Allowed

Punjab National Bank v. Uday Singh and Anr.

DRT10 Jul 2023OA/116/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 of the RDB Act filed by Punjab National Bank against two borrowers who failed to appear. Finding the claim genuine based on unchallenged documentary evidence and bank records, the Tribunal determined the debt of Rs. 52.52 lakhs with interest and issued a recovery certificate.

What did the court decide?

Debt amounting to Rs. 52,52,878.26 along with pendente-lite and future interest @13% p.a. to be paid; mortgaged/hypothecated assets attached and attached subject to recovery proceedings.

Punjab National Bank versus Uday Singh and Anr. — Banking and Recovery | DRT (2023)

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DRT,PATNA

OA 116 of 2022 [J)

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sad an, Aashiana Digha Road at PATNA-80002S

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case no. : 116 of 2022

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Punjab National Bank, Nawanagar Branch, Block and P.O.Nawanagar, District-Buxar. ....... Applicant

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Vs.

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Uday Singh S/o Shiv Shankar Singh Rio Village-Dhaneja, P.S.Sikaraul, Block-Nawanagar, Post Office-Sikaraul Lakh, DistrictBuxar-802129.

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Vikrama Singh Rio Village-Dhaneja, P.S.-Sikaraul, Block, Nawanagar, Post Office-Sikaraul Lakh, District-Buxar-802129.

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.. .Defendants.

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Present:

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For the Applicant : Shri N. P. Verma, Advocate For the Defendants : None

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Dated: 10.07.2023

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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 9.2.2022 against the defendants to recover its debts from defendants of Rs.52,52,878.26 as on 31.1.2022 alongwith pendente-lite and future interest at the contractual rate from 1.2.2022 with costs till realization.

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2- The application has been duly registered and numbered as above.

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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 body corporate constituted under Banking companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 having its registered Head Office at Plot no. 4, sector 10, Dwarka, New Delhi, it has branch office all over India and Abroad. Amongst the Branches in India, One of its Branch Office, namely, Punjab National Bank Nawanagar Branch is situated at Nawanagar in the District of Buxar.

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The defendant no. 1 approached the bank on 26.9.2011 for grant of term loan facility ofrS.6,24,685/- and Rs.ll,98,044/for purchase of two tata LP712 Bus. After acceptance of the terms and conditions of sanction by the borrower and after completion of the pre sanction formalities by the bank the two term loan facilities were accorded in favour of the

DRT,PATNA

OA 1160(2022 (J)

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borrower on 27.9.2011 and on 25.10.2011. Towards purchase of one bus the borrower delivered retail invoice dated 28.9.2011 and money receipt issued by Maurya Motors limited for Rs.7,79,685/- dated 28.9.2011 in which payment made vide bank draft no. 740673 dated 27.8.2011 again term loan finds place. Towards purchase of another bus the borrower delivered quotation price of Tata Make vehicle dated 10.10.2011 issued by Maurya Motors Limited for Rs.8,47,685/with quotation of Mis Kumar Fabricators for Rs.7 lakh dated 9.10.2011 for construction of the body of the bus and money receipt dated 28.10.2011 for Rs.5 lakh with money receipt dated 8.11.2011 for Rs.2 lakh against term loan account concerning the second Bus. Acknowledged by the borrower was delivered to the bank. After purchase of the two bus the borrower got the said two bus registered before department of transport government of Bihar. The department of Transport issued certificate of registration on 18.11.2011 for the first bus bearing Registration no. BR 44 P 1459 Chassis no. MAT 453552B7G34369 and Engine no. 497TC92GYY843017 and issued certificate of registration on 18.11.2011 for the second bus bearing registration no. BR 44 P-1457, Chassis no. MAT 453552B7J39798 and Engine no. 497TC92HYY850611 with term loan account. The defendants executed the various loan documents.

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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 17.4.2015.

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Thus the total liability in the loan account is Rs.52,52,878.26/with pendentelite and future interest at the contractual rate 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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4V/s 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 18.5.2022, 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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OA 116 of2022 IJ)

DRT,PATNA

On perusal of the case records, it is clear that on 18.5.2022, summons/notices were sent to the defendants, 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 20.7.2022 in "Dainik Jagaran" newspaper.

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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 10.10.2022

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

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SI.No	Description photocopies Documents	of	Date of Execution	Amount	Signature of executant	Ex.! Ann. No.
1	certificate		...	...	...	1
2	copy of PAN Card		...	...	..	2
3	retail invoice		28.9.2011	...	Maurya Motors Limited	3
4	Money receipt		28.9.2011	....	Maurya Motors Limited	3/1
5	Quotation		10.10.2011	.....	Maurya Motors Limited	4
6	Quotation		9.10.2011	....	Maurya Motors Limited	5
7	Money receipt		25.10.2011	...	Mis Kumar Fabricators	511
8	Money receipt		8.11.2011	...	Mis Kumar Fabricators	5/2
9	certificate registration	of	...	...	...	6
10	certificate registration	of	...	...	...	7
11	letter hypothecation	of	27.9.2011	...	defendant no. 1	8
12	letter hypothecation	of	25.10.2011	...	defendant no. 1	9
13	agreement guarantee	of	27.9.2011	...	defendant no. 2	10

OA 116 of 2022 IJI

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DRT, PATNA

14	balance and security confirmation letters	22.4.2016 31.3.2019	...	defendant no. 1	11
15	Notice	13.1.2014 7.3.2020	...	bank	12
16	Notice	13.6.2014	...	bank	13
17	Notice	2.7.2021	...	bank	14
18	Statement of account	as on 31.1.2022	Rs.52,52,878.26	bank	15

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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 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 pecumary 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 17.4.2015 and the defendants executed the balance confirmation letter lastly on 31.3.2019, whereas the present application has been filed on 9.2.2022. 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 Manoj Kumar Singh, 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

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DRT,PATNA

OA 1160(2022 IJ)

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 in a Banker's Books furnished alongwith 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.52,52,878.26 with cost and further interest at the contractual rate from 1.2.2022till realization.

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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

DRT,PATNA

OA 1160(2022 (J)

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 SCC 129,the Hon'ble 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 strictly in accordance with the terms of the contract. Any lapse in such matters has to be viewed seriously and the 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 outstanding dues 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.52,52,878.26 alongwith pendente-lite and future interest @13% p.a. with compounded monthly rests from 9.2.2022 (The date of filing of this O.A.) 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 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.52,52,878.26 alongwith pendente-lite and future interest @13% 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, 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.

OA 116 of 2022 (JI

DRT,PATNA

Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provi.iionscontained 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 6.9.2023. The order be communicated accordingly.

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Jud~ment signed, sealed, dated and pronounced in the open court ~ on this io' Day of July, 2023.

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Dictated & corrected by me.

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I-

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.0" \ "Y ";>

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[Kaushalendra Y adav] Presiding Officer Debts Recovery Tribunal, Patna

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.. _" ../

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

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(1) READ WITH SECTION 19(22) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993,AS AMENDED FROM TIME TO TIME.

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RC No. 490/2023 IN

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Case No: OA/116/2022

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In the Matter of:

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(CH- 1) PUNJAB NATIONAL BANK B 0 2703 NAWANAGARBRANCH BUXAR,BIHAR -802129

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Applicant(s)

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------ Versus -------

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To,

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(CD- 1) UDAYSINGH AND ANR.. Son of Shiv Shankar Singh Resident of Village-Dhaneja.PrS. Sikaraul, B1ock-Nawanagar, Post Office- Sikaraul Lakh Buxar,BlHAR -802129

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Defendant(s)

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(CD- 2) VIKRAMA SINGH

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RESIDENT OF VILLAGE- DHANEJA, P.S.SlKARAUL,BLOCK- NAWANAGAR, POSTOFFICE- SIKARAUL LAKH,

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DlSTRICT- BUXAR.802129

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RecoverY.Certificate for Rs 5252878.26 [ Rup-eesFiftY.Two Lakhs FiftY.Two Thousands Eight Hundred SeventY.Eight And Paise TwentY.Six OnIY_1

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' ..

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In terms of final order dated 10107/2023 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. 5252878.26 along with cost, expenses and interest from the 09/02/2022 i.e. date of filing 1 with effective date of the OAl116/2022 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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		Effective Date	Order Date		RC Amount(Rs.	Remar
		09/02/2022	_10107/2023 _	5252878.26	5252878.26
VIKRAMA SINGH	Compound Interest (Monthly)	09/02/2022	_10107/2023 _	5252878.26	5252878.26

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'..

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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 movablel 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 RECOVERY TRIBUNAL PATNA on 06/09/2023.

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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 Act, 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 10107/2023

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V 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

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RC No. 490/2023

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Case No: OAll16/2022

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Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): UDAY SINGH AND ANR .

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	(Inc. Publication)
I 13.
i4.	ommissionerlReceiverNaluationiSecurity Fee
!5.
		___ ..~_.J 55000

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Place: PATNA

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Date: 10107/2023

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PRESID~CER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

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.,.

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Date of order or proceeding	DEBTS RECOVERY TRIBUNAL, PATNA Order with the Signature of the Court	Office action taken with data
	OA 116of 2022
10.07.2023	Judgment written on separate sheets kept on the case file and pronounced. Certificate of recovery be issued to the ld. Recovery officer for its execution. V Presiding Officer
10.07.2023	Certificate U/S 19(7& 22) of the DRT Act, 1993 as amended from time to time in the form no. 09 of the Rules and procedures made there under prepared and signed by me for sending it to ld. Recovery Officer for its execution in accordance with law. V Presiding Officer

Punjab National Bank v. Uday Singh and Anr.

Case brief

What is this about?

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Punjab National Bank v. Uday Singh and Anr.

Case brief

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