Allowed

Bank of Baroda v. Mr. Siddharth

DRT27 Jan 2026OA/640/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna decided an application filed by Bank of Baroda to recover a loan debt. The defendant admitted the loan but contested the NPA classification. The Tribunal held the bank's evidence standard and the claim valid, directing recovery of the debt.

What did the court decide?

Debt deemed to be Rs. 28,80,721.36. Recovery certificate issued payable with pendent-lite and future interest @ 10% p.a. till realization with costs.

Bank of Baroda versus Mr. Siddharth — Banking and Recovery | DRT (2026)

OA 640 of 20241JI

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. 640 of 2024

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Bank of Baroda, branch office at Danapur, District- Patna, Bihar

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. . . . . . . Applicant

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Mr. Siddharth, son of Sri Devanand Jha, resident of Flat No.502, A Block, Sai Enclave, Vijay Singh Yadav Path, Opposite Radiant International, Dinapur cum Khagaul, Patna- 801105, Bihar

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. . . . . . . Defendant

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Present:

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For the Applicant For the Defendant

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Shri Jyoti Prakash, Advocate Shri Anjani Kumar Jha, Advocate

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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 06.12.2024 against the defendant to recover its debts from defendant of Rs.28,80,721.36 as on 18.10.2024 along with pendente-lite and future interest at the contractual rate from 19.10.2024 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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3 . Defendant approached the applicant bank for sanction of term loan of Rs.23.70 Lakh, vide loan applicatio,1 dated 02.08.2023 and after due consideration, the applicant bank has sanctioned total loan of Rs.22.14 Lakh on 05.08.2023 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities defendant has executed various loan and security documents and also hypothecated the vehicle in favour of the applicant bank, details of which are given in OA. A /

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tb\ \ r„,taIl! OB'" Bbb RecoverY Tdbww PATNA

OA 640 of2024jJI

DRT, PATNA

Defendant again approached the applicant bank for sanction of another term loan of Rs.6.40 Lakh, vide loan application dated 18.10.2023 and after due consideration, the applicant bank has sanctioned total loan of Rs.6.40 Lakh on 18.10.2023 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendant. To secure the loan facilities defendant has executed various loan and security documents

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After availing the sanctioned credit facilities, the defendant became irregular in repayment of the 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 10.06.2024.

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Since, the defendant 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.28,80,721.36 as on 18.10.2024 with pendente-lite and future interest contractual rate from 19. 10.2024 till the realization.

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This Tribunal issued summon/notice copies of application & paper book to the defendant by registered/speed post on 18.12.2024, 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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In response to the notice, the defendant has appeared on 24.01.2025 through Id. Counsel and has filed written statement on 07.02.2025 but the defendant has failed to file rebuttal evidence hence vide order dated 02.07.2025, opportunity to file the same was closed and the case was listed for arguments. As none was present for the defendant, the Id. Counsel for the bark was finally heard on 14.11.2025 and an opportunity of 15 days was given to the parties to file the written notes of arguments

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DRT, PATNA

OA 640 of 2024jJl

The defendant has filed written statement as well as written arguments admitting therein that the defendant has availed vehicle loan of Rs.22.14 Lakh on 05.08.2023 and has regularly paid his installment till May, 2024. He further admitted that he has also availed personal loan of rs.6.40 Lakh on 18.10.2023 and has regularly paid his installment till May, 2024, but the defendant had received notice dated 15.12.2023 to close the account within 07 days and further came to know that his account has become NPA on 10.06.2024, which is without following the RBI guidelines. It has further been stated that the premature NPA declaration has resulted in wrongful penal interest, inflated claim amount and initiation of proceedings based on incorrect classification. Since NPA tagging itself is illegal, recovery demand based on such classification is also unsustainable and requested to dismiss the OA.

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

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Descriptionof Documents Photocopies	1 Date of IExecution 1	1Amount I(in 1Lakh	Signature Executants	of	1Ex./ Ann No.
o	2F23	.70	Defendant
Sanctioll	2		Bank accepted defendant	and by
Loan agreement	05.08.2023	22.14	Defendant
Loan aDm)	18. 10.2023	6.40	Defendant
Letter ifsanction	18.10.2023	6.40	Bank accepted defendant	and by
DP Note	18.10.2023	6.40	Defendant
Letterofinstallment	18.10.2023	6.40	Defendant
Composite agreement	18.10.2023	6.40	Defendant
Lor	18.10.2023		Defendant		9
Legalnon	25.10.2024		Bank’adv.
Statementof accounts			Bank

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Heard arguments and perused the case record. There is no any specific denial on behalf of the defendant with regards to the sanction of loan facilities and its utilization and further there is no any specific denial with regards to the execution of loan and security documents in favour of the applicant bank. The ql.

OA 640 of 20241JI

DRT, PATNA

Id. Counsel for the applicant bank has submitted that the loan accounts of the borrower have been declared as NPA on the basis of RBI Guidelines and as per the policy of the bank as the defendant was irregular in repayment of installments as well as interest due in loan accounts.

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Ld. Counsel of applicant bank submitted that the defendant has taken the loan and utilized the same and also executed the various loan documents to secure the loans. 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 defendant is living and carrying on the 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 10.06.2024, whereas the present application has been filed on 06.12.2024. 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 Ritesh Kumar Verma, Branch Chief Manager of the applicant bank has filed the affidavit in support of contents of application and the documents

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OA 640 of20241JI

DRT, PATNA

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 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 defendant has applied for loans and the bank had sanctioned the loans and to secure the loan and for repayment of loan amount with interests etc., the defendant has executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor has 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

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OA 640 of 2024jJI

DRT, PATNA

and conditions for repayment with interest. The balance amount till 18.10.2024 has been proved to be Rs.28,80,721.36 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 defendant of Rs.28,80,721.36 along with pendente-lite and future interest @ 10% p.a. simple from 06.12.2024 (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 defendant. The defendant is hereby, ordered to pay the applicant bank its debt amounting to Rs.28,80,721.36 along with pendente-lite and future interest @ 10% p.a. simple from 06.12.2024 (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 defendant, be deducted in the claim amount, if not deducted.

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Defendant is 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 mortgage(i 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 BaIkruptcy 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

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OA 640 of 2024jJI

DRT, PATN A

Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendant, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant. 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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7/ n/(2 {.,,'~~* [KaushalendraYadav] Presiding Officer Debts RecoWwiHMdWBla Bebt8 RecoverY TdbUW PATHA

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EQRNLNG2 [See Regulation 24( 1)]

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DEBTS RECOVERY TRIBUNAL PATNA 2nd FlooR (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025 .

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RC No. 86/2026 IN

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Case No: OA/640/2024

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In the Matter ot (CH- 1) BANK OF BARODA BRANCH OFFICE AT DANAPUR, PATNA ,BIHAR -0

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Applicant(s)

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To (CD- 1) MR. SEDDHARTH DEVE ANAND JHA resident of Flat No. 502, A Block, Sai Enclave, Vijay Singh Yadav Path, opposite Radiant International, Dinapur cum Khagaul, Patna ,BIHAR -801105

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Defendant(s)

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Recovery Cerfifigate for Rs 2880721.36 [ Rupee$ 1\venty Eight Lgkh$ EigUy Thouspnds Seven Hundred Twenty One And Paise Thirty Six Only]

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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. 2880721.36 along with cost, expenses and interest from the 06/12/2024 i.e. date of filing / with effective date of the OA/640/2024 and future interest from order date till the date of realisation in

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fUll, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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CDName	Int. Rate Int Ie/Mod.	HEffective HDate	Order Date	,iabilit }e	nteres as0 trder	RC IAmount(Rs')	Remar
iISIDS]	ISimpte IInterest 1(Yearly) 10	El06/12/20241	127/01/2026112880721.36		lterest IAs on IOrder	12880721.36

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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 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 06/02/2026

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/3 LA PRESIDI&doFFlcER Re istrar DEBTS RECOVERY TRIBUNAL PATNA Debts RecTlvery Tribunal n„1868 OO'" PaUla Oebt8 RecovetY TIn>un-1 PATNA

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FORM NO. 10 [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. 86/2026

Case No: OA/640/2024

Applicant(s): BANK OF BARODA

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Versus

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Defendant(s): MR. SIDDHARTH

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	Item ofCosts	I Amount inRs
	e	b1000
	r	ro
	dvocateFees	@
	miiaii;iii-;im	D
i	e	ro
	o	m3

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Place: PATNA

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h/ PRESIDING OFFICER

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Date: 06/02/2026 . DEBTS

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Note: Strike out whichever is not applicable

Bank of Baroda v. Mr. Siddharth

Case brief

What is this about?

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Bank of Baroda v. Mr. Siddharth

Case brief

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