Allowed

Hdfc Bank Limited v. Bipin Kumar

DRT27 Jan 2026OA/598/2024

Case brief

AI extract

What is this about?

The DRT allowed an application under Section 19 of the RDB Act 1993 filed by HDFC Bank against a borrower and guarantor for recovery of a commercial vehicle loan. The decree determined a liability of Rs. 22.53 lakhs with interest and directed attachment of secured assets.

What did the court decide?

The application was allowed; the decree directs the respondents to pay Rs. 22,53,529.22 with interest and costs. A Recovery Certificate was issued, and assets were attached for realization.

Hdfc Bank Limited versus Bipin Kumar — Arbitration | DRT (2026)

OA 598 of20241Jl

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. 598 of 2024

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HDFC Bank Limited, branch office at 211d and 3rd Floor, Rajendra Ram Plaza, Exhibition Road, Patna 800 001

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. . . . . . .Applicant

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Vs.

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Bipin Kumar (Borrower), S/o Nandkishore, resident of AtSadannandpur Baisa, Tola- Sadanandpur Baisa Panch- Sadnandpur Block-Colgong, Near- Primary School, Bhagalpur,- 813222, PAN No. IADPK5052D

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Asha Kumari (Guarantor), at- Sadannandpur Baisa, Tola- Sadanandpur Baisa PanchSadnandpur Block-Colgong, Near-Primary School, Bhagalpur,- 813222, PAN No.MPCPK0572A

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. . . . . . . Defendants

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Present:

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For the Applicant Ms. Tanushri, Advocate For the Defendants None

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Dated:27,01,2026

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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 28.11.2024 against the defendants to recover its debts from defendants of Rs.22,53,529.22 as on 27.09.2024 along with pendente-lite and future interest at the contractual rate from 28.09.2024 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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Defendants approached the applicant bank for sanction of commercial vehicle loan vide loan application dated 06.12.2022 and after due consideration, the applicant bank has sanctioned a loan of Rs.21,64,405/- on 27.12.2022 on various terms and conditions, as stipulated in the sanction letter,

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OA 598 of 2024IJI

DRT, PATNA

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.

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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 31.12.2023 .

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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.22,53,529.22 as on 27.09.2024 with pendente-lite and future interest contractual rate from 28.09.2024 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 23.12.2024, 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.

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Despite the service of registered summons/notices, 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 31.07.2025.

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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 Md. Asif Imtyaz Khan, Authorized Signatory of the applicant bank. The details of documents are as follows:

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Description Documents Photocopies	of	of Date Execution	Amount (in Lakh)	Signatureof Executants
Board resolution		15.04.2023		Bank
Commercial aDDlication	loan	06.12.2022	22.00	Defendants
A£reement for and larantee	loan	27.12.2022	Rs.21 ,64,405/'	Defendants	3
Loane		30.09.2024		Bank
Statementofacc	ount			Bank

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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 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 31.12.2023, whereas the present application has been filed on 28.11.2024. 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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Shri Md. Asif Imtyaz Khan. Authorized Signatory 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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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 shaH in an 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 hInds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account .

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OA 598 of2024jJI

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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 27.09.2024 has been proved to be Rs.22,53,529.22 only by way of statement of accounts and evidence on affidavit. 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.22,53,529.22 along with pendente-lite and future interest @ 10.68% p.a. with compounded monthly rests from 28.11.2024 (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.22,53,529.22 along with pendente-lite and future interest @ 10.68% p.a. with compounded monthly rests aom 28.11.2024 (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 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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DRT, PATNA

OA 598 of2024jJl

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. 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 09.03.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 27th day of January, 2026.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer

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FORM Nf>t 9 [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Fioor1 (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Pmisw (GPOA)! Ashiana Digha Road, Patna-800025'

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RC No, 84/2026 IN

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Case No: OA/598/2024

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In the Matter of: (CH- 1) HDFC BANK LIMITED BRANCH OFFICE AT 2ND AND 3RD FLOOR, RAJENDRA RAM PLAZA, EXHIBITION ROAD, PATNA ,BIHAR -0

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–--- Versus ---To (CD- 1) BIPIN KUMAR . NAND KISHORE resident of at- Sadannadpur Baisa, ToldSadanandpur Baisa PaneII- Sadnandpur Block - Colgong, near primary school, Bhagalpur ,BIHAR -813222

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Applicant(s)

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Defendant(s)

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(CD- 2) ASHA KUMARI (GUARANTOR) AT- SADANNANDPUR BAISA, TOLASADANANDPUR BAISA PANCHSADNANDPUR BLOCK-COLGONG, NEARPRIMARY SCHOOL, BAGALPUR, 813222

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Re99very Certificate tor R; 2253529,22 [ Rwpee$ Twenty TwQ Lakh; Fi[ty Three Thou land; Five IIvndred TWenty Nine And Paise Twenty l\vQ QnlyJ

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In terms of final order dated 27/01/2026 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. 2253529.22 along with cost, expenses and interest from the 28/11/2024 i.e. date of filing / with effective date of the OA/598/2024 and future interest from order date till the date of realisation in hIll, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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Sr.no	! CDName	le	iI Int. aodejl	Int. Rate	HEffective FI Date	Order Date
	BIPINKUMAR		lmpound Interest Monthly )	10
	KUMARI :GUARANTOR)	i	:ompound -nterest }(Monthly )	10	18/11/2024	l27/01/202	13529.22	III	IAs on	12253529.22

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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.

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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 1993. Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 09/03/2026

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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 Act9 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 06/02/2026

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PR rG OFFICER DEBTS RECOVERY .LPATNA ptestdiat Often Bebt8 Recovery Tdbww PATNA

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA