Allowed

Punjab National Bank v. M/S Satya Inc.

DRT18 Jul 2023OA/76/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank against three partners of a firm. The defendants were absconding ex-parte. The Tribunal ordered payment of the principal amount along with uniform simple interest at 9% per annum from the date of filing and granted liberty for recovery through asset sale.

What did the court decide?

Recovery of Rs. 36,64,369.86 with simple interest @ 9% per annum from 07.01.2022 until realization.

Punjab National Bank versus M/S Satya Inc. — Contract and Commercial Disputes | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-2,CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO. 76/2022

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DATE OF INSTITUTION: 07.01.2022

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DATE OF DECISION: 18^th DAY OF JULY, 2023

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Punjab National Bank , a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and Branches, amongst others at Branch behind Neelam Cinema, NIT Faridabad, Haryana, at Circle Office, Circle Sastra Centre, Faridabad, Haryana, through its General Power of Attorney Holder, Sh. Akash Deep, Senior Manager of the Applicant Bank

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...Applicant Bank

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Versus

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M/s Satya INC, a Partnership firm having its Registered Office at House No. 363, Sector 21-D, Faridabad, Haryana, through its Partners, Sh. Sumit Pandey and Smt. Vandana Pandey

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Sh. Sumit Pandey S/o Shri Satya Prakash Pandey R/o House No. 363, Sector 21-D, Faridabad, Haryana

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Smt. Vandana Pandey W/o Sh. Sumit Pandey R/o House No. 363, Sector 21-D, Faridabad, Haryana

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…...Defendants

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Argued by: Ms Arpita Sonkar, Manager Law, GPA Holder for the applicant bank Defendants ex parte vide order dated 10.03.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and

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OA/76/2022 PUNJAB NATIONAL BANK Vs M/S SATYA INC AND OTHERS 2 Financial Institutions Act, 1993 (herein after referred to as ‘the Act’ for brevity) against the defendants for recovery of Rs.36,64,369.86/- (Rupees Thirty Six Lacs Sixty Four Thousand Three Hundred Sixty Nine and Eighty Six Paisa Only) . It has been filed through Sh. Akash Deep, Senior Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney, Annexure-A1 (copy).

¶16

The brief facts of the case of the applicant as per Original Application are that defendant No. 1 through defendant Nos. 2 and 3 had approached the applicant bank for grant of CC facility of Rs. 25 lacs vide loan application dated 18.05.2017, Annexure-A2 (copy).

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The applicant bank sanctioned aforementioned credit facility to the defendants as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendants executed various loans and security documents, i.e. hypothecation of movables assets forming part of fixed of/block assets dated 02.06.2017, Annexure-A3 (copy) and hypothecation of goods and book debts to secure cash credit agreement dated 02.06.2017, Annexure-A4 (copy).

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It is further the case of applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan account was declared as NPA because it became irregular. The defendants executed balance and security confirmation letter dated 25.09.2018, Annexure-A5 (copy). The applicant bank recalled entire outstanding amount vide recall notice dated 16.03.2019 along with its

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OA/76/2022 PUNJAB NATIONAL BANK Vs M/S SATYA INC AND OTHERS 3 postal receipt, Annexure-A6 (colly) (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.36,64,369.86/- (Rupees Thirty Six Lacs Sixty Four Thousand Three Hundred Sixty Nine and Eighty Six Paisa Only) is recoverable against the defendants as per statement of account, duly certified under Bankers’ Books Evidence Act, Annexure-A7 (colly) (copy).

¶22

Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants, thus, the defendants were proceeded against ex-parte vide order dated 10.03.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Akash Deep, Senior Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by the Ms Arpita Sonkar, Manager law and gone through the record carefully.

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It was argued by Ms Arpita Sonkar, Manager law that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A7 , it is clear that defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum

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OA/76/2022 PUNJAB NATIONAL BANK Vs M/S SATYA INC AND OTHERS 4 of Rs.36,64,369.86/- (Rupees Thirty Six Lacs Sixty Four

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Thousand Three Hundred Sixty Nine and Eighty Six Paisa Only)

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from the defendants.

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In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @12.25% per annum with half yearly rests. In hypothecation of movables assets forming part of fixed of/block assets dated 02.06.2017, Annexure-A3 (copy), rate of interest has been mentioned @11.25% per annum with monthly rests.

¶30

This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, purpose of loan, i.e. business, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 3 being a female, while exercising the discretion vested in this Tribunal, deems it just and appropriate to grant uniform simple interest @9% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

¶31

In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum of Rs.36,64,369.86/- (Rupees Thirty Six Lacs Sixty Four Thousand Three Hundred Sixty Nine and Eighty Six Paisa Only) with current and future simple interest @9% per annum w.e.f. 07.01.2022, till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the

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OA/76/2022 PUNJAB NATIONAL BANK Vs M/S SATYA INC AND OTHERS 5 applicant bank shall be at liberty to recover aforesaid amount from the sale of hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 18.09.2023.

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Copy of this order be sent to the applicant bank and the defendants through registered/speed post. This order be also uploaded on the official website of this Tribunal.

¶36

Announced in the open Tribunal

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(M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. M/S Satya Inc.

Case brief

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Punjab National Bank v. M/S Satya Inc.

Case brief

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