Allowed

Punjab National Bank v. M/s Jul Bricks Industry

DRT21 Dec 2023OA/300/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab National Bank seeking a Recovery Certificate against a brick manufacturing unit, its proprietor, and two guarantors. The court held the defendants were jointly and severally liable based on unchallenged documentary evidence, including loans secured by an equitable mortgage.

What did the court decide?

Issuance of Recovery Certificate for Rs. 1,19,18,996.22 with future interest against the respondents jointly and severally, including proceeds against secured and personal assets.

Punjab National Bank versus M/s Jul Bricks Industry — Banking and Recovery | DRT (2023)

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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, I\reghalaya, Manipur, Mizoram, Arunachal pradesh & Tripuaa)

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Before Shri Shiv Sharan Dubev. Presidinq Ofricor

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O.A. No. 300/2022

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ln the mattsr of -

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PUNJAB NATIOINAL BANK (EBtwhilE United Bank of lndia) B.O. Tarapur Branch, Tarapur Silchar, District Cachar, Assam.

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Applicsnt

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Vs.

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]f,/S JUL BRICKS INDUSTRY Proprietor Tahir Ahmed Khan Son of Matabuddin Khan Ghoragram, Bihara

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District Cachar, Assam, Pin-78881 5.

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TAHIR AHMED KHAN

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Son of Matiab Uddin Khan RYo- Bharibpur Part l, P.O. Kalain,

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Dist.- Cachar, Assam, Pin-788815.

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3, JYOTHSNA BEGUM LASKAR Wife of A Newar Ud-din Goragram, Bihara,

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Dist.- Cachar, Assam, Pin-788815

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Defendants

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Presence ot tho Counsel:

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For the Applicanl : Mr. K K Nandi, Ms Rochoita Das, Advocates Forthe Defendants : None (Ex-parte)

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Oaled :2111212023

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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^(Erstwhile United Bank of lndia) B.O. Tarapur Branch, Tarapur, Silchar, District Cachar, Assam, with a^prayer to issue Recovery Certificate for the sum of Rs. 1,19,18,996.22^(Rupees One Crors Nineteen Lakhs Eighteen Thousand Nine Hundred Ninety-Six and Paise Twenty-Two) only as on 25.07.2022 against the defendants with^pendentelite

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$'rqft9*-7 Presiding Offcd DRT, Guwahati

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and future interest @7.65% per annum with monthly rests till realization along with

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cost and other relief.

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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 a proprietorship firm and a brick manufacturing unit. The defendant no 2 is the proprietor of the defendant no 1 firm. The defendant nos. 2 and 3 are the guarantors of the loan availed by the defendant no 1. The defendant no 1 represented by its proprietor being defendant no 2 approached the applicant bank for financial assistance for the^purpose of its business by submifting an application dated 18.12.2017. The applicant bank on consideration of said application dated 18.12.2017 sanctioned cash credit facility of Rs. 60,000,00.00 lacs vide Sanction Letter dated 20.12.2017. lt was also the terms and conditions of the sanction letter that the effective rate of interest will be one year MCLR + 2.75% per annum with monthly resls subject to change as per bank guidelines. The defendant no.1 accepted the terms and conditions of the Sanction Letter and as a token of acceptance of the same the defendant no 2 as proprietor of defendant no t have signed in the sanction letter dated 20.12.20'17 of having accepted the terms and conditions.

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The defendant no. 1 availed of the cash credil facility from lhe applicant bank and the defendant no 1 represented by its proprieior defendant no 2 have executed the following documents duly filled-up in favour of the applicant bank:-

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(a) Letter of Lien daled 20.'12.2017:

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(b) Demand Promissory Note dated 20.12.2017 fot Rs 60,00,000.00;

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(d) Hypothecation Agreement dated 20.12.20'17 i

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(e) Consent clause by the defendant no 2.

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The defendant no. 2 in his^personal capacity stood as guarantor of the cash credit facility of Rs.60.00 lacs availed by the defendant no 1 from the applicant bank and as guarantor of the loan the defendant no.2 and have executed Letter of Guarantee dated 20.12.2017.

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The defendant no. 3 in her personal capacity stood as guarantor of the cash credit loan of Rs.60.00 lacs availed by the defendant no 1 from the applicant bank

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and as guarantor of the loan the defendant no.3 and have executed Letter of Guarantee dated 2O.12.2017.

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The defendant no 1 represented by its proprietor being defendant no 2 approached the applicant bank for enhancement of cash credit limit for the purpose of its business. The applicant bank on consideration of the prayer so made enhanced the cash credit facility from Rs. 60,000,00.00 to Rs 90,000,00.00 vide Sanction Letler dated 18.01.2019. lt was also the terms and conditions of the sanction letler that the effective rate of interest will be MCLR + 2.l,o/o-O.SOo/o i.e. 11.10o/o pet annum with monthly rests subject to change as per bank guidelines. The defendant no.1 accepted the terms and conditions of the Sanction Letter and as a token of acceptance of the same the defendant no 2 as proprietor of defendant no t have signed in the sanction letter dated i8.Oi.2o19 of having accepted the terms and conditions.

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The defendant no. 1 availed of the enhanced cash credit facility from the applicant bank and the defendant no 2 being the proprietor of defendant no t have executed the following documents duly filled-up in favour of the applicant bank:_

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(a) Letter of Lien dated 18.01.2019i

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(b) Demand Promissory Note dated 18.01.2019 for Rs 90,0O,OOO.OO;

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(d) Hypothecation Agreement dated 1 8.01.201 9;

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(e) Consent clause by the defendant no 2.

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The defendant no. 3 her personal capacily stood as guarantor of the enhanc€d cash credit loan of Rs.90.00 lacs availed by the defendant no 1 from the applicant bank and as guarantor of the loan the defendant no.3 and have executed Letter of Guarantee dated 18.01.2019.

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The defendant no. 1 availed of the cash credit facility from the applicant bank and as a security for repayment of the said cash credit facility loan defendant no. 2 had created equitable mortgage of land by deposit of title deeds with the applicant bank on 18.01.2019. That the defendant no 2 deposited with the applicant bank, title deeds such as Sale deed no 14 of 2018, Sale Deed no.^'15 of

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20'18, Non encumbrance certificates dated 15.02.2018,^{lnformationregardingland} mutation and occupalion dated 13.02.2018,^{Form50-3 nos, Land revenue Challan} dated 06.02.2018, Jamabandi^{of patta no 7. The defendant no.2 executedletter} confirmang deposit of^{title deedswiih the applicantbank with the intention of} creating equitable mortgage. The^{propertymortgaged/createdchargeby the} defendant no.2 with the applicant^{bankas a securityfor repaymentof loanavailed} by the defendant no.^{'l is more specifically describedin Schedule-A of the OA}

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The valuation of the mortgaged^{property is done by the approved valuer of} the applicant bank Kamalesh Chakraborty who^{have submitted reportdated} 11.01.2019.

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The defendant no 1 represented by^{its proprietor beingdefendantno 2} approached the applicant bank^{for availingfacility under GECLfor the purposeof} its business by submitting an application dated^{10.06.2020.The applicant bank on} consideration of the said application^{dated10.06.2020 sanctionedWorking Capital} Term loan /GECL of Rs 18,00,000.00^{vide Sanction Letter dated 15.06.2020. The} existing cash credit limit of^{Rs 90,00,000.00 is renewedby sanction letterdated} '15.06.2020. lt was also the terms and conditions of the sanction letter that the effective rate of interest in cash credit^{is MCLR+ 2.25o/o pd annumwith monthly} rests subiect to change as^per bank^guidelines. The^{rate oI interestin the termloan} is RLLR+'1.00o/o^per annum with monthly rests subject to change as^per bank guidelines. The defendant no.1 accepted the terms and conditions of the Sanction Letter and as a token of acceptance of the same the defendant no 2 as^proprietor of defendant no I have signed in the sanction letter dated 15.06.2020 of having accepted the terms and conditions.

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The defendant no. 1 availed of the renewed cash credit facility and working capital term loan facility from the applicant bank and the defendant no'l represented by its^proprielor have executed the following documents duly filled-up in tavour of the applicant bank: -

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(a) Letter of undertaking dated 15.06.2020;

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(b) Demand Promissory Note dated 15.06.2020 for Rs 18,00,000.00;

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(d) Master Agreement dated 15.06.2020.

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The defendants had availed the said credit facilities from the applicant bank bui have not^paid lhe outstanding loan amount as^per terrns and conditions as agreed upon with lhe applicant bank, in spite of repeated demands and request by the applicant bank. As the defendants failed to repay the loan amount, the said loan accounts became NPA on 29.06.2021. After the accounts became NPA the applicant bank issued notices for repayment of the due amount, but the defendants failed to repay the loan amount.

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The applicant bank thus became constmined to tile the^present Original Application for the recovery ot Rs. 1,'19,18,996.22^(Rupees Ono Crora Nineteen Lakhs Eightsen Thousand Nine Hundr6d Ninety-Six and Paise Twenty-Two) only as on 25 .07 -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 liled service report on 22.09.2022 and brought on record the^postal receipts along with track consignment report^which shows that notices have not been served upon the defendants. Thereafter the Tlibunal ordered paper publication of notice upon the defendants and the applicant bank issued notice to the defendants on 21.05.2023^{through Paper Publicationin two newspapers namely} "Pnntajyoti" and'Eastem Chrcnicle'. Even after issuance of notice through^paper publication also there was no representalion on behalf of the defendants either by the counsel or the^person and hence the defendants^{were set ex-parleon 09-08-2023 and} their right to file written statement cum evidence^{on affidavit was closed and the matter} was listed for hearing on behalf of the applicant^bank.

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Supporting the claim of the applicant bank Smti^{Anjana Das, Chief Manager of} the Applicant Bank has filed^{evidenceon affidavit coupledwith the security documents} marked as Exhibit A-1 to A-41 supporting^{the claimof the applicant bank.}

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Heard the learned counselfor the applicant^{bank who prayed for issuanceof}

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Sl"ilfLaM.i" )\ t1 "]q'ru;^'1 r ll v Presdinq fficer DRT, Guwahali

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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 documents by the defendants and 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 document filed by the applicant bank are supporting the claim of the applicant bank and establishing the liabilily of the defendants. lt is proved that the defendants are^jointly and severally liable to^pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 20.12.2017, 18.01.2019 & 15.06.2020. Moreover, after perusing the documents on record and taking into consideration of the facis and circumstances of the case, I find that the mortgage has been crealed by the defendant No. 2 where the limitation available is for 12 years and as such taking into account of the creation of the mortgage the application appears to have been filed well within the period of limitation. The account became NPA on 29.06.2021 and the OA has been filed on 02.08.2022. Hence, the OA is filed well within the period of limitation and this Tribunal having a judsdiction to adrudicate the Original Application.

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Considering the unchallenged/unrebutted version of Smti Anjana Das, the applicant's witness and all the documents marked as exhibits, including duly certified copy of the slatement 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 Certilicate as prayed for.

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ln the result, the present Original Application No. 300 of 2022 is allowed with cost as under: -

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(i) The defendants No. 1, 2 & 3 are^jointly and severally liable to pay to the applicant bank a sum of Rs. 1,19,18,996.22 (Rup6es One Crore Nineteen Lakhs Eighteen Thousand Nine Hundred Ninety-Six and Paise Twenty-

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Two) only with^pendentelite and future interest @7.65%^p.a. with monthly

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rests from 26.07.2022 till the date of full paymenurealization and also cost of the application.

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ii) The charge of the certificated amount be kept alive on mortgaged property i.e. All that^part &^parcel of land measuring 17 Kathas 2 Chataks with RCC building standing thereon covered under Patta No. 7 (No.2 survey) Dag No. 72 of Pargana- Bikrampur, Mouza Goragram, Taluka SeMi GP, Sub Registrar Oflice Katigorah, District Cachar, Assam and is bounded and butted as North : Land of Moinul Haque Talukdar; South: Land of Jamal Uddin Laskar; East: Paddy Land of Moinul Haque Laskar; West Sonapur PWD Main Road, as described in Schedule-A of the OA till the amount is realized in full.

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iii) The applicant bank is entitled to^proceed against the secured items towards recovery of the debts.

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iv) The applicant bank is also entitled to^proceed against the^personal assets and properties of the defendants lowards recovery of the dues.

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v) The applicant bank is entitled to the costs of the O.A. which includes the advocate fees of the applicanl bank. Applicant is directed to file the cost memo within 2 weeks from today.

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vi) lssue Recovery Certificate accordingly for a sum Rs. 1,19,18,996.22^(Rupees One Crore Nineteen Lakhs Eighteen Thousand Nine Hundred Ninety-Six and Paise Twenty-Two) only in favour of the applicant bank against the defendants No. 1, 2 & 3.

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vii) Communicate copy of this order to the concemed^parties. This order is dictated and corrected by the undersigned.

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Judgment dated 21t' December 2023, signed and^pronouncedin the^Tribunal

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today under my signature.

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Copy of the JudgmenuFinal Order be uploadedⁱⁿ the^{Tribunal's Websiteand} fite be consisned ro Record Room.

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S[i, e]O A_^Q +, f tsr'i,srraranSl,ilit^{D d} Presiding Otficer DRT, Guwahati.

Punjab National Bank v. M/s Jul Bricks Industry

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Jul Bricks Industry

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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