Allowed

Bank of Baroda v. M/s City Automobiles

DRT10 Jul 2026OA/596/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Bank of Baroda for recovery of a loan against five respondents on default. Since respondents failed to appear, the Tribunal proceeded ex-parte, accepted documentary evidence, and determined the debt amount. A recovery certificate was issued directing realisation from sale of assets.

What did the court decide?

Debt of Rs. 1,73,93,572 along with pendente-lite and future interest @ 10.40% p.a. to be recovered by sale of assets.

Bank of Baroda versus M/s City Automobiles — Banking and Recovery | DRT (2026)

¶1

DRT. PATN A

¶2

OA 596 of 20241 Jl

¶3

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. 596 of 2024

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Bank of Baroda. ROSARB Branch. IS' Floor, Saryug Palace. Nehru Nagar. Patliputra, Patna 800013

¶8

. . . . . . .Applicant

¶9

Vs.

¶10

M/s City Automobiles through its Prop. Awadhesh Kumar (Borrowercum-guarantor), S/o Mr. Suresh Prasad @ Suresh Prasad Yadav, R/o Mohalla Rikabgani (Malsalami), Near Didarganj Thana, Patna 800008, PAN No. ALHPK6779N

¶11

Mr. Suresh Prasad @ Suresh Prasad Yadav (Mortgagor-cumguarantor)9 S/o Late Yugal Gope, R/o Mohalla Rikabganj (Malsalami), Near Didarganj Thana, Patna 800008

¶12

Mr. Saurabh Kumar (Guarantor), S/o Late Sunil Kumar, R/o Rikabganj, Katra Bazar, Post- Katra Bazar Samiti, SitnII Murarpur, Patna- City 800008

¶13

Smt. Gudia Devi @ Renu Devi (Guarantor), W/o Late Sunil Kumar, R/o Rikabganj, Katra Bazar, Post- Katra Bazar Samiti, Simli Murarpur, Patna- City 800008

¶14

Mr. Sudhir Kumar (Guarantor). S/o Mr. Suresh Prasad @ Suresh Prasad Yadav, R/o Rikabgani, Katra Bazar, Post- Katra Bazar Samiti, Simli Murarpur, Patna- City 800008

¶15

. . . . . . . Defendants

¶16

Present:

¶17

For the Applicant Shri Sanjay Singh Thakur, Advocate For the Defendants None

¶18

Dated: 10.07.2026

¶19

JUDGMENT

¶20

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 22.11.2024 against the defendants to recover its debts from defendants of

Q4 596 of 20241 Jl

DRT, PATN A

Rs.1,73,93,572/-as on 29.10.2024 along with pendente-lite and future interest at the contractual rate from 30.10.2024with costs till realization.

¶25

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. I

¶26

Defendant no.1 is a proprietorship firm represented by Shri Awadhesh Kumar and the defendant no. 2 to 5 ae the guarantors to the loan facilities. Defendants approached the applicant bank for sanction of cash credit facility of Rs.100 Lakh, vide loan application, which was sanctioned by the applicant bank on 30.12.2011 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. The defendant has availed the loans in as well as and earlier limit was Rs.20.50 Lakh which was enhanced from time to time on request of the defendants.

¶27

Defendants once again approached the applicant bank for enhancement of cash credit facility of Rs.100 Lakh to Rs.185 Lakh, vide loan application dated 21.08.2014, which was sanctioned by the applicant bank on 08.12.2014on 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/extended mortgage in favour of the applicant bank. details of which are given in OA.

¶28

Defendants once again approached the applicant bank for restructuring of existing facility, vide loan application dated 15.09.2020 and after due consideration, the applicant bank enhanced the limit from Rs.185 Lakh to Rs.205 Lakh and further sanctioned Term Loan of Rs.4.37 Lakh on 28.09.2020 during Covid-19on 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/extended mortgage in favour of the applicant bank, details of which are

OA 596 of 20241 Jl

DRT1 PATN A

given in OA. The defendants duly acknowledged the debts on ?3.02.2023 by executing necessary letter of acknowledgement of debt.

¶33

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 bank9 in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 25.09.2023 .

¶34

Since9 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.

¶35

The total liability in the loan account is Rs.1,73,93,572/- as on 29.10.2024 with pendente-lite and future interest contractual rate from 30.10.2024 till the realization.

¶36

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 20.12.2024, 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 01.11.2025 in ''Prabhat Khabar’' and "The Times of India” newspapers.

¶37

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 30.03.2026.

¶38

To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also

gA 596 of2024jJl

DRT, PATNA

given evidence on affidavit by way of affidavit by Shri Animesh Kumar, Chief

¶43

Manager of the applicant bank. The details of documents are as follows:

¶44

SI.No	Descriptionof Documents Photocopies	1 Date of }Execution	Amount (in Lakh)	Signatureof Executants	Ex./ Ann No
1	Memoofsanction–		100.00	BankandacM bydef.no.1,2,&5	1
2	Composite Hypothecation agreement	24.01.2012	100.00	Def.no.I&2	2
3	DPNote	24.01.2012	Mi		3
4	of Letter lroprietorshi sole	24.01.2012		Def.no.1	4
5	Declaration undertakin1 cum	24.0 1.2012	hi{		5
6	PDR	24.01.2012	e	5–	6
7	General undertakinJ	24.01.2012	e		7
8	Letter ofcontinuing securit'	24.01.2012	eM		8
9	General form guarantee of	24.01.2012	mm	emnT one SunilKr Yadav
10	Photocopy of simple mortgagedeed	24.01.2012			10
11	Loan ) form	21.08.2014		Def.nMo {	11
12	Letter of sanction	hifilola	i8i.a6–	Ti-iik	12
13	Composite agreement	19.12.2014	eMc	M	13
14	Dm	19.12.2014	e		14
15	Composite hypothecation agreement	19.12.2014	e	i	15
16	Letter ofcontinuing securrt'	19.12.2014	e		16
17	General formof Guarantee	19.12.2014	e		17
18	Composite agreement	19.12.2014	e	iM	18
19	Photocopy ofdeed ofmortgage	20.12.20a			19
20	Loanapplication	15.09.2020		Def.noi	20
21	Restructuringletter	28.09.2020	ma		21
22	Composite hypothecation agreement	17.12.2020	e	i	22
23	DPNTe	17.12.2020	eirhl		23
24	Formofguarantee	17.12.2020	oRI		24
25	Declaration cum undertakings cum authorit'	17.12.2020	e		25
26	Mocopy of deed ofmortgage	28.07.2021			26

DRT. PATN A

OA 596 of2024jJI

Letter acknowledgement debt	of of	123,02.2023	Defendants
Demand notice		29.09.2023	Bait
Statement accounts	of		Bank

¶49

Heard arguments and perused the case record.

¶50

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.

¶51

It is fbrther 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.

¶52

It has been established that defendants are living and can)'ing 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. Therefore9 this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶53

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 25.09.2023, whereas the present application has been filed on 22.11.2024. Even9 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, if is established that the present application has been filed well within the period of limitation.

¶54

Shri Animesh Kumar, Chief Manager of the applicant bank has filed the affidavit in support of contents of application and the documents as evidence

gA 596 of2024jJl

DRT, PATN A

and proved on oath the pleadings and documents of the applicant bank as stated above.

¶60

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.

¶61

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.

¶62

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.

¶63

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 primafacie evidence of the existence of such entry, and shall be adntHted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the sanie extent as, the original entt)? itself is no\v by law admissible, but not further or otherwise.

¶64

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.

¶65

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

I "G~i

OA 596 of2024IJI

DRT, PATN A

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 @10.40% p.a. with compounded monthly rests. The balance amount till 29.10.2024has been proved to be Rs.1,73,93,572/- 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

¶71

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.1.73.93.572/- along with pendente-lite and future interest @10.40% p.a. with compounded monthly rests from 22.11.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶72

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.1,73,93,572/- along with pendente-lite and future interest @ 10.40% p.a. with compounded monthly rests from 22.11.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with coLts.

¶74

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 sha]I 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. A / \V.?

DRT. PATN A

a\ 596 of 20241 Jl

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 mortgage(1/ 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 Officer, the execution may be dismissed for non-prosecution. The copy of this judgment be uploaded in the website of the Tribunal.

¶80

Parties are directed to appear before the Recovery Officer, DRT, Patna on 25.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 10th day of July, 2026.

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Dictated &corrected by me.

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/Sql@ [KausiMndraYadav] Presiding Oflicer Debts Recovery Tribunal, Patna

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FORM NQ. 9 [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor) (A. B & F WinE) Xarpwi Thaklu Sachn+ Kenckiya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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19,7) READ WITH SECTION 19(B) OF THE }V B93T AS AMENDED FROM TIME TO TIME.

RC No. 244/2026

Case No: OA/596/2024

in the Matter of:

(CH- 1) BANK OF BARODA ROSARB BRANCH,1 ST FLOOR, SARYUG PALACE, NEHRU NAGAR, PATLIPUTRA, PATN A ,BIHAR 400013

¶93

Applicant(s)

¶94

¶95

(CD- 1) M/S ciwAuroMOBiLES through its Prop. Awadlesh Kumar, S/o Mr. Suresh Prasad alias Sucsh Prasad Yadav, R/o Mohalla- Rikabganj Malsalami, Near DidarBanj tIrana,

¶96

Patna ,BIHAR -800008

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(CD- 2) MR SURESH PRASAD ALIAS SURESH PRASAD YADAV

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(MORTGAGOR(UM-GUARANTOR) S/0 LATE YUGAL GOPEt IUO MOHALLA RIKABAGANJ (MALSALAMI) NEAR DIDARGANJ THANA, PATNA. 800008

¶99

(CD- 3) MR SAURABH KUMAR

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(GUARANTOR) S/0 LATE SUNIL KUMAR, R/0 RIKABAGANJ, K\TRA BAZAR, POST- KATRA BAZAR SAMITI. SIMLI MURARPUR, PATNA- CITY 800008

¶101

Defendant(s)

¶102

(CD. 4) SMT GUDIA DEVI ALIAS RENU DEVI (GUARANTOR) W/O LATE SUNIL KUMAR, R/0 RIKABAGANJ. KATFLA BAZAR. POST- KATRA BAZAR SAMITI, SIMLI MURARPUR, PATNA- CITY 800008

¶103

(CD. 5) MR. SUDHIR KUMAR

¶104

(GUARANTOR) S/0- MR. SURESH PRASAD ALIAS SURESH PRASAD YADAV. R/0 RIKABGANJ, KATRA BAZAR, POST- KATRA BAZAR SAMITI, SIMLI MURARPUR, PATNA- CITY 800008

¶105

Recovery Certificate fer Rs 17393572,00 1 Rupees One Crore Seventy Three I,akhs Ninety Three ThQU sand& Five Hundred Seventy TwQ QnlyJ

¶106

In terms of final order dated 10/07/2026 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. 17393572.00 along with cost, expenses and interest from the 22/11/2024 i.e. date of fiIIng / with effective date of the OA/596/2024 and future interest from order cUte till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶107

Sr.n	o CDName	:Int. npc/Mode	=L	%;fIve	Tt:r	Amount(Rs.	) LW:ty	Interest(as on Order Date)	RC Amount(Rs.)
	M/S CITY AUTOMOBILES	,Compound .Interest '(Monthly )	10.40	.22/11/2024	:10/07/2026	117393572.00	!olntly.Pd Severally	As Order
2	MRSURESHPRASAD ALIASSURESHPRASAD {bDNq	Compound Interest (Monthly )	10.40	;22/11/2024	110/07/2026	117393572.00	!pintly+nd Severally	Ln:eg:letS	17393572.00
3	MRSAURABHKUMAR	.Compound Interest (Monthly )	IO.40	22/11/2024	llO/07/2026	117393572.OO	!Qi':ltIY.Pd Severally	Interest As onOrder Date	17393572.00
. q	SMT GUDIA DEVI ALIAS RENUDEVI	;ompound [nterest (Monthly )	10.40	1/2024	t10/07/2026	:17393572.00	hjnd	As anOrder	17393572.00
5	MR. SUDHIR KUMAR	:ompound ltcrest Monthly )	10.40		IO/07/2026	'17393572.00	lointly And	Interest As Date	17393572.00

¶108

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

¶109

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 Barkruptcy Act

¶110

Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 25/08/2026

¶111

The Recovery Ofticcr 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 Acl 1993 (as amended from time to time) from the above named Certificate Debtors.

¶112

This Certificate has been issued under my siprature and seal of the Tribural on this 10/07/2026

¶113

CER DEBTS RECOVERY TIUBUNAL PATTqA

¶114

_ RegIstrar D e!:IWeW=: n a

¶115

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

¶116

DEBTS RECOVERY TRIBUNAL PATNA

¶117

2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

¶118

(GPOA), Ashiana Digha Road, Patna-800025 .

¶119

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 244/2026

Case No: OA/596/2024

Applicant(s): BANK OF BARODA

¶124

Versus

¶125

Defendant(s): M/S CITY AUTOMOBILES

¶126

tem ofCosts	iAmountinRs
eeontheapplication	150666
[ProcessFees(Inc.Publication)	jo
AdvocateFees	i()
©mccurity Fee	ro
lscellaneousCharges	fo
TotalCosts:Rs	150000

¶127

Place: PATNA

¶128

Date: 10/07/2026

¶129

PMSk8LI,„,„ DEBTS RECOVERY TRIBUNAL PATNA

¶130

Note: Strike out whichever is not applicable

Bank of Baroda v. M/s City Automobiles

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s City Automobiles

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

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