Allowed

Punjab National Bank v. Mirza Zahid Beg alias Mirza Zahid Baig alias Mirza Zahid Ahmad Beg and others

DRT4 Jul 2023OA/146/2022

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's application to recover Rs. 25,35,049.88 along with interest. The court held the loan documents and statement of account verified by senior bank officers were sufficient, rejected the defendants' pleaded grounds for non-repayment, and issued a recovery certificate to attach and sell the mortgaged assets.

What did the court decide?

The applicant bank was granted a recovery certificate for Rs. 25,35,049.88 plus interest to be realized from the sale of mortgaged and other assets of the defendants.

Punjab National Bank versus Mirza Zahid Beg alias Mirza… — Execution and Attachment | DRT (2023)

OA 146 of20221JI

DRT,PATNA

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road at PATNA-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case no. : 146 of 2022

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Punjab National Bank, Chenari Branch, Chenari, P.O., and P.S. Chenari, District-Rohtas, Pin 821104.

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. Applicant

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Vs.

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Mirza Zahid Beg @ Mirza Zahid Baig @ Mirza Zahid Ahmad Beg, S/o Late Abdul Majeed Beg @ Late Abdul Majeed Baig @ Late Mirza Abdul Majeed Beg, Rio Village-Banauli, P.O. and P.S.Chenari, District-Rohtas-8211 04, PAN no. AIVPB6543Q.

¶12

Gudiya Khanam @Guriya Khanam, W/o Mirza Zahid Baig, Rio VillageBanauli, P.O. and P.S.-Chenari, District-Rohtas-821104. PAN no. DOSPK3525K.

¶13

Mirza Sahid Baig @Mirza Sahid Beg S/o Abdul Majeed Baig, Rio Village-Banauli, P.O. and P.S.-Chenari, District-Rohtas-821104, PAN no. AIVPB6544K. and Rio at Khankah, Madarsa Road, Shah Kabir Colony, P.O. Sasaram, District-Rohtas-821115.

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...Defendants.

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Present:

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For the Applicant : Dr. B.B. Sinha, Advocate For the Defendants no. 1 & 2 : Shri Akash Shankar, Advocate For the Defendants no.3 : None

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Dated:04.07.2023

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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 18.2.2022 against the defendants to recover its debts from defendants of Rs.25,35,049.88 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 V of 1970 having its registered and Head Office at Plot no. 4, sector 10, Dwarka, New Delhi-l l 0075 and branches at Chenari Branch under the District of Rohtas.

OA 146 of 2022 IJ]

DRT,PATNA

The defendant no. 1 & 2 approached the bank on 10.9.2017 and submitted an application for home loan of RS.25 lakh. The bank sanctioned the housing loan of rs.22 lakh on the terms of the bank against the property of defendant no. 1 mortgaged in favour of the bank as a security of loan and informed to the defendants through the sanction letter dated 12.9.2017. The defendants executed the various loan documents i.e. agreement for housing loan, undertaking, consent clause, PDR, guarantee agreement and undertaking. The defendant no. 1 mortgaged his landed property details given at page 13 in schedule-A of ~A. The defendants agreed to pay the interest @9.75% p.a. with monthly rests for value received and changed from time to time on the daily balance as per the guidelines of the RBI.

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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 31.3.2021

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Thus the total liability in the loan account is Rs.25,35,049.88 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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4- U/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 25.5.2022, 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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Ld. Counsel for the applicant bank submits that notices/summons have already been sent to the defendants and despite service by the registered post, which is evident from the tracking report and the Sufficient time has been given to the defendants no. 3 to defend his case, but he failed to appear and to file WS. As service is sufficient of the defendant no.3, statuary period for filing of written statement has already been expired.

¶33

In response of defendants have appeared and defendant no. 1 & 2 have filed written statement stated that the defendants approached the

OA 146 of20221J]

DRT,PATNA

bank with an application for home loan of Rs.25 lakh on 10.9.2017 and bank sanctioned the same. It is further stated that the entire world and an Indian economic fall down due to demonetization wave and soon after the to covid-19 pandemic wave continuously for 2-3 years. The word was effected by this pandemic, any country depends on GDP and its per capita income. India is also a developing country like others during pandemic many small scale industries collapsed, almost in her all sectors, Indian Govt. Itself compel to merge the banks and sale the many ofPSUs due to these two reasons. It is further stated that the actual and absolute value of land property is concealed by the bank. The value of landed property of defendant was evaluated by the bank authority in the year of 2015. It is further request that the defendants are ready to pay the outstanding dues amount but need some time as he has been already referred the demonetization and pandemic attack else he is ready for attachment of sale of his mortgaged landed property as per your honour's wish.

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However, the defendant no. 1 & 2 in his written statement has not denied the sanction of loan amount, its utilization and further to secure the loan, execution of relevant documents. '

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Further the defendants no. 1 & 2 have not substantiated the contents made m their written statement by filing their evidence on affidavit.

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As per section 19(10B) of the Recovery of Debts and Bankruptcy Act, 1993,

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"If any of the facts or pleading in the application or written statement are not verified in the manner provided under sub section (10A), a party to the proceedings shall not be allowed to rely on such facts or pleadings as evidence or any of the matters set out therein."

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Arguments of ld. Counsels of the applicant bank and ld. counsel for the defendants were heard and record perused and considered.

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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 Ranjeet Kumar, Circle SASTRA Head of Punjab National Bank of the applicant bank. The details of documents are as follows. :-

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Sl.No	Description photocopies Documents	of	Date of Execution	Amount	Signature of executant	Ex.! Ann. No.
1	Loan application		10.9.2017	Rs.25lakh	defendant no. 1&2	1
2	sanction letter		12.9.2017	Rs.22lakh	bank	2
3	agreement housing loan	for	12.9.2017	Rs.22lakh	defendant no. 1&2	3
4	undertaking		12.9.2017	Rs.221akh	defendant no. 1&2	4

OA 1460(2022 (J]

DRT,PATNA

5	consent clause	...	...	defendant no. 1&2	5
6	PDR	12.9.2017	Rs.22lakh	defendant no. 1&2	6
7	PDR	12.9.2017	Rs.221akh	defendant 3	7
8	consent clause	...	...	defendant no. 3	8
9	undertaking	12.9.2017	...	defendant no.3	9
10	agreement of guarantee	12.9.2017	Rs.221akh	defendant 3	10
11	CERSAI and copy of sale deed no. 3774	...	...	...	11
12	valuation	...	...	...	12
13	Legal notice	1.2.2022	...	bankadv.	13
14	Statement of account	as on 31.1.2022	Rs.25,35,049.88	bank	14

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6- It is submitted by ld. Counsel of applicant bank that the defendants no. 1 & 2 have admitted the loan facilities, granted to them and there is no any specific denial of execution of loan documents by the defendants. It is further submitted that there is no any stay granted by the Hon'ble Higher Court in the matter.

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It is further submitted that the applicant bank has filed the Original Application, for recovery of due amount, after deducting all the amounts, deposited by the defendants and by calculating the interest charged, as agreed by the defendants. It is further submitted that the defendants have not deposited any amount, after filing of the OA.

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It is requested that the recovery certificate may be issued for the claim amount, as made in OA, as there is no any specific denial by the defendants.

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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 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 account was declared as NPA 31.3.2021, whereas the present application has been filed on 18.2.2022. 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 Ranjeet Kumar, Circle SASTRA Head of Punjab National Bank of Applicant bank, has stated that he is well acquainted with the facts of the case and has on verification of record,

OA 1460(2022 IJ)

DRT,PATNA

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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10On perusal of the above documents, it is clear that the applicant bank has granted loan facility to the defendants and to secure the loan, various loan documents were executed by the defendants and loan facility was availed by the defendants as stated in the application.

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11The documents as stated above reveal that the defendants have applied for loan and bank had sanctioned loans, thereafter, 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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12The applicant bank has also furnished statement of account as shown 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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13Defendants 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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14On consideration of the arguments and on perusal of the application, documents, affidavit, it is proved that the applicant bank has granted the loan facilities to the defendants and to secure the loan, various loan documents were executed by the defendants and facilities were availed by the defendants as stated in the application.

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15-The Section 58 of the Indian Evidence Act, 1872 reads as under-

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"58. Facts admitted need not be proved.- No fact need to be proved in any proceeding which the parties thereto or their agents agree to admit at the hearing, or which, before the hearing, they agree to admit by any writing under their hands, or which by any rule of pleading in force at the time they are deemed to have admitted by their pleadings:

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Provided that the Court may, in its discretion, require the facts admitted to be proved otherwise than by such admissions.

OA 1460(2022 (J)

DRT,PATNA

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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17Facts of the case, in my view, are well proved by evidence of the applicant bank as well as admission of defendants no.1 & 2. The applicant bank is entitled to receive from defendants jointly and severally of Rs.25,35,049.88 together with pendentelite and future interest @ 9.15% p.a. with compounded monthly rests from 18.2.2022 (The date of filing of this O.A.) till realization. So the final order may be passed accordingly, to meet the ends ofjustice. ORDER In the result, the application of the applicant bank, is allowed and debt is determined with costs against the defendants and it is, hereby jointly and severally, ordered that the applicant bank is entitled to receive from sole defendants, it's debts with interest, amounting to Rs.25,35,049.88 together with pendentelite and future interest @ 9.15% p.a. with compounded monthly rests from 18.2.2022 (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 further 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.

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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 realise the amount as per the

OA 146 of 2022 (J]

DRT,PATNA

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 01.09.2023. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on this 04th Day of July, 2023.

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Dictated & Corrected by me

'">" v')

[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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

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DEBTS RECOVERY TRlBUNAL PATNA

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2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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'.,.

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RECOVERY CERTIFICATE UNDER SECTION 19(1) READ WITH SECTION 19(22) OFTHE RECOVERY OF DEBTS & BANKRUPTCY ACT,1m, AS AMENDEP FROM TIME TO TIME.

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RC No. 433/2023

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¶94

Case No: OAl146/2022

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In the Matter of:

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(CH- I) PUNJAB NATIONAL BANK

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CHENARI BRANCH CHENARI PO PS CHENARI

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Applicant(s)

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SASARAM

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ROHIAS ,BIHAR -821104

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

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To,

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(CD- 1) MIRZA ZAHID BEG @ MIRZA ZAHID BAIG @ MIRZA ZAHID AHMAD BEG AND OTHERS.

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Son of Late Abdul Majeed Beg @ Late Abdul Majeed Baig @ Late Mirza Abdul Majeed Beg Resident of Village- Banauli, ,PO and PS- Chenari, Rohtas ,BIHAR -821104

¶105

'.,.

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(CD- 2) GUDlYA KHANAM @ GURIYA KHANAM WIFE OF MIRZA ZAHID BAIG, RESIDENT OF VILLAGE- BANAULI, PO AND PS- CHENARI, D1STRICT- ROHTAS- 821104

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Defendant(s)

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(CD- 3) MIRZA SAHlO BAIG @ MIRZA SAHID BEG

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(GUARANTOR)

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SON OF ABDUL MAJEED BAIG, RESIDENT OF VILLAGE- BANAULT, PO AND PS- CHENARI,

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D1STRICT- ROHTAS- 821104

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Also At.

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AND lOR MIRZA SAHI BAIG @ MIRZA SAHID BEG, SON OF ABDUL MAJEED BArG, RESIDENT AT KHANKAH, MADARSA ROAD, SHAH KABIR COLONY, PO- SASARAM, D1STRICT- ROHTAS821115 (PAN NO-AIVPB6544K) (GUARANTOR)

¶114

RmIlliy Certificate for Rs 2535049,88 '-Rllpees Twenty Five Lakbs Thirty Five Thousands Forty Nine And Paise EigbtY...Elgb.Uln!y_

¶115

¶116

'.,.

¶117

In terms of final order dated 04/07/2023 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. 2535049.88 along with cost, expenses and interest from the 18/02/2022 i.e. date of filing 1 with effective date of the OA/146/2022 and future interest from order date till the date of realisation in full,jointly or severally from the CertificateDebtors, hereinafter referred to as:-

¶118

Interest
Sr.no CD Name Order(as on Amount(Rs.)RC Remark I
Date) I,
IRZA ZAHID BEG @
IRZA ZAHID BAIG
i;, MIRZA ZAHID 2535049.88
HMADBEGAND
THERS
.Compound
UDIYA KHANAM @
Interest 2535049.88
URIYA KHANAM
(Monthly)
IRZA SAHID BAIG .Compound
MIRZA SAHID BEG [lnterest 535049.88
UARANTOR) I (Monthly ) Severally

¶119

'.,.

¶120

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecatedassets 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 Recoveryof Debtsand BankruptcyAct 1993

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Parties are directed to appear before MANOJ KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 01109/2023.

¶123

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 InstitutionsAct, 1993 (as amended from time to time) fromthe above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 04/07/2023

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',.

¶126

PR'~FFlCER DEBTS RECOVERY TRIBUNAL PATNA

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• · .. ''1"

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FORM NO. to [See Regulation 24(2)]

¶129

DEBTS RECOVERY TRIBUNAL PATNA

¶130

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. 433/2023

¶134

¶135

Case No: OAl146/2022

¶136

Applicant(s): PUNJAB NATIONAL BANK

¶137

Versus

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Defendant(s): MIRZA ZAHID BEG @ MIRZA ZAHID BAIG @ MIRZA ZAHID AHMAD BEG AND OTHERS

28000

Place: PATNA

Date: 04/07/2023

PRESI~FFlCER DEBTS RECOVERY TRIBUNAL PATNA

¶143

Note: Strike out whichever is not applicable

¶144

Date of order or proceeding	DEBTS RECOVERY TRIBUNAL, PATNA Order with the Signature of the Court	Office action taken with data
	OA 1460f2022
04.07.2023	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.
	Presid~ficer
04.07.2023	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.

Punjab National Bank v. Mirza Zahid Beg alias Mirza Zahid Baig alias Mirza Zahid Ahmad Beg and others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mirza Zahid Beg alias Mirza Zahid Baig alias Mirza Zahid Ahmad Beg and others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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