Allowed

Indian Bank v. M/s M.S. Traders

DRT19 Mar 2026OA/665/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application under Section 19 of the RDB Act, 1993, determining the debt of Rs. 1,44,33,689/- with interest and costs, ordering recovery through the Recovery Officer and attaching mortgaged assets.

What did the court decide?

Defendants ordered to jointly and severally pay Rs. 1,44,33,689/- with pendente-lite and future interest at 10% p.a. Costs of Rs. 1,47,000 awarded. Recovery Certificate issued.

Indian Bank versus M/s M.S. Traders — Contract and Commercial Disputes | DRT (2026)

DRT, PATN A

OA 665 of2024jJI

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 665 of 2024

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

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. . . . . . . Applicant

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M/s M.S. Traders, situated at Shahi Complex, 2nd Floor, New Dak Bunglow Road, Police Station- Kotwali, District- Patna 800001

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Smt. Maryam Khatoon, wife of Md. Gyasuddin, Proprietor of M/s M.S. Traders, resident ofHaroon Nagar Colony, Sector-2, Phulwarisarif, Police Station- Phulwari, District- Patna 801505, PAN No. CWCPK2 8 18L

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Animesh Ranjan, Advocate For the Defendants Shri Satya Prakash Narayan, Advocate

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Dated: 19.03.2026

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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 20.12.2024 against the defendants to recover its debts from defendants of Rs.1,44,33,689/- 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. ,

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3 . Defendant no.1 is a proprietorship firm engaged in the business of whole sale and retail trading of electronic items, of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of Open Cash Credit loan of Rs.45 Lakh, vide loan application dated 05.10.2018, which was sanctioned by the applicant bank on 08.10.2018 on various terms and

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X\) ?7alaH8 08lc" D,Dts Recove tY TTib1111' PATN A

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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.

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Defendants again approached the applicant bank for sanction of “INDGECL-COVID-19” loan, vide loan application dated 01.06.2020 and the applicant bank has sanctioned Rs.5.99 Lakh on 01.06.2020 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.

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Defendants again approached the applicant bank for sanction of “INDMSE-COVID EMERGENCY” loan, vide loan application dated 01.06.2020 and the applicant bank has sanctioned Rs.3 Lakh on 09.06.2020 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.

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Defendants again approached the applicant bank for sanction of OCC loan of Rs.30 Lakh, vide loan application dated 10.07.2020 and the applicant bank has sanctioned Rs.30 Lakh on 10.07.2020 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.

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Defendants again approached the applicant bank for sanction of “COVID-19 FITL” term loan, vide loan application and the applicant bank has sanctioned Rs.4.14 Lakh on 06.10.2020 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.

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Defendants again approached the applicant bank for sanction of “INDGECL” loan, vide loan application dated 3 1.03.2022 and the applicant bank has sanctioned Rs.10 Lakh on 31.03.2022 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.

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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 3 1.05.2022.

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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.1,44,33,689/- 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 16.01.2025, 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 by filing their vakalatnama on 26.05.2025 but they have failed to file written statement within the statutory period hence vide order dated 14.08.2025, the request on behalf of defendants for extending the time for filing the written statement was not considered and the defendants were granted an opportunity to file the rebuttal evidence, if any within one month 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, Chief Manager and Principal Officer of the applicant bank. The details of documents are as follows:

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K,>

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Pr081888 OBcer Dobt8 Recovery Tdbw\• PAThIA

OA 665 of 20241 Jl

DRT, PATNA

SI.No	m Description Documents Photocopies	ano Execution	Amount I (inLakh)	Signatureof Executdnts	Ex./ Ann No
1	LoanaDDlication	05.10.2018	45.00	Defendants	1
2	Sanction letter	08.10.2018	45.00	Bank and accepted by defendants	2
3	Single/jointDP Note	08.10.2018	45.00	Defendants	3
4	Agreement	08.10.2018	45.00	Defendants	4
5	Ag HyDothecation	08.10.2018	45.00	Defendants	5
6	Loan application	01.06.2020	5.99	Defendants	6
7	Sanctionletter	01.06.2020	5.99	Bank and acceptedby defendants	7
8	Agreement	01.06.2020	5.99	Defendants	8
9	Sanction letter	09.06.2020	3.00	Bank .and acceptedby defendants	9
10	e		3.00	Defendants	10
11	Loan application		45.00 30.00	Defendants	11
12	Sanction letter	24.07.2020	30.00	Bank and accepted by defendants	12
13	r			Defendants	13
14	Sancto	s		Bank and acceptedby defendants	14
15	e agreement		4.14	Defendants	15
16	o		10.00	Defendants	16
17	Sanctiol		10.00	Bank 'and accepted by defendants	17
18	Singje/jointDPNote	31.03.2022	10.00	Defendants	18
19	Teri loan agreement	1	10.00	Defendants	19
20to 24	Statement of accounts			Bank	20to 24
25&26	of Photocopies Postal receipts				25&26
27&28	Legalnotice	26.09.2024		Bank’sadv.	27&28

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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

DRT1 PATNA

OA 665 of2024jJI

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 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 31.05.2022, whereas the present application has been filed on 20.12.2024. 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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PresIding O ficer Debts xecovory Tribune PATH A

DRTq PAl-'NA

OA 665 of 20241 Jl

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 c6py 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 eitent 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 30.11.2024has been proved to be Rs.1,44,33,689/- 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.1,44,33,689/- along with pendente-lite and future interest @10% p.a. with compounded monthly rests from 20.12.2024 (The date

OA 665 of 20241 Jl

DRT, PATN A

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.1,44,33,689/- along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 20.12.2024 (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. However no proclamation of sale will be issued9 if the Defendant/Certificate Debtor ensures payment of the certificate 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 19939 is

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PreBtdin8 OfFIcer Dobt8 Recovery Tribuna, PATN A

OA 665 of 20241 Jl

DRT, PATNA

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.

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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 04.05.2026. The order be communicated accordingly.

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

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Dictated &corrected by me.

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/ iAA
\d~''’
r _X

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[KaushalendraYadav] ’- Presiding Officer Debts Recovery Tribunal, Patna

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IE111bIIII: a; i; T = 1L In•

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor! (A. B & F Wing) Karpuri Thakur Sadan1 Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(Z) READ WITH SECTION 19(m OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No. 140/2026

Case No: OA/665/2024

In the Matter of: (CH- D INDIAN BANK SAMV BRAN(_'H, PATN A, PATEL N AGAR, ROAD NO 5. POLICE STATION- SHASTRI NAGAR.

Applicant(s)

PATNA ,BIHAR -800023

(CD- 1) M/S M.S. TRADERS Situate at Shahi Complex, 2nd Floor, New Dak Bunglo\v Road, Police Station - Kotwali, Patna ,BIHAR -80000 1

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(CD- 2) SMT. MARYAM KHATOON WIFE OF MD. GYASUDDIN. PROPRIETOR OF M/S M.S. TR4DERS RESIDENT OF HAROON NAGAR COLONY. SECTOR-2. PHULWARISARIF, POLICE STATIONPHULWARI, DISTRICT- PATNA- 80 1505

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Defendant(s)

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Recovery Certificate for Rs 14433689.00 [ Rupees One Crore Forty FQur Lakh s Thirty Three Thousands Six Hundred ©gUy Nine Only J

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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. 14433689.00 along with cost, expenses and interest from the 20/12/2024 i.e. date of filing / with effective date of the OA/665/2024 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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M/S M.S .ADERS	pound Interest lthly )	'12/2024	K19/03/2026l	14433689.00	iJointly IAnd FSeverally		14433689.00
b4 1 MARYAM KHATOON	'ompound Interest I(Monthly)	120/12/2024:	1 19/03/2026il	14433689.00	intly :IAnd !Severall}	lterest	14433689.00

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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 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 PA’rNA on 04/05/2026

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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 20/03/2026

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PREbiG OFFICER Cd DEBTS RECOVERY TRIBUNAL PATNA RegIstrar B€bt8 Recovery Tribunal Patna

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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

RC No. 140/2026

Case No: OA/665/2024

Applicant(s): INDIAN BANK

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Versus

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Defendant(s): M/S M.S. TRADERS

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Item ofCosts	r
]	147000
	W
AdvocateFees	[0
r ity Fee	ro
iscellaneousCharges	Dc
TotalCosts: Rs	147000

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Place: PATNA

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PRESIDINMFFICER

Indian Bank v. M/s M.S. Traders

Case brief

What is this about?

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Indian Bank v. M/s M.S. Traders

Case brief

What is this about?

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