Allowed

Punjab National Bank v. Messrs Bansal Cotton Mills and Others

DRT16 Jul 2024OA/1132/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank's application for recovery of Rs. 3.32 Crores against borrowers who failed to repay sanctioned loans and term facilities. The Tribunal awarded uniform interest at 8.00% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued declaring liability to pay Rs. 3.32 Crores with interest at 8% p.a. and costs.

Punjab National Bank versus Messrs Bansal Cotton Mills and… — Execution and Attachment | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1132/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.08.2023

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DATE OF DECISION: 16.07.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi110075, through one of its Branch/Department/Division, having offices, one at Patiala, (Punjab) through Sh. Paramjit Singh Sapra, General Attorney and Principal Officer of Circle SASTRA Centre, Patiala

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……..Applicant

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Versus

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M/s Bansal Cotton Mills, having its Registered address at Jhaloor Road, Bhutal Kalan, Lehargaga, District Sangrur, Punjab-148031 through its partners defendant Nos.2 to 4

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Smt. Rashmi Bansal W/o Sh. Sandeep Kumar, R/o H.No.138/2, Ward No.5, Bhutalia Mohalla, Lehargaga, District Sangrur, Punjab148031

¶10

Smt. Manju Bansal W/o Sh. Amandeep Bansal, R/o H.No.258, Jakhal Road, Near Bhoja Da Hospital, Ward No.4, Sunam, District Sangrur, Punjab-148028

¶11

Smt. Shallu Bansal W/o Sh. Pawan Kumar, R/o Co-operative, Society Wali Gali, Ward No.5, Lehargaga, District Sangrur, Punjab148031

¶12

Sh. Ashok Kumar Bansal S/o Jagan Nath, R/o Master Colony, Ward No.5, Lehragaga, District Sangrur, Punjab-148031

¶13

Sh. Sandeep Kumar S/o Sh. Kedar Nath, R/o H.No.138/2, Ward No.5, Bhutalia Mohalla, Lehargaga, District Sangrur, Punjab-148031

¶14

Sh. Himanshu Gupta S/o Sh. Ashok Kumar, R/o Master Colony, Ward No.5, Lehragaga, District Sangrur, Punjab-148031

¶15

….……Defendants

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Advocates:

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Argued by Sh. Arpit Chawla, Advocate proxy for Sh. Rajan Chawla, Advocate for the applicant (through VC) Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.3,32,23,839.14p (Rupees Three Crore Thirty Two Lacs Twenty Three Thousand Eight Hundred Thirty Nine and Fourteen Paisa only). The Original Application has been filed through Sh. Paramjit Singh Sapra, General Attorney and Principal Officer o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 28.11.2013, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendant No.1 through it’s the then partners i.e. defendant Nos.2 to 4 was already availing CC limit of Rs.140.00 Lacs and had approached the applicant bank for takeover and enhancement of CC Limit to Rs.300.00 Lacs and fresh Term Loan of Rs.100.00 Lacs and further for reduction of CC Limit to Rs.250.00 Lacs.

¶21

Thereafter, defendant No.1 through its partners i.e. defendant Nos.2 and 3 approached the applicant bank for the grant of WCTL of Rs.62.00 Lacs under GECL Scheme. Defendant No.4 retired from M/s Bansal Cotton Mills vide Deed of retirement dated 31.03.2020 and New partnership deed dated 01.04.2020, which is Annexure A15 (colly) to this OA;

¶22

The applicant Bank sanctioned the takeover of CC Limit of Rs.140.00 Lacs and enhanced the Limit to Rs.300.00 Lacs and Term Loan of Rs.100.00 Lacs vide Sanction Letter dated 25.09.2017 and 10.01.2019, which are Annexure A2 and A14 to this OA and the terms and conditions were duly accepted by the defendants.

¶23

Later, on request of defendants, applicant bank reduced the CC Limit from Rs.300.00 Lacs to Rs.250.00 Lacs and further sanctioned WCTL of Rs.62.00 Lacs under GECL Scheme vide Sanction Letter dated 29.07.2020, which is Annexure A24 to this OA.

¶24

Defendants had mortgaged their immovable properties detailed as:-

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a) Plot No.200 measuring 275 Sq. Yards (i.e.0 Kanal 9-1/10 Marla) situated at Ward No.5, Shiva Colony, Lehra, District Sangrur owned by defendant No.6 vide Registered Transfer Deed bearing Vasika No.349 dated 10.05.2016 and its translation and b) Plot No.174 measuring 1565 Sq. feet situated at Ward No.5, Bhutania Mohalla, Near Co-operative Socity, Lehra, District Sangrur owned by defendant No.5 vide Registered Transfer Deed bearing Vasika No.737 dated 27.07.2007 along with its translation and

¶27

c) Plot No.50 measuring 291.67 Sq. Yards (i.e. 0 Kanal 9-2/3 Marla situated at Ward No.5, Shiva Colony, Lehra, District Sangrur owned by defendant No.2 vide Registered Transfer Deed bearing Vasika No.1713 dated 09.01.2018 with its translation

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And Letter of deposit of Title Deed and acknowledgment of deposit of Title Deed, which is Annexure A13 (colly) to this OA

¶29

Documents executed:- Hypothecation of goods and book debts to secure credit facility and Supplementary agreement both dated 28.09.2017, which are Annexures A3 and A4 to this OA; Term loan agreement and Hypothecation of assets to secure term loan dated 13.10.2017, which are Annexures A5 and A6 to this OA; Agreements of guarantee all dated 28.09.2017, which are Annexures A7 to A12 to this OA; Hypothecation of assets to secure term loan, Term loan agreement, Hypothecation of goods and book debts to secure credit facility and Master agreement and Guarantee deeds, D.P. note, master agreement and Agreement for working capital term loan all dated 07.08.2020, which are Annexures A16 to A23 and A25 to A27 to this OA; Balance and security confirmation letters dated 21.05.2019 and 24.03.2021, which are Annexures A28 to A30 to this OA; Recall notice u/s 13(2) of SARFAESI Act dated 09.08.2021 along with postal receipts, which is Annexure A31 (colly) to this OA and Statement of

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account along with Certificate under Bankers Book Evidence Act, which are Annexures A32 to A34 to this OA.

¶32

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.3,32,23,839.14p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

¶33

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 03.07.2024.

¶34

In support of the OA, affidavit of Sh. Paramjit Singh Sapra, General Attorney and Principal Officer, Punjab National Bank h as been filed.

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Heard ex parte arguments and perused record.

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It was argued by learned proxy counsel through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A34 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The present defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.3,32,23,839.14p (Rupees Three Crore Thirty Two Lacs Twenty Three Thousand Eight Hundred Thirty Nine and Fourteen Paisa only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @14.30%p.a. in CC Limit, @10.55%p.a. in Term Loan account and @9.25%p.a. in GECL WCTL account along with @2%p.a. penal interest with monthly rests from 01.08.2023 till the realization.

¶39

The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶40

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.3,32,23,839.14p (Rupees Three Crore Thirty Two Lacs Twenty Three Thousand Eight Hundred Thirty Nine and Fourteen Paisa only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 05.08.2024.

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

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Pronounced by me in the open Tribunal .

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Dated: 16.07.2024

¶47

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Messrs Bansal Cotton Mills and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messrs Bansal Cotton Mills and Others

Case brief

What is this about?

What did the court decide?

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