Allowed

Bank of India v. M/s Intrade commerce

DRT5 Sept 2026OA/632/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Patna allowed the application of Bank of India to recover dues of Rs. 85,04,091.58 from the borrowers and legal heirs of the guarantor. The Tribunal accepted the bank's affidavit and documentary evidence, including the statement of accounts, to establish the liability. It held the borrowers and the legal heirs of the deceased guarantor jointly and severally liable for the debt, interest, and costs, and issued a recovery certificate.

What did the court decide?

The debt amounting to Rs. 85,04,091.58 along with interest, charges, and costs was jointly and severally ordered to be paid by the defendants. A Recovery Certificate was issued for realization of the debt by the Recovery Officer.

Bank of India versus M/s Intrade commerce — Contract and Commercial Disputes | DRT (2026)

OA 632 of2025jJl

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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--/

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OA Case No. 632 of 2025

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Bank of India, Rajendra Nagar Colony Branch, Patna-800016.

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. . . . . . .Applicant

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1 M/s Intrade Commerce through its Proprietor Rekha Sinha, 216, Ashiana Tower, Exhibition Road, Patna-800001

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Mrs. Rekha Sinha, W/o Late Ajit Kumar Sinha, Bachi Villa, Judges Colony, Khagaul Road, Danapur, Patna- 801503

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Master Akshay Sinha, S/o Late Ajeet Kumar Sinha through his natural guardian and mother Rekha Sinha, resident of Bachi Villa, House no.225, Judges Colony, Khagaul Road, Danapur, Patna, 801503 (Legal heir of guarantor/mortgagor Ajeet Kumar Sinha -deceased)

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4 Miss Avantika Sinha, D/o Late Ajeet Kumar Sinha through her natural guardian and mother Rekha Sinha, resident of Bachi Villa, House no.225, Judges Colony, Khagaul Road, Danapur, Patna, 801503 (Legal heir of guarantor/mortgagor Ajeet Kumar Sinha -deceased)

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri Santosh Satyarthi, Advocate For the Defendants : Shri Arbind Kr. Jha, Advocate

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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 02.08.2025 against the defendants to recover its debts from defendants of Rs.85,04,091.58/- as on 08.07.2025 along with pendente-lite and future interest at the contractual rate arom 09.07.2025 with costs till realization.

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Pres iding () I •i C T I'aDataIdE11 r overY Debts Rec;IF NA

OA 632 of 2025jJl

DRT, PATNA

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 the borrower and defendant no. 2 is the proprietor of defendant no. 1 and also the legal heir of the deceased guarantor and mortgagor Mr. Ajit Kumar Sinha. Furthermore, defendants no. 3 and 4 are also legal heirs of the said deceased guarantor and mortgagor, Mr. Ajit Kumar Sinha.

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Defendant no. I & 2 approached the applicant bank for sanction of cash credit limit of Rs.75 Lakh, vide loan application for working capital purpose, which was sanctioned by the applicant bank on 25.10.2018 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 equitable mortgage in favour of the applicant bank, details of which are given in OA. The deceased guarantor and mortgagor Ajit Kumar Sinha also signed attendance register for creation of equitable mortgage

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After sometime, the borrower - and guarantor submitted another loan application for sanction of Rs.14,78,000/- and on receipt of the said application, the Applicant Bank after due consideration, sanctioned Term loan of Rs.14,78,000/- 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 equitable mortgage in favour of the applicant bank, details of which are given in OA. The deceased guarantor/mortgagor, Mr. Ajit Kumar Sirdra, also sigped the attendance register confirming the extension of the equitable mortgage.

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Additionally, the defendants availed a Funded Interest Term Loan (FITL) of Rs.14,00,000/- sanctioned by the applicant Bank under Account No. 440765910000003 and utilized the said loan.

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Upon the request of the borrower and guarantor, the applicant Bank accepted the Offer-cum-Acceptance Letter under the Resolution Plan for restructuring of retail loans dated 24.6.202 1 and sanctioned a revised credit

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P r e S i d f 1:: e:k j T E + p o + A Debt' *'';jrs

DRT, PATNA

OA 632 of 2025jJI

plan encompassing the above-mentioned facilities, as per the sanction letter dated 29.06.2021. In accordance with the revised terms, the Cash Credit facility was reduced firom Rs.75 Lakh to Rs.60 Lakh and a hesh Term Loan of Rs.15 Lakh was sanctioned under new Account No. 440770410000036. The remaining facilities of Rs.14.78 Lakh under GECL and Rs.14 Lakh under FITL-remained unchanged. The defendants duly accepted the revised terms and conditions as set forth in the sanction letter. Furthermore, the borrower and guarantor executed Acknowledgments of Debt on 20.03.2021 and 20.08.2022 in respect of the said loan accounts.

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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 28.08.2024.

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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.85,04,091.58/- as on 08.07.2025 with pendente-lite and future interest contractual rate from 09.07.2025 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 07.09.20259 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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In response, the defendants have appeared through their Id. Counsel on 19.12.2025 and also filed their written statement admitting therein that the loan facilities sanctioned by the applicant bank and its restructure on 29.06.2021 and its utilization. It has further been stated that the loan facilities were secured by creation of equitable mortgage of property by Ajeet Kumar Sinha, who died on 30.01.2023. It has further been stated that on 06.07.2023, borrower requested

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KM Presiding Olilc“1 Debts Recov': 'T Tdbunei }, Nr NA

OA 632 of20251JI

DRT, PATNA

the bank to restore CC limit of Rs.75 Lakh as before from the present limit of Rs.60 Lakh and the proprietor further undertook to liquidate the TL accounts, FITL/GECL within 90 days but when the bank did not respond to letter dated 06.07.2023, the borrower again by letter dated 09.08.2023 requested to restore the earlier CC limit. After lapse of more than 09 months, the bank responded and sought certain documents. Further on 13.06.2024, the borrower objected to excess charged interest in the account and requested to take appropriate steps to reconcile the same and supplied the documents as required by the bank in its letter dated 31.05.2024. Again on 27.08.2024, the borrower by its letter to applicant bank requested for reversal of excess charged interest but instead of redressing the objection dated 27.08.2024, the bank declared the account as NPA on 29.08.2024 and issued notice on 13.09.2024 u/s 13(2) of the SARFAESI Act. It has been stated that since entire pleadings of OA application are contrary to MSME Act, RBI Circular and the law declared by the Hon’ble Apex Court, hence the applicant bank is not entitled for any relief in OA application.

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To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant baM has also given evidence on affidavit by way of affidavit by Shri Vivek Sinha, Chief Manager of the applicant bank. The details of documents are as follows:

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SI'N	o:Description on Documents Photocopies	a Execution	(in Lakh:	Executants	Ann. No
	Loanapplication		n5i	De£no.I&2
	AadharCard&PAN card			Defno.I&2
3	Registration Certificate				3
4	Sanction letter	25.10.2018	75.00	a by def.no.l&2and deceasedguarantor Aieet Kr.Sinha
	DP Note	25.10.2018	75.00	Def.no.I&2
	L516	25.10.2018	75.00	Def.no.1&2
	PDR-borrower guarantors &		75.00	De£no.1&2 and deceasedguarantor Ajeet Kr.Sinha
8	> loanagreement		75.00	Def.no.1&2	8
9	o depositof titledeed		75.00	Bank	9
10	Copy ofMortgage Register				10

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Presiding O#ic'’ jI I':TI'l Tin DebtS Rec-" y ILI

OA 632 of 20251JI

DRT, PATNA

11	DeedofGuarantee	25.10.2018	75.00	Deceased guarantor Aieet Kr.Sinha	11
12	Affidavit	26.10.2018	75.00	Deceasedguarantor Aieet Kr.Sinha	12
13	DP Note	10.06.2020	14.78	Def.no.I&2	13
14	BPLR	10.06.2020	14.78	Def.no.1&2	14
15	PDR-borrowerand guarantors	10.06.2020	14.78	Def.no.I&2 and deceasedguarantor Aieet Kr.Sinha	15
16	Hypothecation loanagreement cum	10.06.2020	14.78	Def.no.1&2	16
17	Extensionof EM	0	14.78		17
18	Photocopy regjster of				18
19	Deed ofGuarantee	10.06.2020	14.78	Deceased guarantor Aieet Kr.Sinha	19
20	Acknowledgement of Debt/Securities	20.03.2021		Def.no.1&2	20
21	Offer acceptanceletter curll	24.06.2021		Bank anddefendant	21
22	Sanction letter	29.06.2021	14.00	Bank and accepted by Def.no.1&2and deceased guarantor AieetKr.Sinha	22
23	Suppl. Agreement	29.06.2021		Def.no.1&2	23
24	CEc				24
25	Acknowledgement ofdebt/securit	20.08.2022		Def.no.I&2	25
26	Photocopy deed of sale	05.03.2014			26
27	Rent receipts				27
28	Valuationreport	7			28
29	Death certificate				29
30	Notice	03.04.2025			30
31	Legal demand notice	8		Bank’sadv.	31
32	Statement of			Bank	32
	accounts
8.	Heard argumentsand	perused thec	aserecord.

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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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Presiding L)_$1(er Debts Recovery Tllbulw FATNA

DRT, PATNA

OA 632 of2025IJl

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 28.08.2024, whereas the present application has been filed on 02.08.2025. 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 Vivek Sinha, 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 Act9 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.

DRT, PATN A

OA 632 of 20251JI

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 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 08.07.2025 has been proved to be Rs.85,04,091.58/- 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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As the defendant no.3 and 4 are the legal representatives of the deceased guarantor/mortgagor namely Ajeet Kumar Sinha hence the defendant no.3 and 4 are liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from their deceased father and they shall be represented through the defendant no.2.

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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

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q\N 1)rest&ne OficeF Debb Recovery Tribunal PAT NA

OA 632 of 2025[Jl

DRT, PATNA

jointly and severally of Rs.85,04,091.58/- along with pendente-lite and future interest @ 10% p.a. simple from 02.08.2025 (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 bank its debt amounting to Rs.85,04,091.58/- along with pendente-lite and future interest @ 10% p.a. simple from 02.08.2025 (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 the defendant no.3 and 4 are liable to pay the dues of the applicant bank with interest and other legal charges to the extent of inherited properties from their deceased father and they shall be represented through the defendant no.2.

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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 are debarred firom 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 BaIduuptcy 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/

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OA 632 of20251JI

DRT, PATNA

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 certipcate amount in 6 months from the date of demand notice to the CertifIcate debtors. 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 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 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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Presiding Officer Debts Recover/ TribunaJ PATti A

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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 Floor1 (A. B & F Wing) Karpuri Thakrtr Sudan, Kendriya Karamchari Parisar (GPOA)I Ashiana Digha Roacl Patna-800025’

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EAD WITH SECTIOI

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AS AbIE IOM TIME TO TIM

RC No. 280/2026

Case No: OA/632/2025

In the Matter oe

(CH- 1) BANK OF INDIA RAJENDRA NAGAR COLONY BRANCH PATNA ,BIHAR -800016

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Applicant(s)

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(CD- 1) M/S INTIIADE COMMERCE Through ItS Proprrctor Rckha Siriha, 216, Ashiana Tower, Exhibition Road. Patna .BIHAR -800001

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(CD- 2) MRS. REKHA srNHA W/O LATE AJIT KUMAR SINHAI BACHI VILLA9 JUDGES COLONY. KHAGAUL ROAD, DANAPUR, PAINA- 801503 (BORROWER AS WELL AS LEGAL HEIR OF GUARANTOR / MORTG AGaR AJEET KUMAR SINHA (DECEASED)

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(CD- 3) MASTER AKSHAY SINH A S/O LATE AJEET KUMAR srNH A THROUGH HIS NATURAL GUARDIAN AND MOTHER REKHA SINHA, RESiDENr OF BACHI VILLA, HOUSE NO.-225,JUDGES COLONY. KHAGAUL ROAD, DANAPUR, PATN A, 801503 (LEGAL HEIR OF GUARANTOR/MORTGAGOR AJEET KUMAR SINHA -DECEASED)

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Defendant(s)

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(CD- 4) MISS AVANTIKA SINHA

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D/O LATE AJEET KUMAR SINHA THROUGH HER NATURAL GUARDIAN AND MOTHER REKHA SINHA,

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RESIDENT OF BACHI VILLA, HOUSE NO.-225, JUDGES COLONY, KHAGAUL ROAD, DANAPUR, PATNA, 801503 (LEGAL HEIR OF

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GUARANTOR/MORTGAGOR AJEET KUMAR SINH A - DECEASED)

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R€£gv yry CerHngate fQr Rs 9436046, 82 [ Rupee$ Ninety Fgur Lakh s Thirty Six Thousand$ FQrty Six And Paise Eighty Two Only-J

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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. 9436046.82 along with cost, expenses and interest from the 02/08/2025 i.e. date of tiling / with effective date of the OA/632/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter nfernd to as:-

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Loan Int. Effective Order I RC
Type Type/Mode Rate Date Date M iV Order Date) : Amount(Rs.)
CG INTRADE yearly )Interest 10 /08/2025 109 1.58 ;everally–And As on
RS. REKHA 'le Interest flierest As on
10 1.58 1.58
Yuarly )
rASTER IIe Interest
10 150409 1.58
SHAY SINHA yI
le Interest 0 As on
’early ) C Date

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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 ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 22/10/2026.

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The Recovery otncer 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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Gx. RegIstrar hTz1% De ins RecoverY Tribunal, Patna q=ln qq$ ainmq, qUI

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA I DaB ReS;aT 'bmi I

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

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DEBTS RECOVERY TRIBUNAL PATNA

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