Allowed

Bank of Baroda v. M/s Yuvraj Steel Works

DRT19 Mar 2026OA/644/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application under Section 19 of the RDB Act for recovery of dues of Rs. 21.97 lakhs from the defaulting borrowers, accepting their affidavit evidence of unpaid loans evidenced by their loan account statements.

What did the court decide?

Recovery Certificate for Rs. 21,97,301.08 with interest from 06.12.2024 and costs; attachment of mortgaged/hypothecated assets.

Bank of Baroda versus M/s Yuvraj Steel Works — Contract and Commercial Disputes | DRT (2026)

OA 644 of2024jJl

DRT. PATN A

Debts Recovery Tribunal, Patna

¶7

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶8

Presiding Officer : Shri Kaushalendra Yadav

¶9

OA Case No. 644 of 2024

¶10

Bank of Baroda, Branch Office- Walmi, District- Patna, Bihar

¶11

. . . . . . . Applicant

¶12

Vs.

¶13

M/s Yuvraj Steel Works (Proprietor Mrs. Soni Kumari), Shop atVillage- Walmi, Vrindavan Colony, Road No.1H, P.S.-Phulwarisharif, Patna 801505 (Bihar)

¶14

Also at- Akbarpur, P.O.- Sorampur, Naubatpur, Patna 801505 (Bihar)

¶15

Ms. Soni Kumari, D/o Mr. Rajendra Prasad Yadav, R/o VillageWalmi, Vrindavan Colony, Road No.C)IH, P.S.-Phulwarisharif, Patna 801505 (Bihar)

¶16

. . . . . . . Defendants

¶17

Present:

¶18

For the Applicant Shri Jyoti Prakash, Advocate Shri Rishi Kumar, Advocate For the Defendants : None

¶19

Dated:19.03.2026

¶20

JUDGMENT

¶21

The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred tQ as Act) on 06.12.2024 against the defendants to recover its debts from defendants of Rs.21,97,301.08 as on 16.10.2024 along with pendente-lite and future interest at the contractual rate from 17.10.2024\with costs till realization.

¶22

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.

¶23

Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of financial assistance of Rs.23.75 Lakh (Rs.14.25 Lakh as Term Loan and Rs.9.50 Lakh as Cash Credit), vide loan application dated09.01.2023 for carrying their business,

¶24

X„v plalan 08cet Dunn kecoveIY Tribun n PAT NA

OA 644 of2024jJI

DRT. PATNA

which were sanctioned by the applicant bank on 13.01.2023on 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. The defendants also availed a personal loan of Rs.1,40,888/- as Term Loan through the digital, mode from the applicant bank, which was duly disbursed by the applicant bank.

¶29

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 08.10.2024.

¶30

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.

¶31

The total liability in the loan account is Rs.21,97,301.08 as on 16.10.2024 with pendente-lite and fbture interest contractual rate from 17.10.2024 till the realization.

¶32

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 14.02.2025, 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 appeared9 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 02.08.2025 in “Times of India” and “Hindustan” newspapers.

¶33

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 casey but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 04.12.2025 .

¶34

qq Pres\Ihl OOcn Debb RHovon TobwW PA" Na

OA 644 of2024jJI

DRT. PATNA

Vakalatnama on behalf of the defendants is on record, which was filed on 06.02.2026 but no appropriate application for recalling the ex-parte order has been filed by the defendants. Even at the time of final arguments on 06.02.2026, none was present for the defendants.

¶39

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 Ms. Smriti Raj, Senior Manager of the applicant bank. The details of documents are as follows:

¶40

Sl.No	Description Documents Photocopies of	1Date of Execution	Amount (inLakh)	ISignature IExecutants	of	1Ex./ Ann No.
	Loanapplication	09.01 .2023		Defendants
	Sanctionletter	13.01.2023	14.25 TL 9.50CC	Bank 1 accepted 1defendants	and by
3	e lroDrietorshi		e			3
4	DPnote			Defendants		4
	e			Defendants
	e			Defendants
	o			Defendants
	e securrt			Defendants
9	P		e 9.50			9
10	Declaration-cum- undertaking-cum- authori	13.01.2023	e 9.50			10
11	Composite Hypothecation Agreement	13.01.2023	e			11
	Legalnotice	15. 10.2024		Bank’sadv.
	Statement accounts of			Bank

¶41

Heard arguments and perused the case record.

¶42

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 bar& 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

¶43

Hq>

¶44

Presiding OlficBr Dobtg Recovery Triburw D A 'I'lq .I\

OA 644 of 20241 Jl

DRT, PATNA

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.

¶49

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.

¶50

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. Therefore9 this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶51

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 08.10.20249 whereas the present application has been filed on 06.12.2024. 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, it is established that the present application has been filed well within the period of limitation.

¶52

Ms. Smriti Raj, Senior 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.

¶53

Section 19(3) of the Recovery of Debts and Bankruptcy Acts 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.

¶54

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.

¶55

PtutaH ODcn Debb RecoverY Tribune VAT NA

OA 644 of 2024jJ1

DRTt PATNA

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.

¶60

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.

¶61

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.

¶62

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.

¶63

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 16.10.2024has been proved to be Rs.21,97,301.08 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.

¶64

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.21,97,301.08 along with pendente-lite and future interest @11% p.a. with compounded monthly rests from 06.12.2024 (The date

OA 644 of 20241 Jl

DRT, PATNA

of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶69

ORDER

¶70

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.21,97,301.08 along with pendente-lite and future interest @ 11% p.a. with compounded monthly rests from 06.12.2024(The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶71

It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

¶72

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.

¶73

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 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.

¶74

/'' R> pt}st ant OFcp’ '.'" '\’,','£l'’“’-;’'

OA 644 of 2024jJl

DRT, PATNA

The copy of this judgment be uploaded in the website of the Tribunal.

¶79

Parties are directed to appear before the Recovery Officer, DRT, Patna on 04.05.2026. The order be communicated accordingly .

¶80

Judgment signed, sealed, dated and pronounced in the open court on 19th day of March, 2026.

¶81

Dictated &corrected by me.

¶82

[KaushalendraYadav] Presiding Officer . - / Debts Recovery Tribunal, Patna

¶83

FORM NO. 9 [See Regulation 24( 1 )]

¶84

DEBTS RECOVERY TRIBUNAL PATN A

¶85

2nd Floor, (A. B & F Wing) Karpuri Thakw Sadan7 Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

¶86

RECOVERY CERTIFICATE UNDER SECTION 19(Z)T m@) BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

¶87

RC No. 137/2026 IN Case No: OA/644/2024

¶88

In the Matter of: (CH- 1) BANK OF BARODA Applicant(s) BRANCH OFFICE AT WALN41, PATN A ,BIHAR -0

¶89

––-- Versus ––--To (CD- 1) M/S YUVRAJ STEEL WORKS (Proprietor Mrs. Soni Kumari) Shop at- MllageWalmi, Vrindavan Colony, Road No- IH P.S.Phulwarisharif. Patna .BIHAR -801505 Also At Defendant(s) AKBARPUR, P.0.- SORAMPUR, NAUBATPUR, PATNA 801505 (BiHAR) (CD- 2) MS. SONI KUMARI D/0- MR. RAJENDRA PRASAD YADAV, R/0VILLAGE- WALMI, VRINDAVAN COLONY, ROAD NO- 1 H, P.S.- PHULWARISHARIF, PATNA801503(BIHAR)

¶90

Recovery Certificate for Rs 2197301.08 1 Rupees Twenty One Lakhs Ninety Seven Thousands Three Hundred One And Paise Eight Only_]

¶91

In terms of final order dated 19/03/2026 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. 2197301.08 along with cost, expenses and interest from the 06/12/2024 i.e. date of filing / with effective date of the OA/644/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶92

r.no! CDName	Loan Type	Int FIType/Mode	Int I Rate	Effective Date	Order Date	,mount(Rs.)	Liability le	Interest (as on Order Date)	RC R }Amount(Rs.)
		IInterest Fonthly )		2/2024 '	I19/03/2026;1	2197301.08	iJointly IAnd [Severally	[Interest As In Order .IDate	197301.08
		:Monthly)		1/12/2024 :	I 19/03/2026	gB2 197301.08	Filintlv And jseverany	Tlterest in Order :IDate	;l2197301,08

¶93

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.

¶94

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 .

¶95

Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 04/05/2026.

¶96

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.

¶97

This Certificate has been issued under my signature and seal of the Tribunal on this 20/03/2026

¶98

)/ bbb leS:Wribun81 Patna

¶99

PRESIKNG OFFICER DEBTSRECOVERYTRIBUNALPATNA
PresIding UIJic-1 D8btB Recovery TrLbu' ' PATNA

¶100

¶101

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

¶102

DEBTS RECOVERY TRIBUNAL PATNA

¶103

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

¶104

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

¶105

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 137/2026

Case No: OA/644/2024

Applicant(s): BANK OF BARODA Versus

¶110

Defendant(s): M/S YUVRAJ STEEL WORKS

¶111

	Item ofCosts	IAmountin
	Feeontheapplication	14000
		ro
3	c	[0
[i	I --i;– Fbi	ro
	e	[0
	a	m2

¶112

Place: PATNA

¶113

PRESIDMOFrICER DEBTS RECOVERY TRIBUNAL PATNA PrestdRB Oy]ncer Bebt8 RecovefY Tdbun•1 PATHA

¶114

Date: 20/03/2026

¶115

Note: Strike out whichever is not applicable - -

Bank of Baroda v. M/s Yuvraj Steel Works

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Yuvraj Steel Works

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

Coram

Case details

Similar cases

Punjab National Bank versus Bhavna Wajekar

International Asset Reconstruction Compant Pvt. Ltd. versus Ms. Trimurti Construction Developers and Builders

Punjab National Bank versus Mrs. Kuljeet Singh

Smt Ritu Raj versus Punjab National Bank

Icici Bank Limited versus Mr Mohammad Razzaq Alam

Mundhra Comfoware versus West Bengal Gramin Bank