Allowed

Punjab National Bank v. Sudist Prasad Singh & Anr.

DRT5 Dec 2023OA/32/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna allowed the Application filed by Punjab National Bank for recovery of debt against defendants Sudist Prasad Singh and Birendra Singh. The court determined the debt amounting to Rs.28,00,048.09 ex-parte proceeding after defendants failed to appear, issued a recovery certificate, and directed attachment of mortgaged assets.

What did the court decide?

Recovery certificate issued directing recovery of Rs.28,00,048.09 with interest and costs from defendants jointly and severally by sale of mortgaged/hypothecated assets.

Punjab National Bank versus Sudist Prasad Singh & Anr. — Banking and Recovery | DRT (2023)

i'.

OA 32 of 2023m

DRT. PATNA

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding offlcer : Shri Kaushalendra Yadav

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OA Case No. 32 of 2023

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Punjab National Bank, Neknampur Branch, Block- Paroo, P.O. Neknampur, Di stri ct- Muzaffaapur.

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•...... Applicant

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Vs.

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Sudist Prasad Singh, Son of Late Baldhar Singh, at village-Semra Nizamat, P.O.-Bishunpur Patti, District-Muzaffarpur, Pin 843125

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Birendra Singh, Son of Jai Narayan Singh, at village- Semra NizamatO P.O.-Bishunpur Patti, District-Muzaffarpur, Pin 843125

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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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1- The Applicant bank has made this application u/s l9 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.28,00,048.09 as on 07.12.2022 along with pendente-lite and future interest at the contractual rate from 08.12.2022 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.

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oA 32 Of 2023r-1

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DRT. PATNA

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Defendant no.I is the borrower and Defendant no.2 is the guarantor of the loan facilities availed by the defendant no.1.

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Defendant no.1 had applied before the applicant bank vide loan application dated 29.12.2006 for grant of Term Loan of Rs.3 Lakh to purchase Tractor & Equipments and Kisan Credit Card facility of Rs.I.50 Lakh for promoting Farm Mechanization and Agriculture Production.

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After considering the loan application the applicant bank had sanctioned Term Loan facility of Rs.3 Lakh and KCC facility of Rs.I.50 Lakh vide sanction letter dated 01.03.2007 on various terms and conditions which were accepted by the defendants.

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To secure the loan facilities the defendants had executed relevant loan and security documents including the guarantee agreement and also agreed to pay interest. The defendant purchased the tractor and hypothecated the same with the applicant bank vide Tractor's Chasis No. T07017682L06 and Engine No.D 10018255

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In order to further secure the loan facilities the borrower had created registered simple mortgage deed bearing No. 4517 dated 26.02.2007 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.

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After availing the sanctioned credit facilities defendants 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 11.07.2018 and 06.07.2017 respectively. Thereafter the applicant bank sent notice on 10.10.2018 and 09.12.2019 and also legal notice on 13.03.2020 to the defendants but all these notices went completely without any effect, except a reply dated 18.09.2010 sent by the defendant no.1, declaring his intention to deposit some amount towards tractor's loan.

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OA 32 Of 2023IJI

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I)RT. PATNA

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Defendant has signed the balance and security confirmation letters on 31.01.2019 and 25.02.2021 confirming correctness of the outstanding balance of the loan account on the date and thereby acknowledged the liabilities for the Same.

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Thus the total liability in the loan account is Rs.28,00,048.09 with pendent-lite and future interest contractual rate from 08.12.2022 till the realization.

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Since, the defendants have failed and neglected in spite of several reminders to make payment of the dues recoverable to bank, hence this application has been filed by the bank.

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4- This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 07.02.2023, 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 advertisement in newspaper was also made against the defendants on 09.06.2023 in "Dainik Jagran" newspaper.

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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 case, 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 .

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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, Deputy Manager of the applicant bank. The details of documents are as follows:

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S1.No	Description	of Date of	Amount	Signature of	Ex./
	Documents	Execution	(in Lakh)	Executants	Arm.
	Photocopies				No.

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:.,I (-'S(` ....

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DRT. PAThlA qA 32 of 2023[tl

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1	General power ofattorney	07.08.2020		Bank	1
2	Aadhar card	-		Bank officer	2
3	Authority letter	22.06.2022		Bank	3
4	Loan application	29.12.2006	3.001.50	Def.no.1Bank and	4
5	S anction letter	01.03.2007	3.00 1.50	accepted byclef.no.1	5
6	Retail invoice	01.03.2007			6
7	Del ivery challan	01.03.2007			7
8	S ati sfaction letter	01.03.2007			8
9	Hypothecation agreement	01.03.2007	3.00 I.50	Def.no.1	9
10	Deed of guarantee	01.03 .2007	3.001.50	Def.no.2	10
11	Photocopy ofmortgagedeed	26.02.2007		-	11
12	Land revenue receipt	06.12.2006			12
13	Land concemingcertificate	10.01.2007		-	13
14	Notice	10.102018		Bank	14
15	Notice	09.12.2019		Bank	15
16	Adv. Notice	13.03.2020		Bank	16
17	Letter to bank	18.09.2010		Def.no.1	17
18	Balance and securitycorfirmationletter	31.01.2019		Def.no.1	18
19	Balance and securityconfrmationletter	25.02.2021		Def.no.1	19
20	Declarations	01.03 .2007		Defendants	20
21	Statement of account ofTL	Ason 30.09.2022	Rs.24,25,407.50	Bank	21
22	Statement of account ofKCC	Ason 02.10.2022	Rs.3,74,640.59	Bank	22
23	Ravindra' s certificate			Bank	23

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

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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

Wfl,,

OA 32 Of 2023lJl

DRT. PATNA

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.

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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.

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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 jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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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 06.07.2017 respectively, and the defendants have executed balance and security confirmation letter lastly on 25.02.2021, 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 present application has been filed well within the period of limitation.

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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.

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

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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

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OA 32 Of 2023TJl

DRT. PATNA

sworn the affidavit in respect of the contents of the application and the documents as evidence.

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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.

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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.-Subject to tfae .provisjpps Of. this Act, a-c6rtifred-copy Of any entry in a banker's book shall i_n al.I legal proceedings be received as prima fiacie evidence Of the existence Of speh 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 ehiry itself is now by low admissible, but not fiurther 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 defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendants have executed various loan documents, as stated in the application and prove by afore said evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account.

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12- The applicant bank has sought for recovery ofa sum of Rs.28,00,048.09 with cost and fuither interest at the contractual rate from 08.12.2022 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.

Vofl,

OA 32 Of 2023TJl

DidT.PATNA

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.28,00,048.09 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 ofjustice.

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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.28,00,048.09 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.

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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/

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OA 32 Of 2023TJl

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DuT.PATNA

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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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\Eii

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FORM NO. 9 [See Regulatun 24( 1 )]

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DEBTS RECOVBRY TRIBUNAL PATNA

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2nd Floor, (A. 8 & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patnang00025.

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COVERY CERTIFICATE UNDER SECTION l9(I) READ WITH SECTION 19(22) OF THE REcOVERY OF DFIBTS & BANKRUPTCY ACT;±222, AS AMENDED FROM TIME TO TIME.

Rc NO. 75Ore023

Case No: OA/32#023

In the Matter of

(CH-I) PUNJAB NATIONAL BANK NEKNAMPUR BRANCH BLOCK PAROO

Applicant(s)

PO-AMPUR

MMuzAFFARpuRplHARro

To,

(CD- 1) SUDIST PRASAD SINGH & ANR.

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inofLateBaldharsingh

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VIllnge -Semra Niizamat„P.O.-Bishunpur Patti, Muzaffarpur j3IHAR -843125

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Defendant(s)

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(CD- 2) BIRENDRA SINGH SON OF JAI NARAYAN SINGH VILLAGESEMRA NIZAMAT P.0. - BISIIUNPUR PATTI, DISTRICTMUZAFFARPUR. 843 I 25

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Recovery Certificate for Rs 2800048.09 [Ei!pees TwentyEigl]t Lalchs Fort)LEight And mise Nine OnnlyJ

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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. 2800048.09 along with cost, expenses and interest from the 30/12/2022 i.e. date of filing / with effective date of the OA/32/2023 and future interest from order date till the date of realisation in full, jointly or sseverally from the Certificate Debtors, hereinafter refened to as:-

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i sr.no,Il	iI ICDNameI	LooT' rtype	Int. ^Type/Mode	, Int.I ^{l Ratd}	IElrectivei Date iI	Order Date	Amount(Rs.)	ILiabilty type	Interest(ason OrderDate)	RC Amount(Rs.)	Remark I
II I	SE!SATD ) sINGH& IANR.I		Simple Interest(year,y )	•oij	30/12/20221I1	05/12/2023	2800048.09	Jointly SenvdeTally!	Interest iAson OrderDate	28ooo48.og	i
1112	,i, IBRENDRA' SINGH i	I	Simple Interest(yearly )	ilot	30/12/20221II	05/ 12/2023	28ooo48ogi	Jointly AndSeverally	Interest 1Ason 3:::I I	28ooo48.og	:

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In 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.

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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 proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. Parties are directed to appear before ASHISH KUMAR . Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 11/01/2024.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed 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.

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

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r`,l,..,.

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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``*'`

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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

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

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 750/2023

Case No: OA/32/2023

Applicant(s): PUNJAB NATIONAL BANK

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Versus

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Defendant(s): SUDIST PRASAD SINGH & ANR.

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Sr. No.	Item of Costs	Amount in Rs.
I.	Fee on the application	3 I 000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
4.	Commissioner/Receiver/Valuation/S ecurity Fee	i0
5'	Miscellaneous Charges	OJ
	Total Costs: Rs.	3 1000

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Place: PATNA

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Date: 05/12/2023

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PRESIDIN Lard"I ER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab National Bank v. Sudist Prasad Singh & Anr.

Case brief

What is this about?

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Punjab National Bank v. Sudist Prasad Singh & Anr.

Case brief

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