Allowed

State Bank of India v. M/s Raj Agro Layer Farm

DRT5 Sept 2026OA/54/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna allowed an application by State Bank of India to recover a debt of Rs. 26,31,553.75. The defendants, including the borrower and a guarantor, failed to appear. The Tribunal relied on the bank's documentary evidence and affidavit to determine the liability, upheld the claim, and directed the issue of a recovery certificate for the attachment and sale of mortgaged assets.

What did the court decide?

Application allowed. Defendants jointly and severally directed to pay Rs. 26,31,553.75 along with interest and costs. Recovery Certificate issued for attachment and sale of mortgaged assets.

State Bank of India versus M/s Raj Agro Layer Farm — Banking and Recovery | DRT (2026)

OA 54 of 20251JI

DRT, PATN A

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 54 of 2025

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State Bank of India, Masaurhi Branch through the Stressed Assets Recovery Branch, 2nd Floor, Patna Main Branch Building, West of Gandhi Maidan, Patna

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. . . . . . .Applicant

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M/s Raj Agro Layer Farm, through its proprietor Sideshwar Prasad Son of Ramprit Singh, having its place of business At - Sarfabad Baliyari, P.O. - Bara, Block - Masaurhi, P.S. - Bhagwanganj, District - Patna, Pin Code - 804451 (Borrower), (PAN - EQMPP7953K),

¶12

Sideshwar Prasad, Proprietor - M/s Raj Agro Layer Farm, Son of Ramprit Singh, Village - Sarfabad Baliyari, P.O. - Bara, P.S. - Bhagwanganj, Masaurhi, District - Patna, Pin Code - 804451 (CoBorrower) (PAN- EQMPP7953K),

¶13

Rakesh Kumar, Son of Sideshwar Prasad, Village - Sarfabad Baliyari, P.O. - Bara, P.S. - Bhagwanganj, Masaurhi, District - Patna, Pin Code - 804451 (Guarantor) (PAN - CZQPK3434H)

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Devesh Shankaran, 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 21.01.2025 against the defendants to recover its debts from defendants of Rs.26,3 1,553.75 as on 02.12.2024 along with pendente-lite and future interest at the contractual rate from 03.12.2024 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 apRlica}/

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vaR

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Prvsi Li: it { (}g'icer Debts ReeF -' : -y T,ibm& FI

OA 54 of2025jJI

DRT, PATNA

3 . Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 is the guarantor of the loan.

¶27

Defendants approached the applicant bank for sanction of Drop LineOD loan of Rs.9.50 Lakh for the purpose of expansion of the business in raising of Poultry, production of eggs, vide loan application dated 10.05.2022, which was sanctioned by the applicant bank on 21.05.200 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.

¶28

Defendants again approached the applicant bank for sanction of term loan of Rs.18 Lakh, vide loan application dated 31.08.2022, which was sanctioned by the applicant bank on 27.01.2023 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 and also created mortgage in favour of the applicant bank, details of which are given in OA. Registration of security interest was also done with CERSAI on 04.07.2023 .

¶29

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 26.06.2024.

¶30

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.26,31,553.75 as on 02.12.2024 with pendente-lite and future interest contractual rate from 03.12.2024 till the realization

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Debts IZecc' LILA i b

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 27.02.2025, 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 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 02.08.2025 in “Dainik Bhaskar” and “Hindustan Times” newspapers.

¶36

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 13.05.2026

¶37

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 Shashi Ranjan Choudhary, Chief Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description Documents Photocopies	of	I Date of Execution	IAmount 1(in Lakh:	Signature Executants	of	1Ex./ Ann No.
	Loan aDDlicati		10.05.2022		Def.no.1&2
	Photocopyof				Def.no.2
3	Photocopy Aadhar				De£no.2
4	Letter arrangement	no			Bank accepted def.no.I&2	ma by
5	Hypothecation agreement		21.05.2022	9.50	De£no.I&2		5
	PbR		21.05.2022	9.50	Def.no.I&2
	Loanapplication		31.08.2022	18.00	Def.no.I&2
	Photocopyof PA	N			Def.no.3
	Photocopy Aadhar	of			Def.no.3
10	Letter arrangement	of	27.01.2023	9.50 18.00	Bank accepted defendants	ma by
11	r cumhypothecati	on		27.50	Def.no.I&2		11
12	Guarane			27.50	me		12

¶39

rfbstul, X i/ J -„1 Dobt8 RecQ’-:FY Tnbulw F/,I it A

OA 54 of2025jJI

DRT, PATNA

	agreement
13	Memorandum for recordingcreationof mortgage bydeposit of titledeeds	27.01.2023	2	1
14	Letter of confirmationfor creationofmortgage bydepositoftitle deeds alongwith photocopy of title deed	7	e
	Linkletter	27.01.2023	e
	PDR	27.01.2023	e
	PDR	27.01.2023	e
	CERS Al details
	Legalnotice	11.12.2024	a
	Statement of accounts		B

¶44

Heard arguments and perused the case record.

¶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 laos. Tlle 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.

Deb# KeiTh{ 'Latin I

OA 54 of 20251JI

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 26.06.2024, whereas the present application has been filed on 21.01.2025. 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.

¶54

Shri Shashi Ranjan Choudhary, 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.

¶55

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.

¶56

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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I:;IFIIIFI11AI!IEI!! D dII=t:djefT&

OA 54 of20251JI

DRT? PATNA

15 . 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 02.12.2024 has been proved to be Rs.26,3 1,553.75 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.26,3 1,553.75 along with pendente-lite and future interest @ 11 % p.a. with compounded monthly rests from 21.01.2025 (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 defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt amounting to Rs.26,3 1,553.75 along with pendente-lite and future interest @ 11% p.a. with compounded monthly rests from 21.01.2025 (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 nom transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any

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~“Aq

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u._ __? ;!:po ©mCet + „ . '=b , c.overy TlibuP+I PATNA

OA 54 of20251JI

DRT, PATNA

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 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 /CertifIcate holder fails to comply with directions of the Recovery oficer, the execution may be 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 05tt1 day of September, 2026.

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F'J&\”

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Dictated & corrected by me.

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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Presiding b _. ~ :’ Del)B Recovery :r’tiDWI a’ PATNA

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FORM NO, 9

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24( 1 )]

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2nd Floor1 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Pwisn (GPOA), Ashiana Digha Road, Patna-800025.

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=ERTrFrCATE UNDER SECTION 19(2) READ WITH SECTIQ

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R W, AS AMENDED FROM TIM£ TO TIME.

RC No. 254/2026 IN

Case No: OA/54/2025

In the Matter of:

(CH- 1) STATE BANK OF INDIA MASAURHI BRANCH THROUGH THE STRESSED ASSETS RECOVERY BRANCH, 2ND FLOOR, PAINA MAIN BRANCH BUILDING, WEST OF GANDHI M AIDAN,

Applicant(s)

PATNA ,BIHAR -0

––-- Versus –-–--

(CD- 1) M/S RAJ AGRO LAYER FARM Through its Proprietor Sidheshwar Prasad Son of Ramprit Singh having its Place of Business At- Sarfabad Baliyari, P.O. Bara Block - Masaurhi, P.S.Bhagwanganj, Patna ,BIHAR -8(W5 1

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(CD- 2) SIDESHWAR PItASAD PROPRIETOR M/S RAJ AGRO LAYER FARM SON OF RAMPRIT SINGH VILLAGE SARFABAB BALIYARI PO BARA PS BHAGWANGANJ MASAURHI DISTRICT PATNA PIN CODE 80445 1

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Defendant(s)

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(CD- 3) RAKESH KUMAR

¶103

SON OF SIDESHWAR PRASAD VILLAGE SARFABAD BALIYARI PO BARA PS BHAGWANGAN J MASAURHI DISTRICT PATNA PIN CODE 80445 1 GUARANTOR

¶104

Re99Ve,y Certi Bg He rOr R$ 2631553.75 1_BIIpegs Twenty SiX Lakh$ Thirty One Thor!$#nd$ Five Hundred Fifty Three And pai$$ Seventy Five Onjy_I

¶105

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. 2631553.75 along with cost, expenses and interest from the 21/01/2025 i.e. date of filing / with effective date of the OA/54/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶106

CD Nanre	Int. Type/Mode	Int iRate	Effective Date	Order Date	,mount(Rs.	Liability Type	Interest 'asO Irder Date)	RC Amount(Rs.)
	nterest 4onthly )	11	1/01/2025	}/2026	l2631553.75	And	Interest As FDate	!631553.75
DESHWAR IPRASAD	:ompound :nterest [Monthly)	11	1/01/2025		1553.75	}intly And		1553.75
RAKESH KUMAR	Interest hly)	11			553.75			1553.75

¶107

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

¶108

The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the anal order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 .

¶109

Parties arc directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 22/10/2026.

¶110

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.

¶111

This Certificate has been issued under my signature and seal of the Tribunal on this 09/09/2026

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PRES DEBTS RECOVERY ,L PATNA

¶113

RegIstrar Presiding O ficer RRaIH Debts RecoverY Tdbww Debts Recovery Tribunal, Patna PATNA im qqMt 3diIB;FIT, gz+r

¶114

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

¶115

DEBTS RECOVERY TRIBUNAL PATNA

¶116

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

¶117

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 254/2026

Case No: OA/54/2025

Applicant(s): STATE BANK OF INDIA

¶122

Versus

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Defendant(s): M/S RAJ AGRO LAYER FARM

¶124

Sr. No.	e	r
	Feeon theapplication	m2
	rocess Fees(Inc.Publication)	[0
3	(	10
	e	ro
5	s	[0
	TotalCosts:Rs	m9

Place: PATM

R /

PRESIDING aVFICER

Date: 09/09/2026

DEBTS RECOVERY TRIBUNAL PATNA

¶130

Note: Strike out whichever is not applicable

¶131

. . r!-- T:’,' ll:':,i’_-- , PATNA

State Bank of India v. M/s Raj Agro Layer Farm

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/s Raj Agro Layer Farm

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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Case details

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