Allowed

State Bank of India v. M/s Darbar Restaurant

DRT7 Feb 2026OA/99/2025

Case brief

AI extract

What is this about?

The DRT allowed an application by SBI under Section 19 of RDDBA to recover Rs 39.55 lakh from a proprietorship firm and its proprietor. The debt was determined based on bank records and statutory rules of evidence following default, as the defendants did not appear.

What did the court decide?

Debt of Rs.39,55,872.87 with interest allowed; jointly and severally recoverable; attachment of mortgaged assets ordered; recovery certificate issued.

State Bank of India versus M/s Darbar Restaurant — Banking and Recovery | DRT (2026)

OA 99 of2025jJl

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. 99 of 2025

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

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. . . . . . .Applicant

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Vs.

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M/s Darbar Restaurant, through its proprietor Shiwani Singh (PAN No. JUBPS4270N), wife of Indramani, having its place of businessSaifullahganj, Near Income Tax Chowk, P.O.- Lalbagh, P.S.- LNMU, District- Darbhanga- 846004

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Shiwani Singh, (PAN No. JUBPS4270N), Proprietor- M/s Darbar Restaurants, Wife of Indramani, Maulaganj, Rajput Colony, P.O.Lalbagh, P.S.- Laheriasarai, District- Darbhanga- 846004

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Devesh Shankaran. Advocate For the Defendants None

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Dated:07.02.2026

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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 30.01.2025 against the defendants to recover its debts from defendants of Rs.39,55,872.87 as on 13.01.2025 along with pendente-lite and future interest at the contractual rate from 14.01.2025 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 loan of Rs.4 Lakh and Term Loan of Rs.45 Lakh for the purchase of

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OA 99 of20251JI

DRTq PATNA

expansion of the business in opening of restaurant under “SUI-Stand Up India”, vide loan application dated 24.05.2023 and after due consideration, the applicant bank has sanctioned CC of Rs.4 Lakh and Term Loan of Rs.35 Lakh on 30.05.2023 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.

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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 27.07.2024.

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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.39,55,872.87 as on 13.01.2025 with pendente-lite and future interest contractual rate from 14.01.2025 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 13.03.2025, 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. Thereafter notice dated 07.05.2025 was again issued to the defendants, which was served by way of affixation of notice on conspicuous part of the office/place of business of defendant i.e. at the door of the Unit, which was affirmed on affidavit of Shri Devesh Shankaran, Ld. Counsel for the bank and some photographs of the same are also enclosed with the said affidavit.

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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,

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OA 99 of 20251JI

DRT, PATNA

but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 14. 11.2025 .

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

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Sl.No	Descriptionof Documents Photocopies	1 Date of IExecution	Amount (in Lakh	Signature Executants	of	1Ex./ Ann No
1	a		nocc 45.00 TL	Defendants		1
2	Photocopyof Card PAN			Defendant		2
3	Photocopy Aadhar Card of			Defendant		3
4	Photocopy License of					4
5	Letter arrangement of	30.05.2023	4.00CC 35.00 TL	Bank accepted defendants	ma by
6	Agreement ofloan cumhyDothecation	30.05.2023	39.00	Defendants		6
7	Agreement under PDR	30.05.2023	39.00	Defendants		7
	Legalnotice	30.1 1.2024		Bank’sadv.
	Statement of accounts			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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J.A PresIding O ficer Debts Recovery Tdbww PATNA

OA 99 of2025jJI

DRT, PATNA

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 27.07.2024, whereas the present application has been filed on 30.01.2025. 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.

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Shri Manoj Kumar Ojha, 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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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

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\XA* Pteslaag OIten Debt8 Recovery Tribwtal PATNA

OA 99 of20251JI

DRT, PATNA

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.

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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 13.01.2025 has been proved to be Rs.39,55,872.87 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.39,55,872.87 along with pendente-lite and future interest @ 12% p.a. with compounded monthly rests from 30.01.2025 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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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.39,55,872.87 along with pendente-lite and future interest @ 12% p.a. with

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Bestall! C)IIen Debts Recovery TdbunaJ PAT N A

OA 99 of20251JI

DRT, PATNA

compounded monthly rests from 30.01.2025 (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 other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgage(i 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 Certificate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted. 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 18.03.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 07th' day of February, 2026.

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Dictated &corrected by me.

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Y”/\p A,,"– .,''' [KaushatendraYadav] Presiding Officer Debts A89pd§pra}}}I}al, Patna Baba Recovery Tribww PATNA

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In t=mls af Final onbr cUed 07/022026 pusH by BIb Tribwud in the abow mnboRnd nn it is adaed dba Bbc

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In case of faauR to pay the aforunenljund ad1 heated amount within 30 day& same shall h rurovered flon1 ax sale of the mnngaWabypolhomred assets ; cvrtlficatc debtors. axII as other prsonal mo\nble/ Inunovable asu+5 of the

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This CUhn'caB hB been issued UtaH W SRWRIIB and sad of ale Tribula

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Patna

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on thb 09W,2026

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m'#
PREsiDr\G OFFICER
DEBTS R[COV£RY mBLXAL ?ATX,{
OFten
OdIn Recovery Tribunal
PATHA

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FOR}I NO. 10

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[See Regulation 24(2 )]

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DEBTS RECOVERY TRIBUNAL PATNA

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3nd Floor, IA. B & F Wing) Karpuri Tbakrrr Sadan, Kendriya Karamchari Parisar {GPOA ). Ashiana Digha Road, Patna-800025

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SCHEDULE TO RECO\’ERY CERTIFICATE MEMO OF COSTS

RC No. 116/2026

Case No: OA/99/2025

Applicant(s): STATE BANK OF INDIA Versus

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Defendant(s): M/S DARBAR RESTAURANT

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No. rtem of Costs
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TFt

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Place: PATNA

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Date: 09.’02/'2026

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Note: Strike out whichever is not applicable

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///P _ 1hE;'IDING OFrlcEX DEBTS RECOVERY TRIBUNAL PATNA PPalaH! Oftn Oebi8 Recovery Triballa PATdA

State Bank of India v. M/s Darbar Restaurant

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/s Darbar Restaurant

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

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Case details

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