Allowed

Punjab National Bank v. Messers Mobile Care

DRT17 Nov 2023OA/499/2022

Case brief

AI extract

What is this about?

The DRT allowed an application under Section 19 of the RDBFI Act for issuance of a Recovery Certificate against borrowers who defaulted on bank loans secured by hypothecation, finding them jointly and severally liable for the outstanding sum.

What did the court decide?

Issuance of Recovery Certificate for Rs. 24,63,791.98 plus interest; charge kept alive on hypothecated properties; authority to proceed against secured and personal assets.

Punjab National Bank versus Messers Mobile Care — Insolvency and Bankruptcy | DRT (2023)

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O A 4gg/2o2zDRT-cuwahari

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal of Assam, Nagatand. M;ghalaya Manipur, Mizoram, Arunachal pradesh & Tripura)

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Before Shri Shiv Sharan Dubev. presidinq Ofticer

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O.A. No.499/2022

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ln the matter of -

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Punjab National Bank (E}3twhile United Bank of lndia) Tarapur (Silchar) Branch, Station Road, Tarapur, Silchar, DistricfCachar, Assam, Pin-788003

Applicani

vs.

l. M/s Mobile Care,

Represented by its proprielor

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Mr. Abdul Mannan Laskar,

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R/o copalganj, Silchar, District- Cachar, pin-7BBO3O.

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Mr Abdul Mannan Laska?,

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S/o Kutub Uddin Laska,

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R/o- Village & P.O.- Gossaipur, Part- t,

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Udharbond, Silchar, District- Cachar.^pin-788030.

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Defendants

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Presence of the Counsel:

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For the Applicant : Mr. Anil Bharali Ivlr. Kailash Barman, Advocates

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For the Defendants : None (Ex-parte).

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Oated :1711112023

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JUDGMENT

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This is an application under section 19 of the Remvery of Debts Due to Banks and Financial lnstitutions Act, 1993 ,iled by the Punjab National Bank (Erstwhile United Bank of lndia) Tarapur (Silchar) Branch, Station Road, Tarapur, Silchar, District-Cachar, Assam, Pin-788003, with a prayer to issue Recovery Certificate for the sum of Rs. 24,63,791.98 (Rupees Twenty-Four Lakhs Sixty-Three Thousand Seven Hundred Ninety-One and Paisa Ninety-Eight) only as on 19.09.2022 against the defendants with pendentelite and future interest thereon at the contractual till realization along wilh cost and other relief.

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A few facts giving rise to the present apptication are ", ,no"r.

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.SLr,^{,roA^.g..L,^,} Presiding oftcer U DRT. Guwehali

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O A 499/2022lDRT-Guwahati

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The defendanl No-1 represented by Defendant No-2 approached the

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applicant bank for loan on 02.08.2018 and the competent authority of the applicant bank has approved and Sanction of Cash Credit Loan Limit of Rs.'18.00 Lakhs vide Sanction Letter dated 30.08.2018. The defendants accepted all the terms & conditions of the sanclion letter dated 30.08.2018. The applicant stated that as^per the Sanction Letter, the applicable rate of interest was l1.55%^per annum with monthly rest. The same loan was sanctioned against the Primary security⁽ⁱ⁾ Hypothecation of Mobiles & Mobile accessories: Additional-(a) Assignment of LIP for S.V.RS. 3.00 Lacs,^(b)Pledge of RIP 0472109200737, 0472109200746, 0472109200913, 0037109260641 of Mr. Abdul Mannan Laskar valued Rs.3.00 Lacs. (c) To be covered under CGTMSE & Annual^guarantee fee as applicable is to be borne by the borrower,

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The applicant Bank stated that in terms of the sanction letter dtd. 30.08.2018 the following documents are executed^{by the defendant No-} 1^{representedby} Defendant No-2 to avail the loan of Rs. 18.00 Lakhs only:^-

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(1) Demand promissory note dated 30.08.2018 for Rs. 18.00 Lakhs only.

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(2) Letter of Lien dated 30.08.2018.

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(3) Letter of Continuity dated 30.08.2018.

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(4) Hypothecation of Agreement (Good, Book debts, Plant & Machineries dated 30.08.2018.

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(5) Consent clause to be taken from the borrower.

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(6) Declaration of sole Proprietorship dated 30.08.2018 executed by the Defendant No-2 in favour of Applicant.

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The applicant Bank stated that the defendanl No-1 represented by defendant No. 2 approached the applicant bank for Guaranteed Emergency Credit Line (GECL) and the applicant bank allowed Over Limit Rs 21 ,65,0001^(Existing Limit Rs. C/C Rs 18.00 lacs and Sub Term Limit Rs. 3,65,000/-) on 15.09.2020 and same has been accepted by the defendants.^The same^{loan was} sanctioned against the Primary security:⁽ⁱ⁾ Hypothecation of stock in lrade, other assets^and receivable, Collateral- Lien on Banks fDR^{(1)04721.09221624} for Rs. 33,000/-,⁽²⁾ 0472109200913 for Rs.46,0001,^{(3</sup> 0472'109200737 for^{Rs.1,10,000/-(accrued} value), (4) 0472109200746 for Rs.1,10,000/..^Assignment of LIP^493670014 surrendered value of Rs 3 lacs}

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s(t, Presiding rr 'c l"a Offcerta-Y ORT, Guwahati

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O A 499/2022lDRt cuw6hsti

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The applicant Bank stated that in terms of the sanction letter dated 15.09.2020 the following documents are executed by the defendant No-^.l represented by Defendant No-2 to avail the loan of Rs. 3.65 Lakhs onty: -

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('t) Oemand promissory note date-d 15.09.2020 for Rs. 3,65,000/_ only.

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(2) Master Agreement dated 15.09.2020.

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(3) Agreement for working capital Term Loan dated 15.09.2020.

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(4) Lener of Request from the party for Availing Relief Under Covid_ig Regulatory^package.

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The applicant stated that in continuation of the Said loan defendant No. 1 represented by Defendant No.2 has executed the balance confirmation letter dated 27.08.2021 and acknowledging and confirming the batance to be paid to the bank as Rs.20,71,325.60 as on 26.08.2021 vide Account No. O4722SO4O27IA.

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The conduct of the defendants in Cash Credit Nc No. 0472250402798 and Term Loan A,/e No-0472300046.190 had been highty irregular and parlicularty the repayment of the loan is in vioration of terms stipulated in lhe letter of sanction. As a resu,t, defendant's default to repay the loan in the aforesaid account kepl and maintained in the usual ordinary course of the applicant bank,s business and there accrued thereon Rs. 24,63,791.98 as on^.t9,09.2022

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ft is stated that defendants availed the Cash Credit A,/e No. O4Z22SO4O27\B and Term Loan A,/c No-0472300046190 due to the ordinary course of business of the applicant bank. lt is stated that due to irregularity in the account, the aforesaid accounts had to be classified as non-performing assets (NpA) on 31.03.2021 and interest at the contractual rate has been calculated and added separately in total outstanding from realization from the defendant in the accounts referred to in this application.

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The defendants had availed the said loan facilities from the applicant bank but have not paid the outstanding loan amount as per terms and conditions as agreed upon with the applicant bank, in spite of repeated demands and request by the applicant bank. As the defendants failed to repay the loan amount, lhe loan accounts became NPAon 3'1.03.2021. After the accounts became NPA the applicant bank

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.d'i,sl,a^(a"i''ufu'1 Presdins Ofllcer ( I DRT. Guwahati

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oA a90/2022lDRT Guwahati

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issued notices for repayment^{of the due amount, but the defendants failedto repaythe} loan amount.

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The applicant bank^{thusbecameconstrainedto file the presentOriginal} Apptication for the^{recovery of Rs. 24,63,791.98 (Rupees Twenty-FourLakhs Sixty-} Three Thousand^{Seven HundredNinety-one and Paisa Ninety-Eight)only as on} 19.09.2022 along^{with interest and costof the application}

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After filing of the OA^{the Tribunal issued notices upon thedefendantsthrough} registered^{post and the applicant bank filed servic€ reporton 02 02 2023and brought} on record the^{postal receipts along with track consignment report which shows that} noticeshavenotbeenserveduponthedefendants.ThereaftertheTribunalordered paperpublicationofnoticeuponthedefendantsandtheapplicantbankissuednotice to the defendants^{on 11.02.2023through Paper Publication in two newspapers namely} 'samayik Prasanga"^{and "Eastem Chronicle'i Evenafter issuan@ of notice through} paper publication also there^{was no representationon behalfof the defendants either} by the counsel or^{the personand hence the defendantswere setex-parteon} 02-05-2023andtheirrighttofilewrittenstatementcumevidenceonaffidavitwas closed and the^{matter was listed for hearing on behalf of the applicantbank'}

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Supporting the^{claim of the applicantbank Ms AnianaOas, Chief Managerof the} Applicant Bank has^{filedevidenceon alfidavit coupled with the securitydocuments} marked as Exhibit^{AW-1 to AW-'18 supporting the claimof the applicant bank.}

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Heard the learned counsel^{for theapplicant bank whoprayedfor issuanc€ of} Recovery Certificate against the^{defendants as per pleadingsmade in lhe Application,} supported by evidence^{on afiidavit of their witnesswho affirmed on oath lhe execution} of the securiiy and other^{documentsby the defendants and also execution of their own} documents relied upon,^{which have been marked exhibits.}

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Considering the facts and circumstances^{of the case, I am of the considered} view that the document filed by^{the applicantbank are supporting the claim of} the applicant bank and^{establishingthe liabilityof the defendantslt is proved that the}

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.Q,Lrvd.<t mr,2,"Lt"t Presidinq Offcer , I ORT, Guwahali V

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o.A a99/2oz2 rRTcuwah.ii

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defendants are jointly and severally liable to pay to the applicant bank the ctaim made in the Original Application. The loan was obtained and documents have been executed on 30.08.2018, 15.09.25020. Balance Confirmation Letter is daled 27.08.2021 . The account became NpA on 31 .03.2021 and the OA has been fited on 06.12.2022. Hence, the OA is fited we within the period of limitation and this Tribunal having a jurisdiction to adjudicate the Original Application.

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Considering the unchallenged / unrebutted version of Ms Anjana Das, 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 Certificale as prayed for.

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ln the result, the present Original Apptication No. 499 of 2022 is aflowed with cost as under: -

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i) The defendants No.^'l & 2 are joinfly and severally liable to pay to the applicant bank a sum of Rs. 24,63,791.98 (Rupees Twenty-Four Lakhs Sixty-Three Thousand Seven Hundred Ninety-Ons and paisa Ninety_ Eighr) only with pendentelite and future interest @1.1.55% p.a. with monthty rests from 20.09.2022 till the date of full paymenvrealization and also cost of the application.

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ii) The charge of the certificated amount be kept alive on hypothecated properties, as described in 3A 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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iv) The applicant bank is also entitled to proceed against the personal assets and properties of the defendants towards recovery of the dues.

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v) The applicant bank is entitled to the costs of the O.A. which includes the advocate

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fees of the applicant bank. Applicant is directed to file the cost memo within 2 weeks from today.

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Sl,i,l^{gl,gll*^ (l''Ja+} Presiding Offcor (,/ DRT, Guwahali

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O A. 499202?/oRI-cuw.hati

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vi) lssue Recovery Certificate accordingly for a sum Rs. 24,63,791.99 (Rupees Twenty-Four Lakhs Sixty-Three Thousand Ssven Hundred Ninety_One and Paisa Ninety-Eight) only in favour of the applicant bank against the defendants No. 1&2.

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vii) Communicate copy of this order to the concerned parties. This order is dictated and corrected by the undersigned. Judgment dated 17th November 2023, signed and pronounced in the Tribunal today under my signature.

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal,s Website and file be consigned to Record Room.

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\Lr.c[^"r!(,'^^{Q^1"</sup> (Shiv Sharan Dubey) ,) Presiding Officer DRT, Guwahati.}

Punjab National Bank v. Messers Mobile Care

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messers Mobile Care

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

Parties & counsel

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Case details

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