Allowed

Punjab National Bank v. Mrigen Sutradhar

DRT9 Nov 2023OA/174/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 of the RDBFI Act to issue a recovery certificate for Rs. 33.29 lakhs in favor of the defendant, finding the loan obtained and documents executed valid, and the filing within the limitation period.

What did the court decide?

Issue recovery certificate for Rs. 33.28,168.42 with interest and costs; charge kept alive on hypothecated properties.

Punjab National Bank versus Mrigen Sutradhar — Banking and Recovery | DRT (2023)

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o.A. 174l2o22roRT€uwahatr

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tnbunal ofAssam, Nagaland, Meghalaya, Manipur, Mizoram, Arunachat Pradesh & Tripura)

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Before Shri Shiv Sharan Dubev. Presidinq Officer

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O.4.No.17412022

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ln the matter of -

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PUNJAB NATIONAL BANK (Erstvrrhile United Bank of lndia) ATPPF Branch, Lalmati, NH-37, Guwahati-78'l 029, Assam.

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.Applicant

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Vs.

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SRI MRIGEN SUTRADHAR, Son of Late Prafulla Kumar Sutradhar, Proprietor of M/s Umesh Machinery, House No.13, Sarumotoria, Bishnu^Path, Mathura Nagar, Dispur, Guwahati-78'l 006,

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District- Kamrup^(M), Assam.

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Defen da nt

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Presence of the Counsel:

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: Mr. Manoj Kumar Roy, Advocate Forthe Applicant Fo.the Defendant : None (Ex-parte).

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Dated:0911112023

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JUDGMENT

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This is an application^{under section 19 of the Recoveryof Debts Due to Banks} and Financial^{lnstitutionsAct,1993filed by the PunjabNational Bank, ATPPFBranch'} Lalmati. NH-37,^{Guwahati-781029, Assam,with a prayer to issue Recovery Certificate} for the sum of R3.^{33,28,168'42 (Rupee3Thirty-ThrseLakhsTwonty-Eight} Thousand One^{HundredSixty-Eighi and Paisa Forty-Two)only as on 30 04 2022} againstthedefendantwithpendenteliteandfutureinterestthereontillrealizationalong with cost and^{other relief.}

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A few facts^{giving riseto the present applicationareas under'}

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The defendant^{had approachedthe ApplicantBank with work orderfor} constructionofG+2PowergridcapacityoevelopmentcentreinoncologyatDr,B. Barooah^{Cancer lnstitute,Guwahatiand applied for financialassistancefor} contractualworkandafterconsideringthesaidApplication,aTripaftiteEscRoW sL "' 's{^{o"'-- }-'[ !'j} v ei lt lj

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o.A. 174l2022lDRl€uw.hati

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Agreement dated 03.05.20i7 has been signed and execuled by the Defendant, the Applicant bank and representative of Dr. B. Barooah Cancer lnstitute, Guwahati, whereby agreed to appoint the applicant bank as the ESCROW Agent to do inter_alia amongst others for holding, administering the moneys deposited in the ESCROW Account and the borrower agreed that all amounts received by il as business/ sale proceeds or any other amounts receivable by the borrower shall be deposited in the ESCROW Account. Thereafter, the Appticant Bank vide its Sanction Letter dated 05.05.2017 had sanctioned a Cash credit Limit (CC) of Rs.25.OO Lacs to the Defendant wilh interest charged at^,l2.1!o/o per annum with monthly rests along with penal interest at appricabre rate in case of defaurt. The cash credit rimit was lo be repaid on demand. The Defendant had signed on the said Sanction Letter thereby agreeing to allthe terms and conditions contained therein.

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ln connection with the sanction of the Cash Credit Loan of RS.2S.OO Lacs sanctioned by the Applicant Bank and availed of by the Defendant, a Hypothecation Agreement (coods, Book Debts, prant and Machineries) dated os.os.2oi7 has been signed and executed by the Defendant in favour of the Applicant Bank as security for repayment of the loan facility, thereby agreeing to all the terms and conditions laid down in the said Agreemenl in favour of the Applicant Bank.

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ln order to secure the repayment of the credit facility, the defendant has also executed a oemand promissory Note dated 05.05.2017, Letter of Lien dated 05.05.2017 and Letter of Continuity dated 05.05.20i7, thereby promising to pay fhe Applicant Bank the entire loan amount received together with interest @12j10 o/o per annum with monthly rests on demand.

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Thereafter, the defendant as the proprietor of the M/s Umesh Machinery had approached the applicant bank and requested for financial assislance under pradhan Mantri MUDRA^yojana vide loan application dated 04.10.2011and after considering the same, the applicanl bank vide its Sanction Letter had sanctioned a Term Loan (TL) at Rs. '10.00 Lacs (Rupees Ten lacs) onty to the Defendant with interest charged at 9.35% per annum with monthly rests along with penal interest at applicable rate in case of default. The Term Loan was to be repaid in 60 (Sixty) Equated Monthly lnstallments of Rs. 16,6661. The Defendant as the proprietor of the M/s Umesh

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O.A. 1 742022lDRT-cwahati

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Machinery had signed on the said Sanction Letter thereby agreeing to all the terms and conditions contained lherein.

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ln conneclion with the sanction of the Term Loan [fL) of Rs. 1O.OO Lacs sanctioned by the Applicant Bank and availed of by the Defendant, an Agreement of Term Loan and Hypothecation dated 05.10.2017, Demand promissory Note dated 05j0.2017 and Letter of Lien dated 06j0.2017 has been signed and executed by the Defendant as the proprietor of M/s Umesh Machinery in favour of the Applicant Bank as security for repayment of the loan facility, thereby agreeing to all the terms and conditions laid down in the said Agreement in favour of the Applicant Bank and also promising to pay the Applicant Bank the entire loan amount together with interest @ 9.35% per annum with monthly rests on demand. lt is pertinent to mention ihat recently on inspection it was found that the establishment uniushop is closed and the borrower also could not be contacted at the recorded address.

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The defendanl had requested the applicant bank for renewal of lhe cash credit account and accordingly the defendant have executed a promissory Note dated 04.05.20'18 and Letter of Continuity dated 04.05.2018, thereby promising to pay the Applicant Bank the entire loan amount together with interest @i2.OO% per annum with monthly resls on demand. The defendant had also confirmed the outstanding balance as on daie in the loan account by signing the Balance Confirmation dated 04.o5.201A.

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Thereafier again, the defendant vide its letter dated 29.11.2019 had requested the applicant bank for additional Overdraft Loan of Rs. i,3S,000.00 and afler considering the same, the applicant bank had allowed the Overdraft as per borrower requirements. ln conneclion with the overdraft facility sanctioned by the defendant, the defendant has executed a Demand Promissory Note dated 28.11,.20,18 and Letter of Continuity dated 28.11.2018, thereby promising to pay the Appticant Bank the entire loan amount together with interest @ 10.65% per annum with monthly rests on demand.

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Thereafter again the defendant vide loan application dated 0.1.06.2020 had approached the applicant bank for financial assistance for working capital for construction and labour payments under Guaranteed Emergency Credit Line and afler .91.r^y f,lo"a- 0&".r | oS tt)\

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o.A. l7$zozztoRffutl,,an ti

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considering the said application the applicant bank vide ils Sanclion Letter dated 08.06.2020 had sanctioned a Term Loan of Rs.4,9g,OOO.OO (Rupees Four Lacs and Ninety Eight Thousand) only to the defendant with interest @ l.650/o p.a.The Term Loan is to be repaid in equal monthly installment of Rs. i3,g33.OO (Rupees Thirteen Thousand Eight Hundred and thirty-Three) onry each in 96 months afrer moralorium period of 12 months. The defendant had signed on the said Sanction Letfer thereby agreeing to all the terms and conditions contained therein. The defendant in connection with the fresh sanction of Term Loan under GECL scheme had signed and executed a Term Loan Agreement dated 08.06.2020 in favour of the applicant bank and atso a Demand promissory Note dated 08.06.2020, thereby promising to pay the Applicant Bank the entire loan amount together with interest @ 8.S0% per annum with monthly rests on demand.

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The defendant had again requested the appricant bank for renewar of the cash credit account and accordingly the defendant have executed a Demand promissory Note dated 16.08.2020 and Letter of Continuity dated 17.OB.2OZO, thereby promising to pay the Applicant Bank the entire loan amount on demand.

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The defendant had availed the said loan facilities from the applicant bank but have not paid the outstanding loan amount as per terms and conditions as agreed upon with the applicant bank, in spite of repeated demands and request by the applicant bank. As the defendant failed to repay the loan amount, the said loan accounts became NpA on 02.10.202,t and 13.12.2021. Afrer the acmunts became NPA the appricant bank issued nolices for repayment of the due amount, but the defendant failed to repay the loan amount.

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The applicant bank thus became constrained to Iile the present Original Application for the remvery of Rs. 33,2g,168-42 (Rupees Thidy_Three Lakhs TwentyEight Thousand One Hundred Sixty-Eight and paisa Forty-T$ro) only as on 30.04.2022 along with interest and cost ofthe application.

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After filing of the OA the Tribunal issued notices upon the defendant through registered post and the applicant bank tiled service reporl on OS.OZ.2022 and brought on record the postal receipt along with track consignmenl report which shows that notice has been served upon the sote defendant on 10.06.2022. ,un"" ""ff: i"r, no",Qrl.,t .9 )l^,

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O A I 74l2o2zoRT-Guwahati

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completed upon the sole defendant. Even after issuance of proper service of notice there was no represenlation on behalf of the defendant either by the counsel or the person and hence the defendant was set ex-parte on '11-08-2022 and his right to file written statement cum evidence on affidavit was closed and the matter was listed for hearing on behalf of lhe 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 affidavit mupled with the security documents marked as Exhibit P & Q as well as Exhibit-Aw-1 to AW-31 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 Cerlificate against the defendant 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 defendant 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 mnsidered view that the document filed by the applicant bank are supporting the claim of the applicant bank and establishing the liability of the defendant. lt is proved that the defendant is liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 05.05.2017, O5.'tO.2017, 06j0.2017, 04.05.2018, 28_11.2018, 08.06.2020, 16.08.2020 & 17.08.2020. The accounts became NPA on 02102021 & 13.'12.202'l and the OA has been filed on 17 .05.2022. Hence, the OA is filed well within the period of limitation and this Tribunal having a^jurisdiction to adjudicate the Originat Application.

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Considering the unchallenged/unrebutted version of Sri Guru Prasad 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 maintained by the applicant Bank in it's regular course of business, I hold that the applicant is entitled to get the Recovery Ce(ificate as prayed for.

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Jln QX^4,a-^{ft,l^'l} E '2<sup>o

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oa 174l2022loRT-Guwahan

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rn the resurt, the present originar Appricaiion No. 174 0r 2o22is aflowed with cost as under: -

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i) The sole defendant is tiable to pay to the applicant bank a sum of Rs. 33,28,168.42 (Rupeas Thirty-Three Lakhs Twenty-Eight Thousand One Hundrgd Sixty-Eight and paisa Forty_Tyvo) only with pendentelite and future interest @12.'l0o/o p.a. with monthry rests from o.r.o'2o2z tifi the date of full paymenurealization and also cost ofthe application.

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ii) The charge of the certificated amount be kept alive on hypothecated properties as described in 3A of the OA till the amount is realized in fuI

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

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iv) The applicant bank is also entifled to proceed against the personal assets and properties ofthe defendant towards recovery of lhe dues.

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v) The applicant bank is entifled to the costs of the O.A. which includes the advocate fees of the appricant bank. Appricant is direcled to ,ire the cost memo within 2 weeks from today.

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vi) lssue Recovery Certificate accordingly for a sum Rs. 33,28,168.42 (Rupaeg Thirty-Three Lakhs Twenty-Eight Thousand One Hundred Sixty-Eight and Paisa Forty-Two) only in favour of the applicanl bank against the sole defendant.

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vii) Communicate copy of this order to the concerned parties. This order is didated and conecled by the undersigned.

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Judgment dated 09h November 2023, signed and pronounced in the Tribunal today

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under my signature.

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copy of the JudgmenuFinar order be uproaded in the Tribunals website and fire be consigned to Record Room.

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-cL*i^{il,r-,a., Q..L,,r} 1 ) 1 tsrri, sr,"r.n ffl"l,l Presiding Officer DRT, cuwahati.

Punjab National Bank v. Mrigen Sutradhar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mrigen Sutradhar

Case brief

What is this about?

What did the court decide?

What the court decided

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