Allowed

Indian Bank (Allahabad Bank ) v. Jafar Poultry

DRT5 Sept 2026OA/584/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna allowed an application under Section 19 of the RDB Act filed by Indian Bank against the borrowers and guarantors. The Tribunal found the defendants liable for a debt of Rs. 31,99,401/- plus interest. Being ex-parte, the judgment relied on documentary evidence including loan sanction letters and acknowledgments. The Tribunal issued a recovery certificate directing realization of dues from the mortgaged assets or other personal assets.

What did the court decide?

Defendants jointly and severally ordered to pay Rs. 31,99,401/- with pendente-lite and future interest @ 10% p.a. with compound monthly rests from date of filing. Recovery Certificate issued for realization through sale of assets.

Indian Bank (Allahabad Bank ) versus Jafar Poultry — Banking and Recovery | DRT (2026)

OA 584 of 2024jJI

DRT, PATNA

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. 584 of 2024

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Indian Bank (erstwhile Allahabad Bank), BO- PP Colony, Patliputra District-Patna

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. . . . . . .Applicant

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1 Jafar Poultry, Prop. Md Jafar, Resident of Raja Bazar, Samanpura Madarsha Gan, Shastri Nagar Patna, District- Patna, Bihar- 800023 (Proprietorship firm)

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Md. Jafar, Son of Late Md Muslim, Resident of Raja Bazar, SamanpuraMadarsha Gali, Shastri Nagar Patna, District-Patna, Bihar800023 .PAN No-AMT,PJ8819R, (Proprietor/Borrower).

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Md. Shamim, son of Md Kallu, resident of Ishopur, Phulwarisharif, District- PaUla, (Guarantor)

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Md. Sonu, son of late Md Sarfu, Resident of House No-3/94 Lodipur, Bank Road, Patna-800001, PAN No-CIGPS8634E. (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 27.11.2024 against the defendants to recover its debts aom defendants of Rs.3 1,99,401/-as on 01.11.2024 along with pendente-lite and future interest at the contractual rate from 02.11.2024 with costs till realization.

¶21

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.

Pre Debts

DRT, PATNA

OA 584 of 2024jJl

3 . Defendant no.1 is a propdetorship firm of which defendant no.2 is the proprietor. Defendant no. 3& 4 are the guarantors. Defendants approached the applicant bank for sanction of term loan of Rs.4.25 Lakh, vide loan application dated 15.11.2016, which was sanctioned by the applicant bank on 15.11.2016 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 vehicle in favour of the applicant bank, details of which are given in OA.

¶28

Defendant no-2 has desired to start and run Poultry Farm business and for said purpose the defendant no-2 availed the Cash credit facility of Rs 9.50 Lakh &om the applicant Bank for smooth running of their aforesaid Poultry farm business. On the request of defendant’ no-2 and in order to further expand his business, the defendant no.2 again approached the applicant Bank for sanction/enhanced Cash Credit Facility to Rs.20. Lakh on 19.02.2018, which was sanctioned by the applicant bank on 16.03.2018 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 in favour of the applicant bank, details of which are given in OA

¶29

On 21.06.2020 defendant No-2 approached the applicant bank for Working Capital Term Loan facility for Rs.3.80 lakh under GECL Scheme (Covid-19) for existing business i.e., Poultry Farm for smooth running of their aforesaid business, which was sanctioned by the applicant bank on 19.08.2020.

¶30

Again, the defendant No-2 approached the applicant bank for Working Capital Term Loan facility for Rs.3.20 lakh under GECL Scheme (Co-,'id-19) for existing business i.e., Poultry Farm for smooth running of their aforesaid business, which was sanctioned by the applicant bank on 08.12.2021

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The defendant No-2 has acknowledged and confirmed the said facilities (WCTL & TL and CC) by executing Acknowledgment of Debt-cum-security dated 21.12.2022 in favour of applicant bank.

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O O D :: Ie1Ui i F ][d1][11H) tEIEIII&I

OA 584 of2024jJI

DRT, PATNA

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 29.01.2023 .

¶39

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.3 1,99,401/- as on 01.11.2024 with pendente-lite and future interest contractual rate nom 02.11.2024 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 31.12.2024, 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 08.05.2025 in “Dainik Bhaskar” and “The Hindu” newspapers.

¶42

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 08.10.2025 .

¶43

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 Saurav Kumar, Branch Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description Documents PhotocoDies	of 1Date of Execution	IAmount (in Lakh	ISignature Executants	of 1Ex./ Ann No
		%S

OA 584 of 20241J]

DRT, PATN A

1	Creditinformation	15.11.2016		Def.no.l&2	11
2	Sanctionletter	15.11.2016	4.25	a bydef.no.I&2
3	Acknowledgement ofsanctionletter	21.11.2016		e
4	DPnote	15.11.2016	4.25	Def.no.1&2	4
5	Agreementfor MTL	15.11.2016 ]	4.25	Def.no.1&2	5
6	Agm uarantee of	15.11.2016	4.25 ]	Def.no.3	6
7	Quotation Deliveryorder Insurance )aDer	25.10.2016 15.11.2016			7
8	Registration certificate				8
9	Loanapplication	19.02.2018	20.00	Def.no.I&2	9
10	Sanction letter	16.03.2018	20.00	Bank andaccepted byde£no.1&2	10
11	Acceptanceletter	16.03.2018		Def.no.1&2	11
12	DPnote	16.03.2018	20.00	Def.no.1&2	12
13	Adv.24	16.03.2018		Def.no.1&2	13
14	Hypothecation agreement	16.03.2018	20.00	Def.no.1&2	14
15	piT	6	e		15
16	Agreementof ,uarantee	16.03.2018	e		16
17	Loanapplication	29.06.2020	e		17
18	Sanction letterand Acknowledgement ofsanction letter	19.08.2020	a		18
19	LoanaDDlication	19.08.2020	3.80	Def.no.I&2	19
20	Sanction letter	08.12.2021	3.20	Def.no.I&2	20
21	D P note	23.12.2021	3.20	Def.no.I&2	21
22	Agreementof hypothecation	23.12.2021	3.20	Def.no.I&2	22
23	T;rm loan agreement	23.12.2021	3.20	Def.no.1&2	23
24	Acknowledgement ofdebtandsecurit	21.12.2022		Def.no.I&2	24
25	Legalnotice	04.12.2022 10.04.2024		Bank’sadv	25
26	Statement accounts of			Bank	26

¶49

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

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UK<br>

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Presiding C)ficer Debts Recovery Tribunu PA'l'rq A

DRT, PATNA

OA 584 of 20241.Jl

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.

¶59

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 29.01.2023, whereas the present application has been filed on 27.11.2024. 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 Saurav Kumar, 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 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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Presiding OfFicer Debts Recovery Tribunnl PATNA

DRT, PATNA

OA 584 of2024jJl

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 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 defendant no.3 is the guarantor of the loan and he has executed agreement of guarantee for Rs.4.25 Lakh only hence he is liable to pay the dues of the applicant bank to the extent of the dues with interest etc. in said loan account of Rs.4.25 Lakh till repayment in full.

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The defendant no.4 is the guarantor of the loan and he has executed agreement of guarantee for Rs.20 Lakh only hence he is liable to pay the dues of the applicant bank to the extent of the dues with interest etc. in said loan account of Rs.20 Lakh till repayment in full.

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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

hq,=;TIL.„Debts

DRT, PATNA

OA 584 of20241JI

and conditions for repayment with interest. The balance amount till 01.11.2024 has been proved to be Rs.31,99,401/- 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.31,99,401/- along with pendente-lite and future interest @10% p.a. with compounded monthly rests from 27.11.2024 (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.3 1,99,401/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 27.11.2024 (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 the defendant no.3 is liable to pay the dues of the applicant bank to the extent of the dues with interest etc. in Term loan account of Rs.4.25 Lakh till repayment in full and the defendant no.4 is liable to pay the dues of the applicant bank to the extent of the dues with interest etc. in cash credit loan account of Rs.20 Lakh till repayment in full.

¶84

It is further made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

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Defendants we debarred from transferring, alienating encumbering or otherwise dealing with 'x 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 er ids 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

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nR Oji ceF r. bb_ erIC_,vcr? Tri:bunD l

OA 584 of20241JI

DRT, PATNA

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 ofmortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants. The Recovery ofIcer 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 /Certifcate holder 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.

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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

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EQRNLNa2

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24( 1 )]

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2nd Floor! (A. B & F Wing) Karpuri Thakur Sachnl Kencklya Karamchari Padsar (GPOA), Ashiana Digha Road, Patna-800025.

.EA

RC No, 274/2026 IN

Case No: OA/584/2024

In the Matter oC

(CH- 1) INDIAN BANK (ALLAHABAD BANK ) BO PP COLONY, PATLIPUTRA, PATNA ,BIHAR -0

Applicant(s)

––- Versus -–-–

(CD- 1) JAFAR POULTRY (Proprictorship Firm) Prop. Md Jafar, Resident of Raja Bazar Samanpura Madanha Gali Shastri Nagar Patna Patna ,BIHAR -800023

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(CD- 2) MD, JAFAR (PROPRIETORIBORROWER) SON OF LATE MD. MUSLIM, RESIDENT OF RAJA BAZAR. SAMANPURA. MADARSHA GALI, SHASTRI

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NAGAR, PATNA. DISTRICT- PATNA, BIHAR- 800023,

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Defendant(s)

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(CD- 3) MD. SHAMIM (GUARANTOR) SON OF MD KALLU, RESIDETfr OF ISHOPUR, PHULWARISHARIF, DISTRICT- PATNA

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(CD- 4) MD. SONU (GUARANTOR)

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SON OF LATE MD SARFU RESIDENT OF HOUSE NO-

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3/94 LODIPUR, BANK ROAD, PATNA- 800001

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ifjgate for Rs 3_1_99401. S Th i Ninet le TLrQRSan

¶118

In terms of anal 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. 3199401.00 along with cost, expenses and interest from the 27/11/2024 i.e. date of filing / with efFective date of the OA/584/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶119

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.

¶120

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 .

¶121

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

¶122

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.

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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 DEBTS RECOVERY TRIBUNAL PAINA

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RegIstrar fqqd4+1

¶127

rb n•+ejdIng Once I nibh h80Qvery Tru,p PATNA

¶128

Debts Recovery Tribunal, Patnl qWTqqHtNftlHM, qm

¶129

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. 274/2026

Case No: OA/584/2024

Applicant(s): INDIAN BANK (ALLAHABAD BANK ) Versus

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Defendant(s): JAFAR POULTRY

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tem ofCosts	[Amount inRs
Feeon theapplication
'rocessFees(Inc. Publication)
AdvocateFees
ie
MiscellaneousCharges
TotalCosts: Rs

Place: PATNA

PRESIDIXe6FFICER

Date: 09/09/2026

DEBTS RECOVERY TRIBUNAL PATNA

¶146

v IJ ]NIF o t e : S 1L1[i k e o u t Ib11brh i c h e v e r i s n at applicable 9 BD hiNTJijl nOunI

Indian Bank (Allahabad Bank ) v. Jafar Poultry

Case brief

What is this about?

What did the court decide?

Indian Bank (Allahabad Bank ) v. Jafar Poultry

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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