DRT allowed State Bank of India's OA for recovery of Rs. 40,04,700.45 + interest from proprietorship firm and borrower for loan default. Tribunal proceeded ex-parte, determined the debt, and issued a Recovery Certificate under Section 19(22).
Recovery certificate issued for Rs. 40,04,700.45 with interest; mortgaged assets attached for realization.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DRT. PATNA
OA 544 of2024jJI
Debts Recovery Tribunal, Patna
Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025
Presiding Officer : Shri Kaushalendra Yadav
OA Case No. 544 of 2024
State Bank of India, Ara Branch, Bhojpur through the Stressed Assets Recovery Branch, 2"d Floor, Patna Main Branch Building, West of Gandhi Maidan, Patna
. . . . . . .Applicant
Vs
. . . . . . . Defendants
Present:
For the Applicant Shri A.K. Sharan, Advocate For the Defendants None
Dated : 19.03.2026
JUDGMENT
//{&7 Prest an OPen Debts RecoVerY ’Friblln8' bA fAa
2
OA 544 of 20241 Jl
DRT, PATNA
outlet, which was sanctioned by the applicant bank on 20.02.2020 as cash credit e-DFS limit under SME Segment 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.
Defendants again approached the applicant bank for enhancement of loan facility of Rs.24 Lakh to Rs.49 Lakh vide loan application dated 17.06.2021, which was enhanced/sanctioned by the applicant bank on 30.06.2021 under CGTMSE Scheme 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.
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.
The total liability in the loan account is Rs.40,04,700.45 as on 31.08.2024 with pendente-lite and future interest contractual rate from 01.09.2024 till the realization.
q. PresIding OO'" Dobu xeco„arT 'fribWr&I PATAA
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OA 544 of2024IJI
DRT, PATNA
photographs have been enclosed with the service report filed on affidavit by Shri Manoj Kumar Ojha, Chief Manager of the applicant bank.
| SI.No | Descriptionof Documents PhotocoDies |
1 Date of IExecution |
Amount (in Lakh) |
Signatur Executants |
eof | Ex./ Ann No. |
|---|---|---|---|---|---|---|
| m)t) |
24.00 | Defendants | ||||
| Lettero arrangement |
24.00 | Bank accepted defendants |
and by |
|||
| 3 | Agreement of loan cumhyDothecation |
20.02.2020 | 24.00 | Defendants | 3 | |
| 4 | Agreem PDR |
20.02.2020 | e | 4 | ||
| 5 | Loan application for enhancement |
17.06.2021 | e |
5 | ||
| 6 | Letter of arrangement |
30.06.2021 | 9 | = accepted defendants |
-by | |
| 7 | Agreement ofloan cum hypothecation |
30.06.2021 | e | Or | ||
| 8 | Agreement under PDR |
30.06.2021 | e | 8 | ||
| Revival letter | 18.07.2023 | Defendants | 9 | |||
| Interest calculation chart andstatement ofaccounts |
Bank | 10&11 | ||||
| 12 | Legal notice | 13.08.2024 | a |
- Heard arguments and perused the case record.
A> PPestdillg ©fice? Dc;b+J AbCc}v : IV 'fri II&J ’ rh'l' jy A
4
DRT? PATNA
OA 544 of 20241 Jl
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.
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
yeIt?
P?eltaB! OPen ung Debts Rec f'V + ' taI Iba
5
OA 544 of 2024jJI
DRT, PATNA
affidavit in respect of the contents of the application and the documents as evidence.
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.
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 cert Oed 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.
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.
ba> p,„taH! OP'" Dub,s KecoVOry Tribllna PAIMA
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OA 544 of 20241 Jl
DRT1 PATN A
interest @ 9.70% p.a. with compounded monthly rests from 28.10.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.
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.40,04,700.45 along with pendente-lite and future interest @ 9:70% p.a. with compounded monthly rests from 28.10.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.
It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.
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.
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
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7
DRT, PATNA
OA 544 of2024jJI
44
fails to comply with directions of the Recovery Officer, the execution may be dismissed for non-prosecution.
The copy of this judgment be uploaded in the website of the Tribunal.
Parties are directed to appear before the Recovery Officer, DRT, Patna on 04.05.2026. The order be communicated accordingly.
Judgment signed, sealed, dated and pronounced in the open court on 19th day of March, 2026.
Dictated &corrected by me.
g-’Ad , a IO 1 [KaY;3ii%ndraYadav] - Presiding Officer /atna DebtsReg);iaaF&Wi
Debb Recovery TTib'lan PATBA
FORM NO. 9 [See Regulation 24(1 )]
DEBTS RECOVERY TRIBUNAL PATN A
J
2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025,
RECOVERY CERTIFICATE UNDER SECTION 19(2)m)WWWIBIS-& BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.
RC No, 138/2026 IN
Case No: OA/544/2024
In the Matter of:
(CH- 1) STATE BANK OF INDIA ARA BRANCH, BHOJPUR THROUGH THE STRESSED ASSETS RECOVERY BRANCH, 2ND FLOOR PATNA MAIN BRANCH BUILDING, WEST OF GANDHI MAIDAN, PATNA ,BIHAR -800001
Applicant(s)
-––- Versus -––--
To
(CD- 1) M/S ARVIND AND SONS KSK Represented through its Proprictor, Proprictorship Firm, Business at- Village Baruna, near Narayanpur Sahar Road, Arrah, Bhojpur ,BIHAR -802201
Defendant(s)
(CD- 2) RAHUL KUMAR (PROPRIETOR / BORROWER)
M/S ARVIND AND SONS KSK, S/0- BIRENDRA RAY RESIDENT OF - WARD NO- 08, MUZAFFARPUR BARUHI, ARRAH BHOJPUR, DISTRICT- BHOJPUR- 802208 BIHAR
Recoyery Certificate for Rs 4004700.45 1 Rupees Forty Lakhs Four Thousand Seven Hundred And Paise Forty Five Only_l
In terms of final order dated 19/03/2026 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. 4004700.45 along with cost, expenses and interest from the 28/10/2024 i.e. date of filing / with effective date of the OA/544/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as
| CDName | Loan EType |
Int. Int. I Type/Mode IRat |
IEffective Date |
IOrder Date |
Amount(Rs.) |
Liability He |
as0 'rder |
RC [Amount(Rs.) |
ReIna |
|---|---|---|---|---|---|---|---|---|---|
| M/SARVIND 4NDSONSKSK |
Id[ FInterest :Monthjy ) |
B | E | L | C | ||||
| RAHUL KUMAR ROP bR/ RROWER) |
;ompound .70: IInterest :Monthly) |
!28/10/2024:l |
19/03/2026 |
:F4004700.45 |
lointly IAnd :verall) |
LO04700.45 |
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.
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 PATNA on 04/05/2026,
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.
This Certificate has been issued under my signature and seal of the Tribunal on this 20/03/2026
PRESlti\d’oFFICER .v/ DEBTS RECOVERY TRIBtJNAL PATNA Pratdn! ODc'' Registrar 8ebB BBiTTU Tlibu D6btg Rec:very Tribunal Patn8
FORM NO. 10
[See Regulation 24(2)]
DEBTS RECOVERY TRIBUNAL PATNA
2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar
(GPOA), Ashiana Digha Road, Patna-800025 .
SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS
RC No. 138/2026
IN
Case No: OA/544/2024
Applicant(s): STATE BANK OF INDIA Versus
Defendant(s): M/S ARVIND AND SONS KSK
| tem ofCosts | IAmountinRs |
|---|---|
| 'eeon the application | m |
| [0 | |
| AdvocateFees | ro |
| l@ |
|
| e | lb |
| TotalCosts:Rs. | m4 |
Place: PATNA
PRESIDFKG OFFICER Date: 20/03/2026 DEBTS RECOVERY TRIBUNAL PATNA PtalcEng Ofleo Note: Strike out whichever is not applicable Mb Recovery TJ ii-,uno PATBA
I
3 issues framed by the court
Whether the Debt Recovery Tribunal has the jurisdiction to adjudicate the suit for loan recovery?
Whether the application for debt recovery is filed within the limitation period?
Whether the defaulting borrowers are liable to repay the outstanding dues including interest?
3 provisions across 3 enactments
State Bank of India, Ara Branch, Bhojpur
M/s Arvind and Sons KSK
Rahul Kumar
Kaushalendra Yadav
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
