Allowed

Punjab National Bank (Oriental Bank of Commerce) v. Anisha Devi and Anr.

DRT13 Feb 2023OA/114/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex parte application filed by Punjab National Bank to recover a debt of Rs. 28,11,218.22 from defendants who failed to repay a loan and did not contest the proceedings.

What did the court decide?

Debt of Rs. 28,11,218.22 awarded against defendants jointly and severally with interest; recovery certificate directed to be issued to Recovery Officer.

Punjab National Bank (Oriental Bank of Commerce) versus Anisha… — Banking and Recovery | DRT (2023)

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OA 114 of2022 [J]

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DRT,PATNA

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana DighaRoad at Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case no. : 114 of 2022

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Punjab National Bank Dumraon Chowk Road, Manipur Kothi, Block & PO-Dumraon, Dist- Buxar.

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....... Applicant

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Vs.

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Anisha Devi, Proprietor of Shiv Shambhu Enterprises, Wife of Rajesh Kumar Resident of Purana Bhojpur Block- Dumraon, POPurana Bhojpur, Dist- Buxar 802133.

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Ashok Kumar Keshri Son of Shivbachan Prasad Keshri Resident of Purana Bhojpur, Block- Dumraon, PO- Purana Bhojpur, Dist- Buxar 802133.

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...Defendants.

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Present:

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For the Applicant : Shri Nilamber Prasad Verma Advocate For the Defendants : None

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Dated: 13.02.2023

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JUDGMENT

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1- 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 09.02.2022 against the defendants to recover its debts from defendants of Rs 28,11,218.221- as on 31.1.2022 along with Pendente-lite and future interest @ 9.30% p.a. [rom l.02.2022 with costs till realization.

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2- The application has been duly registered and numbered as above. 3- The brief facts of the case of the applicant bank as stated in the application are as under-

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The applicant bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of undertaking Act 1970) having its Registered head Office at Plot No 4 Sector 10 Dwarka New Delhi. It has branch offices all over the India and Abroad. Amongst the Branches in India, one of its Branch Office namely Punjab National Bank Dumraon Chowk Road Branch is situated on Dumraon Chowk Road in the District of Buxar Bihar.

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Defendant No 1 the Borrower been a Sole Proprietorship Concern approached the Bank vide Loan Application dated 15.06.2016for grant of Cash Credit Limit facility of Rs 14,75,000/- for promoting her business relating to Grocery Items. After acc7cc of the terms and conditions of

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DRT,PATNA

OA 114 of2022 [J]

sanction duly acknowledged by the borrower and after completion of the pre sanction formalities by the bank the cash credit limit facility of RS.14.75 lakh was sanctioned in favour of borrower on 21.6.2016. The defendants executed the various loan documents. The guarantor defendant no. 2has created equitable mortgage by deposit of his registered partition deed no. 4719 dated 5.5.2014 details given at page 13 & 14 in schedule-II of ~A. On enhancement of the cash credit limit upto Rs.25 lakh and executed the various loan documents by the defendants. On 6.6.2019 the borrower made application before the bank for renewal of his existing CC limit of RS.25 lakh. After acceptance of the terms and conditions of sanction duly acknowledged by the borrower and guarantor the bank on 26.6.2019 was pleased to renew the cash credit limit facility ofRS.25Iakh.

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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. After availing the sanctioned credit facilities 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 31.03.2021.

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Thus the total liability in the loan account is Rs 28,11,218.221- with Pendent-lite and future interest @ 9.30% p.a. from 1.2.2022 till the realization.

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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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Since, the defendants have failed and neglected in spite of several reminders to make payment of the dues recoverable to bank, hence this application has been filed by the bank.

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4Vis 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993, copies of application & paper book was sent by this Tribunal to the defendants by registered/speed post on 30.05.2022 and summons/notices issued requiring the defendants to show-cause within 30 days of the service of summons/notices as to why relief prayed for, should not be granted.

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Despite the registered summons/notices, 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 exparte against the defendants 29.7.2022

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5- 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 Mahesh

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OA 114 of2022 [J]

Kumar Tiwary, Senior Manager of the applicant bank. The details of documents are as follows. :-

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SI.No	Description of Photocopies Documents --	Date of Execution .. .__	Amount -	Signature of Executants	Ex.! Ann. No.
1	_ copy of pan card	...	...	I ...	1
2	Loan application -------_.	15.6.2016	Rs.14.751akh	defendant no. 1	2
3	__ sole proprietorship letter	22.6.2016	...	defendant no. 1	3
4	undertaking	...	-- ..	..	4
5	- ---- sanction letter	21.6.2016	Rs.l4.75lakh	I bank	5
6	common agreement	22.6.2016	Rs.14.75Iakh	defendant no. 1	6
7	agreement of hypothecation	22.6.2016	Rs.14.75Iakh	defendant no. 1	7
8	agreement of guarantee	22.6.2016	Rs.14.751akh	defendant jno.2	8
9	- copy of registered sale deed no. 4719	5.5.2014	...	j ... I	9
10	mutation order	...	...	I ...	10
11	LPC	...	...	I I ! •••	11
12	--_-- Land revenue receipt	-.-_ .._ ...	--- - ...	-i I ••• I	12
13	---- document	...	- ...	I I •••	13
14	sanction letter	14.7.2017	Rs.25lakh	i I bank	14
15	supplemental agreement .-	14.7.2017	Rs.25lakh	I I defendant no. 1	15
16	_ agreement of guarantee	14.7.2017	Rs.25lakh	defendant no. 2	16
17	application	6.6.2019	Rs.25lakh	defendant no1	17
18	sanction letter	26.6.2019	Rs.251akh	. bank	18
19	balance and security confirmation letter	26.6.2019 .	...	i defendant I i no. 1	19
20	--- Statement of account [ -----~-	__- as on 31.1.2022 -	- Rs.28, 11,218.22	: I bank _.	20

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6- Opportunity of hearing has been fully given to both the parties, but despite several opportunities given to defendants, the defendants have not appeared to contest the case, hence, the ex-parte arguments of learned counsel for applicant bank were heard 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.

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It is further submitted by ld. Counsel of applicant bank that there is no any stay granted by any Higher Court, in respect of the proceedings of

OA 114 of 2022 [J)

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the present OA and requested to issue recovery certificate, as claimed for, inOA.

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7- 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 jurisdiction of this tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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8- 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 09.02.2022 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 present application has been filed well within the period of limitation.

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9- In the affidavit of Shri Mahesh Kumar Tiwary, Senior Manager of the applicant bank, has stated that he is well acquainted with the facts of the case and has on verification of record, sworn in the affidavit in support of contents of application and the documents as evidence and established on oath the pleadings and documents of the applicant bank as stated above.

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The documents as stated above reveal 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, which strength the case of the applicant bank.

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The applicant bank has also furnished statement of account as above, which is not only admissible but shall be taken as correct statement of account, more so since the entries in the statement of account has not been challenged.

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10Since, the case was proceeded ex-parte against defendants, all contentions raised and documents produced by plaintiff remained unrebutted and the tribunal may act upon the affidavit of the applicant as per law. 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, which is kept in due course of business, evidence on affidavit, which has supported the claim of the applicant bank, established to have fully correct and believable. Provisions contained in Rule 9(2) of Debt Recovery Tribunal (Procedure) Rules, 1993 provide that the documents referred in the application shall be duly stated by senior officer of the bank, or financial institution as the case may be and numbered accordingly. The rule 12 (10) provides that the provisions contained in section 4 of the Banker's Books evidence that Act, 1891 (18 of 1891) shall applied to certified copy of an entry

OA 114of2022 (J]

DRT,PATNA

in a Banker's Books furnished along with application filed under sub section 1 of section 19 by the applicant.

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11On consideration of the arguments and on perusal of the application, documents and affidavit, it is proved that the applicant bank has granted the loan facility, documents were executed by the defendants and facility was availed by the defendants as stated in the application.

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12The applicant bank has sought for recovery of a sum of Rs. 28,11,218.221- with cost and further interest at the contractual rate from 1.2.2022 till realization. 13Learned Advocate appearing for applicant bank submits that the applicant bank has charged interest in terms of the agreements and that 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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14On consideration of the arguments and on perusal of the pleadings, documents and affidavit, it is proved that the applicant has charged interest against defendants in terms of documents and as per directives of RBI.

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15None of the defendants appeared before the tribunal to contest the claim made by the applicant, therefore, it necessarily goes to establish that the claim made by the applicant bank is genuine and true. It is manifest that the defendants have not disputed the claim, therefore, the claim referred to the tribunal is recoverable till full and final realization of the claim.

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16In Indian Bank Vs. Blue Jaggers Estates Limited and others [2010] 8 see 129, the Honorable Supreme Court of India has observed as under-

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"The Court cannot lose sight of the fact that the bank is a trustee of public fund. It cannot compromise the public interest for benefiting private individuals. Those who take loan and avail financial facilities from the bank are duty bound to repay the amount stricti) in accordance with the terms of the contract. Any lapse in such matters has to be viewed seriously and tile bank is not only entitled but duty bound to recover the amount by adopting all legally permissible methods. Parliament enacted the act because it was found that legal mechanism available till then was wholly insufficient for recovery of the outstandi ng clues of the banks and Financial Institutions."

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17In my view, Facts of the case stand proved by evidence of the applicant bank ex-parte. Accordingly, the applicant bank is entitled to recover from defendants jointly and severally of Rs 28,11,218.22 along with pendente-lite and future interest 9.30% p.a. with compounded monthly rests from 9.2.2022( The date of filing or this O.A.) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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OA 1140(2022 [J]

DRT,PATNA

ORI1ER

In the result, the application of the applicant bank is, allowed exparte and debt is determined with costs against the defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank it's debts amounting to Rs 28,11,218.22 along with pendente-lite and future interest 9.30% p.a. with compounded monthly rests from 9.2.2022 ( The date of filing of this O.A.) 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, ifnot 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. 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.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 28.3.2023. The order to be communicated accordingly.

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Judgment signed, sealed, dated and pronounced ill the open court on 13th day of February 2023

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Dictated &correctcd by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

Punjab National Bank (Oriental Bank of Commerce) v. Anisha Devi and Anr.

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Oriental Bank of Commerce) v. Anisha Devi and Anr.

Case brief

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