Allowed

Bank of Baroda v. M/s Pung Enterprise

DRT19 Sept 2023OA/131/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for a recovery certificate against two borrowers who defaulted on secured loans totaling over Rs. 37 lakhs. The court found the debt established via affidavit evidence and issued a certificate charging hypothecated vehicles. The proceedings were conducted ex-parte against the defendants.

What did the court decide?

Issuance of a Recovery Certificate for Rs. 37,03,064.26 with future interest at 12% p.a., costs, and realization from hypothecated vehicles.

Bank of Baroda versus M/s Pung Enterprise — Banking and Recovery | DRT (2023)

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OA. 131n022/ORT-cuEirti

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunat of Assam, Nagatand, Meghataya, Manipur, tUEol'ain, arunachal pradesh & Tnpura)

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Before Shri Shiv Sharan Dubev. presidino Officer

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O.A. No.131t2O2Z

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ln the matter of -

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BANK OF BARODA Naharlagun Branch, Naharlagun-791 1 10

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'Applicant

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vs.

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I. M/S PUNG ENTERPRISE

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Represented by its proprietor_ Tam Tapak.

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S/o lvlr. Tam Kassung, F-Sector,

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Papum Pare (A.P), District Naharlagun_791 1 1O

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MRS CHUNNU SANGNO, Wo Mr. Tam Tapak,

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Resident of Papu I near BTM Hospital, Naharlagun.-7911'10

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. Defendants

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Presence of the Counsel :

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For the Applicant : Sra Bikash Sharma. Sri Hemen Das, Advocates.

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For the Defendants : None(ex-parte)

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Dated:19.09.2023

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JUDGMENT

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This is an application under section^.19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act, 1993 f ed by the BANK OF BARODA, Nahartagun Branch, Naharlagun-7g1 1 10, with a prayer to issue Recovery Certificate for the sum of Rs. 37,03,064.26 (Rupees Thirty Ssven Lacs Three Thousand Sixty Four and Paise Twenty Six) only as on 28.02.2022 in respect of secured credit loan and working capital loan against the defendants joinfly and severally with cosl,

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S}jo-d,oc'qi^ h,L,-i A lq. [q 2\ Presiding Oftcer'⁷ U DRT. Guwahali

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O.A¹ 31I2022,'DRTGMhati

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pendentelite and future interest^{at contraclual rale ol 12o/o per annum till realization,} along with other relief.

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A few facts^{givingriseto the present application are as under'}

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The defendants^{had approached andrequestedthe applicantbankto sanclion} as secured Loan^{Limit of RS.38,OO,OOO.OO,for the purposeof purchasing new TataTipper} (4-M) on 26.02.2016. The^{applicantbank in course of its bankingbusinessafter} conducling^{pre sanclion inspection reporthas sanctioned in favorol the defendants'} credit Loan of^{RS.38,OO,OOO.OO,vide Sanction lntimation Letterdated02 03 2016, inter} alia at Floating^interest @^{12.45%(BR+2.80%)per annum to be repaid in 60 equal} installments via^{Loan AccounlNo-880409041000059,of Vljaya Bank (NowBankof} Baroda)^{presently Account No. 65440600000142,of the ApplicantBankln case of} defauh to repay the balance^{due of thesaid loan, thedefendants agreed to payan} additional^penal lnterest @^{2.9% (percent) perannum on the amountsin default fromthe} date of default.

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The defendants have^{accepted the terms and conditionsas sei forth by the} applicant bank upon which^{the aforesaid sanctionwas accotdedand in pursuance of the} accepiance of^{the aforesaidsanclion, the defendant No.1 had executedthe follo/ving} documents towards^{creation of repaymentof the said loanand also deliveredthesaid} documents to the apPlicant^bank.

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a. Loan Agreement^{CumHypothecationDeed ForPriority / Non Priority Seclor} Advances.

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ln consideration of^{the applicant bank having agreedto grant and/or granted the} loan/limitsandhavingagreedtomakedisbursements/interimdisbursementstothe defendant No.1,^{the defendant No. 2, executed Unconditional and lrrevocable Guarantee} on 02.03.2016,^{vide Letter of Guaranteein favour of Bank of Baroda applicantbank,} guaranteeing the repayment^{of the dues under the loan agreement'}

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The defendant^{No.1 and 2 again on 06 04.2017 appliedfor anolher loan of} Rs. 25,OO,OOO.OO^{for businessof Hardware and cementunderthename and style of M/s}

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-Sti"^{P[.o-\o^^qrh} P."tdi"so*f,;o1^1)(J

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DRT, Guwahati

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OA' 131/202ZDRT4N'hati

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Pung Enterprise,^{and the applicant bankas alreadyprovided a loan in its ordinarycourse} of banking^{businesssanc{ioneda workingGapitalloan Rs 25'00'000 00 to the} defendants^{videSanclion lntimationLetter dated11042017 interalia at (Floating)} lnterestl'1,65%perannumviaLoanAccountNo-88o4o62,11000047ofVijayaBank(Now Bank of Baroda)^{presently AccountNo 65440500000038 of the ApplicantBankln case} of default^{to repay the balancedue of the said loan' the defendants agreedto pay an} additional^{penal intetest} @2^{% (percent) per annumon the amountsin default from the} date of default.

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Thedefendantsacceptedthetermsandcondilionsassetforthbytheapplicant bank upon^{which the aforesaid sanc{ionwas accoded and ln pursuanceof the} acceptance^{of the aforesaid sanction,the defendantNo'1 had executedthe followking} documents^{towardscleationof repaymentof the said loan and also deliveredthesaid} documents to^{the aPplicant bank.}

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a. Loan Agreement^{CumHypothecationDeed ForPriority / Non Priority Sector} Advances dated^{11.M.2017 -}

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ln consideration^{of the applicant bank having agreedto grant and/or granted the} loan/ limits^{and having agreedto make disbursements/interimdisbursemenbto the} detendant No.1,^{the defendant No. 2 executed unconditional and inevocableGuarantee} on 11.04.20'17^{videLetter of Guaranteein favour of Bankof Barodaapplicant bank'} guaranteeing the repayment^{ofthedues under the loan agreement'}

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ThedefendantNo.l,hasexecutedtheAcknowledgementofLiabilitywherethe defendantNo.lexecutedthatheisliabletopayatoanofRs25'7'l'35tason 30.10.2018. and^{Rs. 8,87,709.58 provided by the applicantbank dated 01 10 2021'on} behalfoftheLoanaccountNosso4ogo4loooosg,ofVlJayaBank(NowBankofBaroda) presently Account No.^{65440600000142 of theApplicantBank relating to the Loan} Facility of Rs^{38,00,000.00.}

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The defendant^{No.1, has executedthe Acknowledgementof Liabilitywhere} the defendani No.1, executed^{that he is liable to pay a loan of Rs 24,96'092 001 as on}

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st rslaan""A4ul lot.64.L? A Pr€siring dl€r | ---l U DRT, Guwahati

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O.A. 131,2022lDRl,cuMhati

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25.10.2018, and Rs. 24,98,7901 provided by the applicant bank dated 28.03.2019 on behalf of the Loan account No. 880409041OOOO 47 ot Vijaya Bank (Now Bank of Baroda) presently Account No. 65440600000038 of the Applicant Bank relating to the Loan Facility of Rs 25,00,000.00.

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The Appticant Bank had oblained Sale Certificate of LCV TATA Motoc Ltd with Chassis No MAT4542O1 G8AO245O and Engine No. 497TC92ATY8O32O4 and Sate Certmcate Hydraulic Excavator loader_Non Transport & Earthmoving, JCB INDIA LTD, Chassis No. har3dxsupo 1492122 and Engine No. H00089330 of the hypothecated Vehicle.

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The defendants availed the said secured loan to purchase JCB 4DX (lndia) and TATA TIPPER (4 x M) in Account No. working capiiar roan for Tea prantation in Account No 880409o4r0000s9 of vijaya Bank presenav Account No. 65440600000,142 of the Applicant Bank and also availed a working Capital Loan for Hardware and Cement Business in the Account No. 8BO4O9O41OOOO47 of ytjaya Bank presenUy Account No. 652140600000038 of the Appticant Bank.

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As the above said loan accounts of the defendants were running extremely irregular and due to non-payment of principal amount and interest, both the loan accounts were classilied as non-performing asset on 31.05.202.1. Afler the accounts became NPA the applicant bank issued notices for repayment of the due amount, but the defendants have neither chosen for repayment of the loan amount nor approached to the applicant bank for setfling the said roan account nor renewed the working capitar loan account.

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The applicant bank thus became constrained to file the present Original Application for the recovery of Rs. 37,03,064.26 (Rupe6s Thirty Seven Lacs Three Thousand Sixty Four and Paise Twenty Six) only as on 28.02.2022 along with interest and cost ofthe application.

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After filing of the OA the Tribunal issued notices upon the defendants through

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SL,-i^{s]"r^-a^,$"4r./} ,,",o"norB⁰¹ 23 fl DRT. Guwehati

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O.A. 131/202ZDRT€Mheti

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registered post and the applicant bank filed service report on 23.05.2022 and brought on record the postal receipts along with track consignment [eport which shows that nolices have not been served upon the defendants. Thereafter the Tribunar ordered paper publication of notice upon the defendants and the applicant bank issued notice to the defendants on 02.06.2O22lhrough paper publication in two newspapers namely "Arunachal Front' and 'Arunbhumt' Even after issuance of notice through paper publication also there was no representation on behalf of the defendants either by the counsel or the person and hence the defendants vyere set ex-parte on .19.0g.2022 and their right to file written statement cum evidence 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 Amitabh pathak, Chief Manager of the applicant bank has fled evidence on affidavit coupled with the s€curity documenb marked as Exhibit^'l to lS,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 against the defendants as per pleadings made in the Application, supported by evidence on affidavit of their witness who affirmed on oath the execution of the security and other documents by the defendants and also execulion of lheir 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 proved that the defendants are liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 02.03.2016, & 1'1.U.2017 . The defendant No. t has executed the Acknowledgement of Liability dated 30.10.2018, 28.03.2019 & 01.10.202,1. The acmunt became NpA on 31.05.2021 and the OA has been filed on 02.04.2022. Hence, theOA is filed wel

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stj,s0.q_^a^^A-l"a 14. *.^.t:t tf Prg8iding Ofider ' --'' ) DRT, Guwahati

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o A. 13i/2022lDRT€u$ahari

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within the period of limitation and this Tribunat having a .iurisdiction lo adjudicate the Original Application.

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Considering the unchallenged/unrebutted version of Sri Amitabh pathak, the appticant's witness and allthe documents marked as exhibits, including duly certified copy of the stiatement of account along with interest calculation sheel maintained by the applicanl Bank in it,s regular course of business, I hold that the appticant is entitled to get the Recovery Certificate as prayed for.

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rn the resun, the present originar Apprication No. 13.r of 2022 is aflowed with cost as under :-

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i) The defendants No. 1 & 2 are joinfly and severally liable to pay to the applicant bank a sum of Rs. 37,09,064.26 (Rupees Thirty Ssvon Lacs Threo Thousand Sixty Four and paise Twonty Six) onty with pendentelite and future interest @'r20/o p.a. wirh monthry rests from 0.r.03.2022 ti[ the date of full paymenvrealization and also cost of the application.

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ii) The charge of the certificated amount be kepl alive on hypothecated property i.e. hypothecation of LCV TATA Motors Ltd with Chassis No. MAT454201G8A02450 and Engine No. 497TC92ATYBO32O4, as descibed 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 alive on hypothecated property i.e. hypothecation of JCB INDIA LTD, Chassis No. hardxsupo1492i22 and Engine No. H00089330, as described in Schedute _B of the OA til the amount is realized in full.

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iv) The applicant bank is entifled to proceed against the secured items towards recovery of the debts.

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v) The applicant bank is entifled to proceed against th6 personal assets and properties of the defendants towards recovery of the debts.

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Sl"^) d^a)a^*e"Jd"1 (q'6q LJ I Presiringoft(i v ORT, cuwEhati

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O A 1312022/ORl€uwahati

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vi) The applicant bank is entifled to the costs of the O.A. which includes the advocale fees of the appricant bank. Appricant is directed to fire the cost memo within 2 weeks from today.

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vii) lssue Recovery Certificate accordingly for a sum fu, 37,03,064.20 (Rupees Thirty Seven Lacs Th?ee Thousand Sixty Four and paise Twenty Six) only in favour of the applicant bank against the defendants No. 1 & 2.

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

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This order is dictated and corrected by the undersigned.

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Judgment dated 1gth September 2023, signed and pronounced in the Tribunal

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today under my signature.

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

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Iile be consigned to Record Room.

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SL"-t eLe,Mld.^4.\2 I (shiv sharan bli"i): !^^h'4 Presiding Officer DRT, Guwahati.

Bank of Baroda v. M/s Pung Enterprise

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s Pung Enterprise

Case brief

What is this about?

What did the court decide?

What the court decided

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