Allowed

Punjab National Bank v. M/s Bharat Traders

DRT8 Sept 2026OA/812/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed a bank’s recovery application for an overdraft loan. The bank proved the loan and security documents, utilisation of the facility, and the outstanding balance through certified records and an authorized signatory’s affidavit. The unchallenged statement of account was treated as correct. The defendants were held jointly and severally liable for the outstanding debt, costs, and pendente-lite and future interest, with directions for recovery proceedings and attachment of secured assets.

What did the court decide?

The defendants were ordered jointly and severally to pay Rs.22,26,289.92 with costs, pendente-lite, and future interest at 10% per annum simple from 15.09.2025 until realization. A recovery certificate was directed and the mortgaged or hypothecated assets were attached.

Punjab National Bank versus M/s Bharat Traders — Banking and Recovery | DRT (2026)

OA 812 of20251JI

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. 812 of 2025

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Punjab National Bank branch Office at Station Road Allah Branch, Bhojpur802301

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. . . . . . .Applicant

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Vs.

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M/s Bharat Traders (Borrower), a sole proprietorship Concerned, though its proprietor, Md. Afsar Alam, S/o- Md. Gulam, Address:Khata no.- 15, Khesra no.- 370, Erki Gaya, District Gay% Pin code804403, Bihar. (PAN no.- CNKPA6883Q),

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Md. Afsar Alam (Co- Borrower), S/o- Md. Gulam, Address:- Khata no.- 15, Khesra no.- 370, Erki Gaya, District Gaya, Pin code- 804403, Bihar. (PAN no.- CNKPA6883Q

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Bhola Shankar, Advocate For the Defendants Shri Rahul Raj , Advocate

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Dated:08.09.2026

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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 15.09.2025 against the defendants to recover its debts from defendants of Rs.22,26,289.92 as on 31.07.2025 along with pendente-lite and future interest at the contractual rate from 01.08.2025 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 of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of Overdraft loan of Rs.25 Lakh, vide loan application, which was sanctioned by the applicant bank on 16.08.2024 on various temps and conditions, as stipulated in VIV

OA 812 of 20251JI

DRT, PATNA

the sanction letter, which were duly accepted by the defendants. To seeure the loan facilities defendants have executed various loan and security documents in favour of the applicant bank, details of which are given in OA. The applicant states that the said out of total sanction of loan amount of Rs.25 Lakh, the Overdraft Facility was partly covered under CGTMSE coverage to the tune of Rs. 20 Lakh.

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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 06.01.2025 .

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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.22,26,289.92 as on 31.07.2025 with pendente-lite and future interest contractual rate &om 01.08.2025 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 07.11.2025, 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 through their Id. Counsel by filing their vakalatnama on 18.12.2025 but they have not filed their written statement within the statutory period hence vide order dated 30.04.2026, opportunity for the same was closed.

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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 Sah,

%\q

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Authorized Signatory of the applicant bank. The details of documents are as follows:

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Description Documents PhotocoDies	of Date Execution	Amount (in	Signature Executants	of
LoanaDDlication		m5T	Defendants
Sanctionletter	16.03.2024	25.00	Bank accepted defendants	ma by
AgreementforOD cum HyDothecation	18.03.2024	25.00	Defendants
PromissoryNote	16.03.2024	25.00	Defendants
PDR	18.03.2024	25.00	Defendants
Consent clause
Consent clause	18.03.2024	25.00	Defendants
Demand notice	04.02.2025		Bank
Statementofaccount			Bank

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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 laos. 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. . \iq, ,

. \iq,

DRT, PATNA

OA 812 of2025jJ1

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 06.01.2025, whereas the present application has been filed on 15.09.2025. 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 Sah, Authorized Signatory 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 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.

OA 812 of 20251JI

DRT, PATNA

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 31.07.2025 has been proved to be Rs.22,26,289.92 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.22,26,289.92 along with pendente-lite and future interest @ 10% p.a. simple from 15.09.2025 (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.22,26,289.92 along with pendente-lite and future interest @ 10% p.a. simple from 15.09.2025 (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 Vda

OA 812 of20251JI

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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 mortgage(1/ hypothecated assets as well as other personal movable/immovable assets of the defendants. However, no proclamation of sale will be issued, if the Defendant/CertifIcate Debtor ensures payment of the certifIcate amount in 6 months from the date ofdemand notice to the CertiPcate debtors. The Recovery Oficer will issue demand notice to the CertiDcate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Cert$cate holder fails to comply with directions of the Recovery Oficer, the execution may be dismissed for nonprosecution. 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 27.10.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 08th day of September, 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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FOID 1 hOt 9

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[See R£gwlabn 24{ 1 )]

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DEBTS RECO'ER\ TRIBL'XAL P.+-l'XA

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2nd Floor, IA B & F WiIB) KaHn Tbakw SMI, KEIMlrrp K3mrrnlwi Padsn tGPOAL Agri

CTIC Ml

Digin Road %nmozs-

n\’ Case No: OA/812/2025

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la th: MarIn aC {C:Hw 1 ) PLXJAB NATIONAL BANK BRANCH OFFICE AT STATION ROAD, ARR4H BRANCH. BHOJPUR .BIHAR 40330 1

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AMK')

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Tab (CD 1) MrS BHAkAT TRADERS anbPmMIxlrglbCanenedd3ruebIts PruaMor, Md Ab& AbIn, Sfo McI Gulirrn, Arkk€s& KjgRa no. IS. Klzluz No, 370. IILI Gayz (nya .BIHAR a+403

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Dcfnthqs)

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(Cb 2) MD, AFSAR ALAM (Ca SO MD_ GLIAM,ADDRFSS KHATA NO.- 1S, KHESRA NO.- 370. ERm GAYA. D]grRlcr GAYA PIN CODE- M1403. BIHAR

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P i Pmr

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In terms of 6ml oar cbt£d 08AB/2a26 passed by this TranuraI in the aIx>ye mm&and me. it is cxrkred that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2226289.92 along vial cost. ex+mrsa and intern Bum th 15/tB,’2025 i.e. cUte of nlhrg / with eaeaiYe date of the C)AdB12/2025 and future tHeres from orar the till the date of naJi%tion in full, jointly or severally fmm the Cerdfiate Debtors. hereinafter referred to as:-

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CDName	Int. 'arly )	10	EfTccti\c DuI 119

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In case offaUwr to pay the aforernarboned ayuiiaud amamt within 31) daysT sun£ shall be recoYeTed eDm Un sale of the nxxtgpgMrywtbecared asses m well as cxtnr persornl mo\nblaf IIIunoYabJe usets of the certificate debtors.

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The mongaged or hypotbe@ted ©wts to swim an Ima in gmtion are Innby attached and gnU in sia)jed to the fmI oaln ur>du the ncovuy proceeding in pursuance of the Rnovery certificate ksued un&r Swtion 19(a) ofRnoyuy of DeIAS and Bankruptcy Act 1993.

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PUtin an dirn3cd 10 %nar left>n ASHISH hIJMAR . Rna\xy C>fficu. DEBTS RECOVERY TRIBUNAL PATNA on 27 iQ’2m6

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Tbc Recovery oaicu shall nalia the amrmt as int thrs Certi5wte in tIn mUlIIn arxl tncxle pre$cTibed WDCh Scrtitxrs 25 to 28 of the Rno\’cry of Debts Due to Banks and Financial Institutioru Acl 1993 (u rnnded fTurn hmc to time) from the abc>= named Certificate Debtors,

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This Certificate has tnen

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G.. 'tegiStt ar _ f7T41x Deblb Recovery TrIDUndf. PNn? IIFT TTM =IF aHIt. Ten

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my signature and seal of the Tribunal on this 15/09n026 f/#

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATN A

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FOR:\1 NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVER- TRIBL-NAL PATS A

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

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SCHEDULE TO RECOVERY CERTIFICATE MENIO OF COSTS

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RC No. 331/2026 IN

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Case No: OA/812/2025

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Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): SI/S BHARAT TRADERS

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r.No.	tem of Costs	ItinRs.
	'eeon the 'lication	;25000
	Process Fees(Inc.Publication)
	AdvocateFees	0
	-, Fee
	laneous Charges
	'otalCosts:Rs.

Place: PAT?HA

Date: 15/09/2026

/pJ#

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATlgA

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Note: Strike out whichever is not applicable

Punjab National Bank v. M/s Bharat Traders

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Bharat Traders

Case brief

What is this about?

What did the court decide?

What the court decided

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