Allowed

Punjab National Bank v. M/S Vinayak Brothers

DRT1 Aug 2023OA/395/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab National Bank for recovery of approximately Rs. 30.70 lakhs with interest against M/s Vinayak Brothers and other defendants, who were proceeded ex parte for non-appearance.

What did the court decide?

Recovery of Rs. 30,70,219.04 with interest at 9.35% p.a. from 01.12.2021; Recovery Certificate issued; Recovery Officer directed to distribute proceeds from sale.

Punjab National Bank versus M/S Vinayak Brothers — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 395 of 2022 Date of Institution: 01.01.2022 Date of Decision: 01.08.2023

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Punjab National Bank,

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Fazilka, Tehsil and District Fazilka, Punjab.

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……..Applicant

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Vs.

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M/s Vinayak Brothers through its Proprietor Sh. Arjan Ram S/o Shri Des Raj, Shop No.98A, New Grain Market, Fazilka, District Fazilka, Punjab.

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Sh. Arjan Ram S/o Shri Des Raj, proprietor of M/s Vinayak Brothers, R/o Village Dhani Chandi Ram, Dakhli Sajrana, Tehsil and Distt. Fazilka, Punjab.

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Sh. Lekh Raj S/o Sh. Chandhi Ram, R/o Village Sajrana, Tehsil and Distt. Fazilka, Punjab.

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……….Defendants

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Advocates

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Sh. A. S. Sobti, Counsel for the applicant bank. Defendants- Ex parte.

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OA for the Recovery of Rs.30,70,219.04p with interest @9.35% per annum with monthly rests from 01.12.2021.

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ORDER

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Punjab National Bank (Applicant Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.30,70,219.04p with interest against M/s Vinayak Brothers And Others (defendants).

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Bank’s case is that on 11.11.2011, it had granted a loan of Rs.18.00 lacs to defendant no.1 through its proprietor defendant no.2 in the form of O. D. Limit for business purpose. Defendant no.3 stood as guarantor. To secure the loan, Defendant no.3 had mortgaged his immovable property (fully detailed in para No.3(A) of the application).

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The loan was chargeable to interest @14.25% per annum with monthly rests.

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At the request of defendant no.1 through its proprietor defendant no.2, on 16.07.2013, the applicant bank had enhanced the loan facility from Rs.18.00 lacs to Rs.25.00 lacs. The said loan facility was chargeable to interest @11.25% per annum with monthly rests. Thereafter, the said loan facility was renewed on 18.12.2017 and 28.02.2019. On 30.11.2021, a sum of Rs.30,70,219.04p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 07.03.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 09.01.2023, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Rakesh Valecha, Authorized Representative along with the loan and security documents and marked them as Exhibit A-1 to A- 35. 6. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.25.00 lacs and on 30.11,2021, a sum of Rs.30,70,219.04p was due. 7. Accordingly, the application of the bank for the recovery of Rs.30,70,219.04p (Rupees Thirty Lacs Seventy Thousand Two Hundred Nineteen And Paisa Four Only) with interest @9.35% per annum with monthly rests from 01.12.2021, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged property

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{fully detailed in para No.3(A) of the application	} as well as from the
personal movable and immovable property(ies) of	the defendants.
8. Pending IAs, if any, stand disposed of.
9. Recovery Certificate be issued accordingly.
10. Parties are directed to appear before	Recovery Officer on
01.09.2023, who is directed to distribute the	sale proceeds of the
mortgage property as per the provisions of Section	19(20-AB) of the Act.
11. A Copy of this order along with Recovery	Certificate be sent to
the Recovery Officer as well as the parties.
Pronounced in the open court. Dated: 01.08.2023	(A S Narang) Presiding Officer DRT-1, Chandigarh

Punjab National Bank v. M/S Vinayak Brothers

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Vinayak Brothers

Case brief

What is this about?

What did the court decide?

What the court decided

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