Allowed

Canara Bank v. Ms Bhawani Enterprises

DRT29 Jun 2026OA/556/2023

Case brief

AI extract

What is this about?

The DRT allowed a recovery application by Canara Bank against loan defaulters and guarantors. The court determined the debt of Rs. 42.72 lakhs based on bank statements, issued a recovery certificate, and directed attachment of mortgaged assets.

What did the court decide?

Defendants ordered to pay Rs.42,72,299.31 with interest and costs; Recovery Certificate issued; mortgaged assets attached.

Canara Bank versus Ms Bhawani Enterprises — Insolvency and Bankruptcy | DRT (2026)

OA 556 of 20231 Jl

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. 556 of 2023

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Canara Bank, branch office at Harrakh, Begusarai, Begusarai, PSMuffasil, District- Begusarai, Bihar 851 101

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. . . . . . .Applicant

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Vs.

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M/s Bhawani Enterprises through its proprietor Sri Kumar Devanshu Verma, Office at- N.H.31, Near Alka Cinema Hall, Begusarai, DistrictBegusarai- 85 1 101

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Sri Kumar Devanshu Verma, S/o Late Kumar Sri Krishna :lee, R/o Ward No.33, Allahabad Bank Campus, Kachahari Road, Begusarai, District- Begusarai, Bihar 851 101, PAN No. ALJPV5971H

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Sri Kumar Arvind, S/o Late Dineshwar Prasad Verma, R/o Ward No.33, Allahabad Bank Campus, Kachahari Road, Begusarai, DistrictBegusarai, Bihar 851101, PAN No. BFFPA0006K

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Sri Kumar Roshan, S/o Late Dineshwar Prasad Verma, R/o Ward No.33, Allahabad Bank Campus, Kachahari Road, Begusarai, DistrictBegusarai, Bihar 851101, PAN No. AGHPR4220N

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Sri Kumar Rajesh, S/o Late Dineshwar Prasad Verma, R/o Ward No.33, Allahabad Bank Campus, Kachahari Road, Begusarai, DistrictBegusarai, Bihar 851 101

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Mrs. Ranju Verma, W/o Late Dineshwar Prasad Verma, R/o Ward No.33, Allahabad Bank Campus, Kachahari Road, Begusarai, DistrictBegusarai, Bihar 851 101

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Defendants

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Present:

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For the Applicant Shri Manish Kishore, Advocate For the Defendants Dr. Binay Kr. Singh, Advocate

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Dated:29.06.2026

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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 23.11.2023 against the defendants to recover its debts from defendants of

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D e= :::::::{ ! !iSII in •I

DRT, PATN A

OA 556 of2023jJl

Rs.42,72,299.31 as on 02.11.2023 along with pendente-lite and future interest at the contractual rate from 03.11.2023 with 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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Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendant no. 3 to 6 are the guarantors/mortgagors. Defendants approached the applicant bank for sanction of cash credit of Rs.30 Lakh for dealing in the business of retail trading of LG Electronics, vide loan application dated 02.08.2018, which was sanctioned by the applicant bank on 27.08.2018 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 mortgage in favour of the applicant bank, details of which are given in OA

¶31

Defendants again approached the applicant bank for sanction of Term Loan of Rs.5.70 Lakh for purchase of a Generator Set, vide loan application dated 29.05.2019, which was sanctioned by the applicant bank on 30.06.2019 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 hypothecated the movable in favour of the applicant bank, details of which are given in OA.

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The loan CC account was renewed at the request of the defendants by the applicant bank on 3 1.08.2020.

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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 28.06.2022.

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Presiding OPc'r Debts Recovea TdbwW PATNA

OA 556 of2023jJl

DRT, PATN A

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.42,72,299.31 as on 02.11.2023 with pendente-lite and future interest contractual rate from 03. 11.2023 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 21.12.2023, 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 11.04.2024 in “Dainik Bhaskar” newspaper.

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In response to the notice, the defendants have appeared by filing their vakalatnama on 11.06.2024 but they have failed to file their written statement within the statutory period. However, the defendants have filed their rebuttal evidence admitting therein the sanction of CC of Rs.30 Lakh and term loan of Rs.5.70 Lakh to the defendants. It has been further stated that the bank has gone on charging penal interest month after month and capitalizing it to the book balance contrary to the judgment of the Hon’ble Apex Court in Ravindra Case. It has further been stated that out of Rs.30 Lakh, the defendants have paid Rs.22 Lakh. It has further been stated that the bank paid no heed to be notifications of Central Government and revised Notification of RBI and straight away, as if a law into itself, declared the account as NPA by tinkering with controvertible facts and requested to dismiss the OA.

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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 Chandan Kumar, Senior Manager of the applicant bank. The details of documents are as follows:

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He of 1 Date of I Amount I Signature (bb@

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Prestdiat OFrcn Debts Recovery Tdbwt•l PATNA

OA 556 of 20231JI

DRT. PATNA

	Documents Photocopies	Execution	(in Lakh)	1 Executants I	IAnn. INo.
	Loanapplication	02.08.2018	e
	Photocopy ofsimple mortgagedeed	24.08.2018
	Sancti-onletter	27.08.2018	a
	Request letterfor ODfacilit	28.08.2018	e
5	Cash credit agreement	28.08.2018	e		5
6	Guarantee agreements	28.08.2018	e		6
7	Guaranteecovering letters	28.08.2018	e		7
8	Declaration from ,uarantors	28.08.2018	e		8
	Letter ofundertaki	28.08.2018	e		9
	Pronote	28.08.2018	e
	Letter 'roDrietorshi	28.08.2018	e
12	Loanapplication	30.05.2019	e	&
13	Sanction memorandum		a	a bydef.no.1&2
14	Agreement cum deed of hyDothecation	31.05.2019	He
15	Letter ofexecution ofdocuments		e	&
	Letter ofrenewal	31.08.2020	30.00	Def.no.I&2
	Sanction letter	31.08.2020		Bank andaccepted bydef.no.I&2
18	Letter from uarantor		30.00	e
	Notice	13.06.2021		Bank
	Acknowledgement of debt and securit	25.08.2021		Def.no.1,2&3
	Legalnotice	12.09.2023		Bank’sadv.
	Statr accounts			Bank

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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.

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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

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/Wto PresIding Ofic•r 88bt8 Recovery Tribunal PATNA

OA 556 of 2023jJI

DRT, PATN A

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 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 28.06.2022, whereas the present application has been filed on 23.11.2023. 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 Chandan Kumar, Senior 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

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Presidin8 VIJice1 DUB Recovea Tlibunal PATNA

OA 556 of 2023jJI

DRT, PATN A

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 certibed 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 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 02.11.2023 has been proved to be Rs.42,72,299.31 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.42,72,299.3 1 alonEwith pendente-lite and future

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VA\”

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D 8 b ==::dj:: e :III::iI:1 1 R U PATNA

OA 556 of20231JI

DRT, PATNA

interest @ 10% p.a. simple from 23.11.2023 (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.42,72,299.3 1 along with pendente-lite and future interest @ 10% p.a. simple from 23.11.2023 (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 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. However, no proclamation of sale will be issued, if the Defendant/CertifIcate Debtor ensures payment of the certificate amount in 6 months from the date of demand notice to the Certificate debtors. The Recovery Of$cer will issue demand notice to the CertiDcate debtors only after the proof

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OA 556 of 20231 Jl

DRT1 PATN A

of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Certi$cate 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.

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

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

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Dictated &corrected by me.

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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IIII111:1 IE111h1kIIIII b ::gig;IL

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EQRNLNh! [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floors (A. B & F Wing) Karpuri Thakur Sudan, Kendriya Karamchmi Pariw (GPOA), Ashiana Digha Road, Patna-800025,

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EPFaIR

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EPFaIR mIFTm

RC No. 218/3026

Case No: OA/556/2023

In the Mutter of:

(CH- 1) CANARA BANK BRANCH OFFICE AT HARRAKH, BEGUSARAI, P.0.-

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Applicant (s)

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BEGUSARAI. P.S.- MUFFASIL.

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BEGUSARAI ,BIHAR -85 1 101

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(CD- 1) MS BHAWANI ENTERPRISES Though its Proprietor Sri Kumar Dcvanshu Vcrma, Ofticc at NH.3 1, Near Alka Cinema Hall, Bcgusarai,

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Begusarai ,BIHAR -85 1101

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(CD- 2) SRI KUMAR DEVANSHU VERN4A S/0- LATE KUMAR SRI KRISHNA JEE, R/O. WARD NO 33, ALLAHABAD BANK CAMPUS, KACHAHARI ROAD,

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BEGUSARAI, DISTRICT- BEGUSARAI, BIHAR- 85 1 101

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(CD. 3) SRI KUMAR ARVrND S/0 LATE DINESHWAR PRASAD VERM A. R/0- WARD NO 33. ALLAHABAD BANK CAMPUS, KACHAHARI ROAD,

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BEGUSARAI, DISTRICT- BEGUSARAI, BIHAR- 85 1 101

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Defendant(s)

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(CD- 4) SRI KUMAR ROSHAN S/O LATE DIENSHWAR PRASAD VERMA. R/O WARD NO

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ALLAHABAD BANK CAMPUS, KACHAHARI ROAD.

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BEGUSARAI, DISTRICT. BEGUSARAI, BIHAR. 85 1 101

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(CD. 5) SRI KUMAR I{AJESH S/0 LATE DIENSHWAR PRASAD VERM A, R/0 WARD NO 33. ALLAHABAD BANK CAMPUS. KACHAHARI ROAD, BEGUSARAI, DISTRICT. BEGUSARAI, BIHAR- 85 1 101

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(CD- 6) MRS. RANJU VERMA

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W/O LATE DINESHWAR PItASAD VERMA. R/0 WARD NO

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ALLAHABAD BANK CAMPUS. KACHAH ARI ROAD.

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BEGUSARAJ, DISTRICT- BEGUSARAI, BIHAR- 85 1 101

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R££Qv$ry Certificate fyr R$ 4272299,31 L®P£$$ Fprjy bye Lakh s Seventy TwQ Thou$nni s Two Hundred NineW Njr'e And P&ise Thirty One Only]

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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. 4272299.3 1 along with cost, expenses and interest &om the 23/11/2023 i.e. date of fung / with eITective date of the OA/556/2023 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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'Sr.n	o CDName	Int.Type/Mode	.1H	LEUtT	Order Date	:Amount(Rs.)	Liability Type	IFiSi:co)n	''.AmoS:(Rs.)Remark
1	MSBHAWANI ENTERPRISES	:Simple Interest i(Yearly )	10	'23/11/2023	29/06/2026	}272299.31	,JointlyAnd jSevcrally	E:::pbttscon	i272299.31-
2	SRIKUMAR DEVANSHU VERMA	SimpleInterest ;(Yearly )	.10	:23/ 11/2023	;29/06/2026	1272299.31	.JointlyAnd :Severally	Interest As on OrderDate	4272299.31
3	SRI KUMARARVIND	.SimpleInterest '(Yearly)	IC)	23/11/2023	;29/06/2026	;4272299,31	.Jointly And :Severally	Interest As on OrderDate	14272299.31
4	SRIKUMARROSHAN	'SimpleInterest !(Yearly )	10	.23/11 /2023	.29/06/2026	.4272299.31	'Jointly And iSeverally	Interest As on OrderDate	8272299.31
5	SRIKUMARRAJESH	'SimpleInterest (Yearly)	10	:23/11/2023	129/06/2026	;4272299,31	:Jointly And :Severally	Interest As bn OrderDate	;4272299.31
6	MRS. RANJUVERNIA	SimpleInterest !(Yearly)	10	23/11/2023	29/06/2026	:4272299.31	iJointly And !Severally	Interest As on OrderDate	4272299.31

¶129

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 de.btors.

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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

¶131

Panics are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 10/08/2026.

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The Recovery Officer shall realize the amount as per this Certificate in the mamer and mode prescribed urder 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

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This Certificate has been issued under my signature and seal of the Tribunal on this 03/07/2026

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/LX <br>_ Registrar
D ej::IrW3W:: n a

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P
DEBTS RECOVERY TRIBUNAL PAINA

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor2 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 218/2026

Case No: OA/556/2023

Applicant(s): CANARA BANK Versus

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Defendant(s): MS BHAWANI ENTERPRISES

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temofCosts	Amount inRs
Feeon theapplication	,45000
i;&daiJF;;'J(iii-I-il;6hiiiiiIl)	:0
AdIJi-ate-Fees	to
Commissioner/Receiver/Valuation/Security Fee	0
MiscellaneousCharges	:0
TotalCosts:Rs.	;45000

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Place: PATNA

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Date: 03/07/2026

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PRESIDINYOFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Canara Bank v. Ms Bhawani Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms Bhawani Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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