Allowed

Punjab National Bank v. Sri Biswajit Paul

DRT25 Jul 2023OA/249/2022

Case brief

AI extract

What is this about?

DrT allowed an original application filed by Punjab National Bank praying for a Recovery Certificate. The court found the defendants liable for a cash credit limit and confirmed the application was within limitation, directing the issuance of the certificate with interest and costs.

What did the court decide?

Issuance of Recovery Certificate for Rs. 61,87,008.39 with interest and costs against defendants.

Punjab National Bank versus Sri Biswajit Paul — Banking and Recovery | DRT (2023)

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O.A. 249/2022IORT Guwahali

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal - ofAssam, Nagatand, Meghalaya, Manipur, Mizoram, Arunachal pradesh & Tripura)

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Before Shri Shiv Sharan Dubev, presidinq Officer

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O.A. No.249t2O22

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ln the matter of - Punjab National Bank Tarapur (Silchar) Branch, Station Road, P.O. Tarapur, Silchar-788003, Oist- Cachar Assam

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.........................4pp|icant

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Vs.

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Sri Biswajit Paul

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Proprietor of M/s S.P. Textiles S/o Shri Subinoy Paul

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RYo Janiganj Bazar Road, Ward No. 7

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P.O. & P.S. Silchar, Dist- Cachar

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Assam- 788001

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Shri Abhiiit Paul S/o Shri Subinoy Paul R/o Janiganj Bazar Road, Ward No. 7 P.O. & P.S. Silchar, Dist- Cachar Assam- 788001.

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Defendants

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Pressnco of tho Counsel :

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For the Applicant : Mr Gitartha Das, Ms Anamika Singha, Advocates For the Defendants : None (Ex-parte)

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Oated .25.07.2023

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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 filed by the Punjab National Bank, Tarapur (Silchar) Branch, Station Road, P.O. Tarapur,Dist- Cachar, Silchar-788003, Assam, with a prayer to issue Recovery Certificate for the sum of Rs.61,87,008.39 (Rupses Sixty One Lakhs Eighty Seven Thousand Eight and Paba Thifty Nine) only as on 31.05.2022 against the defendant with pendentelite and future interest at the contractual rate till realization along with cost and other relief.

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s0il -sta^o,"&"Ll ",",,"ro?flo) DRT. Guwshati^{I'3 y'}

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o.A. 249/2022loRT€wahali

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A few facts giving rise to the present application are as under.

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The defendant No.1 is lhe Proprietor of M/s S.P. Textile. The defendant No. 2 stood as a guarantor in connection with the said limit.

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The defendant No.1 had approached the applicant Bank on 26.08.2013 for granting a Cash Credit Limit of Rs. 48.00 lakhs. Considering his request, applicant bank vide Sanction Letter dated 26.09.2013 had sanctioned a Cash Credit Limit of Rs. 48.00 lakhs with interest @15.00% p.a. at monthly rest. The defendants executed necessary loan documents on the same day on 26.09.2013, such as Demand Promissory Note, Letter of Lien, Letter of Continuity, Hypothecation of Goods, Hypothecation of Debts & Movable Assets, Letter of Guarantee executed by defendant No.2.

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The defendants secure the cash credit limit of Rs.48.00 lakhs by creating equitable mortgage of land along with structure lhereon as described in Schedule-B of the original application by depositing Title Deeds and other relevant documents, with the applicant bank.

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The defendants have availed of the said loan facility from the applicant bank, but has not repaid the loan amounl as per the terms and conditions as agreed upon with the applicant bank in spite of repeated demands and requests by the applicant bank. As the defendants failed to repay the loan amount or renew the loan account, hence the said account became NPA on 30.03.2021. Some of the receipts dated 30.08.2016, 04.03.2019 and 24.05.2019 showing payments made by the defendants in the concerned Cash Credit Account. On 29.09.2021 the defendant No.1 confirmed the outstanding balance in the Cash Credit Account by executing Balance Confirmation Letter. After the account became NpA the applicant bank issued notices for repayment of lhe due amount, but the defendants have failed to repay the loan amounts or renew the loan account.

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The applicant bank thus became constrained to file the present Odginal Application for the recovery of Rs. 61,87,008.39 (Rupees Sixty One Lakb Eighty Sevsn Thousand Eight and paisa Thidy Nine) only as on 3i.0S.2022 atong with interest and cost of the application. s[d sl^a^4'&rq

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s[d sl^a^4'&rq e.",0,**])lc)[)r^y' DRT. Guwahali

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O A. 249/2022lDRT-Guwahali

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After filing of the OA the Tribunal issued notice upon the defendants through registered^post and the applicant bank filed service report on 31.08.2022 and brought on record lhe postal receipt along with track consignment report which shows that the notice has been served upon the defendants. Even after service is completed there was no representation on behalf of lhe defendants either though any counsel or in person and nor filed vakalatnama and written statement cum evidence on affidavit. Hence the defendants no. 1 & 2 are set ex-pane on 22.12.2022.

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Supporting the claim of the applicant bank Smt. Anjana Das, Chief Manager of the Applicant Bank has filed evidence on affidavit coupled with the security documents marked as Exhibit AW-'l/1 to AW-129, supporting^{the claimof the applicant bank.}

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Heard the learned counsel for the applicant bank who^{prayedfor issuance of} Recovery Certificate against^{the defendants as perpleadings madein the Application,} supported by evidence on aftidavit of^{their witnesswho affirmedon oath the execution} of the security and other documents^{by the defendantand 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 considered} view that the documents^{filed by the applicant bankare supporting theclaimof the} applicant bank and establishing^{the liabilityof thedefendants.lt is provedthat the} defendants are liable to^{pay to the applicantbank the claim made in the Original} Application. The loan was^{obtainedand documentshave been executedon} 26.09.2013. Some of^{the receipts dated 30.08.2016, 04.03.2019 and 24.05.2019} showing^{paymentsmade by the defendants in lhe concerned Cash Credii Account'} On 29.09.2021 the^{defendant No.lconfirmed the outstanding balancein theCash} Credit Account by executing^{BatanceConfirmation Letter.The account became NPA} on 30.03.2021 and the^{OA has been filed on 05.07.2022. Hence,the OA is liledwell} within the^period of^{limitation and this Tribunal having a jurisdictionto adjudicate the} Original Application.

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Considering the unchallenged/unrebutted^{version of Smt. Anjana Das,the} applicant's witness^{and all the documentsmarkedas exhibits, including duly certified} copy of the statement^{of accountalongwith inlerest calculation sheet maintained by}

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sI;s.f,grfi}-v " Presidlngoffcdr^' ORT, GuYrehali

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O A 249/2022loRT-Guwah.li

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the applicant Bank in il's regular course of business, I hold that the applicant is entitled to^get the Recovery Certilicate as^{prayed for.}

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ln the result, the^present Original Application No. 249 of 2022 is allowed with cost as under !

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i) The defendants no. 1 & 2 are^jointly and severally liable to^pay to the applicant bank a sum of Rs.61,87,008.39^(Rupees Sixty^{One Lakhs Eighty Seven} Thousand Eight and Paisa Thirty Nine) only^{with pendentelite and future} interest @15.00%^p.a. with monthly rests^{from01.06.2022till the date of full} paymenurealization and also cost of the application.

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ii) The charge of the certificated amount^{be kept aliveon hypothecated properties} as described in Schedule-A ofthe^{OA till the amount is realizedin full.}

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iii) The charge of the certificated^{amount be kept alive on mortgaged property i.e.} a shop measuring 9'x35'in^{the groundfloor of R.C.C building and open} space of the said^{R.C.C. building measuring 16' X 31' and AssamType} House measuring 35'^X 58'-2'situated^{on land measuring 2 Kathas 8 Chataks} 15 Gondas covered by Dag^{No. 8080,2nd R.S. Patta No. 1024, Mouza-} Silchar Town, Pargona-Barakpar,^{District- Cachar,Assam and is bounded by:-} North: Subinoy Paul^{and SandhyaPaul, South:Safiq UllaKhan,East:} Municipal Drain, West:^PWDRoad ,^{as describedin Schedule-B of the oA till} the amount is realized^{in full.}

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iv) The applicant bank^{is entitled to proceed against thesecured items towards} recovery of the debts.

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v) The applicant bank^{is also entitledto proceedagainst the personal assets and} properlies of the defendants towards^{recovery of the dues.}

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vi) The applicant^{bankis entitledto the costs of the O A which includes the} advocate fees^{of the applicant bank. Applicantis directedto file the cosl} memo within^{2 weeksfrom today.}

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vii) lssue Recovery^{Certificate accordingly Ior a sum ofRs' 61'87'008'39} (Rupees Sixty Ono Lakhs^{EightySeven Thousand Eight and Paisa Thirty} Nine) only in favour^{of the applicant bank against the defendants no 1 & 2.}

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SLi, cl,ar,7-!,+1 >)tn)t}r, Presiding Olficer^I r/ DRT, Guwahal'

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O A 249/2022lDRI,Guwahatr

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viii) Communicate copy of this order to the concemed parties.

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This order is dictated and corrected by the undersigned.

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Judgment dated 2Sb July 2023, signed and pronounced in the Tribunat today under my signature.

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copy of the Judgment/Finar order be uproaded in the Tribuna.s websire and file be consigned to Record Room.

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\Lrr<sup>t r6'{4\t )(lI (Shiv Sharan Dube! Presiding Officer ORT, cuwahati.

Punjab National Bank v. Sri Biswajit Paul

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sri Biswajit Paul

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

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Case details

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