Allowed

Punjab National Bank v. Raghvendra Kumar Singh & Ors.

DRT5 Dec 2023OA/39/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's ex-parte application under S.19 RDB Act to recover Rs. 29,28,787.37 from defendants who failed to appear. The court verified documentary evidence, deemed the claim genuine, and issued a recovery certificate for joint and several liability with attached assets.

What did the court decide?

Recovery of Rs. 29,28,787.37 with interest at 10% p.a. from 30.12.2022 till realization; Recovery Certificate issued; Assets attached.

Punjab National Bank versus Raghvendra Kumar Singh & Ors. — Banking and Recovery | DRT (2023)

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OA 39 of 2023[Jl

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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. 39 of 2023

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

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•...... Applicant

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V S.

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Raghvendra Kumar Singh, Son of Late Ram Naresh Singh

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Chuman Kumar Singh, Son of Late Ram Naresh Singh Both are residents of Village- Hussepur Naya Tola, Post Office-

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Shahpuapatti, P.S. & Anchal- Sahebgang, District -Muzaffaxpur.

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Kishori Singh, Daughter of Late Chattu Singh, resident of VillageHussepur Khemkama, Post Office- Shahpuapatti, P.S. & AnchalS ahebgang, District- Muzaffaxpur.

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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 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.29,28,787.37 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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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 flle a suit Wt\ \ '

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oA 39 of 2023r-I

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DRT. PATNA

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Defendant no.I and 2 are the borrowers and defendant no.3 is the guarantor of the loan facilities availed by the defendant no.1 & 2.

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Defendant no.1 & 2 had applied before the applicant bank vide loan application dated 14.01.2008 for grant of Tern Loan of Rs.3 Lakh to purchase Tractor & Equipments and Kisan Credit Card facility of Rs.I.50 Lakh for promoting Farm Mechanization and Agricultural Production.

¶27

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 02.02.2008 on various terms and conditions which were accepted by the defendants.

¶28

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 defendants purchased the tractor which was registered being Registration No. BR 06R-8485 dated 21.05.2010 and hypothecated the same with the applicant bank.

¶29

In order to further secure the loan facilities the borrowers had created registered simple mortgage bearing Deed No. 2197 dated 30.01.2008 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.

¶30

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 09.10.2017 respectively. Thereafter the applicant bank sent notice on 10.10.2018, 02.01.2019 and 09.12.2019 & also legal notice on 13.03.2020 to the defendants but all these notices went completely without any effect.

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OA 39 of 2023lJl

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DRT. PATNA

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Defendants have signed the balance and security confirmation letters on 25.01.2020 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.29,28,787.37 with pendent-lite and future interest contractual rate from 08.12.2022 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.

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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 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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SI.No	Description Documents Photocopies	of	Date of Execution	Signature of Executants	Ex./ Ann. No.
1	General power ofatto	rney	07.08.2020	Bank	1
2	Aadhar card			Bank officer	2
3	Authority letter		22.06.2022	Bank	3

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.... .t.``:, \

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DRT. PATNA OA 39 of 2023[Jl

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4	Loan application	14.01.2008	30.001.50	Def.no.1&2	4
5	Recorrmendationletter	14.01.2008		Bank	5
6	Sanction letter	02.02.2008	3.00 1.50	Bank and accepted byclef.no.I&2	6
7	Retail invoice	02.02.2008			7
8	Delivery Challan	02.02.2008			8
9	Satisfaction letter	02.02.2008			9
10	Certi ficate ofregistration	21.05.2010		-	10
11	Hypothecation agreement	02.02.2008	3.00 I,50	Def.no.1 &2	11
12	Deed of guarantee	02.02.2008	3.001.50	Def.no.3	12
13	Photocopy ofmortgagedeed	30.01.2008		-	13
14	Affidavit	30.01.2008		Def.no. I &2	14
15	Revenue receipt	14.09.2007			15
16	Land concermngcertificate	24.09.2007		-	16
17	Notice	10.10.2018		Bank	17
18	Notice	02.01.2019		Bank	18
19	Notice	09.12.2019		Bank	19
20	Adv. Notice	13.03.2020		Bank	20
21	Balance and securityconfirmationletter	25.01.2020		Def.no.1	21
22	Declarations	02.02.2008		Defendants	22
23	Statement of account ofTL	Ason 30.09.2022	Rs.23,58,238.40	Barlk	23
24	Statement of account ofKCC	Ason 02.10.2022	Rs.5,70,548.97	Bank	24
25	Ravindra' s certi ficate			Bank	25

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6- Heard arguments for learned 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 account-s in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been

¥xl,

OA39Of2uniji

I)RT. 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 canying 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 09.10.2017 respectively and defendants have also executed balance and security confirmation letter on 25.01.2020, confirming the outstanding balance, 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 (1) 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 O'rocedure) 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

W5^\L/

OA 39 of 2023TJl

I)RT. 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 tpe .provisjpy:s Of. this Act, a certified copy Of arty entry in a banker's book shall in all legal proceedings be received as prima facie evidence Of the existence Of such entry, and shall be admitted as evidence Of the matters, [ransac[ious 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 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.29,28,787.37 with cost and further 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.

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f.,l..;\`

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OA 39 Of 2023r]i

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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.29,28,787.37 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.29,28,787.37 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 certiflcate 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 Offlcer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants, by sale of mortgaged/

Vast,,

OA 39 of 2023[Jl

DRT. PATNA

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

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05th 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 proceeding	Order with the Signature of the Court
	OA 39 of 2023
05.12.2023	Judgment written on separate sheets, kept on the case file in
	pronounced. Certificate of recovery be issued to the ld. Recovery Officer fo its execution.

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Office action
taken with date

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05.12.2023

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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 sendi	ng it to ld. Recovery
Officer for its execution in accordance with law.	HEE= Presiding Officer

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FORM NO. 9 [See Regulation 24( I )]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. 8 & F Wing) Karpuri Thakur Sadan, Kendrlya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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RBcOvBRycERTIFlcrm+uNDERsEECTIONi9(I)READwlTIIsECTIONi9(zz)OFTHEREcOvERyOFIREIBTs& BANIKRCRIrpTcyACT,j222,AsAMENDBDFROMTiMF,TOTiMF.

Rc NO. 749rm3

Case No: OA/39/2023

In the Matter of: (CH-I) Pu`UAB NATIONAL BANK NEKNAMpuR BRANcll BLOcK PAROO ro NENAMPUR MuzAFFARpuR j3IHAR ro

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Applicant(s)

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To'

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(CD- I) RAGHVENDRA KUMAR SINGH & ORS.

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Son Of Late Ram Narech Smgh Resident of village -Hussepur Naya Tola„Post Office - Shahpurpatti, PS. and Anchal - Sahebganj Muzafiarpur J3IHAR

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(CI)- 2) CIIUNMAN KUMAR SINGII SON OF LATE RAM NARESII SINGII RESIDENT L+vlLLAGE-HussEpuRNAVAroLA,posT OFFICE- SHAHPURPATTl, PS. AND ANCHALSSAHEBGANG,DISTRICT-MUZAFFARPUR

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Defendant(s)

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(CD- 3) KISHORI SINGH DAUGHTER OF LATE CHAITU SINGH RESIDENT OF VILLAGE- HUSSEPUR KHEMKARNA, POST 0FFICESHAHRPURPATTI, P.S. AND ANCHALSAH EBGANG, DISTRICT-MUZAFFARPU R 843 I 25

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Rocoiery Certincate for Rs 2928787„17 [J!!pees Thrent}r Nine I.raklis TwentyJ2ight Tliousannds Seren Hundred higbty Seien And Poise Thirty Seren Onl)L)

¶104

In terms of final order dated 05/12/2023 passed by this Tribunal in the above mentioned case, it is ordered that the AApplicant Certificate Holder Bank is entitled to recover a sum of Rs. 2928787.37 along with cost, expenses and interest from the 30/12/2022 i.e. date of filing / with effective date of the oA/39A023 and future interest from oorder date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter refined to art:-

¶105

sr.Ji	i CD Name	Int. I ,type/Model	Int. I ^Rate	Effective ^, Date	Order Date	Amount(Rs.)I	^Liabl,ity ftyl,e	^I Interest(a80n i OrderDate)	RC` ADount(Rs.)t
'1	i RAGHVENDRA KUMAR SINGH&ORS.	s'mple i Interest i(yearly)I	lo	30/ 12/2022	05/12/2023	292878737 i	Jo,nt,y AndSeverally i	I^Interest AsonOrderDate	2928787.37 iI
	I•1_.J CHUNMAN KUMAR SINGH	slmple I 'nteres' I(yearly)I	lo	30/ 12/2022	i05/12/0231I	2928787.37 I	Joint,y AndSeverally	, lntcrcst IAson , OrderDale	2928787.37
13	! KISHORI SINGH	Sinplei?teear:,s,I,	I lot	30/ 12/2022	o5,,2,2o23	lI292878737 iI	JointlyAndSrveTally )	InterestAsonOrderDale I	2928787.37 :

¶106

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.

¶107

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

¶108

Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 11/01/2024.

¶109

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.

¶110

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

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``1

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PRESIDING OFFIC`ER DEBTS RECOVERY TRIBUNAL PATNA

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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) Kapuri Thakur Sadan, Kendriya Karamchari Parisar

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

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SCHEDULE TO RHCOVERY CERTIFICATE MEMO OF COSTS

RC No. 749/2023

Case No: OA/39/2023

Applicant(s): PUNJAB NATIONAL BANK

¶123

Versus

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Defendant(s): RAGHVENDRA KUMAR SINGH & ORS.

¶125

Sr. No.	Item of costs	Amount in Rs.
11.	Fee on the application	32000
12.	Process Fees(Inc. Publication)	0
3. '4	LAdvocateFees	0
.	Commissioner/Receiver/Valuation/Security Fee	0
'5. I	Miscellaneous Charges	0
	Total Costs: Rs.	32000

Place: PATNA

Date: 05/12/2023

\1.

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶130

Note: Strike out whichever is not applicable

Punjab National Bank v. Raghvendra Kumar Singh & Ors.

Case brief

What is this about?

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Punjab National Bank v. Raghvendra Kumar Singh & Ors.

Case brief

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What did the court decide?

What the court decided

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