Allowed

Punjab National Bank v. Ms Basanti Soap Industry

DRT25 Jul 2023OA/274/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Punjab National Bank to issue a recovery certificate for Rs. 42,54,148.18 along with future interest and costs against two defendants, confirming their liability and keeping charges alive on secured properties.

What did the court decide?

Recovery certificate issued for Rs. 42,54,148.18 with future interest at 13.75% p.a., costs to applicant, and charge kept alive on secured properties.

Punjab National Bank versus Ms Basanti Soap Industry — Execution and Attachment | DRT (2023)

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O A 274l2o2zoRT4uwahati

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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, Manipur, Mizoram, Arunachal Pradesh & Tripura)

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Before Shri Shiv Sharan Dubey. Presidinq Officer

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O.A. No.27412022

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ln the matter of - Punjab Naiional Bank Kamakhya Branch, Maligaon, Guwahati-781 01 2, ln the District of Kamrup^(Metro), Assam.

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Applicant

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Vs.

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M/s Basanti Soap lndustry A Proprietorship firm,Represented by^its Proprietor Mr. Riju Prasad Sarma,

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A.T Road, Kamakhya Gate,^{Near TVS Showroom,}

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Guwahati- 781011, in the Oistrict of^{Kamrup (Melro),Assam}

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Mr. Riiu Prasad Sarma Son of Late Rebati Prasad Sarma, Resident of Kamakhya^{Temple,Guwahati-78101 0,} ln the District of Kamrup^{(Metro), Assam.}

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Defe nda nts

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Presence of the^Counsel:

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For the Applicant^: Sri Shoubhik Chanda, Advocate For the Defendants^: Sri M K Das, Advocate (Right to file WS cum EA closed)

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Daled .2510712023

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JUDGMENT

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This is an application^{under section 19 ofthe Recoveryof DebtsDue to Banks} and Financial^{lnstitutionsAct, 1993filed by the PunjabNational Bank, Kamakhya} Branch, Maligaon,^{Guwahati-781012,ln the District of Kamrup (Metro), Assam,with a} prayer to issueRecovery Certificate^{for the sum of Rs.42'54,148't8(Rupeos} Forty Two Lakhs^{Fifty Four Thousand One Hundred Forty Eighi and Paisa} Eighteen) only as on^{30.06.2022 againstthe defendantsjointly and severallywith} pendentelite and future interest^{thereon at the contractualratewith monthly rests till} realization along^{with cost and other relief.}

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5kvd.o^e][Bt-l Prc.iding Otrce( l l-2^tl ORT. Guwahat '

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O A 211l2022lORI G)wahat

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

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Defendant No.1 is a Proprietorship Firm of Defendanl^{No.2 engaged in the} business of manufacturing of handmade^{washing soap. The Defendant No.2as} Proprietor of Defendant No.1 Firm^{had approached beforethe ApplicantBankand} requested for financial assistance for^{its businessby submitting an Application} dated 10.08.2012^{and after considering the said Application,the ApplicantBank} vide Sanction Letter^{dated 24.08.2012had sanctioneda Cash Credit Facilityof} RS.3O,OO,OOO.OO only^{in the name of DefendantNol, with rate of interest} @14.70o/o^{(BR+ 4.25%) per annumon monthlyrest subject to changes as per} Bank's decision. The^{cash creditfacility was repayable on demandThe Defendant} No.2 as Proprietor^{of DefendantNo'l Firm had signed on the said Sanction Letter} thereby accepting^{all the terms and conditions containedthelein'}

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lnconsiderationoftheaforesaidCashCreditFacilityofRs30'00'00000 only, the^{Defendant No.2 as Proprietorof the Defendant No lFirm had executed} the necessary^{loan documents on 24 08 2012'such as Demand Promissory Note'} Letter of Continuity,^{Hypothecation of Goods' Hypothecation of Debis& Movable} Assets.

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FurthertheaforesaidcashcreditFacilityofRs.3o,00'000.00onlywas SecuredwiththecreationofequitablemortgagebytheDefendantNo.2overthe Land measuring^{4 (FouO Katha coveredby OagNo 58Oof K P' Pafta No'6of} Revenue^{Kaitasidhi under Mouzachayaniin the Districtof Kamrup(Metro)'Assam'} morefullydescribedintheschedule.BoftheoAbydepositofTitleoeeds. Accordingly,^{the DefendantNo 2 had depositedthe Title Oeeds for creation of} equitable^{mortgageof his immovable propertyin favorot the Applicant Bank'}

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Again the^{DefendantNo 2 as Proprietor of OefendantNo lFirmvide} ProposalLetterdated2S.o2.2ols,requestedtheApplicantBankforrenewa|ofthe cashcreditFacilityandinconsiderationofthesaidrequest,theApplicantBank vide Sanction^{Letter dated 02032015 had renewed the existingCash Credit} LimitofRs.3o,o0,ooo'[email protected]%(BR+3.75%)per el;., sl^a,\a, Ed", 2r1r1lr, 0 Prssiding^Offic€f DRT,^Guwahali

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O.A. 27utzo22loRl-Guwanat

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annum on Monthly rest, subject to change as per Bank,s decision to be taken from time to time. The Cash Credit Facility was repayable on demand.

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Again on the request of the Defendants for renewal of the Cash Credit Facility, the Applicant Bank vide Sanction Letter dated 24.02.2016 had renewed the existing Cash Credit Limit of Rs.30,00,000.00 only with the rate of interest @ 14.40% (BR +4.75%) per annum on Monthly rest, subiect to change as per Bank,s decision to be taken from time to time. The Cash Credit Facility was repayable on demand.

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ln consideration of renewal of the aforesaid Cash Credit Facility of Rs.30,00,000.00 only, the Defendant No.2 as proprietor of the Defendant No.1 Firm, duly executed a Demand promissory Note, a Letter of continuity, Letter of Lien, Hypothecation Agreement (a[ dated 29.02.20161 in terms of the sanction, inter-alia giving due effect to the terms and condition of sanction, promising to repay the loan and to secure the dues of Applicant Bank. Further, the Defendant No.2 as^proprietor of Defendant No.1 Firm by executing a Letter dated 29.02.2016 confirmed the execution of the aforesaid documents and also confirmed the debit balance of Rs.29,97,393.68 as on 2A.02.2016.

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Further the defendant No. 2 as proprietor of defendant No. 1 ,irm from rime to lime confirmed the correctness of the outstanding balance in the loan account by executing various Balance Confirmation Letters dated 02.01.2017, 04.,10.2017 and 03.01.2020. Further the defendant No. 2 as proprietor of defendant No. I firm on 03.01.2020 had executed a Demand promissory Note for Rs. 3O,OO,OOO/thereby promised to pay the applicant bank the said amount wilh interest. lt is also mentioned that on 02.09.2020 a CFITL facility was also provided to the defendant, which was subsequen y closed on 10.11.2021.

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The defendants had availed the loan facilities from the applicant bank but have not paid the outstanding amount as per terms and condition made with the applicant bank in spite of repeated demands and request by the applicant bank. As the loan account of defendants was running extremely irregular and due to nonpayment of pincipal amount and interest, the said account was classified as a NpA on

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tlral.u"^il*., ,."""n or3flo?-l4 ! ORT, Gusahsti

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o.A. 274l2oz2DRT€uwaiati

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3'1.03.2021. After the account became NpA the applicant bank issued notices for repayment of the due amount, the defendants have neither chosen for repayment of the roan amount nor approached to the appricant bank for further renewar of the roan account.

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The applicant bank thus became constrained lo rile the present Original Apptication for the recovery of Rs. 42,54,148.18 (Rupee3 Forty Two Lakhs Fifty Four Thousand One Hundred Forty Eight and paba Eighteon) only as on 30.06.2022 along with interest and cost of the apptication.

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After riling of the OA the Tribunal issued notices upon lhs defendants through registered post and the appticant bank filed service report on 29.09.2022and brought on record the postal receipts along with track consignment report which shows that the notices have been served upon the defendants.lt is observed that leamed counsel for the defendants has appeared on ,l|.Og.2u22,thereaffer the matter was listed on several occasions but defendants have nol filed their written slatement cum eviden@ on affidavit, hence, the right of the defendants to file written slatement cum evidence on affidavit was forfe ited on 22.1 2022' Therealler the matter was posted for hearing. Supporting the claim of 02 applicant bank sri Guru Prasad ralukdar' chief Manager ofthe Appricant eant hl idence on afiidavit coupled with the secudty documents marked as Exhibit -1 bank. to Exhibit -2S,supporting the claim of the appticant Heard the learned counsel for the applicant bank who prayed for issuance of Recovery certiricate against t defendants as per pleadings made in the Apprication, supported by eviden( the executon or the securry ; :#;::j::'ff:rj::::::: ::: execulion oftheir own documents relied upon, which have been marked exhibits.

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Considering the facts and c. ces of the case' I am of the considered view that the documents nrea oy t' "'o"""nt^{bankare supportingthe} claim of the appricant bank andestabrishing ,n"'" defendants are join,,, "nO ""rurr,,r,,']l',l^: ;: ;"" "#, ;: ;::: ::.:: in the OriginalApplication. The loan was obtained and documents have been executed

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Sl,;ug,la@."$"t , ",""o,"no*iJolf)l ORI cuwshali⁰

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o.A. 27rllzo22./DRr€uwendi

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on 24.08.2012, 02.03.2015 & 29.02.2016. The Defendant No.2 as proprietor of Defendant No.l Firm by executing a Letter dated 29.02.2016 confirmed the execution of the aforesaid documents and also contirmed the debit balance of Rs.29,97,393.68 as on 28.02.2016. Further the defendant No. 2 as proprietor of defendant No. 1 firm from time to time confirmed the correctness of the outstanding balance in the loan account by executing various Balance Confirmation Letters dated 02.01.2017, 04.10.2017 and 03.01.2020. the account became NpA on 31.03.2021 and the OA has been fited on 20.07.2022. Hence, the OA is fited welt within the period of limitation and this Tribunal having a jurisdiction lo adjudicate the Original Application.

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Considering the unrebutted veBion of Sri Guru prasad Talukdar, the applicant's witness and all the documents marked as exhibits, including duly certilied copy of the statement of account along with interest calculation sheet maintiained by the applicant Bank in it's regular course of business, I hold that the applicant is entitled lo get the Recovery Certificate as prayed for.

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ln the result, the present Original Application No.2t4 ot 2022 is allowed wilh cost as under :-

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i) The defendants No. 1 & 2 are join y and severally liable to pay to the applicant bank a sum of Rs. 42,51,,14A,19 (Rupses Forty Two Lakhs Fifty Four Thousand Ono Hundred Forty Eight and paisa Eighteen) onty with pendentelite and future interest @i3.75% p.a. with monthly rests from 01.07.2022 till the date of full paymenureatization and also cost 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 fu[.

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iii) The charge of the certificated amounl be kept alive on mortgaged property, i.e. All that part and parcel of land measuring 4(Four) Katha covered by Dag No. 580 of K. P. Patta No. 6 of Revenue Kaitasidhi under Mouza Chayani in the District of Kamrup (Metro), Assam standing in the name of Defendant No. 2

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:k:,tgi,q?

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o A 271u]oz2tDR:|<,1 t tt4i

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which is bounded by North: Land of Madhab Choudhury, South: Road, East: Own land, West: Land of Rebati^prasad Sa,ma as described in 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 the secured items towards recovery of the debts.

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v) The applicant bank is also enti ed to proceed against the personal assets and properties ofthe defendants towards recovery of the dues.

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

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vii) lssue Remvery Certlficate accordingly for a sum Rs. 42,S4,148.18(Rupees Forty Two Lakhs Fifty Four Thousand One Hundrod Forty Eight and Paba Elghtsenl only in favour of the applicant bank against the defendants No.^'l & 2.

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viii) Communicate copy ofthis order to the concemed parties.

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This order is dictaled and conected by the undersigned.

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Judgment dated 2shJuly 2023, signed and pronounced in the Tribunal today

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under my signature.

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

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sL,,-ci.,a,v,(^gJ,4 (Shiv Sharan Dld;if I preslding OfficEr DRT, cuwahati.

Punjab National Bank v. Ms Basanti Soap Industry

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ms Basanti Soap 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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