Allowed

Punjab National Bank v. Ahmed Rinku

DRT23 Jun 2023OA/259/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 of the RDDBFI Act by Punjab National Bank for issuance of a recovery certificate against two defendants for Rs. 33,72,261.84 with interest, holding them jointly and severally liable and enabling proceedings against secured and personal assets.

What did the court decide?

Issuance of Recovery Certificate for Rs. 33,72,261.84 with pending interest; respondents declared jointly and severally liable; charge alive on secured properties.

Punjab National Bank versus Ahmed Rinku — Banking and Recovery | DRT (2023)

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9-A 259a2t)22lDRT€ue.ndi

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal of Assam. Nagaland, Meghalaya, Manipu., Mizoram, Arunachal pradesh & Tdpura)

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BefoB Shri Shiy Sharen Dubev. Pr6idinq Ofncor

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O.A. No. 25912022

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ln the matter of-

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Punjab National Bank Zonal Sastra Centre, Hem Baruah Road, Panbazar, Guwahati-781 001.

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Appricant

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v3.

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L Ahmed Rinku S/o Md. Lokman Ali Village- Doyapur Part-1, P.O. Dumurghat, P.S. Udharbond, Sub-.Division- Silchar,

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Districl- Cachar, Assam-78801 3.

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Md. Lokman Ali S/o Late Faman Ali Village- Doyapur Part-1, P.O. Dumurghat, P.S. Udharbond, Sub-Division- Silchar, Oistrict- Cachar, Assam-788013.

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Defendants

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Prc3ence of the Coun3el :

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

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Dated :2310612023

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JUDGMENT

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This is an application under seclion 19 of the Recovery of Oebts Due to Banks and Financial lnstitutions Act, 1993 filed by the Punjab National Bank, Zonal Sastra Centre, Hem Baruah Road, Panbazar, Guwahati-78'l 001, \ith a^prayer to issue Recovery Certiflcate for the sum of Rs. 33,72,261.E4^(Rupe€ Thirty Throe Lacs Seventy Two Thousand Two Hundrod Sixty Ono and Paise Eighty Four) only as on 31.05.2022 against the defendants with^pendentelite and future interest at the contractual rate till realization along with cosi and other relief.

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A few facts giving

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the^present application are as under. C}rr]".\f lvLla,+ilt , "-od"no;":Jfl DRT, Guwahali^{I?-l y}

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OA 2592022/DRT-Gmahan

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The defendant no.'t^{is a business manwho availed cash creditfacility upto Rs} 26.00 Lakhs from the^{applicantbank for business purpose.The defendant no.2 stood} as a^{guarantor in connection with the said cashcredit limit besides creating equitable} mortgage of his land^{with structure thereon (Schedule-B to the OriginalApplication).} Pursuant to an application^{for accommodationdated '1802'll by the} defendant no.1,^{the applicant after considering his request sanctionworking capitalin} form of cash credit^{limitupto Rs 1.60 lakhs vide sanction letterdated'19.02 11 As per} the said sanction^{lettertheborrower is requiredto pay interest@ 12 % p a monthly} rest. The cash credit^{limit is repayableon Applicant'sdemand'}

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ln order to avail^{the cash credit limit upto Rs. 1.60 Lakhs the defendants}

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executed the following^{loan documents-}

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a. Demand Promissory^{Note dated 19.02.2011executedby defendantno 'l '}

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b. Letter of Lien^{dated19 02.20'11executedby defendant no 1'}

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c. Letter of Continuity^{dated '19.02.2011executed by defendant no 'l '}

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d. Hypothecation^{of Goodsdated19.022011} '

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e. Hypothecation^{of Debts& Movable Assetsdated'19 02 201 1'}

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f. Letter of Guarantee^{dated19.02.2011 executedby the defendantno 2'}

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After executing^{the above loan/security documentsthe defendant(s) availed the} cash credit^{limit of Rs 1.60 Lakhs from the Applicant Bank'}

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Pursuant to the further^{requestof defendantno l for enhancingthe cash credit} limit, the applicanl^{after considering his request enhancedthe cashcredit limit uptoRs} 4.50 Lakhs^{vide sanction letterdated O8O5'l2 As per the saidsanction letter the} borrower^{is requiredto pay interest@ '13 45 o/oP a monthlyrest Thesaid cash credit} limit was for^{one year and repayableon Applicant'sdemand'}

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lnordertoavailtheaforesaidcashcredit|imituptoRs4-S0lakhsthe

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defendants^{executed the following loan documents-}

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a. Demand^{Promissory Note dated08 05 12 executed by defendantno 1'}

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b. Letter^{of Lien dated 08.05,'12executed by defendantno l '}

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c. Letter^{of Continuitydated 08'0512 executed by defendant no l '}

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d. Hypothecation^{Agreement dated08 05 12'whereinthe borrower}

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\lir^{ct"rvi')01't'} Presiding^Omcey' ORT. Guwahati

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O.A 2592022ORI€u!rah.0

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hypothecated the stock of Grocery & Stationery^{goodsetc (SCHEDULEA of} the OA), to the Applicant^{Bank as first charge etc.}

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e. Letter of Guarantee dated^{08.05.12 executedby the defendant no.2.}

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After executing the above^{loan/securitydocuments the defendant(s)continues} to avail the cash credit^{limit uptoRs 4.50 Lakhsfrom the Applicant Bank.}

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Pursuant to the further^{requestof the defendant no.1 for enhancingthe cash} credit limit, the applicant after^{considering his request enhancedthe cash credit limit} upto Rs 9.50 Lakhs^{vide sanclionletter daled 04.03.14.As per the said sanction letter} the borrower is required^{to pay interest} @^{13.500/6p.a. monthlyrest.The cash credit} limit was for one^year and^{repayableon Applicant's demand.}

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ln order to avail the^{cash credit limit upto Rs 9.50 lakhs the defendants} executed the following^{loan documents-}

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a. Demand Promissory^{Notedated04.03 14 executed by defendantno 1.}

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b. Letter of Lien dated 04.03.14^{executedby defendant no.1.}

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c. Letter of Continuity^{dated 04.03.2014 executed by defendant no.1.}

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d. Hypothecation of^{Debts & Movable Assets dated()4.03.14whereinthe} bonower hypothecated^{the assets created out of the applicant'slinance(SCHEDULE-} A of the OA).

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e. Hypothecation^{Agreementdated 04.03.14wherein the borrower} hypothecated the^{goods, book debts, Plant & Machineriescreatedout of the} applicant's linance^{(SCHEDULE-A of the OA).}

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f. Letter of Guarantee^{dated04 03.2014 executed by defendant no 2'}

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After executing^{the above loan/security documentsthe defendants continuesto} avail the cash credil^{limit upto Rs 9.50 Lakhs from the ApplicantBank'}

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Pursuant to the furlher^{requestof defendant no.'l dated NIL for enhancingthe} cashcreditlimit'theapplicantafterconsideringhisrequestenhancedthecashcredit limit upto Rs 18.00^{Lakhs vide sanction letter dated15.02.16.As perthe said sanclion} lefter the bonower^{is required to pay lnterest} @^{12.65 % p.a monthly rest The cash} credit limit was^{for one year and repayableon Applicants demand'}

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ln order to avail^{the Cash Credit Limit of Rs 18.00 Lakhs the defendants}

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executed the following^{loan documents} -

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" t[*lCl^au,.9"1 21lt1l)\ Presiling Ollcert^' DRT, Gue$eli

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O A 259/202zDRT-6uwahaii

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a. Demand Promissory Note dated 15.02.'16 executed^{by defendant no.1.}

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b. Letter of Lien dated 15.02.'16 executed by^{defendant no. l.}

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c.. Letter of Continuity dated 15.02.2016^{executed by defendant no.1.}

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d. Hypothecation Agreement dated^{15.02.16 wherein the borrower} hypothecated the^goods, book debts, Plant & Machineries^{includingthe stocks of} grocery items created out of the applicant's finance^(SCHEDULE-A of the OA).

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e. Letter of Guarantee dated 15.02.2016 executed^{by defendant no.2.}

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The defendants no. 2 secure the Cash^{credit limit 18.00 Lacs by creating} equitable mortgage of^{land measuring 1 Bigha 2 Katha2 Chatakwith structure} thereon covered by Dag No.73,^{2nd R.S.Myadi PattaNo.22, Mouza- DayapurPart-l,} Pargona-Udharbond, Distdc!^{Cachar,Assam (Schedule - B of the OA)by depositing} with the applicant bank the^{title deedson 15.02.16.}

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After executing the loan/security^{documents the defendants continues io avail} the cash credit limit upto^{Rs 18.00 Lakhs from the Applicant Bank,}

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Pursuant to the further request dated^{14.03.17 of defendantno.1for enhancing} the cash credit limit, the applicant^{after consideringhis request enhancedthecash} credit limit upto Rs 26.00^{Lakhs vide sanction letter daled 06.05-17. As perthe said} sanction letter the bonower^{is required to pay lnterest} @^{12.10o/o p.a. monthly rest.} The cash credit limit is^{for one year and repayable on Applicanfs demand. The} properties hypothecated and mortgaged to the bank earlier are^{also extended to} secure the enhanced limit.

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ln order to avail the Cash Credit^Limit of^{Rs 26.00Lakhs the defendants} executed the following loan documents -

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a. Declaralion of Sole Proprietorship^(Form No.DO) by the defendant no.'1.

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b. Declaration on execution of documents by the defendants dated 06.05.2017

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by the defendants.

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c. Demand Promissory Nole dated 26.05.17 executed by defendant no.1.

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d. Letter of Lien dated 06.05.17 executed by defendant no.1.

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e. Letter of Continuity dated 06.05.17 executed by defendant no.1.

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.\lt.l d'aU"' )* 231e6 121 PE.iding Ofic€l ORT, Gurvahati

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OA 25920220RI-Guwahan

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f. Hypothecation Agreement dated 06.05.'17 wherein the borrower

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hypothecated the goods, book debts, Plant & Machineries including the stocks of grocery and stationery items created out of the applicant's Iinance (SCHEDULE-A of the oA).

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g. Hypothecation of Movable Plant and Machinery dated 06.05.17 wherein the borrower hypothecated the stocks in trade of^grocery and stationery items created out of the applicant's finance^(SCHEOULE-A of the OA).

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h. Letter of Guarantee daied 06.05.17 executed by defendant no.2.

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After executing the loan/security documents the defendants continues to avail the cash credit limit upto Rs 26.00 Lakhs from the Applicant Bank.

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The defendants enioyed the benefit of cash credit limit upto Rs 26.00 Lakhs but were not regular in repayment of their dues. On 01.09.2020 the Cash Credit Account No. 0,143250023940 of the defendant no.l was reclassified as NPA. On 02.06.22 the Applicant lssued demand notice through its Counselto the defendants asking them to clear the entire outstanding dues, but the defendants failed to clear the same. The said demand notice dated 02.06.22 was sent by regd. post A,/D to the proper addresses of the defendants.

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The defendants had availed the said loan facilities from the applicant bank but have not paid the outstanding loan amount as per terms and mnditions as agreed upon with the applicant bank, in spite of repeated demands and request by the applicant bank. As the defendants failed to repay the loan amount, the said acmunt became NPA on 0l/0920. On 26.05.2017,25.01.2019 and 29.02.2020 the defendant No. I conlirmed the outstanding balance in the cash credit account by executing Balance Confirmation Letters. After the account became NPA the applicant bank issued notices for repayment of the due amount, bul the defendants have neither chosen for repayment of the loan amount in the cash credit accounl nor approached to the applicant bank for renewal of the cash credit account.

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The applicant bank thus became constrained to file the present Original Application for lhe recovery of Rs. 33,72,261.84^(RUp3e3 Thirty Three Lacs Seventy

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.(Liu c]^ara* )*1" "**rnoBJla DRT, Guwahali^l)j

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o.A. 2592022/DR1€u{!hati

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Two Thousand Two Hundred Sixty One and PaisE Eighty Four) only as on 3'1.05.2022 along with interest and cost of the application.

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After filing of the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank filed service report on 06.09.2022 containing the postal receipts and the track consignment report. lt is observed that the summons have not been served upon the defendants. Thereafter the Tribunal ordered paper publication of notice upon the defendants and the applicant bank issued notice lo the defendants on 21.09.2022 through^{paper publication} in two newspapers namely namely 'Easfem Chronicle" and^,'pnntojyoti Dainik,. Even after issuance of notic€ upon the defendants through paper publication also lhere was no representation on behalf of the defendants either by the crunsel or the person and hence the defendants were set ex-parte on 02.02.2023 and their right to fire written statement cum evidence on affidavit was crosed and the matter was posted for hearing on beharf of the applicant bank.

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Supporting the claim of the applicant bank Smt Anjana Das, Chief Manager of the Applicant Bank has fled evidence on affdavit coupled with the security documents marked as Exhibit AW-'l/1 lo AW-1/SS supporting the claim of the appticant bank.

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Heard the learned counsel for the applicanl bank who prayed for issuance o, Recovery Certificate against the defendants 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 documenrs by the defendants and arso execution of their own documents relied upon, which have been marked exhibits.

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I have carefully perused the documents on record including original application, evidence on affidavit and exhibited documents.

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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 and establishing the liability of the defendants. lt is proved that the defendants are liable to pay to the applicant bank the claim made in the Original Application. The loans were obtained and documents have been executed on 19.02.2011, 08.05.2012, 04.03.2014, 15.02.2016 & 06. 05.2017. On 26.05.2017,

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(1..],,,-tAaw $!r.r ORT, Guwahali ".r"r#lft/zq⁽

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O A. 2592022/oRT-Gu{'ahali

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25.01.2019 and 29.02.2020 the defendant No. I confirmed the outstanding balance in the cash credit account by executing Balance Confirmation Letters. The account became NPA on 01.09.2020 and the OA has been tiled on O4.O7.2022. Hence, the OA is filed well within the period of limitation and this Tribunal having a^jurisdiction to adjudicale the Original Application.

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Considering the unchallenged/unrebutted version of Smt Aniana Das, 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 Certificate as^prayad for.

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ln the result, the^present Original Application No. 259 of 2022 is allowed with cosl as under:-

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i) The defendants No.^'l & 2 are^jointly and severally liable to^pay to the applicant bank a sum of Rs. 33,72,261.E4^(Rupeos Thlrty Three Lacs Seventy Two Thousand Two Hundred Sixty One and Paise Eighty Four) only with psndentelite and future interest @12%^p.a. with monthly rests from [email protected], till the date of tull^{paymenurealization} and also cosl of the application.

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ii) The charge of the certificated amount be kept alive on^hypothecated properties, as described in Schedule-A of the OA till the amount is realized in tull.

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iii) The charge of the certificated amount^{be kept alive on mortgagedprop€rty} i.e. land measuring I Bigha 2 Katha 2 Chatak covered^{by Oag No. 73, 2d} R.S. Myadi Patta No. 22, Mouza- Dayapur^{Part-|, Pargona-Udharbond,} District- Cachar, Assam and bounded by^{: North: PWD Road; South: Property} of Md. Mazahir Uddin Barbhuiya;^{East Sri DineshNath & others} ;^West: Property of Md. Mazahir Uddin Barbhuiya,^{as described in Schedule-Bof the} OA till the amount is realized in^full.

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iv) The applicant bank^{is entiiledto proceed against thesecured} items towards recovery of the dues. s),r,,s.Lar,+* -

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s),r,,s.Lar,+* - >3lrE^E,,L l2g PEsidngoffcor I '- DRT, Guwahati

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9.A. 2592o2zDRrc{,w.hrri

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v) The applicant bank is also entitled to proceed against the personalassets and properties of the defendants towards recovery of the dues.

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v0 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 lile the cost memo within 2 weeks from today.

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vii) lssue Recovery Certificate accordingly for a sum Rs. 33,72,261.84 (Rupeos Thirty Three Lacs Seventy Two Thousand Two Hundred Sl{y One and Paise Eighg Four) in favour of lhe applicant bank againsl the defendanls No. 1&2.

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viii) Communicate copy of this order to the concemed parties. This order is dictated and conected by the undersigned.

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Judgment dated 23d June 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 Websile and file be consigned to Record Room.

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\ [..,vst.otf. fl'tt-.^l (Shiv Sharan Dubey)^J Presiding Officor DRT, Guwahati

Punjab National Bank v. Ahmed Rinku

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ahmed Rinku

Case brief

What is this about?

What did the court decide?

What the court decided

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