Allowed

State Bank of India v. M/s Ex Servicmen Canteen

DRT29 Jun 2026OA/88/2025

Case brief

AI extract

What is this about?

The DRT allowed an application by State Bank of India against a partnership firm to recover a defaulted loan of Rs. 65,95,559.37. The Tribunal relied on documentary evidence from the bank, as the defendants failed to appear. An order determining the debt and issuing a recovery certificate was passed.

What did the court decide?

Determined debt of Rs. 65,95,559.37 with interest to be recovered jointly and severally; Recovery Certificate issued; assets attached.

State Bank of India versus M/s Ex Servicmen Canteen — Banking and Recovery | DRT (2026)

¶1

OA 88 of2025Jl

¶2

DRT, PATN A

¶3

Debts Recovery Tribunal, Patna

¶4

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶5

Presiding Officer : Shri Kaushalendra Yadav

¶6

OA Case No. 88 of 2025

¶7

State Bank of India, Stressed Assets Recovery Branch, 2"d Floor, Patna Main Branch Building, West of Gandhi Maidan, Patna

¶8

¶9

M/s Ex Servicemen Canteen, Office- Opposite Gaighat Block Office, Jarang East. Gaighat, District- Muzaffarpur- 847107, Bihar, partnership firm represented through the partners .

¶10

Santosh Kumar Singh, M/s Ex Servicemen Canteen, S/o Bijay Kumar Singh, New Colony, Balughat, Near Mithla Children Academy, DistrictMuzaffarpur- 842001 (Partner/Borrower/Mortgager)

¶11

Santosh Kumar Singh, S/o Arun Kumar Singh. Opposite Air Force Officers Mess, Kolkata Road, Upper Bhujipani, Uttar Bagdogra, Darjeeling, District- Darjeeling- 734014, West Bengal (Partner/ Borrower/Mortgager)

¶12

Upendra Singh, M/s Ex Servicemen Canteen, S//o Nagendra Singh, Bhujiyapani Chhat, Bagdogra, Bhujiapani, Darjeeling, DistrictDarjeeling- 734014, West Bengal (Partner/Borrower)

¶13

Present:

¶14

For the Applicant Shri A.K. Sharan, Advocate For the Defendants None

¶15

Dated:29.06.2026

¶16

JUD(;MEN'r

¶17

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 31.01.2025 against the defendants to recover its debts from defendants of Rs.65,95,559.37 as on 28.11.2024 along with pendente-lite and future interest at the contractual rate from 29.1 1 .2024 with costs till realization.

OA 88 of 2025J I

DRT, PATN A

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.

¶22

Defendant no.1, being a partnership firm, represented through its partners approached the applicant bank for sanction of Overdraft limit of Rs.62 Lakh for running of their business of retail trading of grocery, FMCG, consumer Durables etc., vide loan application dated 01.06.2023, which was sanctioned by the applicant bank on 05.09.2023 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 equitable mortgage in favour of the applicant bank, details of which are given in OA. The creation of charge over the security was duly registered under the CERSAI in favour of the applicant bank of all the security mentioned in schedule-A of the OA.

¶23

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 27.07.2024.

¶24

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.

¶25

The total liability in the loan account is Rs.65,95,559.37 as on 28.11.2024 with pendente-lite and future interest contractual rate from 29.11.2024 till the realization.

¶26

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 29.03.2025, 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 appeared, hence, the Registry of this Tribunal has ordefed to publish the notice in newspaper and

¶27

Pr„i,ling OPc'? Debts RecovetY Tdbultal PAT N A

OA 88 of2025Jl

DRT, PATNA

of subsequently, substituted service by publication of notice by way advertisement in newspaper was also made against the defendants on 24.07.2025 in “Hindustan” and “The Telegraph” newspapers.

¶32

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 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 30.10.2025

¶33

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 Ravi ,Kumar, Chief Manager of the applicant bank. The details of documents are as follows:

¶34

SI.No	Descriptionof Documents Photocopies	Date of Execution	IAmount 1(in Lakh	Signatur Executants	eof	Ex./ Ann No.
	Loan application	o	62.Oi	Defendants
	Partnershipdeed	12.09.2019
	Letter of arrangement	05.09.2023		Bank accepted defendants	and by
4	Agreement ofloan cumhyDothecation	05.09.2023	62.00	Defendants		4
5	Guarantee agreement	05.09.2023	62.00	e
6	Agreement under PDR	05.09.2023	62.00	Defendants		6
7	Agreement under PDR	05.09.2023	62.00	Def.no.2 to	4	7
	Partnership letter	05.09.2023	62.00	Defendants
	Photocopy of absolutesaledeed	10.06.2021
10	Letter of confirmationfor creationofmortgage	15.09.2023	62.00	e
11	Photocopy of title deed	01.09.2014				11
12	Memorandumfor recordingcreationof mortgage		62.00	Bank		12
13	Letter of confirmation for creationofmortgage	1		Defendants	'	13
	Deedofconveyance	08.08.2012
	MemorandumTo recordingcreationof	05.09.2023	a

¶35

¶36

Presldint OfFicer D•bts Recovery Tribunal PATNA

OA 88 of 2025Jl

DRT, PATN A

	mortgage
	of Letter for confirmation creationofmortgage	11.09.2023	e
17	CERSAIdetails				17
18&19	calculation Interest chart andstatement ofaccount				18&19
	Demandnotice	28.11.2024		Bank
	Letter	24.12.2024		Bank
	Legal notice	31.12.2024		Bank adv

¶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 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.

¶43

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.

¶44

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 fbnctioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶45

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 27.07.2024, whereas the present application has been filed on 31.01.2025. 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.

¶46

\IA>

¶47

PresIding OFc€? Debts RocovetY TdbwtaQ PATN A

OA 88 of2025JI

DRT, PATNA

Shri Ravi Kumar, Chief 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.

¶52

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.

¶53

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.

¶54

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.

¶55

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.

¶56

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.

¶57

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. G / wM\k

¶58

P 7estding C)IIen Debts Recovery T-’; b -ind F/b'IfId;

OA 88 of2025Jl

DRT, PATN A

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 28.11.2024 has been proved to be Rs.65,95,559.37 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.65,95,559.37 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 31.01.2025 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶65

ORDER

¶66

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.65,95,559.37 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 31.01.2025 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶67

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

¶68

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. n /

¶69

_lOG

¶70

pfastding ®fFceP ' ' -lab. Debts Recovery T : '' WWF

F ;r, ' a .N dO

OA 88 of 2025J I

DRT, PATN A

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

¶76

Parties are directed to appear before the Recovery Officer, DRT, Patna on 10.08.2026. The order be communicated accordingly.

¶77

Judgment signed, sealed, dated and pronounced in the open court on 29th day of June, 2026.

¶78

Dictated &corrected by me.

¶79

[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

¶80

P?estdint OIDen D•bts Recovery TdbuIW PATNA

¶81

EQRNLNn! [Sec Regulation 24(1 )]

¶82

DEBTS RECOVERY TRIBUNAL PATNA

¶83

¶84

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

¶85

¶86

:AI'E

¶87

19(D READ WITH SECTION 19(B) OF THE }V]

¶88

!2B,A$AMENPEP FROM TIME TO TIME.

RC No. 212/2026

Case No: OA/88/2025

In the Matter oe

(CH- 1) STATE BANK OF INDIA STRESSED ASSETS RECOVERY BRANCH, 2ND FLOOR PATNA MAIN BRANCH BUILDING, WEST OF GANDHI MAIDAN.

Applicant(s)

PATNA ,BIHAR -800001

–---- Versus ––-.-

(CD- 1) M/S EX SERVICMEN CANTEEN SANTOSH KUMAR SINGH S/o BIJAY KUMAR SINGH

¶100

PARTNERSHIP FIRM REPRESENTED THROUGH THE PARTNERS OFFICE- OPPOSITE GAIGHAT BLOCK OFFICE JARANG EAST GAIGHAT

¶101

Muzafrarpur ,BIHAR -847 107

¶102

(CD- 2) SANTOSH KUMAR SINGH

¶103

M/S EX SERVICEMEN CANTEEN, S/0 BIJAY KUMAR SINGH. NEW COLONY. BALUGHAT, NEAR MITHLA CHILDREN ACADEMY, DISTRICT- MUZAFFARPUR842001 (PARTNER/BORROWER/MORTGAGOR)

¶104

Defendant(s)

¶105

(CD- 3) SANTOSH KUMAR SINGH

¶106

S/0- ARUN KUMAR SINGH OPPOSITE AIR FORCE OFFICERS MESS+ KOLKATA ROAD+ UPPER BHUJIPANI9 UTTAR BAGDOGRA DARJEELING. DISTRICTDARJEELING- 734014, WEST BENGAL

¶107

(PARTNER/BORROWER/MORTGAGOR)

¶108

(CD-4) UPENDRA SINGH

¶109

M/S EX SERVICEMEN CANTEEN, S/0 NAGENDRA SINGH. BHUJIYAPANI CHFLAT, BAGDOGRA, BHUJIAPANI, DARJEELING, DISTRICT- DARIEELrNG7340 14, WEST BENGAL. (PARTNER/BORROWER)

¶110

Recoyery Certificate for Rs 659 S SSP,37 1 Rupe£s Sixty Five LaIshs Ninety Five Thousands Five Hundred Fifty Nine And Pai$$ Thirty Seven On!! I

¶111

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. 6595559.37 along with cost, expenses and interest from the 31/01/2025 i.e. date of filing / with effective date of the OA/88/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Catiticate Debtors, hereinafter referred to as:-

¶112

:Sr.no CD Name : LoanType Int. I)'pe/Mode Rate : Int. ' EtTcctiveDate OrderDate lount(Rs.) LiabilitylyP Interest Order Dat(as on Amount(Rs.)RC Remark
1 'SERVICMEN.CANTEENM/S EX iCompound1Interest }) (Monthly 10 1 /01 /2025 ;559.37 bintly Andly DateAs on 15559.37
' jI _ :SINGHSANTOSH KUMAR .Interest (MonthlyCompound 10 1 /01 /2025 195559.37 :r DateAs on ;59.37
i)
i, i ) 'SANTOSH !SINGH KUMAR CompoundInterest (Monthly 10 1/0 1 /2025 ;95559.37 Fointly Andly DateAs on ,559.37
!)
'Compound
:4 'UPENDRA SINGH Interest (Monthly) 10 31/01/2025 29/06/2026 6595559.3'7 Jointly AndSeverally 1l;§ ipl):It:on ;6595559.37

¶113

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.

¶114

The mortgage(1 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.

¶115

Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 10/08/2026. 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

¶116

This Certificate has been issued under my signature and seal of the Tribunal on this 03/07/2026

¶117

PRESIDM OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶118

_ Registrar

¶119

Den:i:: T qiI:= :I;iIIb II?[b n a

¶120

¶121

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

¶122

DEBTS RECOVERY TRIBUNAL PATNA

¶123

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

¶124

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 212/2026

Case No: OA/88/2025

Applicant(s): STATE BANK OF INDIA Versus

¶129

Defendant(s): M/S EX SERVICMEN CANTEEN

¶130

Item ofCosts	iAmount inRs
'eeon the aD) liJation	m6
ocessFees(Inc. Publication)	;0
Adv-odate Fees	b
eommissionma+Me
MiscellaneousCharges	10
6talCosts:Rs	68000

¶131

Place: PATNA

¶132

Date: 03/07/2026

¶133

PRESID ICER DEBTS RECOVERY TRIBUNAL PATNA

¶134

Note: Strike out whichever is not applicable

State Bank of India v. M/s Ex Servicmen Canteen

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/s Ex Servicmen Canteen

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

Bank of India versus M/s Kasturi Collection

Icici Bank Limited versus M/s Easy M Telesystems

Bank of India versus M/s Victual Lounge

Bank of Baroda versus Mrs. Pallavi Kumari

Bank of Baroda versus M/s Human Care Pharma

Central Bank of India versus Md. Adil