Allowed

Punjab National Bank v. Rajendra Rai and Others

DRT5 Dec 2023OA/31/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna allowed an ex-parte application filed by Punjab National Bank for recovery of dues amounting to Rs. 27,55,388.12 from the legal heirs and guarantor of a deceased borrower. The defendants did not appear in court, and the claim was established via documentary evidence and an affidavit.

What did the court decide?

Recovery of Rs. 27,55,388.12 plus 10% simple interest p.a. from 30.12.2022 with costs; attachment of mortgaged/hypothecated assets; issuance of recovery certificate to the Recovery Officer.

Punjab National Bank versus Rajendra Rai and Others — Banking and Recovery | DRT (2023)

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OA 31 of 2023TJl

¶2

DRT. PATNA

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Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding offlcer : Shri Kaushalendra Yadav

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OA Case No. 31 of 2023

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Punjab National Bank, Neknampur Branch, Block- Paroo, P.O. Neknampur, District- Muzaffarpur.

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I...... Applicant

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I. Rajendra Rai Son of Late Gauri Shankar Rai;

¶10

Balendra Rai, Son of Late Gauri Shankar Rai,

¶11

Dinesh Rai, Son ofYogendraRai.

¶12

All are resident of village- Bela Kanti Dharhara, Post OfficeRoop Chapra, P.S. Sahebgang, District-Muzaffalpur

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....... Defendants

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Present:

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For the Applicant :Shri Nilamber Prasad Verma, Advocate For the Defendants :None

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Dated: 05.12.2023

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JUDGMENT

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I- The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 30.12.2022 against the defendants to recover its debts from defendants of Rs.27,55,388.12 as on 07.11.2022 along with pendente-lite and future interest at the contractual rate from 08.11.2022 with costs till realization.

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2- The application has been duly registered and numbered as above.

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3- The brief facts of the case of the applicant bank as stated in the application areas under-

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The applicant bank is a body corporate constituted under the Banking Companies (Acquisition and Transfer of undertaking) Act 1970, which is competent to file a suit.

¶22

¶23

DRT. PATNA OA 3l of2023TJI

¶24

Father of defendant no.1 & 2, Gauri Shankar Rai (now deceased) had applied before the applicant bank vide loan application dated 04.05.2007 for grant of Term Loan of Rs.3 Lakh to purchase Tractor & Equipments and Kisan Credit Card facilfty of Rs.1.50 Lakh for promoting his business relating to Agriculture. The left thumb impression of the deceased borrower put on PNB Form 32 was identified by the then Branch Head Shri Nunu Lal Choudhary, since Gauri Shankar Rat is no more alive hence his two sons being the legal heirs have been impleaded as defendant no.1 and 2.

¶25

After considering the loan application the applicant bank had sanctioned Term Loan facility of Rs.3 Lakh and KCC facility of Rs.1.50 Lakh vide sanction letter dated 27.07.2007 on various terms and conditions which were accepted by the deceased defendant as well as defendant no.3 .

¶26

To secure the loan facilities the deceased borrower and defendant no.3 being guarantor had executed relevant loan and security documents including the guarantee agreement and also agreed to pay interest. The deceased defendant purchased the tractor which was registered being Registration No. BR 06Q-9558 dated 13.04.2010 and hypothecated the same with the applicant bank.

¶27

In order to further secure the loan facilities the deceased borrower had created registered simple mortgage bearing No.17524 dated 20.07.2007 in favour of the applicant bank by depositing the sale deeds with other related papers, details of the properties have been given in Schedule-I of the O.A.

¶28

After availing the sanctioned credit facilities deceased borrower became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 02.02.2015 & 11.07.2018. Thereafter the applicant bank sent notice on 10.10.2018, 09.12.2019 and legal notice on 13.03.2020 to the defendants but all these notices went completely without any effect.

¶29

oA 31 of 2023rji

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DRT. PATNA

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Defendant no.1 (son of deceased borrower) has signed the balance and security confirmation letters on 11.07.2019 and 27.01.2021 confirming correctness of the outstanding balance of the loan account on the date and thereby acknowledged the liabilities for the same.

¶32

Thus the total liability in the loan account is Rs.27,55,388.12 with Pendent-lite and future interest contractual rate from 08.11.2022 till the realization. Since, the defendants have failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank, hence this application has been filed by the bank.

¶33

4- This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 08.02.2023, requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. But the defendants have not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertiseme`nt in newspaper was also made against the defendants on 09.06.2023 in "Dainik Jagran" newspaper.

¶34

Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case0 but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 23.08.2023 .

¶35

5- To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Ajeet Kumar, Dy. Manager of the applicant bank. The details of documents are as follows:

¶36

Sl.No	Description	of Date of	Amount	Signature of	Ex./
	Documents	Execution	(in Lakh)	Executants	Arm.
	Photocopies				No.
1	General power ofatto	rney 07.08.2020		Bank	1
2	Aadhar card			Bank offlcer	2

¶37

lL,,\1...,`

¶38

¶39

DRT. PATNA OA 3l of 2023lJl

¶40

3	Authority letter	22.06.2022		Bank	3
4	Loan application	04.05.2007	3.00 1.50	Deceased borrowerGauriShanharRai	4
5	PNB Form 32				5
6	Apprai sal report	04.05.2007	3.00 I,50	Deceased borrowerGauriShankar Raiandclef.no.3	6
7	Letter of sanction	2] fj] .2;Oar	3.00 1.50	By bank andaccepted byDeceasedborrowerGauriShankarRai	7
8	Retail invoice	2] .fn .2;Oar			8
9	Del ivery challan	2:] I jrl .2;I yf IH			9
10	Satisfaction letter	2] fn .2f]Or			10
11	Certificate ofregistrationoftractor	13.04.2010		-	11
12	Hypothecation agreement	T] .ffn .2:fyon	3.00 I.50	Deceased borrowerGauriShankarRai	12
13	Deed of guarantee	2:] .I iri .2f )I jri	3.001.50	Def.no.3	13
14	Photo copy ofmortgagedeed	20.07.2007		-	14
15	Revenue receipts				15
16	Recommendation forLPC	27.06.2007		-	16
17	Notice	10.10.2018		Bank	17
18	Notice	09.12.2019-	-	Bank	18
19	Advocate notice	13.03.2020		Bank	19
20	Balance and securityconfirmationletter	11.07.2019	-	Def.no.I	20
21	Balance and securityconfirmationletter	27.01.2021	-	Def.no.1	21
22	Statement of account ofTL	Ason 30.09.2022	Rs.23,53,503.40	Bank	22
23 24	Statement of account ofKCC Ravindra' s certi ficate	Ason 02.10.2022	Rs.4,Ol,884.75	Bank Bank	23 24

¶41

6- Heard arguments for learned counsel for applicant bank and perused the case record.

r.L,:i(,|`.,.

OA 31 of 2023TJl

PATNA

Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

¶46

It is further submitted by ld. Counsel of applicant bank that there is no stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for, in OA.

¶47

7- It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

¶48

8- On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 11.07.2018 and the defendant no.1 has executed balance and security confirmation letter lastly on 27.01.2021, whereas the present application has been filed on 30.12.2022. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has filed the case within the limitation period. As such, it is established that the present application has been filed well within the period of limitation.

¶49

9- Shri Ajeet Kumar, Deputy Manager of the applicant bank has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

`..I..:\-,.,

oA 31 of 2023rji

I)RT. PATNA

10- Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application u/s S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

¶54

The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993, provides that if the defendant denies his liability to pay the claim made by the applicant, the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affldavit in respect of the contents of the application and the documents as evidence.

¶55

The rule 12 (11) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker's Books evidence that Act,1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker's Books furnished along with application filed under sub section 1 of section 19 by the applicant.

¶56

Section 4 of Banker's Books evidence that Act,1891 runs as under-

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S.4. Mode Of proof of entries in bankers' books.*ubject to the provisions Of this Act, a certified copy Of any entry in a banker's book shall in all legal proceedings be received as prima i;acie evidence Of the exislenee of such entry, and shall be admitted as evidence Of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by low admissible, but not further or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statement of account, more so since the entries in the statement of account have not been challenged.

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11- On consideration of the arguments and on perusal of the application, documents and affidavit, it is proved that the deceased defendant Gauri Shanker Rai has applied for loans and the bank had sanctioned the loans and to secure the loans and for repayment of loan amount with interests etc., the deceased defendant Gauri Shankar and defendant no.3 have executed various loan documents including the guarantee agreement by clef.no.3, as stated in the application and proved by aforesaid evidence. Defendants have neither denied

¶60

OA 31 of 2023lJl

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DRT. PATNA

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the utilization of funds advanced by applicant bank nor have pointed out any speciflc error and discrepancy in the Statement of Account.

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12- The applicant bank has sought for recovery ofa sum of Rs.27,55,388.12 with cost and further interest at the contractual rate from 08.11.2022 till realization.

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13- The evidence discussed above goes to establish that the claim made by the applicant bank is genuine and true. It is manifest that the defendants have not disputed the claim, therefore, the claim referred to the tribunal is recoverable till full and final realization of the claim.

¶65

So far as the liability of Defendant No.1 and 2, who are the legal heirs of the deceased borrower Gauri Shankar Rai, is concerned, as they are the legal heirs of the deceased borrower hence they are liable to pay the dues with interest etc. of the applicant bank jointly and severally with other defendants to the extent of inherited properties from their deceased father.

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14- In my view, facts of the case stand proved by evidence of the applicant bank ex-parte. Accordingly, the applicant bank is entitled to recover from defendants jointly and severally of Rs.27,55,388.12 along with pendente-lite and future simple interest @ 10% p.a. from 30.12.2022 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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ORDER

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In the result, the application of the applicant bank is, allowed ex-parte and debt is determined with costs against the defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt amounting to Rs.27,55,388.12 along with pendente-lite and future simple interest @ 10% p.a. from 30.12.2022 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

't..{,;

OA 31 of 2023TJl

DRT. PATNA

It is made clear that the defendant no.1 & 2 are liable to pay the dues with interest etc. of the applicant bank, jointly and severally with other defendants, to the extent of inherited properties from their deceased father.

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It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

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Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993.The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/ Sub- registrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 11.01.2024. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on o5th day of December, 2023.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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DEBTS RECOVERY TRIBUNAL, PATNA

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Date of order or roceeding	Order with the Signature of the Court	Office action taken with date
	OA 31 of 2023
05.12.2023	Judgment written on separate sheets, kept on the case file an pronounced. Certificate of recovery be issued to the ld. Recovery Officer fo its execution.
05.12.2023	Certificate u/s 19(7 & 22) of the RDB Act,1993 as amended from time to time in the form no. 09 of the Rules and procedures made thereunder prepared and signed by me for sending it to ld. Recovery Officer for its execution in accordance with law. i. Presiding Officer

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FORM NO, 9

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[See Regulation 24( I )]

¶85

DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. a & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road. Patna-800025.

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RunvnYC-^E:RE|m,jTTCTFEST#i-#^Mwm[TDHm#ii+#iHRrmvmYorDEm±

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Rc NO. 75] rfu23 IN Case No: OA/3l/2023

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In the Matter of.

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(CH- I) PUNJAB NATIONAL BANK BRANCII HEAD PUNJAB NATIONAL BANK NEKNAMPUR BRANCEI BLOCK PAR00 PO NEKNAMPUR MUZAFFARPUR PIIIAR -843 I 20

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Applicant(s)

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To,

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(CD- I) RAJENDRA RAI AND OTHERS . Son of Late Gauri Shankar Rai Village - Bela Kanti Dharhara, Post Office- Roop C±J'S.Sahebgang MM`caaffirpurJ3IHAR-843125

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(CD- 2) BALENDRA RAI SON OF LATE GAURI SHANKAR RAI VILLACH= BELA KANTI DHARIIARA POST OFFICE ROOF CHAPRA, P:S> -SAHEBGANJ, DISTRICTMUZAFFARPUR- 84125

¶95

Defendanl(s)

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(CD- 3) DINESH RAI SON OF YOGENDRA RAI VILLAGE BELA KANTI DHARHARA POST OFFICE R00P CHAPRA, P.S&GT; - SAHEBGANJ, DISTRICT-MUZAFFARPUR-84125

¶97

I.fT [qu pr pr 17!flnl2 I Bplii I+-rty a-I.JLII FHT Fh Tt-Ttir-H.Iud E]rty EiprA nd PaisE. T\iretve On ly|

¶98

in terms of final order dated 05/12/2023 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2755388.12 along with cost, expenses and interest from the 30/12/2022 i.e. date of filing / with eifective date of the OA/3 lre023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶99

I ls-0, i Int. iOrderI Interest(a§On
CD Name I Loan type/Mode IImf. ) Rate Effective iDate I Date ;I Amount(R8.), i L,..i,ity i Type i) OrderDate) Amount(Rs.)RC `R€mark(
!The
BAIENDRA Simple I27 5 3 8 .12i Jo,,ltly Interest I27 5 3 8 .12
i,) RAI ANDOTHERS I Interest(Yearly ) ii 10 3.,12,2.221o5/12/2o23!II AndSeverally I Ason OrderDate
iBALBNDRA InterestAson
Simple i05/1 2 /023 I27 5 3 8 .]2iI Jointly
RAT ]nteres'r,early ) 10 30/12/2022 And1Severally OrderDate 2755388.12 I
I
I)3! InterestAsonOrderDate
(30/1 2 /0 2 I I27 5 3 8 ,12(
DINESH RAI .sj::I:, I(Yearly) 10 o5,,2,2.23l •.- .- . 2755388.12

¶100

ln case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/Immovable assets of the certificate debtors.

¶101

The mortgaged or hypothecated assets to secure the loan ln question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 .

¶102

Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERYTRTBUNAL PAINA on 11/01/2024.

¶103

The Recovery Officer shall realize the amount as per this Certificate in the manner and mode I)rescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors.

¶104

This Certificate has been issued under my signature and seal of the Trib`inal on this 05/12/2023

¶105

PREstFFICER DEBTS RECOV ERy TRIBUT`lAL PATNA

¶106

FORM NO. 10

¶107

[See Regulation 24(2)]

¶108

I)EBTS RECOVERY TRIBUNAL PATNA

¶109

2nd Floor, (A. 8 & F Wing) Kaipuri Thakur Sadan, Kendriya Karamchari Parisar

¶110

(GPOA), Ashiana Digha Road, Patna-800025.

¶111

SCHEDULH TO RECOVERY CHRTIFICATE MEMO 0F COSTS

RC No. 751/2023

Case No: OA/31/2023

Applicant(s): PUNJAB NATIONAL BANK

¶116

Versus

¶117

Defendant(s): RAJENDRA RAI AND OTHERS

¶118

Sr. No.	Item of Costs	Amount in Rs.
I.	Fee on the application	30000
2.	Process Fees(Inc. Publication)	0
13.	Advocate Fees	0
!4.	Commissioner/Receiver/Valuatioll/Security Fee	0
5.	Miscellaneous Charges	0
	Total Costs: Rs.	30000

¶119

Place: PATNA

¶120

Date: 05/12/2023

¶121

PRESID Mralt ICER DEBTS RECOVERY TRIBUNAL PATNA

¶122

Note: Strike out whichever is not applicable

Punjab National Bank v. Rajendra Rai and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Rajendra Rai and Others

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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Case details

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