Allowed

Bank of Baroda v. M/s Sai Enterprises

DRT7 Sept 2026OA/90/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna allowed the application filed by Bank of Baroda against a proprietary firm and its proprietor for recovery of an outstanding loan. The defendants failed to appear despite service by publication. The Tribunal accepted the bank's affidavit evidence and certified accounts as prima facie evidence under Section 4 of the Banker's Books Evidence Act. The debt was determined at Rs. 20,84,530.66 along with interest, and an ex-parte recovery certificate was issued.

What did the court decide?

Recovery certificate issued for Rs. 20,84,530.66 plus interest at 11.60% compounded monthly from 10.02.2025. Defendants jointly and severally ordered to pay. Hypothecated assets attached.

Bank of Baroda versus M/s Sai Enterprises — Banking and Recovery | DRT (2026)

OA 90 of2025jJI

DRT, PATNA

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. 90 of 2025

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Bank of Baroda, Danapur Branch, District- Patna, Bihar

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. . . . . . .Applicant

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M/s Sai Enterprises, (Prop.- Ms. Preeti Kumari), shop at- Vijay Vihar Colony, Near St. Karence School, Khagaul Road, Danapur, Patna 801503, Bihar

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Ms. Preeti Kumari, D/o Mr. Arun Kumar Singh, R/o Near Devi Mandir, Rupaspur, Dhanaut, Patna 801506, Bihar

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Jyoti Prakash, Advocate For the Defendants None

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Dated:07.09.2026

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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 10.02.2025 against the defendants to recover its debts from defendants of Rs.20,84,530.66 as on 19.01.2025 along with pendente-lite and future interest at the contractual rate from 20.01.2025 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 cash credit of Rs.10 Lakh and Term Loan of Rs.2 Lakh, vide loan application dated 16.10.2017, which was sanctioned by the applicant bank on 25.10.2017 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 docun\ents >1 favour of the applicant bank,

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details of which are given in OA. At the request of the defendants, the applicant bala has also sanctioned term loan of Rs.69,645/- on 19.09.2020. The defendants also executed letter of acknowledgement of debt on 06.06.2020 and 05.06.2023 respectively.

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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 1.03.2021.

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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.20,84,530.66 as on 19.01.2025 with pendente-lite and future interest contractual rate from 20.01.2025 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 19.03.2025 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 ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 14.11.2025 in “Prabhat Khabar” and “The Times of India” newspapers.

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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 16.03.2026.

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A p„zsidinR O©ca DOw RecoverY Tdbulsal PATN A

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On case record, a letter sent by father of defendant no.2 has been received in this tribunal on 02.05.2025, wherein it has been informed by her father that the borrower has already left her home for some reasons so unable to contact with her.

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

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Sl.No	Description Documents Photocopies	of	1Date Execution of	1Amount (in Lakh'	ISignature 1Executants of	1Ex./ Ann No.
	LoanaDDlicatio	n	16.10.2017	16.00	Defendants
	Appraisal form	at	25.10.2017	12.00	Bank
	DPnotes		25.10.2017	2.00 10.00	Defendants
4	Letter ofconti securi	nuing	25.10.2017	10.00	Defendants	4
	Letter ofinstall	ment	25.10.2017	2.00	Defendants
	Letter of roprietorshi	sole	25.10.2017		Defendants
7	Letter undertakings	of	25.10.2017	e		7
8	Declarations undertakings Authori	cum cum	25.10.2017	e		8
9	Composite hypothecation agreement		25.10.2017	e		9
	Power ofAttorn	e'	25.10.2017		Defendants
	PDR		25.10.2017		Defendants
	Letter acknowledgem debt	of entof	06.06.2020 05.06.2023		Defendants
	Notice		20.01.2022		Bank
	Legalnotice		02.02.2024 26.10.2024		Bank’sadv.
15	Statement accounts	of			Bank	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

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DRT, PATNA

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 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 31.03.2021, whereas the present application has been filed on 10.02.2025. 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 Ritesh Kumar Verma, 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.

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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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lgB PrcStdHl Often B Bebu RecoverY TdbUd PATS A

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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 an 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 no\v 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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15 . 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 19.01.2025 has been proved to be Rs.20,84,530.66 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.20,84,530.66 along with pendente-lite and future interest @ 11.60% p.a. with compounded monthly rests from 10.02.2025 (The

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Pr esl dim 8obU RecoverY Tribuai PAId A

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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 IB.20,84,530.66 along with pendente-lite and future interest @ 11.60% p.a. with compounded monthly rests from 10.02.2025 (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 &om 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 Certif'icate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Cert Wcate holder fails to comply with directions of the Recovery Ofpcer, the execution may be

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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

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on 23.10.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on

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07th day of September, 2026.

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Dictated & corrected by me.

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lendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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B B b B :1;1 ;;};I 1:=1L B ! I

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

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DEBTS RECOVERY TRIBUNAL PATNA

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

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RECOVERY CERTIFICATE UNDER SECTION 19(a READ WITH SECTION 19(a2 OF THE RECOVERY OF DEBTS al BANKRUPTCY ACT, 1993, AS AMENDED FRQM TIME TO nME.

RC NQ. 295/2026 IN

Case No: OA/90/2025

In the Matter of:

(CH- 1) BANK OF BARODA DANAPUR BRANCH PATNA ,BIHAR -0

Applicant(s)

––– Versus ––---

(CD- 1) M/S SAI ENTERPRISES Prop. Ms Preeti KumaR Shop at- Vijay Vihar Colony, Near St. Kamnce School, Khagaul Road Danapur, Patna ,BIHAR -801503

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Defendant(s)

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(CD- 2) MS. PREETI KUMARI

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D/0- MR. ARUN KUMAR SINGH R/0- NEAR DEVI MANDIR RUPASPUR DHANAUT PATNA-

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801506 BIHAR

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Reggvery Certifigqte hr R$ 2084530.66 .1_R!!peel Twenty Lakh s EigUy Four Thousands Five Hpndred Thirty /lod Pnise

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SiBy Six Onjy_]

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In terms of final order dated 07/09/2026 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. 2084530.66 along with cost, expenses and interest from the 10/02/2025 i.e. date of filing / with efFective date of the OA/90/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate DebtorsT hereinaRer referred to as:-

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CDName	Loan E Type	Int. IType/Mode	Int.i IRate	Effective !Date	Order Date	lount(Rs.)	Liability T)rpc	Inter at i (as o Order Date)	RC IAmount(Rs.)	Remark
							ointly Severally	Interest on Date	1084530.66
4S. PREETI UMARI		1Interest :Monthly)	11.601	1o/02/2025	l07/09/2026	:084530.66	lointly And !Severally	1Interest As on i :: g:r

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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. Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RE(.'OVERY TRIBUNAL PATNA on 23/10/2026

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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 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 11/09/2026

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA f Offlea [\a\ N,overy Tribt k+gj6tr8 r PAI 'HarM

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FI'q" q'LOveO IrlbUnal. Pat,, ++ +q+ VCd+ pu HIT

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

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DEBTS RECOVERY TRIBUNAL PATNA

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