran, Bihar 845438 PAN No- CTBPS2677D- (Guarantor).

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Sachindra Kr. Tiwari, Advocate For the Defendants None

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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 02.07.2025 against the defendants to recover its debts from defendants of Rs.24,89,303.25 as on 06.06.2025 along with pendente-lite and future interest at the contractual rate from 07.06.2025 with costs till realization.

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' cel 'I di Rec,1\leT t ATN A

OA 538 of 20251JI

DRT, PATN A

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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Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 & 4 are the guarantors. Defendants approached the applicant bank for sanction of cash credit facility of Rs.20 Lakh under UCO Trader Scheme for business, vide loan application dated 27.07.2018, which was sanctioned by the applicant bank on 27.07.2018 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. The applicant bank has also created CERSAI on 14.01.2019 on CERSAI Portal.

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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 on 28.02.2024.

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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 B.249899303.25 as on 06.06.2025 with pendente-lite and future interest contractual rate from 07.06.2025 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 02.09.2025) 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. But the defendants have not appeared9 hence9 the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of

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r) fR CBr Pr 8511 : :“+ =bMI J Recove£i ' ? F.TNA

DRTq PATNA

OA 538 of 2025jJl

advertisement in newspaper was also made against the defendants on 07.12.2025 in “Dainik Bhaskar” and “The Times of India” newspapers.

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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 26.03.2026

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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 Ravi Ranjan Prasad, Branch Manager of the applicant bank. The details of documents are as follows:

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Sl.No	Description Documents Photocopies of	1 Date of Execution	IAmount 1(in Lakh'	Signature Executants	of	1Ex./ Ann No.
	Powerofattorne'	20.07.2012		Bank
2	LoanaDDlication	27.07.2018	20.00	Def.no.1&2
3 f	Sanctionletter	27.07.2018	20.00	Bank accepted def.no.1&2	and by
t	D Pnote	27.07.2018	20.00	Def.no.I&2
5	DPnote	27.07.2018	20.00	Def.no.1&2
6	Demand note	27.07.2018	20.00	Def.no.1&2
7	Hypothecation agreement	27.07.2018	20.00	Def.no. I &2
8	Inc	27.07.2018	20.00	De£no.1&2		8
9&10	Letterofguarantee			Defno.3&4		9&10
11	Photocopy ofsale deed	24.03.2015				11
12	CERSAIdetails
13	Demandnotice	20.05.2025
114	1 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

OA 538 of 2025jJ1

DRT, PATNA

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 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 account as NPA on 28.02.2024, whereas the present application has been filed on 02.07.2025. 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 Ravi Ranjan Prasad, Branch 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 Acts 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 deries 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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fr d3 jn' “ Jj Debts R£,Covely TILDW-ci PATNA

OA 538 of2025jJ I

DRT, PATNA

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 certijed 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 lay 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 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 06.06.2025 has been proved to be Rs.24,89,303.25 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.24,89,303.25 along with pendente-lite and future interest @ 11.50% p.a. with compounded monthly rests ftom 02.07.2025 (The

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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 result9 the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are hereby jointly and severally9 ordered to pay the applicant bank its debt amounting to IB.249899303.25 along with pendente-lite and future interest @ 11.50% p.a. with compounded monthly rests 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 bark to secure the ends of justice. The mortgage(1 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 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. 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 /CertiPcate holder fails to comply with directions of the Recovery Officer, the execution may be

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DRT. PATN A

OA 538 of 20251JI

dismissed for non-prosecution. 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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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna III111)1111b1:11= g :IT; i = tEIIIIIa)

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EQBILXa! [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATN A

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2nd Floor1 (A. B & F Wing) Kalptui Thakw Sa(bn. Kendriya Karnrnchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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LTE U] L9f7 1 READ WITH SECTION 19(22) OF THE RECOVERY 0 M, AS AMENDED FROM TIME TO TIME.

BC No. 279/2026

Case No: OA/538/2025

In the Matter oe

(CH. I) UCO BANK

THROUGH ITS BRANCH MANAGER, BETrIAH BRANCH.

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Applicant(s)

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PASHCHIM CHAMPARAN ,BIHAR 4

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–– Versus – To

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(CD- 1) M/S KIRAN ENTERPRISES Through its Proprietor Mr. Ajay Kumar registered otTice - Station Chowk Near V Mart, Bettiah

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Pashchim Champaran ,BIHAR -845438

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(CD- 2) MR. AJAY KUMAR

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SON OF SURESH LAL PATNA PURANI GUDARI NAYA BAZAR CHOWK BEUIAH WEST CHAMPARAN BIHAR845438 PAN NO- BIQPK0272E, (BORROWER/ PROPRIETOR)

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(CD- 3) ARVIND KUMAR

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SON OF LATE KASHI NATH PRASAD RESIDENT OF Defendant(s) MADHUKUNJ COLONY BASWARIYA BETriAH WEST CHAMPARAN PINCODE- 845438

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Also At

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PERMANEVr ADDRESS- AMAITHIYA POMAC'HHARGANWA PS- YOGAPATri MANCHHAR GANWA. WEST CHAMPARAN BIHAR 845452 PANCGVPK1448P (GUARANTOR)

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(CD- 4) SH. V[RENDRA PRATAP SINGH

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SON OF BHANU PRATAP SINGH RESIDENT OF SONARPATrI, CHRISTIAN QUARTER BEUIAH WEST CHAMPARAN BIHAR -845438 PAN- CTBPS2677D.

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(GUARANTOR)

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Recovery Certificate for Rs 2489303,as I__Rrlpen Twenty Four I,akh s Eighty Nine TheIr$aIIas Three Hundred Three And Paiie n'enfy Five Q8lyJ

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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. 2489303.25 along with cost, expenses and interest from the 02/07/2025 i.e. date of filing / with effective date of the OA/538/2025 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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CDName	11ntaTV Pc/1N1Fo de	Int.	Date		Liability lyP	Tlnterest(as o Order Date)
KIRAN	(Monthly	iII.50			lyAnd	n
					:lyAnd	Ason Date
ND KUMAR	(Monthly	III.50	17/2025	.89303.25	lyAnd	Ason Date
	(Monthly	III.50			lindy And	{Interest As on

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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

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Parties are directed to appear before ASHISH KUMAR , Recovery oniccr, 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 are above naIled 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

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C&
RegIstrar
RRHM
Debts Recovery Tribunal, Prtna
IWlnInt ufima, @qI

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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

RC No. 279/2026

Case No: OA/538/2025

Applicant(s): UCD BANK Versus

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Defendant(s): M/S KIRAN ENTERPRISES

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Item ofCosts	IAmountinRs
'eeon the application	m2
rocess Fees(Inc. Publication)	[0
AdvocateFees	[0
Commissioner/Receiver/Valuation/Security Fee	[0
iscellaneousCharges	ro
TotalCosts: Rs	m7

Place: PATNA

PRESIDING OFFICER

Date: 09/09/2026

Note: Strike out whichever is not applicable

Uco Bank v. M/s Kiran Enterprises

Case brief

What is this about?

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Uco Bank v. M/s Kiran Enterprises

Case brief

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