Allowed

State Bank of India v. M/s Soanmati Enterprises

DRT5 Sept 2026OA/605/2025

Case brief

AI extract

What is this about?

In an application under Section 19 of the RDB Act, the State Bank of India sought recovery of a loan summing to approximately Rs. 26.98 lakhs from M/s Soanmati Enterprises and proprietor Naval Kumar. The defendants became irregular in repayment leading to the account turning NPA. After issuing notices which resulted in ex-parte proceedings due to the defendants' non-appearance, the Tribunal found sufficient documentary evidence proving the loan and interest liability. The application was allowed, and a recovery certificate was issued directing realization from the defendants' secured and other assets.

What did the court decide?

Recovery certificate issued for Rs. 26,98,248.14 with interest at 11% p.a. from 25.07.2025 till realization. Defendants debarred from transferring assets; attached assets subject to sale for recovery.

State Bank of India versus M/s Soanmati Enterprises — Banking and Recovery | DRT (2026)

OA 605 of2025IJI

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. 605 of 2025

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State Bank of India, Jadua Branch, Vaishali through the Stressed Assets Recovery Branch, 2"d Floor, Patna Main Branch Building, West of Gandhi Maidan, Patna

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Vs.

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M/s Soanmati Enterprises, through its proprietor Nawal Kumar, Son of Ram Babu MaIlto, Village – Kanchanpur, Ward No. 12, P.O.- Rajasan, P.S.-Bidupur, Hajipur, District Vaishali, Pin Code – 844102 (Borrower)(PAN- FUTPK0403D)

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Naval Kumar, Proprietor of M/s Soanmati Enterprises, Son of Ram Babu MaIlto, Village- Kanchanpur, Ward No.- 12, P.O.- Rajasan, P.S.Bidupur, Hajipur, District- Vaishali, Pin Code – 844102 (Co-Borrower) (PAN- FUFPK0403D)

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Devesh Shankaran, 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 25.07.2025 against the defendants to recover its debts from defendants of Rs.26,98,248.14 as on 21.07.2025 along with pendente-lite and future interest at the contractual rate from 22.07.2025 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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3- Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendants approached the applicant bank, for sanction of cash I {i Presiding Oficer T :;ht: :'.3uovery Tribuna PATH ; II

OA 605 of20251J]

DRT, PATN A

credit facility of Rs.5 Lakh, vide loan application dated 07.05.2022 for trading of general store, which was sanctioned by the applicant bank on 18.05.2022 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

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Defendants again approached the applicant bank for enhancement of cash credit facility of Rs.5 Lakh to Rs.9.90 Lakh, vide loan application dated 09.05.2023 for trading of general store, which was sanctioned by the applicant bank on 30.05.2023 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

¶25

Defendants again approached the applicant bank for sanction of term loan facility of Rs.13.699 Lakh, vide loan application dated 12.12.2023 for expansion of business of manufacture of mustard oil, which was sanctioned by the applicant bank on 29.02.2024under 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 in favour of the applicant bank, details of which are given in OA. Hypothecation of stocks was done by creating security interest and registration of security interest with CERSAI on 29.05.2025.

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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 29.01.2025.

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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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-\ O ficer Oabta IIe cove IV Tdbun81 PATNA

DRTq PATNA

OA 605 of 20251 Jl

The total liability in the loan account is Rs.26,98,248.14 as on 21.07.2025 with pendente-lite and future interest contractual rate from 22.07.2025 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 18.08.2025, 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 05.12.2025 in “Dainik Bhaskar” and “The Times of India” newspapers.

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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 04.05.2026

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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 Shashi Ranjan Choudhary, Chief Manager of the applicant bank. The details of documents are as follows:

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Description Documents PhotocoDies of	1Date of Execution	1Amount (in	Signature Executants
Loanapplication	07.05.2022	rod	Defendants
PANCard			Defendants
Aadhar Card			Defendants
Letter o arrangement			Bank accepted defendants
Agreement ofloan cumhypothecation	18.05.2022		Defendants
under Agreefnent PDR	18.05.2022		Defendants
Loanapplication	09.05.2023		Defendants
of Letter arrangement	30.05.2023		Bank accepted defendants

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rr gsi ljng DobB RW,oFa

OA 605 of20251J]

DRT, PATNA

9	Suppl.Agreem loan hyDothecation	entof cum	30.05.2023	9.90	1 Defenda	nts	19
10	ALreement PDR	under	30.05.2023	e	I
	Loan applicati	on	15.12.2023		Defendants
	Letter arrangement	of	29.02.2024	9.90 13.699	Bank accepted defendants	and by
13	Suppl.Agree loan hyDothecation	mentof cum	29.02.2024	e 13.699			13
14	Agreement PDR	under	29.02.2024	e 13.699			14
	CERSAIdeta	ils
	Legalnotice		12.06.2025		Bank’sadv.
	Stateme accounts	ntsof			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 M.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 bark has submitted that the applicant bank has declared the account as NPA on 29.01.20259

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Q\c4

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F I? KIIInw D I!IbIIII11): gg ;

OA 605 of 2025[JI

DRT, PATNA

whereas the present application has been filed on 25.07.2025. 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 Shashi Ranjan Choudhary, Chief 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) Rules9 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 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

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V\n fIesta'..It UiJtcer betow Rr Si, , ;ly i iII>WW PATNA

DRT, PATNA

OA 605 of 20251JI

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 21.07.2025 has been proved to be Rs.26,98,248.14 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.26,98,248.14 along with pendente-lite and future interest @11%p.a. with compounded monthly rests from 25.07.2025 (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 bark its debt amounting to Rs.26,98,248.14 along with pendente-lite and future interest @ 11%p.a. with compounded monthly rests from 25.07.2025 (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 defendants9 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

\4\R

OA 605 of 20251JI

DRT, PATNA

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. The Recovery OfDcer will issue demand notice to the Certifcate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Cert$cate holder fails to comply with directions of the Recovery oacer, 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, DRT9 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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® a*\ [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna n„td:r! om'“a 1)ebB R6coveAT

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FORM NO. 9

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DEBTS RECOVERY TRIBUNAL PATN A

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[See Regulation 24( 1 )]

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2nd Floor+ (A. B & F Wing) Karpuri Thakur Sadant Kenctiya Karamchari Parisw (GPOA), Ashianu Digha Road, Patna-800025.

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TF. I iNnER SECTION 19r7\ READ WITH S

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BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC No. 260/2026 IN

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Case No: OA/605/2025

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In the Matter of: (CH- 1) STATE BANK OF INDIA JADUA Bk\NCH VAISHALI THROUGH THE STRESSED ASSETS RECOVERY BRANCH, 2ND FLOOR,PATNA MAIN BRANCH BUILDING, WEST OF GANDHI MAIDAN, PATNA ,BIHAR -800001

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Applicant(s)

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––-- Versus -–-–-

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To (CD- 1) M/S SOANMATI ENTERPRISES Through Its Proprietor NAVAL KUMAR Son of Ram Babu MaIlto, Village - Kanchanpur, Ward No.- 12, P.O.- Rajasan, P.S.- Bidupur, Hajipur, Vaishali ,BIHAR -844102

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Defendant(s)

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(CD- 2) NAVAL KUMAR PROPRIETOR OF M/S SOANM ATI ENTERPRISES. SON OF RAM BABU MAHTO, VILLAGE KANCHANPUR, WARD NO. 12, P.0.RAJAS AN. P.S.- BrDUPUR. HAJIPUR, DISTRICTVAISHALI, PIN CODE 844102 (CO BORROWER)

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Recovery Certificate Dr R$ 269$248.14 1 Rupee; Twenty Six Lakhs Ninety Eight Thpusands Two Hundred Forty Eight And Paise Fourteen OnlyJ

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In terms of final 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. 2698248.14 along with cost, expenses and interest from the 25/07/2025 i.e. date of filing / with effective date of the OA/605/2025 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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CDName	Loan Type	Int { D'pe/Mode	Int. Rate	IEffective ! Date	IOrder Date	Amount(Rs.)	^Liability Type	Interest (as0 Order Date)
SOANMATI 'RTSES		:Monthly)	II	b5/07/2025	105/09/202	2698248.14	Fointly lly	iniTFell	!698248.14
		Interest Monthly)		r/2025		l !48.14	Fointly lly		1698248.14

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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 .

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

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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 Actl 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 PATNA

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Registrar RRHM

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Debts Recovery Tribunal, P8tna

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3,VI Hq,i NMawr, WaRT

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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 (GPOA), Ashiana Digha Road, Patna800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

R(,' No. 260/2026

Case No: OA/605/2025

Applicant(s): STATE BANK OF INDIA Versus

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Defendant(s): M/S SOANMATI ENTERPRISES

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Item of Costs lount in Rs 'ee on the application 'rocess Fees(Inc. Publication) dvocate Fees Commissioner/Receiver/Valuation/Securi Miscellaneous Chi ;es -otal Costs: Rs.

Place: PATNA

PRESIDi&6:6FFICER

Date: 09/09/2026

Note: Strike out whichever is not applicable

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i G= f ?? ? r a r vI j : p

State Bank of India v. M/s Soanmati Enterprises

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/s Soanmati Enterprises

Case brief

What is this about?

What did the court decide?

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