Allowed

Indian Bank v. M/s a H Enterprises

DRT27 Jan 2026OA/647/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's recovery application against defaulting borrowers. Relying on unchallenged documentary evidence and banker's books under Section 19 RDB Act, the Tribunal determined the dues at Rs. 1.94 crore, attached secured assets, and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 1,94,70,579 plus interest from respondents and attachment of mortgaged/hypothecated assets pending realization via Recovery Certificate.

Indian Bank versus M/s a H Enterprises — Banking and Recovery | DRT (2026)

OA 647 of 20241 Jl

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. 647 of 2024

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Indian Bank, SAMV Branch, Patna, Patel Nagar, Road No.5, Police Station- Shastri Nagar, District- Patna 800023

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. . . . . . . Applicant

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Vs.

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M/s A. H. Enterprises, situated at B/89, Ali Nagar, Anishabad, Police Station- Fulwarisharif, District- Patna 800002

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Md. Aaquib Hussain, Son of Md. Anjum Asghar, Partner of M/s A. H. Enterprises, resident ofMohalla-Near Mallick Manzil, Bakerganj, Moharrampur, Post Office- Bankipur, Police Station- :Pirbahore, District- Patna 800004, PAN No.ABNFA7063M

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Danish Sultan, son of Qaiser Sultan, Partner of M/s A. H. Enterprises, resident of Harron Nagar Colony, Sector- II, Phulwarisharif, Police Station- Phulwari Sharif, DistrictPatna 801505

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Present:

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For the Applicant Shri Animesh Ranj an, Advocate For the Defendants Shri Satya Prakash Narayan, 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 10.12.2024 against the defendants to recover its debts from defendants of Rs.1,94,70,579/-as on 30.11.2024 along with pendente-lite and future interest at the contractual rate from 01.12.2024 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.

DRT, PATNA

OA 647 of2024jJI

Defendant no.1 is a parentship firm, engaged in the business of trading & servicing of Electronics Goods & Accessories, of which defendant no.2 & 3 are partners of the defendant no.I firm. Defendants approached the applicant bank for sanction of cash credit facility of Rs.45 Lakh, vide loan application dated02.01.2019, which was sanctioned by the applicant bank on 11.01.2019on 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.

¶24

Defendants again approached the applicant bank for sanction of Adhoc Open Cash Credit facility of Rs.9 Lakh, vide loan application dated 24.07.2019, which was sanctioned by the applicant bank 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.

¶25

Defendants again approached the applicant bank for enhancement of Cash Credit facility of Rs.45 Lakh to Rs.75 Lakh, vide loan application dated 06.05.2020, which was enhanced/sanctioned by the applicant bank on 07.05.2020 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.

¶26

Defendants again approached the applicant bank for sanction of IND-GECL-COVID-19 facility of Rs.10.80 Lakh, vide loan application dated 10.06.2020, which was sanctioned by the applicant bank on 12.06.2020 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.

¶27

Defendants again approached the applicant bank for sanction of IND-FITL-COVID-19 facility of Rs.10 Lakh, vide loan application dated 27.08.202 1, which was sanctioned by the applicant bank on 27.08.2021 on various terms and conditions, as stipulated in the sanction letter, which

OA 647 of20241JI

DRT, PATNA

were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents.

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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 on30.04.2022 .

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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.1,94,70,579/- as on 30.11.2024 with pendente-lite and future interest contractual rate from 01.12.2024 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 07.01.2025, 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.

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In response to the notice, the defendants have appeared and filed an application on 04.02.2025 seeking time to file written statement but despite that they have not filed written statement within the statutory period. Thereafter nesh vakalatnama on behalf of all the defendants has been filed on 06.06.2025. Thereafter none has appeared on behalf of the defendants hence Id. Counsel for the applicant bank was finally heard on 14.11.2025 and the case was reserved for pronouncement of order/judgment. Further 15 days’ time was granted to the parties to file written notes of arguments but the same has not been filed.

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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 Manoj Kumar,

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<.a \

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r,®rang OD'" _ DeM Recovery Tribultd PATNA

OA 647 of20241JI

DRT, PATNA

Chief Manager and Principal Officer of the applicant bank. The details of documents are as follows:

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Sl.No	of Description Documents Photocopies	1 Date of Execution	Amount (in Lakh'	Signatur Executants	eof	Ex./ Ann. No.
	Loan aDDlicati	02.01.2019	m5i	Defendants
	Sanctionlette]	11.01.2019	45.00	Bank accepted defendants	and by
	r		45.00 T	Defendants
	Agreer	–	r	Defendants
	o		9.00	Defendants
	Sanctioll		9.00	Bank accepted defendants	and by
	I		9.00	Defendants
	SanctioI		30.00	Bank accepted defendants	and by
9	o Note		75.00	Defendants		9
10	a		a	- accepted defendants	by
11	Joint and several DP Note	12.06.2020	e	anr
12	Joint and several DP Note	27.08.2021	e			12
13to 16	Statement accounts of			Bank		13to
17to 19	Postalreceipts					17
	Legalnotice	20.09.2024		Bank’sadv	.	20

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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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t(/7\ \ FIle Slang O $'icet W@@ R©©©very Tribufld PATNA

DRTq PATNA

OA 647 of2024jJl

i 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

¶52

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.

¶53

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.04.2022, whereas the present application has been filed on 10.12.2024. 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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Shri Manoj Kumar, Chief Manager and Principal Officer 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

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OA 647 of 20241JI

DRTq PATNA

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 under-

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S.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 30.11.2024 has been proved to be Rs.1,94,70,579/- 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.1,94,70,579/- along with pendentelite and future interest @10% p.a. simple from 10.12.2024 (The date of

OA 647 of20241JI

DRT! PATNA

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.1,94,70,579/- along with pendente-lite and future interest @ 10% p.a. simple from 10.12.2024 (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 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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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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yd,

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Presiding Ofice1 Debts Recovery Tribuna PATHA

OA 647 of 20241JI

DRT, PATNA

Parties are directed to appear before the Recovery Officer, DRT9 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] p PJ£siding-Officer

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Debts Re:op=;);JiM!!In: Debts .e

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EQRWNb2 [See Regulation 24( 1)]

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DEBTS i&ECOVERY TRIBUNAL PATNA

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2nd Floor, (A. B & F Wing) Karl)ud Thaklu Sadan, Kenddya Karamchari Padsar (GPOA), Ashiana Digha Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(a READ WITH SECTION 19(02 OF THE RECOVERY OF DEBTS & BANKBUyFCY ACTImy AS AMENDED FROM TIME TO TIME'

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RC No. 81/2026 IN

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Case No: QA/647/2024

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In the Matter of: (CH- 1) INDIAN BANK SAMV BRANCH PATNA PATEL NAGAR ROAD NO 5 POLICE STATION SHASTRI NAGAR PATNA ,BIHAR -800023

Applicant(s)

–– Versus ––-

(CD- 1) M/S AH ENTERPRISES Situated at B/89, Ali Nagar, Anishabad, Police StationFulwarisharif, Patna ,BIHAR .800002

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(CD- 2) MD.AAQUIB HUSSAIN SON OF MD. ANJUM ASGHAR. PARTNER OF M/S A.H. ENTERPRISES. RESIDENT OF MOHAT.LANEAR MALLICK NIANZIL, BAKERGANJ. MOHARRAMPUR, POST OFFICE- BANKIPUR. POLICE STATION- PIRBAHORE. DISTRICT. PATNA800004

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Defendant(s)

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(Cb 3) DANISH SULTAN SON OF QAISER SULTAN, PARTNER OF M/S A.H. ENTERPRISES, RESIDENr OF HARRON NAGAR COLONY, SECTOR-II. PHULWARISHARIF. POLI(_'E STATION - PHULWARI SHARIF. DISTRICT- PATNA801505.

¶102

WvHY££1lU£a£WMUg£ZLgLIAP£ngbU£nWKlyJgg[L®u£!vHByAwa!!dyJiwDd JL

¶103

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. 19470579.00 along with costp expenses and interest Mm the 10/12/2024 i.e. date of filing / with effective date of the OA/G+7/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶104

+	+ E	B'		A	lcr Date	B+	N	m RC Re Amount(Rs.)
	AH IRISES		10	110/12/2024	T:	N	W;	19470579
[	MD.AAQUIB HUSSAIN	( Yearly )	o	110/12/2024	t$	B	W	FF
		;imF)IeII :Yearly )	10	110/12/2024

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In case of failure to pay the aforementioned adjudicated amount within 30 daysJ 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 mongaged OF hYpothecated assets to secure the loan in question are hereby attached and shall be subject to the final !tIer unger the Debts andBankruptcy recoverY Act proceeding in 1993. pursuance of the Recovery certificate issued under Section 19(22) if Recovery of- ' -- - –'

¶107

Parties are directed tO apWar before MANOJ KUMAR ! Recovery ORiccrl DEBTS RE(„."OVERy TRIBUNAL PAINA on 09/03/2026 i the above named Certificate Debtors. 5 t : 2o8 ]::;IT::re :H:n ;} ii : :i: 1]I=el!I[][: : :::It!: := ::111:::: :i FIt: ::::Tt ' - ;!nILw;=1 - –- -––- -- -– -’?= eu::dTI# !!==

¶108

This Certificate has been issued under my sigDatue and seal of the Tribunal on tms 06/02/2026

¶109

,(i Paula DebtsR:{ 'strar ery Tribunal	JgH' PRESIDING OFFICER DEBTS RECOVERYTRIBUNALPATNA Ppa8langOFten Debts RecoveW Tdbwl’a' PATNA

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

¶111

DEBTS RECOVERY TRIBUNAL PATNA

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 81/2026

Case No: OA/647/2024

Applicant(s): INDIAN BANK

¶118

Versus

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Defendant(s): M/S AH ENTERPRisES

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'ee on a lcation
no rocessFe iC	F@
vocate t1 SI>	@
Fee
iscellaneous Charges
	mo

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Place: PATNA

¶122

Date: 06/02/2026

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Note: Strike out whichever is not applicable

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PRESIKING OFFiCERn DEBTS RECOVERY TRIBUNAL PATNA P9aiaag Oftce+ Dabe9 Recovery Tribunal PATNA

Indian Bank v. M/s a H Enterprises

Case brief

What is this about?

What did the court decide?

Indian Bank v. M/s a H Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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Case details

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