Allowed

Bank of India v. Ramesh Prasad Gupta

DRT23 Jun 2026OA/92/2022

Case brief

AI extract

What is this about?

This Tribunal allowed a recovery application filed by the Bank of India against borrower Ramesh Prasad Gupta and guarantor Shila Devi. The court upheld the bank's claim for Rs. 30,89,066/- principal, interest, and costs, issuing a recovery certificate.

What did the court decide?

Recovery Certificate issued for Rs. 30,89,066/- with interest at 10% p.a. and costs of Rs. 33,000.

Bank of India versus Ramesh Prasad Gupta — Banking and Recovery | DRT (2026)

OA 92 of2022jJl

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. 92 of 2022

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Bank of India, Sakri Saraiya Branch, Block- Kudhani, Sakri Chatti Chowk, Near D.K. Cold Storage, District- Muzaffarpur- 844127

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Ramesh Prasad Gupta, S/o Late Binda Sah, R/o Village- Sakri Saraiya, Aurai, District- Muzaffarpur, 843312, PAN No. AHDPG8532D

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Shila Devi, W/o Ramesh Prasad Gupta, R/o VillageSakri Saraiya, Aurai, District- Muzaffarpur, 843312, PAN No. CEVPD5710F

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. . . . Defendants

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Present: +

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For the Applicant Shri Sanjay Singh Thakur, Advocate For the Defendants Shri Punyatma Tiwary, Advocate

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Dated:23.06.2026

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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 03.02.2022 against the defendants to recover its debts from defendants of Rs.30,89,066/- as on 28.01.2022 along with pendente-lite and fUture interest at the contractual rate from 29.01.2022 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 borrower and the defendant no.2 is the guarantor of the loan. Defendants approached the applicant bank for sanction of cash credit facility of Rs.9.50 Lakh, vide loan application dated 05.04.2014, which was sanctioned by the applicant bank on 12.09.2014 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

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and security documents and also created equitable mortgage in favour of the applicant bank, details of which are given in OA

¶24

Defendants again approached the applicant bank for sanction of cash credit facility of Rs.4.56 Lakh and Term Loan of Rs.15.20 Lakh, vide loan application dated 21.02.2016, which was sanctioned by the applicant bank on 04.03.2016 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/extended equitable mortgage in favour of the applicant bank, details of which are given in OA

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Defendants further approached the applicant bank for sanction of FITL facility of Rs.1.88 Lakh, vide loan application, which was sanctioned by the applicant bank on 30.08.2019 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

¶26

Defendants further approached the applicant bank for sanction of FITL Covid Loan, vide loan application dated 15.09.2020 and accordingly, the applicant bank sanctioned two FITL loan of Rs.61,312/- and Rs.28,656/- on 15.09.2020 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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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. N / VAb

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The total liability in the loan account is Rs.30,89,066/- as on 28.01.2022 with pendente-lite and future interest contractual rate from 29.01.2022 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 10.05.2022 and 20.11.2024, 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 vakalatnama dated 13.12.2024 and filed their written statement as well as rebuttal evidence admitting therein the loan facilities granted by the applicant bank to the defendants and there is an admission of the defendants regarding execution of loan and security documents to secure the loan facilities in favour of the applicant bank. It has fUrther been stated that the applicant bank has charged illegal interest and unauthorized charges hence it is requested that the demand made by the applicant bank is bad in law and the OA is fit to be dismissed.

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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 Ms. Jyoti Jyotshna, Branch Manager of the applicant bank. The details of documents are as follows:

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Sl.No	Descrip Documents PhotocoDie	tion s	of	1Date of I Execution I	1Amount (in Lakh)	Signatur Executants	eof	Ex./ Ann No.
	o					Def.no.I
	a note					Bank accepted def.no.1	and by
3	Hypotheca loanagreem	tion ent	cum	12.09.2014	9.50	Def.no.1		3
4	Agreen PDR			12.09.2014	9.50	Def.no.1		4
5	Photocopy deed	of	title	11 .11.2008				5
6	Photocopy deed	of	title	29.04.2010				6
7	Photocopy deed	of	title	29.10.2013				7
	Deedofgua	rant	ee	12.09.2014	9.56	Def.no.2
	Agreement		under	12.09.2014	9.50	Def.no.2

\luL AU

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	PDR
10	Loanapplication	21.02.2016	5.00CC 15.00 TL	Def.no.1	10
a		04.03.2016	4.56CC 15.20 TL	a accepted by def.no.1
12	Composite document	04.03.2016	15.20	e
13	D Pnote	04.03.2016	e		13
14	Hypothecation loanagreement cum	04.03.2016	e		14
15	Agreement	04.03.2016	e		15
16	Composite document	04.03.2016	e		16
17	D Pnote	04.03.2016	4.56	Def.no.1	17
18	Hypothecation loan agreement ctlrn	04.03.2016	4.56	Def.no.I	18
19	agreement	04.03.2016	4.56	Def.no.1	19
20	Photocopy of mortgagedeed	28.05.2016			20
21	Sanha and other laDers				21
22	Memorandumfor sanction	30.08.2019		Bank	22
23	Hypothecationcum loanagreement	31.08.2019	1.88	Def.no.1	23
24	Agreement	31.08.2019	1.88	Def.no.1	24
25	Letter ofrequestfor 'ersonalloan	15.09.2020		Def.no.1	25
26	Agreementof FITL	15.09.2020	s		26
27	DPnote	15.09.2020	s		27
28	Letter ofrequestfor ersonal loan	15.09.2020		Def.no.1'	28
29	Agreementof FITL	15.09.2020	s		29
30	DPnote	15.09.2020	s		30
31	Legal notice	11.06.2021		Bank’s adv.	31
32	Photocopy ofcash voucher	16.04.2020		Def.no.1	32
33	Statement of accounts			Bank

¶42

Heard arguments and perused the case record. During the course of arguments, there is no any specific denial on behalf of the defendants with regards to the sanction of loan facilities and its utilization and further there is no any specific denial with regards to the execution of loan and security documents in favour of the applicant bank.

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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

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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 fbnctioning 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 03.02.2022. 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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Ms. Jyoti Jyotshna, Branch 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

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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 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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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 28.01.2022 has been proved to be Rs.30,89,066/- 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.30,89,066/- alOI}g with pendente-lite and future

ghb

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interest @ 10% p.a. simple from 03.02.2022 (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 severally9 ordered to pay the applicant bank its debt amounting to Rs.30,89,066/- along with pendente-lite and future interest @ 10% p.a. simple from 03.02.2022 (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 issued, if the Defendant/Certi$cate Debtor ensures payment of the certificate amount in 6 months from the date of demand notice to the CertifIcate debtors. The Recovery Of$cer will issue demand notice to the Certi$cate debtors only after the proof

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of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant/Certi$cate holder fails to . comply with directions of the Recovery OffIcer, 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 04.08.2026. The order be communicated accordingly.

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

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23Fd 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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FORM NO. 9

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[See Regulation 24( 1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor1 (A. B & F Wing) Karpuri Thakur Sadanl Kendriya Karamchari Parisar (GPC)A), Ashiana Digha Road, Patna-800025,

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RECQVERY (.’ERTIFICATE UNDER $E(,TION 19(Z) READ WITH SECTION 19(m OF THE RECOVERY QF DEBTS & BANKRUPTCY ACT 19931 AS AMENDED FRQM TIME TO TIME•

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R£NgJzlz2a2£ IN Case No: OA/92/2022

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In the Matter of:

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(CH- 1) BANK OF nqDLA

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SAKRI SARAIYA BRANCH, BLOCK- KUDHANI SAKRI CHATri CHOWK, NEAR D.K. COLD STORAGE,

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Applicant(s)

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MUZAFFARPUR ,BIHAR -844127

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(CD- 1) RAMESH PRASAD GUPTA . S/o Late Binda Sah R/o Mllage. Sakd Saraiya, Aurai, MuzafFarpur ,BIHAR

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Defendant(s)

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(CD- 2) SHILA DEVI

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W/0 RAMESH PRASAD GUPTA R/0 VILLAGE SAKRI SARAIYA AURAI DISTRICT MUZAFFARPUR PIN CODE- 843312

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RegQvery (-ertifigate for R; 308906$.00 1 Rup€e s Thirty Lakhs EigUy Nine Thousands Sixty Six Only_I

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In terms of final order dated 23/06/2026 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. 3089066.00 along with cost, expenses and interest from the 03/02/2022 i.e. date of filing / with effective date of the OA/92/2022 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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r.no CDName	Loan	Int. Type/Mode	Int. Rate	Effective Date	Date	Amount(Rs.)	Liability Type	Interest 0 Order Date)	RC Amount(Rs.)
RAMESH D		Interest :Yearly)			r06/2026	b6.00	;everally		;9066
HILA DEVI		limplc lterest fearly)			II	.00	roW bAnd verally	lcrcstAs Order	3089066

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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 PATNA on 04/08/2026

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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 25/06/2026

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G !14) _ Registrar DeusMyWpatna nqvq$taftmvI, qUI

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PRESIDING OFFICER DEBTS 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. 171/2026

Case No: OA/92/2022

Aoplicant(s): BANK OF INDIA Versus

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Defendant(s): RAMESH PRASAD GUPTA

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r.No	Item ofCosts	iAmount inRs
	Feeon theapplication	i33000
	[-iIi;iiiFIajl;;a---pIiTiih-idiS	0
	Advocate Fiis	:0
	Commissioner/Receiver/e	:6
5	s	:0
	jTotalCosts:Rs.	;33000

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Place: PATNA

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Date: 24/06/2026

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PRESIDrN&OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: stake out whichever is not applicable

Bank of India v. Ramesh Prasad Gupta

Case brief

What is this about?

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Bank of India v. Ramesh Prasad Gupta

Case brief

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