Allowed

Punjab National Bank v. M/s Ambika Oils (North East) Pvt. Ltd.

DRT12 Jun 2023OA/103/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of the RDBFI Act filed by Punjab National Bank seeking a recovery certificate. The court found the defendants jointly and severally liable for a dues of Rs. 39,09,588.78 based on unchallenged documentary evidence regarding loans, mortgages, and guarantees.

What did the court decide?

Issuance of Recovery Certificate for Rs. 39,09,588.78 with pendentelite and future interest at 11.25% p.a.

Punjab National Bank versus M/s Ambika Oils (North East) Pvt… — Banking and Recovery | DRT (2023)

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O'A^l O3/2022/DRT_Guwahati

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IN THE DEBTS RECOVERY TRIBUNAL,^GUWAHATI

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(North Eastern Region)

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(Tribunal of Assam,^Nagaland, M;qhalaya,^{Manipur. Mizoram.Arunachal Pradesh& Tripura)}

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O.A. No' 103/2022

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ln tho matter of -

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Puniab National^Bank Fancy Bazar Branch, LlCl Divisional Office^Building, S. S. Road, Fancy^{Bazar, Guwahati-781001}

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District - Kamrup(M),^Assam.

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Applicant

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Vs.

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't. M/s Ambika Oils^{(NorthEa3t) Pvt. Ltd',} (a private company limited by shares) represented by its Directors.

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Nilachal View, R.K. Choudhury Road Bharalumukh , Guwahati-^781009.

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Factorv address:

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Plot No.6, EPIP Area, ByrnihatTg3^{l 01 (Meghalaya).}

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Sri Krishan Kumar Malhotra S/o Late Kailash Nath Malhotra. R/o Flat No. G-B (Ground Floor)

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Jagadamba Apartment, ASEB Road, Ulubari, cuwahati-781007.

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Smt Radha Malhota W/o Sri Krishan Kumar Malhotra R/o Flat No. G-B (Ground Floor)

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Jagadamba Apariment, ASEB Road, Ulubari, Guwahati-78'1007.

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Defendants

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Presence of tho Counsel

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For the Applicant : Sri Gitartha Oas, Sri Chandan Kalita, Sri Nurul lslam, Advocates For the Defendants None (Ex-parte)

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Dated :12l06/2023

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JUDGlllENT

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This is an application under section 19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act, 1993 filed by the Punjab National Bank, Fancy Bazat Branch, LlCl Divisional Office Building, S. S. Road, Fancy Bazar, Guwahati- 781001, District - Kamrup(M), Assam, with a^prayer to issue Recovery Certificate for lhe^sum

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X!ffifrtl

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ORT Guwahali

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O A 103,2022,,DRT4uwahall

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of Rs. 39,09,586.78^(Rupee3 Thirty Nine Lakhs NinE Thousand Fivs Hundred

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Eighty Eight and Paba Seventy Eight) only as on 28-02-2022 against the defendants with^pendentelite and future interest at the contractual^rate till^realization, along with cost and other relief.

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A few facts^giving rise to the^present application are as under.

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The defendant no.1 is a^private company limited by shares incorporated under the Companies Act, 1956 carrying on the business of lubricants,^{grease,lubricant} oils and all sorts of dyes and chemicals. The defendants^{no.2 and 3 are Directors of} the said company. The defendants^{no.2 and 3 also stood as personal guarantorsin} connection with the credit facilities. The^{defendant no.1 through its director secured} the credit facility by creating equilable^{mortgage of its lease hold land and fixed} assets of the company.

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Pursuant to an application for loan dated 20.07.06 by the defendant no.'l through its directors, the applicant afler^{consideringtheir request sanctioncash} credit limit of Rs 10.00 Lakhs vide sanction^{letler dated 03.08.06. As per the said} sanction letter the borrowers are required to^payinterest @^{BPLRi.e.11.25o/o p.a.} monthly rest. The cash credit limit is^repayable on^{Applicant's demand. The} defendants complied with the^requirements of the^{sanction letter towards} acceptance of the terms and conditions^{containedtherein. Thedefendantsalso} conveyed their acceptance to^{the sanctioned limit through board meeting held on} 16.08.2006. ln order io avail the cash^credit limit^{upto Rs 10.00 Lakhsthe} defendants executed the necessary^{loan documenison '16.08.2006, such as} Demand Promissory Note, Letter of Undertaking,^{Letter,Agreement for Loan/Cash} Credit, Hypothecation of Goods^{and Book Debts to SecureCase Credit Facility,} Hypothecation of Goods to Secure a^{DemandCash Credit,Supplemental} Agreement, Hypothecation of^{MoveableAssets/Fixed Assets, Agreement of} Guarantee.

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Defendant no.'l though^{its directors securedtheCashCredit limit of Rs10.00} Lakhs by creating equitable^{mortgage of its leaseholdlandmeasuring 4000} square meter structure^{thereon being plot no.6 in EPIP at Byrnihat,Diskict-Ri-Bhoi,}

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g[Lrri'.p.a",D.&r.,1 t 06ln I Presding Oflcoi I^/ DRT, Guwahali

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O.A 1 032022/ORT-Guwahati

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Meghalaya, described in Schedule B of the OA by depositing with the applicant bank lhe title documents on 16.08.2006.

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Pursuant to further request of the defendants for term loan the applicant after considering their request sanclion term loan of Rs^{15.00 Lakhs. The borrowers are} required to^pay interest @ 1.50+.50% over^{BPLR monthly rest.The term loan is} required to be repaid in 60 EMI of Rs 25,000/-^{per month.} Securities^{created earlier} are also extended lo secure the term^{loan. Thedefendants compliedwilh the} requirements of the sanction letter towards acceptance of the terms and conditions contained therein. The defendants also^conveyed their^acceptance to^the sanctioned term loan of Rs 15.00^{Lakhs through} board^meeting held^on 05.05.2008.

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ln order to avail the Term Loan of Rs. 15.00^{Lakhsthedefendants executed} the loan documents on 16.05.2008 and^17.05.2008, such as Term^Loan Agreement, Hypothecation of Assets to Secure Term Loan, Agreement of Guarantee, Draft Letter of Continuity, Letter of Authorily.

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After executing the above loan/security documents the defendants availed the Term Loan of Rs.^'15.00 lacs from lhe applicant bank. The defendants have liquidated the dues in the Term Loan Account and as such the applicant is not claiming any relief againsl the said Term Loan.

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Pursuant to further request of the defendant no.1 through its directors for enhancement of cash credit limit, the applicant after considering their request sanction cash credit limit upto Rs 25.00 Lakhs vide sanction letter dated 19.03.10. As per the said sanction letter the borrowers are required to^pay lnterest @ BPLR⁺ 1.50!o=12.50o/o p.a. monthly rest. The cash credit limit is for one year and repayable on Applicant's demand. The defendants complied with the requirements of the sanction letter towards acceptance of the terms and conditions contained therein. The defendants also conveyed their acceptance to the sanctioned limit through board meeting held on 19.03.2010.

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ln order to avail the cash credit limit upto Rs 25.00 Lakhs the defendants executed the necessary loan documents on 19.03.2010,22.03.2010,^{such as}

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SfL,l d044-0"t,, t4 tilyt- J Prssidins Offic+ \ ' " DRT. Guwahati

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O A. 103/2022lDRT-G@ahatr

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Demand Promissory^{Note, Letterof Undertaking, Hypothecationof Current Assets,} Hypothecation of Moveable Assets^{FormingPart ofFixed/BlockAssets,} Hypothecation of Goods^{and Book Debtsto Secure Cash Credit Facility, Agreement} of Guarantee, Document,^{Letter of Continuity, Letter.}

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After executing the above^{loan/security documents the defendants availed the} Cash Credit Limit^{upto Rs.25.00 lacsfrom the applicant bank}

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The defendants had availed^{the loan facilities from the applicant bank but have} not^paid the outstanding^{amount as perterms and condition made with the applicant} bank in spite of^{repeateddemands and request by the applicantbank; hence the said} loan accounts became^{NPA on O7.O3.2O22On 06.03 12, 08.12.2015,04.12.2018 and} 07.04.21 the defendants^{confirmed theoutstanding balancein Cash Credit Account.} After the account became^{NPA the applicant bank issued notices for repaymentof the} due amount, the^{defendants haveneitherchosen for repaymentof the remaining} installments in the loan^{accounts nor approached to the applicant bank for settling the} loan accounts nor renew^{the cash credit account}

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The applic€nt bank thus^{becameconstrainedto file the present Original} Application for the recovery^{of Rs' 39,09,588.78(RupeesThirty Nine Lakhs Nine} Thousand Five Hundrsd^{EighqEight and PaBa Seventy Eight) only as on} 28-02-2022 along with^{interest and cost of the application}

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After filing of ihe^{OA the Tribunal issued noti@s upon the defendants through} registered^post and^{the applicant bank filed servicereport on 10.05.2022 and brought} on record the^{postal receipts alongwith track consignment report which shows that} notice has not^{been served upon the defendantsThereafterthe Tribunal ordered} dasti service of notice^{upon the defendants and on 30.05.2022the applicanl bank has} filed an afridavit of dasti^{service.lt is observed from theaftidavit thal on 21.052022} detendant No. 2 has^{received the summons on behalfof defendants No 1, 2 & 3 Even} after issuing the^{noticesthrough dasti servicethere is no representation on behalf of} the defendanls either^{through any counsel or in person and hence thedefendants} were set ex-parte on^{18.07.2022 and their rightto file written stalement cum evidence}

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_Ql*^,sl^o_u^DrJ,, ".*""#J,ml2r DRT, Guwahali^t

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OJt 1 03/202ZDRT€uv.h.ti

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on affidavit was closed and the matter was posted for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Sri Guru Prasad Talukdar, Chief Manager of the Applicant Bank has filed evidence on afiidavit coupled with the security documents marked as Exhibit AW-1/1 to AW-1i52, supporting the claim of the applicant bank.

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Heard the learned counsel for the applicant bank who^prayed for issuance of Recovery Certificate againsl the defendants as^{per pleadings} made in the Application, supported by evidence on affidavit of their witness who affirmed on oath the execution ofthe security and other documents by th:r defendants and also execution of their own documents relied upon, which have been marked^exhibits.

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Considering the facts and circumstances of the case, I am^{of the} considered^view that the documents filed by the applicant bank^{are supporting the claim} of^the applicant bank and establishing^{the liability of the defendants.lt is provedthat the} defendants are.iointly and severally^{liable to pay to the applicant bank the claim made} in the Original Application.^{The loan was obtainedand documentshave been} execuled on 16.08.2006, 17.08.2006^{'16.05.2008, 17.05.2008& 22.03-2010.On} 06.03.12, 08.12.20'15, 04.12.2018^{and 07.04.21} the^{defendants conlirmedthe} outstanding balance in Cash Credit^{Account.Moreover affer perusing the documents on} record and tiaking into consideration of^{the facls andcircumstances of the case,I find that} the mortgage has been created^{by the defendant No.1 through its directors wherethe} limitation available is for^{'12 years and as such taking into account of the creation ol the} mortgage the application appears^{to have been riled well withinthe periodof limitation.} The account became NPA on^{07.03.2022and the OA has been filed on'l.7.03-2022.} Hence, the OA is liled well^{within theperiod of limitation and this Tribunal having a} iurisdiction^{to adjudicatethe Odginal Application.}

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Considering the unrebutted/unchallenged^{version of Sri GuruPrasad Talukdar,} the applicant's^witness and^{all the documents marked as exhibits,including} duly certified copy of the^{statement of account along with interest calculation sheet}

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':-**,xu},/

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O A 1o3/2o22]DRT-Gurahaii

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maintained by the applicant Bank in it's regular course of business, I hold that the applicant is entitled to get the Recovery Certificaie as prayed for.

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ln the result, the^present Original Application No.^'103 of 2022 is allowed with cost as under :-

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i) The defendants No. 1, 2 & 3 are iointly and severally liable to^pay to the applicant bank a sum of Rs. 39,09,588.78^(Rupees Thirty Nine Lakhs Nine Thousand Five Hundred Eighty Eight and Paisa Seventy Eight) only with pendentelite and future interest @ll.25olo p.a. with monthly rests from 01.03.2022 till the date of full^{paymenurealization} and also cost of the application.

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ii) The charge of the certificated amount be kept alive on hypothecated properties, as described in Schedule-A of the OA till the amount is realized in full.

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iii) The charge of the certificated amount^{be kept aliveon mortgaged propertyi.e.} teasehold right over the^plot of land measuring^{4000 square meters with} structure therein being^{plot No 6 in ExportPromotion lndustrial Park (EPIP)at} Byrnihat, District- Ri-Bhoi, Meghalaya^{and is bounded by North: Slopeof Hill-} 85 meters, South: M/s Maithan^{Smeltersand Umtru River Bank} -^{75 meters,} East: MIDC lnternal^{Road& MeSEB Tower} -^{43 meters,West:Umtru River.-} 58.5 meters, as described^{in Schedule-Bof the OAtill the amountis realized} in full.

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iv) The applicant bank^{is entilledto proceed against the secureditems towards} recovery of the dobts

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v) The applicant bank^{is also entitledto proceed againstthe personal assets and} propenies ofthe defendants towards^{recovery of the dues.}

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vi) The applicant bank^{is entitledto the cosls of the O.A. which includes the} advocate fees of^{the applicant bank. Applicantis directed to lile the cosl} memo within 2^{weeksfrom today}

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tLrn,-d^ata+&,[1 Presiding Ofrcei DRT, Guwahati

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O A 1032022oRT4wahatr

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vii) lssue Recovery Certificate accordingly for a sum Rs. 39,09,588.78 (Rupees Thirty Nine Lakhs Nine Thousand Five Hundred Eighty Eight and Paisa Seventy Eight)only in favour of the applicant bank against the defendants No. 1,2 & 3.

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viii) Communicate copy of this order to the concerned parties.

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This order is dictated and corrected by the undersigned.

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Judgment dated 12th June 2023, signed and^pronounced in the Tribunal today

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under my signature.

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal's Website and

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Ille be consigned to Record Room.

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_tJ^r-t{ou^,&.&+4 o-lMlD\l (Shiv Sharan Dubey)'2^l Presiding Officer DRT, Guwahati.

Punjab National Bank v. M/s Ambika Oils (North East) Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Ambika Oils (North East) Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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