Allowed

Punjab National Bank v. Ms Priyajuri Gold Tea

DRT26 Jun 2023OA/320/2022

Case brief

AI extract

What is this about?

The DRT, Guwahati considered an application under Section 19 of the RDBFI Act for issuing a Recovery Certificate against borrowers who defaulted on a cash credit loan. The court found the documents unchallenged and filed within limitation, allowing the application and directing the issuance of the certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs. 26,27,093.00 plus pendent lite and future interest against the defendants; charge on mortgaged land.

Punjab National Bank versus Ms Priyajuri Gold Tea — Banking and Recovery | DRT (2023)

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o a. 32cu2o22lDRT,cwaharr

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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 Oubev. Presidino Officer

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O.A. No. 320i 2022

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ln the matter of -

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Punjab National Bank (UBl) Bashbera Branch Ward No.10, Dhekiajuli, Pin Code-784110 District- Sonitpur, Assam

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.Applicant

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Vs.

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M/s Priyaiuri Gold T6a, Ward No.'10, Dhekiaiuli, Pin Code-784110 Oistrict- Sonitpur, Assam.

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S Karuna Kanta Medhi, Ward No.10, Dhekiajuli, Pin Code-7841'10 District- Sonitpur, Assam.

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Defendants

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Presencs of the Counsel :

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For the Applicant : Mr B K Sen, Mr F Haque,

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Mr. Anowar Hussain, Advocates

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For the Defendants : None (Ex-parte)

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Dated : 26.06.2023

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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 lnstilutions Act, 1993 liled by the Punjab National Bank (UBl), Bashbera Branch, Word No.10, Dhekiaiuli, Pin Code-784110, District- Sonitpur, Assam, with a prayer to issue Recovery Certificate for the sum of Rs. 26,27,093.00 (Rup6E8 Twenty Six LaGs Twenty Seven Thousand Nin6ty Three) only as on 15.06.2022 against the defendants No. 1 & 2^jointly and severally wilh pendenielite and future interest at the contractual rate of 13.60% per annum at monthly rests till realization along with cost and other relief.

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

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SlirsJ"glr'^Atl+I Presiding Offic€r DRI, Guwahati

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O A. 320/2022lDRT-Guwahati

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The Oefendant No.2 being the^proprietor of defendant No.l /Borrowers being an individual on 02.09.2016 applied for cash credit loan before the applicant Bank for amount of Rs.22,50,0001 for the^purpose of carrying business for manufacturing^factory of Tea deals with^picketing, stocking etc and on being receipt the applicalion dated 02.09.20'16 the applicant bank on 02.09.2016^prepared the^{interview-cum-appraisal} form in the name of the defendanu borrower.

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The applicant bank on receipt of the application submitted by^the defendanubonower visited the^place of^business of the^{dofendanuborroweron} O'1.10.20'16 and^prepared the^{stock statementof the defendanuborrower and thereafter} on 01.11.2016 the applicant bank after^{enquiry preparedthe stockstatementof the} defendanuborrower.

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The applicant Bank on received of the^{application from the Defendants} /Borrowers sanctioned the^{said cash credit loan amount of Rs.22,50,000 upon certain} terms and conditions^{which is mentioned in the sanction letter issued by the applicant} Bank and the Oefendants^{/Borrowers acknowledgedthe same before the applicant} bank. The aforesaid^{loan was approved thereafter vide letter daled 29lUl2O21 ol} Bashbera branch, Nagaon^{Circle, Nagaonof the applicant bank}

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The Defendants/Borrowers^{accordingly acknowledged the receiptof the} aforesaid cash credit^{loansanctionletterand thereafter,the applicant bank has} disbursed the loan^{amounton 05.09.2016 and subsequent dates when withdrawloan} amount through A'lC^{No.1644008700001652 stands in the name of M/sPriyajuri Gold} Tea i.e., the Defendant^{No.1.Theapplicani bankon 15.06.2022issuedcertmcate} showing that the defendanuborrowers^{is due amountof Rs.26'27} '0931-.

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The Defendants^{/Bonowerson 02.09.2016 hasexecutedagreements for} loan/cash crediuoverdraft^{in favor of theapplicant bankwith terms and conditionsas} mentioned in the said^{agreementTheOefendants/Borrowersalso hasexecuted} agreements for Hypothecation^{of Goods to secure a demand cash creditdated} o3'og.2ol6infavoroftheapplicantbankwithtermsandconditionsasmentionedinthe said agreement against^{the loan sanctionedby the applicant Bankfor the saidcash} credit loan.

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ski'vs-{'ov"r}"J'+ ZL 06 L\ U Poaklng Ofic.r ORT, Gut6haii

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OA 320/2022IDRTGuwahall

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The defendant No.2 had executed deed of guarantee in favour of the applicant bank whereby the defendant No.2 assure to^pay the loan amount to the applicant bank without fail and accordingly the defendant No.2 had mortgaged his land and properties mention in schedule of the OA for the cash credit loan amounting to Rs.22,50,000/taken by the Defendants /Borrowers from the Applicant Bank, for the purpose of carrying business for manufacturing factory of Tea deals with picketing, stocking etc. The defendant No.2 also deposited title deeds such as deed of guarantee dated 02.09.2016, Sale Deed vide No. 1360 dated '16.06.2008, Jamabandi and Revenue Paying Receipt, Valuation Report dated 23.08.2016 of mortgaged land and properties. The description of the mortgaged land and properties are as follows:

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A^plot of land measuring an area of 3 Bigha, 3 Katha, (49.17 Are) covered by Dag No.273, Patta No.l16, revenue village- Naharbari Bongaligaon, Under Mouza_ Dhekiajuli, Circle- Ohekiajuti, Dist.- Sonitpur, Assam which is bounded by:- North: Own land of purchaser, South: Own land of purchaser, East: Own land of purchaser, West: Own land of purchaser.

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The Defendants/Borrowers, after taking loan amount of Rs.22,5O,O0Ol through A/c No.1644008700001652 stands in the name of M/s priyajuri Gold Tea i.e., the Defendant No..l, carrying business deals with manufacturing factory of Tea deals with picketing, stocking and selling. The defendants though availed the cash credit loan amount of Rs.22,50,000i- through accounts as mentioned above from the applicant bank and enjoys benerits there from, but was never sincere towards repayment of the loan amount with interest despite repeated request made by the applicant bank to the Defendants/ Borrower for repayment of the aforesaid cash credit loan and as such the said loan has become Non performing Assets (NpA) on g1.Og.2O21 accordingly, the outstanding amount due arong with interesr elc., in the account of the Defendants/Borrowers calculated up lo 15.06.2022 comes to Rs.26,27,0g3/- as per the statement of accounts dury cerlified and maintained by the appricant bank in their usuar course of business stands in the name ofthe DefendanuBonower.

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The applicant bank made demand to the Defendanty Borrowers to repayment of the cash credit loan amount, but the detendants/bonowers did not take any steps for

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sr,*$Iy#zx PEeiring Offcar ORT, cusdtst

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O A 320/2022lDRT-Guwahati

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repayment of the said term loan amount to the applicant bank, however the defendants/bonowers on 31.03.2021 execuled balance and security confirmation letter in favour of the applicant bank whereby the defendants/borrowers conlirm that they are liable to pay outstanding due amount of Rs.25,15,375/- as on 31.03.2021.

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The applicant bank lhus became constEined to^file the^{presentOriginalApplication} for the recovery of Rs. 26,27,093.00^{(Rupee3Twenty Six Lacs TwsntySaven} Thousand Ninety Three) only as on 15.06.2022 along^{with interest and costof the} application.

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After filing of the OA the Tribunal^{issued notices upon the defendants th.ough} registered^post and the applicant^{bank filed servicereport on 30.09.2022and brought} record the^postal receipts^{and the track consignmentrepod.lt is observedthat ihe} summons have been served^{upon lhe defendants. Hence service is completedupon} the defendants. Even^{after proper service of notices upon the defendants there was} no representation on behalf^{of the defendants eitherby the counsel or theperson} and hence the defendants^{were set ex-parteon 02.02.2023and theirright to tile} written statement cum^{evidence on affidavitwas closed and the matter was postedfor} hearing on behalf of^{the applicant bank.}

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Supporting the^{claim of the applicant bank Smt Bobby Baruah, Senior Manager} of the Applicant Bank^{has filed evidence on aftdavitcoupledwith the security} documents marked^{as Exhibit 1 io 16 supporting the claimoflhe applicantbank'}

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Heard the learned^{counselfor the applicant bank whoprayed for issuance of} Recovery Certificate^{againstthe defendants as per pleadings made in the Application'} supported by evidence^{on affidavit of their witnesswho afiirmed on oath the execuiion} of the security and^{other documentsby the defendants and also exscutionof their own} documents relied^{upon, which have been markedexhibits'}

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Considering the^{facts and circumstancesof the case, I am of the considered} view that the^{documentsliled by theapplicant bankare supportingtheclaimof the} applicant^{bank and establishingthe liability of the defendanis' lt is proved} that the defendants^{are liable to payto the applicant bank the claim made in the} OriginalApplication.^{The loan was obtained and documents have been executedon}

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.\Ur-C!'o'ra'^^bn't',- Presiding Offce. DRT, Guurahati

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O A 320/2022IDRT-Guwahatr

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02.09.2016 & 03.09.2016. The defendants/borrowers on 3'1.03.2021 executed balance and security confirmation letter in favour of the applicant bank. Moreover afrer perusing the documents on record and taking into consideration of the facls and circumstances of the case, I lind that the mortgage has been created 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 31 .03.2021 and the OA has been filed on 16.08.2022. Hence, the OA is filed well within the^period of limitation and this Tribunal having a^jurisdiction to adjudicate the OriginalApplication.

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Considering the unchallenged/unrebutted version of Smt Bobby Baruah, the applicant's witness and all the documents marked as exhibits, including duly certified copy of the statement 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 Certificate as^prayed for.

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ln the result, the^present Original Application No. 320 of 2022 is allowed with cost as under :-

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i) The defendants No.1 & 2 are^jointly and severally liable to^pay to the applicant bank a sum of Rs. 26,27,093.00^(Rupees Twenty Six Laca Twenty Sevon Thousand Ninety Three) only with pendentelite and future interest @13.600/0 p.a. with monthly rests from 16.06.2022, till the date of full paymenurealization and also cost of the application.

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ii) The charge of ihe certificated amount be kepl alive on mortgaged^property i.e. a^plot of land measuring an area of 3 Bigha 3 Katha^(48.'17 Are) covered by Dag No. 273, Patta No. 116, revenue village- Naharbari Bongaligaon, Under Mouza- Dhekiajuli, Circle- Dhekiajuli, Disl- Sonitpur, Assam which is bounded by : North: Own land of^purchaser; South: Own land of Purchaser; East: Own land of Purchaser; West: Own land of Purchaser, as described in Schedule of the OA till the amounl 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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S\ircl"ry"^uuA Pr6iding Offcer ORT. Guwahali

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o.A. 320r2022lDRl€uw.hrti

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iv) The applicant bank^{is also entitledto proceedagainst the personal assets and} propenies of the defendants towards recovery of lhe^dues

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v) The applicant bank is entitled^{to lhecosts of the O.A. whichincludesthe} advocate fees of the^{applicant bank. Applicant is directedto file the cost} memo within 2 weeks from today.

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vi) lssue Recovery^{Certificateaccordinglyfor a sumRs. 26,27'093.00(RuPses} Twenty Six Laca Twenty^{SevenThousand Ninety Throo) onlyin favour of} lhe applicant^{bank against the defendants No.1 & 2.}

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vii) Communicate^{copyof this orderto the concerned parties}

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This order is dictated^{and corrected by the undersigned'}

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Judgment dated^{26rh June 2023, signed and pronouncedin the Tribunaltoday}

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under my signature.

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Copy of the JudgmenuFinal^{Order be uploaded in the Tribunal's Websiteand}

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file be consigned^{to Record Room.}

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-rt",,4.ty*.9*.1 (Shiv Sharan Duber)^t) Presiding Officer DRT, Guwahati.

Punjab National Bank v. Ms Priyajuri Gold Tea

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ms Priyajuri Gold Tea

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

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Case details

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