Allowed

Punjab National Bank v. Akhilesh Kumar Singh @ Bara Babu Singh

DRT5 Dec 2023OA/241/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Patna, allowed an ex-parte application by Punjab National Bank for recovery of dues of Rs. 27,51,585 from the defendant. After determining the claim genuine and the defendant absent, the Tribunal ordered recovery with interest and issued a Recovery Certificate under Section 19 of the RDB Act.

What did the court decide?

Recovery Certificate issued for Rs. 27,51,585 plus interest and costs; mortgaged assets attached for sale.

Punjab National Bank versus Akhilesh Kumar Singh @ Bara Babu… — Banking and Recovery | DRT (2023)

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OA241of2"lJ1

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DRT. PATNA

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding offlcer : Shri Kaushalendra Yadav

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OA Case No. 241 of 2022

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Punjab National Bank, Branch at Lakhaura, District- East Champaran, Bihar

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•...... Applicant

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Vs.

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Akhi]esh Kumar Singh @ Bara Babu Singh, S/o Late Alalch Narayan Singh, R/o Village Basbita, PO + PS- Lakhaura, District- East Champaran- 845302, pan No.CYXPS6083C

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...... Defendant

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Present:

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For the Applicant : Shri Arvind Kumar, Advocate For the Defendant : None

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Dated: 05.12.2023

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JUDGMEINT

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1- The Applicant bank has made this application u/s l9 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 24.03.2022 against the defendant to recover its debts from defendant of Rs.27,51,585/-as on 28.02.2022 along with pendente-lite and future interest at the contractual rate from 01.03 .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 areas under-

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The applicant bank is a body corporate constituted under the Banking Companies (Acquisition and Transfer of undertaking) Act 1970, which is competent to file a suit.

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Defendant is an agriculturist and approached the applicant bank for sanction of Kisan Credit Card Limit of Rs.10 Lakh vide loan application dated 10.08.2015 and at the request of the defendant, the applicant bank sanctioned KCC facility of Rs.10 Lalth vide sanction letter dated 14.08.2015 on various

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oA 241 of 2o22r]i

DRT. PATNA

terms and conditions, which were duly accepted by the defendant. The rate of interest was agreed by the defendant as 12.25% .

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To secure the loan facility the defendant executed relevant loan and security documents and also hypothecated the movable in favour of the applicant bank by executing hypothecation agreement.

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In order to further secure the loan facility the defendant has also created registered mortgage of his immovable properties in favour of the applicant bank by depositing title deeds with other related documents, details of properties have been given in Schedule-I of the O.A. Defendant has also acknowledged and confirmed the liability by executing the balance and security confirmation letter dated 17.03 .2018 in favour of the applicant bank.

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After availing the sanctioned credit facility defendant became irregular in repayment of its 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 01.07 .2021.

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Thus the total liability in the loan account is Rs.27,51,585/- with pendent-lite and future interest contractual rate from 01.03.2022 till the realization.

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Since, the defendant has 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- This Tribunal issued summons/notice, copy of application & paper book to the defendant by registered/speed post on 17.05.2022, requiring him to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. But the defendant has 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

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PATNA

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OA 241 of 2022TJl

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advertisement in newspaper was also made against the defendant on 21.05.2023 in "Prabhat Khabar " newspaper.

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Despite the registered summons/notices and publication of notice in newspaper, the defendant has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant to defend its case, but he failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendant on 17.08.2023 .

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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 by Shri Shailendra Kumar, Chief of the applicant bank. The details of documents are as follows:

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Sl.No	Description of Documents Photocopies	Date of Execution	Amount (in Lakh)	Signature of Executants	Ex./ Arm. No.
1	Loan application	10.08.2015	10.00	Defendant	1
2	Letter of sanctionandletterofacknowledgement	14.08.2015	10.00	Bank	2
3	Hypothecationagreement,letter ofundertaking,letterofconsentandletterogrequest	14.08.2015	10.00	Defendant	3
4	Master undertakingandconsentclause	14.08.2015	10.00	Defendant	4
5	Balance and securityconfirmationletter	17.03.2018		Defendant	5
6	Photocopy ofmortgagedeed	19.09.2015		-	6
7	Statement of account			Bank	7

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6- Heard arguments for leaned counsel for applicant bank and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendant has 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. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant

utb^,,

PATNA

OA 241 Of 2022TJl

bank in its usual course of business. 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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It is further submitted by ld. Counsel of applicant bank that there is no stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to is'sue recovery certificate, as claimed for, in OA.

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7- It has been established that the defendant is living and carrying on its 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 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 applicant bank has declared the account as NPA on 01.07.2021, whereas the present application has been filed on 24.03.2022. 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- Shri shailendra Kumar, Chief Manager of the applicant bank has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

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10- Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application u/s S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

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The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993, provides that if the defendant denies his liability to pay the claim made by the applicant, the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record

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OA 241 of 2022lJl

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DRT. PATNA

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sworn the affidavit in respect of the contents of the application and the \ documents as evidence.

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The rule 12 (11) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker's Books evidence that Act,1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker's Books furnished along with application filed under sub section 1 of section 19 by the applicant.

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Section 4 of Banker's Books evidence that Act,1891 runs as under-

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S.4. Mode Of proof Of entries in bankers' books.-Subject to the provisions Of this Act, a certified copy Of any entry in a banker's book shall in all legal proceedings be received as prima facie evidence Of the existence Of such ertry, and shall be admitted as evidence Of the matters, transactions and accounts therein recorded in every case where, and to the same extehi as, the original entry itself is now by low admissible, but not fwither or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statement of account, more so since the entries in the statement of account have not been challenged

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11- On consideration of the arguments and on perusal of the application, documents and affidavit, it is proved that the defendant has applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendant has executed various loan documents, as stated in the application and prove by afore said evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor has pointed out any specific error and discrepancy in the Statement of Account.

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12- The applicant bank has sought for recovery of a sum of Rs.27,51,585/with cost and further interest at the contractual rate from 01.03.2022 till realization.

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13- The evidence discussed above goes to establish that the claim made by the applicant bank is genuine and true. It is manifest that the defendant has 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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PATNA

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OA 241 Of 2022lJl

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14- In 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 defendant of Rs.27,51,585/-along with pendente-lite and future interest @ 12.25% p.a. with compounded monthly rests from 24.03.2022 (The date of filing of this OA) 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 ex-parte and debt is determined with costs against the defendant. The defendant is hereby, ordered to pay the applicant bank its debt amounting to Rs.27,51,585/along with pendente-lite and future interest @ 12.25% p.a. with compounded monthly rests from 24.03.2022 (The date of filing of this OA) 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 defendant, be deducted in the claim amount, if not deducted.

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Defendant is 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 Offlcer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendant, by sale of mortgaged/

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DRT. PATNA

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OA 241 Of 2022TJl

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hypothecated assets as well as other personal movable/immovable assets of the defendant.

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Parties are directed to appear before the Recovery Offlcer, DRT, Patna on 11.01.2024. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on o5th day of December, 2023.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Offlcer Debts Recovery Tribunal, Patna

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roRM No. 9 [See Regulatun 24( I )]

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. 8 & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patnano00025.

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RECOVERY CERTIFICATE UNI)ER SECTION l9(I) REAI) WITIII SECTION 19(22) OF TIIE RECOVERY 0F DEBTS & BANKRUPTCY ACT;J222, AS AMENDEI) FROM TIME TO TIME.

RCNo.746#02J

Case No: OA/24l#022

In the Matter of: - (CH- I) PUNJAB NATIONAL BANK

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BRANCH OFFICE LAKHAURA PURBA CHAMPARAN ,BIHAR -0 .

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

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TO, (CD- I) AKHILESH KUMAR SINGH @ BARA BABU SINGH . S/o Late Alalch Narayan Singh R/o VIllage Basbita; ,PO PS Lakhaura, Purba Champaran ,BIHAR -845302

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Applicant(s) Defendant(s)

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Recovery Certificate for Rs 275158S.00 [E!!pees Twenty Seven Lakhs Fifty' One Thousands Five IIundred Eighty Five Olll]L]

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In terms of final order dated 05/12/2023 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. 2751585.00 along with cost, expenses and interest from the 24/03#022 i.e. date of filing / with effective date of the OA/241#022 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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I nt. Interestl(asoni iRemark;I
sr.i iCDNameiI Loan Int. Effective Order Amount(Rs.)I Liability RC
type rtype/Mode Rate Date Date type Amount(Rs.)
Bra::,i
i)`2.251
CompoundInterest(Monthly) i2751585. 0 i I\II
24/03/2022 05/12/2023 Fully 2751585.00
•1 BARABABUslNGH . i

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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 movable/ 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.

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Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 11/01/2024.

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The Recovery Offlcer 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 Certiflcate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 05/12/2023

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`,1. .

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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. 8 & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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(GPOA), Ashiana Digha Road, Patna-800025 .

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SCHEDULF TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 746/2023

Case No: OA/241/2022

Applicant(s): PUNJAB NATIONAL BANK

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Versus

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Defendant(s): AKHILESH KUMAR SINGH @ BARA BABU SINGH

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Sr. No.	Item of Costs	Amount in Rs.
I.	Fee on the application	30000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
4.	Commis sioner/Receiver/Valuation/Security Fee	0
5,	Miscellaneous charges	I0
	Total Costs: Rs.	30000

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Place: PATNA

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Date: 05/12/2023

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PRESIDIN ffl[i,ra"I ER DEBTS RECOVERY TRIBLINAL PATNA

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Note: Strike out whichever is not applicable

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DEBTS RECOVERY TRIBUNAL, PATNA

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Date of order or roceeding	Order with the Signature of the Court
	OA 241 of 2022
05.12.2023	Judgment written on separate sheets, kept on the case file an
	pronounced. Certificate of recovery be issued to the ld. Recovery Officer fo its execution.

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Office action
taken with
date

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05.12.2023	Certificate u/s 19(7 & 22) of the RDB Act,1993 as amended from
	time to time in the form no. 09 of the Rules and procedures made thereunder prepared and signed by me for sending it to ld. Recovery
	Offlcer for its execution in accordance with law. I/ Presiding Officer

Punjab National Bank v. Akhilesh Kumar Singh @ Bara Babu Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Akhilesh Kumar Singh @ Bara Babu Singh

Case brief

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What did the court decide?

What the court decided

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