Allowed

Punjab National Bank v. M/s Puja Plastic Industry

DRT17 Jul 2023OA/202/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal considered an application under Section 19 RDBFI Act for issuance of a Recovery Certificate against borrowers and guarantors who defaulted on an overdraft loan. The Bank demonstrated execution of mortgage and security documents, regular partial repayments until the account became NPA in 2019, and due process through notices and publication. Finding the claim valid and t

What did the court decide?

Issued Recovery Certificate for Rs. 27,77,879.94 and principal with interest @12% p.a. against all defendants; kept charge alive on mortgaged property.

Punjab National Bank versus M/s Puja Plastic… — Contract and Commercial Disputes | DRT (2023)

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O A 2o2no22loRJ-Auwanali

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal ofAssam, Nagaland, Meghalaya, Manipur,^Mizoram, Arunachal^{Pradesh& Tripura)}

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Before Shri Shiv Sharan Dubev.^{Prssidino Officer}

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O.A. No.20212022

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ln the matter of -

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Puniab National^{Bank (Erstwhile UnitedBankof lndia),} Silchar Branch,^{Central Road, Silchar,} Distric! Cachar,^{Assam, Pin-788001'}

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Applicant

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Vs.

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Mrs Puia^{Plasticlndustry}

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Reoresented^{bY Sri Motilal Kurmi} and Sankar Goala^{(since deceased)}

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Villaoe- Bariknagar,^{Part-ll' P O Silcoorie'}

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p. i]sirin"r, Di;trict cachar, Assam,^Pin-788018'

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Sri Motilal^Kurmi S/o Ram Prasad^Kurmi iittaoe-earixnagar,^{PartJl.P'o'silcoorie'} p.sBir"t rr, o"iri"t cachar, Assam'^{Pin-78801 8'}

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Mr.^{Bikram Yadav'}

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s/o Late Sankar^Goala,

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iirr-aoe-earll(nasar,^{Part-ll' P o Silcoorie'}

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;.'i-'dt"#;^{oi.i;dcachar, Assam'Pin-788018}

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Mr. Lalan^Yadav,

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ili,l:':'::,fffl^{::3'jn-tte o si'"oo''"'} i"s'Bir"ilr, iii"i""i^{cach ar' Assam'Pin-7 8801 8}

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Mr Nilon^Yadav'

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il?*XB:,1ffli"?:3'1n,,^{p o s,"oo'i"'} ;:'s:Bil;;l.6;ft^{cachar'Assam'Pin-78801 I}

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!i*tl"?,'fj1-I-*t!f;o.;li|'ffi^{aeor e}

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Sri Bachna^Yadav'

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lt:lilffi^{fiii]il:,:o"".'il;:?'r',,uo,.}

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Sri Panna^Yadav'

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!,{ti::'.:i:jfliflf.:['lllo?"liLi"3''"i*0"

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'il'i"li,:F,ffi{:,"el"s:tl""''*j,,,0,,

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r.fl"i!!t*r?

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ORT.^Guweheli

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O A 202l2022lDRT-Guw.heli

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10.Mrs sailo Kumari Yadav, W/o Late Sankar Goala, Village-Bariknagar, Part-ll, P.O. Silcoorie, P.S.Silchar. District Cachar, Assam,^Pin-788018.

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Defendants

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Presence of the Counsel :

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Sri Anil Bharali, For the Applicant^: Sri Kailash Barman, Advocales None (Ex-parte)

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Daled :1710712023

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JUDGMENT

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This is an application under section^{19 of the Recoveryof Debis Oue to Banks} and Financial lnstitutions^Act, 1993^{filed by the Puniab National Bank,(Erstwhile} United Bank of lndia), Silchar^{Branch, Central Road, Silchar,District-Cachar,Pin-} 788018, with a^prayer to^{issue Recovery Certificatefor the sumof R3.27,77'879.94} (Rupees Twenty Seven Lakhs Sevonty^{SevenThousandEight Hundred Sevonty} Nins and Paisa Ningty^{Four)onlyas on 3l-03-2022againstthe defendantswith} pendentelite and further interest thereon at the contractual^{ratetill realization, along} with cost and other relief.

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A few facts^giving rise lo the^{present applicationareas under.}

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The Defendant No. I^{is the Partnership firm and defendantNo. 2 & Late} Sankar Goala are the^{partners of the firm of the defendant No- 1 to avail theloan} Sankar Goala who also stood as^{guarantor to avail the loan during his lifetime.} Since the original^{partner as well as Guarantori.a. Sankar Goala hasexpired} hence his legal heirs^{i.e. defendanl no.3 to 10 are impleaded as the defendants.At} the material time the^{defendant No- 'l representedby Defendants No-2 and father/} husband of the Defendant^No-3 to^{10 namely Late SankarGoala have been the} customers of the applicant^{bankin the mattersof financing/trading his businessand} is liable to the applicant bank^{for the unpaid amountan interesl against lhe loan} facility they avails.

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The defendant No- 2 and^{Late SankarGoala(father/husband of the} Defendant No-3 to^{lO namely Late Sankar Goala) approached the applicantbank for}

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s[ur-t,q6r]"11 Proddm Oficar^I I Y DRT, Guwahati

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o.a. zozaozDRT-G*hau

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United Mortgage Loan on 20.06.2015 and the competent authority of the applicant bank has approved, Sanclion of Over-Draft under United Mortgage Loan Limit of Rs 20.00 Lakhs only vide sanction letter dtd 19.08.2015. The defendants accepted all the terms & conditions of the sanction letter did 19.08.2010. As per the sanction letter, the applicable rate of inleresl was 12.00% per annum with monthly rest and repayment of loan together with interest shall be repaid in 12 months. The same loan was sanclioned against the security:- Mortgage (equitable/Registered) house/flaucommercial property covering land and structures situated at Barik Nagar, NllT Silchar, in the name of Sri Sankar coala. The Property comprises of RCC building measuring 1500 Sqft on a land measuring 'l Bigha under 2"d R.S. Dag No419, 2nd R.S. Patta No-87-1/3, valued Rs.49.95 Lacs as per valuation report dtd 14.05.2015.

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ln terms of the sanction letter dtd. 19.08.201S the following documents are executed by the defendant No-2 and Late Sankar Goala (father husband of the defendant No- 3 to^'10 namety Late Sankar Goala) to avail the loan of Rs. 2O.OO Lakh only.

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'1. Oemand promissory note dated 22.08.2015 for Rs. 2O.OO Lakh onty.

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Letter of Lien dated 22.08.2015.

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Letter of Continuity dated 22.08.2015.

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Agreement under Mortgage Loan Scheme daled 22.O'.ZO1S in favour of Applicant..

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Hypothecation Agreement dated 22.OB.2OlS in favour ofApplicant.

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Consent clause of the Borrowe(s).

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The father/husband of the defendant no. 3 to^.10 in his lifetime deposited tifle deeds for equitable mortgage in respect of properties mentioned in the Schedule by way of a registered sale deed did 19.04.'1973 vide deed no.826 of land measuring 1 Bigha covered by under 2nd R.S. OagNo-4'lg, 2nd R.S.^patta No-87-1/3, pargona: Chat, Mouzasaidpur part-lll/ Bariknagar, situated at vill: Bariknagar, p.O. NlT, Silchar District Cachar, Assam.

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-Cli;$."^4^"^),,L.r, ,.rn*Jf,lo) l'3⁰ DRT. Guwahali

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O.A. 2o2l2o2zElRlGuwthtli

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ln continuation^{of the Said loan defendanthas deposited an amount of} Rs 20,000/-on^{27.02.2017,Rs 6O'OOO/-on 27 O3'2O17'Rs so'ooo/.on19062017} and Rs 40,000/-^{on 27.06'2019 in the loanaccount No-0037210035051'}

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The conduct^{of the defendantsin Cash CreditAJc No 0037210035051 had} been^{highly irregular and particularlythe repayment of the loan is in violation of} terms^{stiPulatedin the letter of sanctionAs a resultdefendantsdefaultto repay the} loan^{in the aJoresaidaccount kept and maintainedin the usuar ordinary courseof the} applicant^{bank's business and there accruedthereonRs 27'77'879'94(Rupees} Twenty^{Seven Lacs Seventy Seven ThousandEight HundredSeventy Nineand} Ninety^{Four paisa only)as on g1 03'2022} The^{defendants had availedthe loanfacility fromthe applicant bank but have} not^{paid the outstanding amounlas per terms and conditionmadewith the applicant} bank^{in spiteof repeated demandsand request by the applicantbankAs ihe loan} account^{was running extremely irregurar and due to non-payment of principal amount} and^{interest'the said account w]s ctassifred as a NPA on300g2019Afterthe} account^{became NpA the appricant bank issued noticesfor repaymentof the due} amount,^{the defendantshave neither chosen for rePaymentol lhe loan amountnor} ' approached^{to the applicant bank for renewalof the ban account'} constrained^{to fb the presentOriginal} *'" The^{applicantO"nt *u"} Application^{for the recoveryof-Rs' 27'77'879'94 (Rupo6 Twentysoven Lakhs} '"0'"0^{sovsnty Nine and PaisaNinaty Four)} SeYenty^{seven Thousand} 'tnn't only^{as on 31-03-2022along with interest and cost of the application'} issued^{no$cesupon the defendants through} After^filing '" OO *" ''"'nal seruice^{reporton o4-o&2022and brought} resistered^{post and *" 'J"; ;;} 'led with^{track consignment report which shows that} on^{recordthe postal} '"totonn Thereafter^{the Tribunal ordered} notice^{has not been seNed '" *" *"**"'} tn"^{*ndantsand the applicantbank issued notice} paper^{publicationof tt} 'O"" to the^{defendantson reO&; thtughPaper Publicatonin two newspapers namely} "The^fimes of tndi{"^O "'n Ot';^{Even after issuance"t t'} "tt *til;:ffi#

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)^^l,1 *til;:ffi# 14) Preddng^{odd'</sup> DRT'^Guwahal!}

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o A 2OZ2O2lORr-Gwahati

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publication also there was no representation on behalf of the defendants either by the counsel or the^person and hence the defendants were set ex-paie on 02-11-2022 and their right to lile wriften 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 Smti Anjana Das, Chief Manager of the Applicant Bank has filed evidence on amdavit coupled with the security documents marked as ExhibitAW-'l to AW-21, supporting the claim of the applicant bank.

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Heard the leamed counsel for the applicant bank who prayed for issuance of Recovery Certiticate against the defendants as per^pleadings made in the Application, supported by evidence on affidavit of iheir witness who affirmed on oath the execulion of the security and other documents by the defendants and also execution of their own documents relied upon, which have been markod 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 andestablishing the liability of the defendants. lt^{is proved that the} defendants are^jointly and severally liable to^pay to the applicant bank the^claim made in the Originat Application. The loan was obtained and^{documentshave been} executed on 22.08.2015. The say of the^{applicant bankis that in continuationof the} loan the defendant has deposited^{an amount of Rs 20,000/-on 27.02.2017,Rs} 6O,OOO/-on 27 .03.2017, Rs 50,000/-on^{19.06.2017 and Rs 40,000/- on 27.06.2019} in the loan account No-0037210035051.^{The account became NPAon 30-09-2019} and the OA has been filed on 02-06-2022.^{Hence,the OA is filed well within the} period of limitation and this Tdbunal having a^jurisdiclion to adiudicate the^Original Application.

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Considering the unchallenged/unrebutted^{version of Smti AnjanaDas,the} applicanl's witness and all the documents^{malkedas exhibits, includingduly certified} copy of the statement of account^{alongwithinterestcalculationsheet maintained by} the applicant Bank in^{it's regularcourse of business, I hold that the applicantis} entitled to get the Recowry Certificate^{as prayed} for. Cti.f S{g,flftf EtJ-7

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Cti.f S{g,flftf EtJ-7 u pretioimdddi'' ' DRT. Gurrahati

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O.A. 2o2/2o22,DRTCUMheli

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ln the result, the present Original Application No. 202 of 2022 is allowed with

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cost as under:-

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i) The defendants No. 1,2,3,4,5,6,7,8,9 & 10 are joinfly and severally liable to pay to the applicant bank a sum of Rs. 27,77,879.94 (Rupoos Twenty Seven Lakhs Seventy Seven Thousand Eight HundrEd Sevonty Nine and paisa Ninety Four) only with pendentelite and future interest @l2.OO% p.a. with monthly restsfrom 01.U.2022 fll the date of full paymenurealization and also cost of the application.

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The liability of the defendants No. 3 to^'10 will be to the extent of value of their shares inherited in the mortgaged property as legal heirs of the deceased Late Sankar Goala but their liability will not exceed the certificate amount, with interest @12.00^o/o p.a. and cost.

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ii) The charge of the certificated amount be kept alive on mortgaged property i.e. a plol of land measuring 1 Bigha covered by under 2d R.S. DagNo-419, 2d R.S. Patta No-87-1/3, pargona: Chat, Mouza Saidpur part-lll/ Bariknagar, situated at vill: Bariknagar, P.O. NlT, Silchar District Cachar, Assam, Which is bounded by South :- Own land, North-Land of Magram Goala, Easti Land of Muldeb Gour, West :- Road as described in Schedule of the OA till the amount is realized in full.

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

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

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v) The applicant bank is entitled to the costs of the O.A. which includes the advocate fees of the applicant bank. Applicant is directed to fite the cost memo within 2 weeks from today.

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vi) lssue Recovery Certiticate acmrdingly for a sum Rs. 27,77,879.94 (Rupe6s Twenty Seven Lakhs Seventy Ssven Thousand Eight Hundred Sevonty Nine and Paisa Ninsty Four) only in favour of the applicant bank against the defendants No. 1 ,2,3,4,5,6,7,8,9 & 10.

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:H#tr^,,-Iry

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O.A 2022022/ORT-Guw.h.li

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vi0 Communicate copy ofthis order to the concemed parties.

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This order is diciated and coffec{ed by the undersigned.

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Judgment dated 17rhJuly, 2023, signed and pronounced in the Tribunal today

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under my signature.

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal,s Website and file be consigned to Remrd Room.

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^S^{l"l Sf--,ta-} <sup>J'^,r - rsr,i,sr,".an JJJlifu I Presiding Officer ORT, cuwahati.

Punjab National Bank v. M/s Puja Plastic Industry

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Puja Plastic Industry

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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