Allowed

Punjab National Bank v. Sundar Babu Prasad & Ors.

DRT5 Dec 2023OA/40/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank applicant's application filed under Section 19 of the RDB Act to recover nearly Rs. 30 lakh from the borrowers and guarantor. The debt, having been acknowledged in 2020, was found within the limitation period. Proceeding ex-parte, the Tribunal determined the debt and issued a recovery certificate.

What did the court decide?

Defendants jointly and severally ordered to pay Rs. 29,99,101.55 with interest at 10% p.a. from 30.12.2022 till realization; Recovery Certificate issued.

Punjab National Bank versus Sundar Babu Prasad… — Contract and Commercial Disputes | DRT (2023)

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OA 40 Of 2023r]i

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I)RT. PATNA

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Debts Recovery Tribunal, Patna

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Karpuri Tliakur Sadan, Aashiana Digha Road Patna-800025

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Presiding officer : Shri Kaushalendra Yadav

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OA Case No. 40 of 2023

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Punjab National Bank, Neknampur Branch, Block- Paroo, P.O. Neknampur, Di strict- Muraffarpur.

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•...... Applicant

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Vs.

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Sundar Babu Prasad, Son of Late Ganesh Prasad, Resident of villageRajwara, P.O.-Rajwara, P.S. Sahebgang, District-Muzaffarpur.

¶11

Manoj Singh, Son of Suresh Singh, Resident of Village- Semra Nizamat, P.S. & Aanchal-Sahebgang, 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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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.29,99,101.55 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 40 of 2023lJl

DRT. PATNA

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

¶25

Defendant no.1 had applied before the applicant bank vide loan application dated 07.08.2007 for grant of Term Loan of Rs.3 Lakh to purchase Tractor & Equipments and Kisan Credit Card facility of Rs.1.50 Lakh for promoting Farm Mechanization and Agriculture Production.

¶26

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 10.08.2007 on various terms and conditions which were accepted by the defendants.

¶27

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 which was registered being Registration No. BR 06Q-9557 dated 13.04.2010 and hypothecated the same with the applicant bank.

¶28

In order to further secure the loan facilities the borrower had created a registered simple mortgage deed bearing No.17518 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.

¶29

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 accounts tuning as NPA on 09.10.2017 & 11.07.2018 respectively. Thereafter the applicant bank sent notice on 10.10.2018 and 09.12.2019 to the defendants but all these notices went completely without any effect.

¶30

Defendant has signed the balance and security confirmation letters on 16.03.2019 and 04.03.2020 confirming correctness of the outstanding balance

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OA 40 of 2023lJ1

DRT. PATNA

of the loan account on the date and thereby acknowledged the liabilities for the Same.

¶35

Thus the total liability in the loan account is Rs.29,99,101.55 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 bank, hence this application has been filed by the bank.

¶36

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 inade against the defendants on 09.06.2023 in "Dainik Jagran" newspaper.

¶37

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 .

¶38

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:

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Sl.No	Description Documents Photocopies	of Date of Execution	Signature of Executants	Ex./ Arm. 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

¶40

RERZI

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4	Loan application	07.08.2017	3.001.50	Def.no.1	4
5	Letter of sanction	10.08.2007	3.00 1.50	Bank and accepted byclef.	5
6	Retail invoice	10.08.2007			6
7	Delivery challan	10.08.2007			7
8	S atisfaction letter	10.08.2007			8
9	Certificate ofregistrationoftractor	13.04.2010		-	9
10	Hypothecationagreement	10.08.2007	3.00	Def.no.1	10
11	Deed of guarantee	10.08.2007	3.001.50	Def.no.2	11
12	Photocopy ofmortgagedeed	20.07.2007		-	12
13	Affidavit	20.07.2007		Def.	13
14	Revenue receipts	20.03.2006			14
15	Land concerningcertificate	21.06.2007		-	15
16	Notice	10.10.2018		Bank	16
17	Notice	09.12.2019		Bank	17
18	Balance and securityconfirmationletter	16.03.2019	-	Def.	18
19	Balance and securityconfirmationletter	04.03.2020	-	Def.	19
20	Declarations	10.08.2007		Defendants	20
21	Statement of accountofTL	30.09.2022	Rs.24,97,771.90	Bank	21
22	Statement of accountofKCC	02.10.2022	Rs.5,01,329.65	Bank	22
23	Ravindra' s certificate			Bank	23
24					24

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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 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.

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OA 40 Of 2023r.1

DRT. PATNA

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.

¶48

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 1acs. 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 09.10.2017 and 11.07.2018 respectively and the defendants have executed balance and security confirmation letter lastly on 04.03.2020, 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.

¶51

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.

¶52

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

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OA 40 of 2023lJ1

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DRT. PATNA

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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 the provisions of_ this Act, a certifiled copy Of any entry in a banker's book shall in all legal proceedirigs be received as prima facie evidence of the existence Of such entry, and shall be admitted as evidence of the matters, transactions and accounls 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 defendant 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 defendants have executed various loan documents including the guarantee agreement by clef.no.2, as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have printed 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.29,99,101.55 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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OA 40 of 2023lJl

DRT. PATNA

14- In my viewg 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.29,99,101.55 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.29,99,101.55 along with pendente-1ite 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 40 Of 2023rii

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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

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05th day of December, 2023

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Dictated &corrected by me.

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" giv r- -\ ) i

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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	Office action taken with date
	OA 40 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.

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Presid#er

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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. v/ Presiding Offlcer

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roRM No. 9 [Sce Regulatlon 24( I )]

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DEBTS RECOVERY TRIBUNAL PATT`lA

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2nd Floor, (A. 8 & F Wing) Karpun Thakur Sadan, Kendnya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna800025.

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COVERY CERTIFICATE UNDER SECTION 19(I) READ WITII SECTION 19(22) OF THE RECOVHRY OF DEBTs & BANKRupTcy ACT;j22a As AMBNI>ED FROM TIME TO TIME.

RC No. 748#023

Case No: OA/40re023

Tn the ivhatter of

(cH-I) puN]AB NATloNAL BAr`rK NEKNAMPUR BRANCH BLOCK PAROO P0 NEKNAMPUR

Applicant(s)

MuzAFFARpuR BIHAR ro

To,

(CD-1) SUNDAR BABU PRASAD & ORS.

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Son of Late Ganesh Prasad Resident of village Rajwara ,P0 Rajwara PS Sahebgang Muzaffarpur ]3mAR -843125

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Defendant(s)

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(cD- 2) MANo] srNGH SON OF SURESH SINGH RESIDENT OF VILLAGE SEMRA NIZAMAT PS. AND ANCHAL- SAHEBGANG, DISTRICTMUZAFFARPUR

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Recovel.y Certificate for Rs 2999101"55 [E!!pees Threnty Nine I.rakhs Ninety Nine Thousands One Hundred one And Paise Fifty Fi`re OnbL|

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In terms of final order dated 05/12/2023 passed by this Thbunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2999101.55 along with cost, expenses and interest from the 30/12/2022 i.e. date of filing / with effective date of tlie OA/40/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter refened to as:-

¶102

sr.i	ICD Name i	LoanType	iInt.I type/Model	Int. ^Rate	Effective Date i	Order Date	iAmount(Rs.)iI	Liabi]ityl type I	[ra':roensti Bra::;i	Rcl Amount(Rs.)iI	Renal.k
I	SUNDAR	BABUi PRASAD I&ORS.		simp,e i Interest ((year,y)I	I10	3o/12/2o22!II	05/12/2023	2999101.55 Ii	Jointly ,Ad r'Severally!	Interest iAsoni OrderP.a.t9.. J	2999101.55 i
2	MANOJ SINGH		ISimple Interest(Yearly) ,	10	I3o/12/o2!	05/12/2023	2999101551}	OintLy i AndSeverally;	InterestAson OrderE2_ajLJ	2999101.55

¶103

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 movableAmmovable assets of the certificate debtors.

¶104

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.

¶105

The Recovery Offlcer 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.

¶106

This Certificate has been issued under my signature and seal of the Tribunal on this

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PRESIDING OFFICER 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

¶111

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

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

¶113

SCHEDULH T0 RECOVERY CERTIFICATF

MEMO OF COSTS

RC No. 748/2023

Case No: OA/40/2023

Applicant(s): PUNJAB NATIONAL BANK

¶119

Versus

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Defendant(s): SUNDAR BABU PRASAD & ORS.

¶121

Sr. No.	Item of Costs	Amount in Rs.
1.	Fee on the application	32000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
4.	Commissioner/Receiver/Valuation/S ecurity Fee	0
5.	Miscellaneous Charges	0
	Total Costs: Rs.	32000

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Place: PATNA

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Date: 05/12/2023

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pREs[Drfu6<cER DEBTS RECOVERY TRIBUNAL PATNA

¶125

Note: Strike out whichever is not applicable

Punjab National Bank v. Sundar Babu Prasad & Ors.

Case brief

What is this about?

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Punjab National Bank v. Sundar Babu Prasad & Ors.

Case brief

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What did the court decide?

What the court decided

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