Allowed

Punjab National Bank v. R K Trading Co.

DRT3 Nov 2023OA/267/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of dues totaling Rs. 25,97,016.01 along with interest. The court issued a recovery certificate under Section 19(2) of the RDB Act and restrained the defendants from alienating assets.

What did the court decide?

The defendants ordered to pay Rs. 25,97,016.01 with 12% p.a. interest; Recovery Certificate issued under S. 19(2); restraint on alienation of assets.

Punjab National Bank versus R K Trading Co. — Contract and Commercial Disputes | DRT (2023)

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DEBTS RECOVERY TRIBUNAL : JABALPUR

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(for the States of Madhya Pradesh and Chhattisgarh)

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(Presiding Officer - Hon'bte Shri Ram Niwas Patet)

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Originol Applicotion No. - 267122

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Punjab National Bank, Bairagarh, Bhopal (M.P.)

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..... Applicant

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Versus

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1. M/s R.K. Trading Co., Through its ProprietorShri Gori Shankar poptani

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1. Shri Gori Shankar Poptani, 5/o Shri Prabhudas Poptani @ Shri Prabhdas Poptani

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1. Shri Ghanshyam Poptani, 5/o Shri Prabhudas Poptani

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Ml Shri Naresh Kumar Poptani, S/o Shri Prabhudas Poptani

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1. Shri Rajkumar Poptani, S/o Shri Prabhudas Poptani

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(Att R/o House No.-B-47l483, Near Gidwani Park, Bairagarh, Bhopal, M.P. 462030)

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..... Defendants

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Counsel for the Applicant : Shri Kapil Duggat, Advocate Defendants : Ex-parte

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JUDGMENT

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(Dated :^(Rrd Noiernber,2O23l

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The Applicant-Bank has fited the present Originat Apptication u/s 19 of Recovery of Debts and Bankruptcy Act on 17102122 against the Defendants for recovery of Rs. 25,97,016.01 (Rupees Twenty Five Lac, Ninety Seven Thousand Sixteen and Paisa One onty) along with interest and other reliefs as stated.

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The brief facts of the case are that on the request of Defendant No.-1 through its Proprietor Defendant No.-2, the Appticant Bank sanctioned Cash Credit Limit of Rs. 10 Lac on 18112102 which was subsequently enhanced to Rs. 20 Lac on^'13108/05. ln consideration of the sanction of CC timit the Defendant No.-1 & 2 as borrower and Defendant

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oA267122

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No.-3 to 5 as^guarantors in addition to^{executionof loan and guarantee} documents have also created^{equitabte mortgage over the immovabte} properties betonging to Defendant No.-2, i.e.,

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i) Residential property bearing House^{No.-NewB-47l483(Sourth} Part), Near Gidwani Park, Bairagarh,^{Bhopat,constructedon Ptot are 525} sq.ft.

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ii) Flat No. G-3^(Ground Floor),^{Monica Apartment, PlotNo.-62,} Vatlabh Nagar, Latghati, Tehsit'Huzur,^{Ward No.-3,Bhopat, admeasuring350} sq.ft.

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The Defendant No.-1 & 2 availed^{the cashcredit facitity and also} executed Batance and Security^{Confirmation Letter on 05107119. The} account became irregutar^and the^{Defendantsfaited to liquidatethe} outstanding dues despite issuance^{of RecallNotice on 22111119under the} Securitisation Act by the^{ApplicantBank. The Applicant'Bankhas relied upon} the documents at^{Ex. A-1 to A-26which were provedby Shri Harish Kumar} Agarwal, Senior Manager.

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Despite service of notice, the^{Defendants neitherappeared nor} fited written statement.^{They were proceededex'parte vide order dated} 10111122. There^{is therefore,no reasonto disbelievethe contentionsof the} Bank. Considering the facts of^{the case, I opine that the Defendantsare} jointty and severatty tiabte to pay the ctaim amount^{togetherwith interest} and costs. The^{Applicant-Bankin its apptication has ctaimedinterest} @12.75%^{p.a. with monthty rests. However,lfeel it fair and reasonabteto} grant interest @12%^p.a. simple^{pendentetite and future titl realization of} the dues. The^{mortgagedpropertiesare tiable to be sotd for recoveryof} amount due atong^{with the personalpropertiesand assets of the Defendants.}

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4, The Originat Apptication^{is attowed and it is orderedas under'}

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i) The Defendants do^{pay jointlyand severattyRs' 25,97,016'01} (Rupees Twenty Five Lac,^{Ninety SevenThousand sixteen and Paisa one} onty) together^{withpendentetite and future interest@12% per annum simple} fromthedateoffitingoftheOA,i.e.,lTl02l22,withcoststitlits realization.

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ii) The Appticant^{Bank is entitledto sett the mortgaged as wetlas} personal properties and assets^{of the Defendantsfor realizationof its dues.} The Defendants are^{hereby restrained by means of iniunctionfrom}

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oA267122

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depleting, transferring, encumbering, atienating or in any way dealing with their properties/assets without first paying the claim of the Applicant Bank.

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iii) A Recovery Certificate be issued uls 19(221 of Recovery of Debts and Bankruptcy Act. The appticant bank may fite a memo of cost within 7 days for preparing Recovery Certificate.

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Judgment pronounced in the open court on this Day of 03td November,2023.

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r. *
N sP (L. atet
Presidine Officer

Punjab National Bank v. R K Trading Co.

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. R K Trading Co.

Case brief

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What did the court decide?

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