Allowed

Canara Bank v. M/s Nisha Enterprises

DRT29 Jun 2026OA/654/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 RDB Act to determine a debt of Rs. 57.86 lakh. Proceeding ex-parte due to the defendants' absence, the Tribunal accepted bank documents and affidavits as prima facie evidence of the debt. It passed an order for recovery including interest and costs.

What did the court decide?

Determination of debt Rs. 57,86,736/- payable by respondents jointly and severally with interest at 10% p.a. compounded monthly; proof of actual recovery to be made via Recovery Officer.

Canara Bank versus M/s Nisha Enterprises — Banking and Recovery | DRT (2026)

OA 654 of20241JI

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. 654 of 2024

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Canara Bank, branch office at Gulabbagh, Purnea, Bihar 854326

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. . . . . . . Applicant

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M/s Nisha Enterprises (Borrower), a proprietorship concern through its proprietor Begum Nisha, W/o Md. Ali Hussain, situated at- Ward No.35, Yadav Tola, Damka, Gulabbagh, Purnea, Bihar 854326, PAN No. BVUPN2499G

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Begum Nisha (Borrower), W/o Md. Ali Hussain, resident of Ward No.35, Yadav Tola, Damka, Gulabbagh, Purnea, Bihar 854326, PAN No. BVUPN2499G

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Prashant Kumar, Advocate For the Defendants None

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Dated:29.06.2026

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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 13.12.2024 against the defendants to recover its debts from defendants of Rs.57,86,736/- as on 30.09.2024 along with pendente-lite and future interest at the contractual rate from 01.09.2024 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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Defendant no.1 is a proprietorship firm, engaged in the business of trading of Food grains of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of cash credit facility as working capital of Rs.50 Lakh, vide loan application dated 08.04.2019, which was sanctioned by the applicant bank on 12.04.2019 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 €quit}ble mortgage in favour of the

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DRT, PATNA

OA 654 of 20241JI

applicant bank, details of which are given in OA. The defendants were also sanctioned Rs.9.90 Lakh under GECL Scheme on 06.07.2020.

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The defendants again approached the applicant for renewal of the aforesaid CC facility on 18.12.2023, which was renewed by the applicant bank vide sanction letter dated 19.12.2023 .

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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 28.04.2024.

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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.57,86,736/- as on 30.09.2024 with pendente-lite and future interest contractual rate from 01. 10.2024 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. Thereafter again notice dated 10.02.2025 was issued to the defendants, which was served by way of affixation of notice on the outer wall of the defendants’ premises and some photographs of affixation have also been filed with the affidavit field on 01.05.2025 .

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Despite the service of registered summons/notices and also by way of affixation of notice on the outer wall of the defendant’s premises, 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 18.09.2025 .

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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

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PresIding Oficar Debts Recovery Tribwnl PATNA

OA 654 of2024jJl

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given evidence on affidavit by way of affidavit by Shri Sunil Kumar Singh, Senior Manager of the applicant bank. The details of documents are as follows:

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Sl.No	1Descriptionof Documents Photocopies	1Date of IExecution 1	1Amount 1 (in 1Lakh)	ISignatur 1 Executa I	eof nts	1Ex./ IAnn. INo.
	o	20.0		Defendants
	Sanctiorl memorandum	2		Bank accepted defendants	and by
	GECL loan offer	01.06.2020	9.90	Bank
	Sanction memorandum	06.07.2020	9.90	Bank accepted defendants	and by
	Letter ofundertaki	06.07.2020		Bank
	Agreementcl deed HyDothecation	06.07.2020		Bank
	Loanapplication	18.04.2023	50.00	Defendants
	Sanctionletter	19.04.2023	50.00	Bank accepted defendants	and by
	Letter ofrenewal	19.12.2023	50.00	Defendants		9
	Link letter		50.00	Defendants
	Notice	21.03.2024		Bank
	Notice	10.04.2024		Bank
o 15	1accounts of			Bank		to 15

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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 Rs.20 lacs. The applicant bank is functioning within the jurisdictis)n of this Tribunal. Therefore,

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OA 654 of 2024jJl

DRT, PATN A

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 28.04.2024, whereas the present application has been filed on 13.12.2024. 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 Sunil Kumar Singh, 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.

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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 bat&er’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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OA 654 of 2024jJl

DRT, PATN A

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 30.09.2024 has been proved to be Rs.57,86,736/- 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.57,86,736/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 13.12.2024 (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 defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt amounting to Rs.57,86,736/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 13.12.2024 (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 moBgaged or hypothecated or any vh'R.

OA 654 of 2024jJ I

DRT, PATNA

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 Of$cer will issue demand notice to the Certi$cate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Cer.tifrcate holder fails to comply with directions of the Recovery Of$cer, 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, DRT, Patna on 10.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 29th day of June, 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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F fIRM NO! P

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24( 1)]

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

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RE.COVE.RY CERTIFICATE UNDER SEeTioN 19(7) READ WITH SECTION 19(12) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT,m, AS AMENDED FRQM TIME TO TIME.

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RC No. 216/2026 IN Case No: OA/654/2024

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In the Matter of:

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(CH- 1) CANARA BANK BRANCH OFFICE AT GULABBAGH, PURNIA ,BIHAR -0

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Applicant(s)

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(CD- 1) M/S NISHA ENTERPRISES a Proprietorship Concern Through its Proprietor Begun Nisha, W/o- Md. Ali Hussain, Situated AtWard No.35, Yadav Tola, Damka, Gulabbagh, Purnia ,BIHAR -854326

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Defendant(s)

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(CD- 2) BEGUM NISHA W/0- MD. ALI HUSSAIN, RESIDENT OF WARD NO- 35, YADAV TOLA, DAMKA,

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GULABBAGH, PURNEA, BIHAR- 854326

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RetQvery Certificate hr Rs 5786736,00 1_Rupee; FiFty Seven Lakh s Big lay Six Thousands Seven Hundred ThirtyA

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£myJ

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In terms of final order dated 29/06/2026 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. 5786736.00 along with cost, expenses and interest from the 13/12/2024 i.e. date of filing / with effective date of the OA/654/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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Sr+no	(IHHHpqI)b1an1e t	i :=	T)rP::1;[od e	!i=k t	ETfIve :iT!	Amount BO	;LTHq	Interest :18:dTe Date)	AmoIS( RsR):Remark
A z	fBEGUM }NISHA		:Compound ;Interest .(Monthly)	:10	13/12/2024 39/06/2026	}5786736.oo			15786736.00

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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 mongaged 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 Officers DEBTS RECOVERy TkiBUNAL PATTqA on 10/08/2026

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The Recovery Officer shall realize the amount as per this Certificate in the manner and made prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Acl 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 03/07/2026

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PRESIDI&86FFICER DEBTS RECOVERY TRIBUNAL PAINA

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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

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 216/2026 IN

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Case No: OA/654/2024

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Applicant(s): CANARA BANK

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Versus

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Defendant(s): M/S NISHA ENTERPRISES

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Item ofCosts	'AmountinRs
Feeon the application	:60000
';8cesiFee£(Inc. Publicaiionj	0
AdvocateFees	0
Commissioner/Receiver/Valuation/SecurityFee	10
MiscellaneousCharggs	.0
t8iil--d-iiIiiii	'60000

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Place: PATNA

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Date: 03/07/2026

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PRESIDIbbdFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Canara Bank v. M/s Nisha Enterprises

Case brief

What is this about?

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Canara Bank v. M/s Nisha Enterprises

Case brief

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