Allowed

Punjab National Bank v. Sangita Singh

DRT17 Sept 2024OA/133/2023

Case brief

AI extract

What is this about?

In an application under Section 19 of the RDB Act, the Patna DRT allowed a debt recovery claim by Punjab National Bank against two defendants. The Tribunal affirmed the loan sanction, verified the account statement, and ordered joint and several repayment of the principal and accrued interest with a recovery certificate.

What did the court decide?

The application was allowed; a Recovery Certificate was issued for Rs. 57,89,991/- plus interest and costs against defendants jointly and severally.

Punjab National Bank versus Sangita Singh — Specific Performance | DRT (2024)

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DRT. PATN A

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OA 133 of 2023 1 Jl

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 133of 2023

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Punjab National Bank. Main Branch. Chapra District-Saran.

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Applicant

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Sangita Singh W/o Anil Kumar Singh R/o Mahabbatpur Parsa. P.o.Revealganj. P.S.-Revealganj . District-Saran. PAN no. CGQPS1430Q.

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Ann Kumar Singh S/o Shabha Pati Singh R/o North Gudari Narayanpur (Naya Basti) Ward No. 2. Chapra Saran-841301 PAN no. BHUPS2406J.

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. . Defendants

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Present:

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For the Applicant : Shri S.K. Tiwari. Advocate For the Defendants : Shri Satish Nara)'an Sinha, Advocate Dated: 17.09.2024

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JUDGMENT

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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 4.2.2023 against the defendants to recover its debts from defendants of Rs.57.89.991/-as on30.9.2022 along with pendente-lite and future interest @11.15% p.a. with monthly rests from 1.10.2022 with costs till realization.

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The application has been filed with the contention that the applicant bank. is a body corporate. constituted under the banking companies ( Acquisition and Transfer of Undertaking) Act- 1970 having its head oftlce at Plot no. 4 sector 10. Dwarka New Delhi-1100075 and Branch C)face atMain Branch, Chapra District-Saran.

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Defendant no. 1 is borrower and defendant no. 2 is guarantor and defendants are mortgagor. Defendant no. 2 approached the bank for grant of cash credit loan of Rs.45 lakh on 24.2.2017. which was sanctioned by the bank on 24.2.2017. Defendants executed the various loan documents and dIso created equitable mortgage of immovable property details give at page 19 in schedule-A of OA.

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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

V.~~,“,,

OA 133 of 2023 IJI

DRT, PATNA

bank. in spite of several assurances given by it to the applicant bank resulting in the t,ccount turning as NPA on3 1 .3.202 1

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Since. the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank. hence this application has been filed by the bank.

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The total liability in the loan account is Rs. 57.89.991/-with pendentelite and future interest @11.15% p.a. with monthly rests from 1.10.2022 till the realization.

¶26

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 5.4.2023 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 .

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In response of defendants has appeared and fIled written statement stated that defendant took term loan from the bank to the tune of Rs.45 lakh and defendant no. 2 has given personal guarantee. It is further stated that the defendant time to time repaid the loan EMI to the bank. Though due to Corona Pandemic and Lock down. the business of the defendant was hampered. The loan account of the defendant became classitled as NPA on 31.3.2021. It is further stated that the bank has failed to quantify the higher rate of interest which has been charged by the bank unilaterally. It is further stated that the recall notice dated 12.7.2021 was neither delivered to the defendants. In above facts and circumstances of the case. it is respectfully submitted that the OA is Ht to be dismissed with cost.

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However. the defendants in their written statement have not denied the sanction of loan amount. its utilization and further to secure the loan. execution of relevant documents.

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Further the defendants have not substantiated the contents made in their written statement by filing their evidence on affidavit.

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As per section 19(10B) of the Recovery of Debts and Bankruptcy Act. 1993.

DRT. PATN A

OA 133 of 2023 IJl

"Tf any of the facts or pleading in the application or written statement are not verified in the manner provided under sub section (10A). a party to the proceedings shall not be allowed to rely on such facts or pleadings as evidence or any of the matters set out therein.

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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. Deputy Manager of the applicant bank. The details of documents are as follows:

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SI'N''	I Description of Documents Photocopies	Date of IExecution	Amount	Signature of Executants	IEx./ IAnn No.
e
9	Loanapplication	24.2.2017	Rs.45lakh	mc 1
a -)	Sanctionletter	24.2.2017	Rs.45laNl	a
4	Hypothecation agreement	24.2.2017	Rs.45 lakh	e 1
5	Deedofguarantee	24.2.2017	Rs.45 lakh	e I
6	Copyofdeed				6
7	a confirmationletter			Defendants	7
8	e			Bank	8
9	a	o 30.9.2022			9

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Heard arguments and perused the case record.

¶39

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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It is further submitted by Id. 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.

q„

DRT. PATN A

OA 133 of 2023 1 Jl

Tt 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 lacs. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore. this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 3 1.3.202 1. whereas the present application has been filed on 4.2.2023. 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 the present application has been filed well within the period of limitation.

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13 ShriAjeet Kumar. Deputy Manager of the applicant bank. has filed the dfHdavit 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.

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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.

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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.

¶50

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 Act, 1891 runs as underS.4. Mode of proof of entries in bankers’ books.–Subject to the pro\isions of this Act. a certified copy of an v emIr' in a banker's hook shall in all legal proceedings he received as prima facie evidence Qf the exislence of such emir\’. and shall be adnrilted as evidence of the nraTters, transactions and accounts therein recorded in everY case \there, and to the same extent as, the original entry itself is no\t bY Icr\t 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

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OA 133 of 2023 IJl

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DRT, PATN A

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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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15 . On perusal of the application. documents. affidavit and on consideration of the arguments. it is proved that the defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc.. the defendants have executed various loan documents. as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account.

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The evidence discussed above goes to establish that the amount of loan as mentioned in the O. A.. was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 30.9.2022 has been proved to be Rs.57,89.991/- only by way of statement of account. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and anal realization of the claim

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In my view. facts of the case stand proved by evidence of the applicant bank. Accordingly. the applicant bank is entitled to recover from defendants jointly and severally of Rs.57.89.991/-along with pendente-lite and future interest @ 9% p.a. with compounded monthly rests from 4.2.2023 (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 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 toRs.57.89.991/-along with pendente-lite and future interest Cd, 9% p.a. with compounded monthly rests from 4.2.2023(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.

DRT, PATN A

OA 133 of 2023 1 Jl

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/ 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 4.11.2024. The order be communicated accordingly.

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Judgment signed. sealed. dated and pronounced in the open court on 17tl'day of September. 2024.

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PI ~ rD\q\aq

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

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FORM NO. 9

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/P F

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DEBTS RECOVER\’ TRIBUNAL PATN A

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[See Regulation 24( 1 )]

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2nd Floor' ( A' B & F Wing) Karpuri ThaI<ur Sildan, Kendriya Karamchari Parisar (GPOA), Ashland Digha Road, Patna-800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(7) READ WITH SECTION 19(b2) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS A\IENDED FROM TIME TO TIME.

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RC No. 186/2024 IN

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Case No: OA/133/2023

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In the Mattcr t)f (CH- 1 ) PUNJAB NATIONAL BANK MAIN BRANCH CH APRA SARAN ,BIHAR -0

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Applicant( s)

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To,

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(CD- 1) SANGITA SINGH wife ofAnil Kumar Singh R/o Mahabbatpur Parsa,P.o.- Revealganj , P.S.Revealgani. Sara11 ,BIHAR

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Defendant( s )

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(CD- 2) ANIL KUMAR SINGH S/O SHABH A PATI SINGH R/O NORTH GUDARI NARAYANPUI{ (NAYA BASTI) WARD NO-2, CHAPRA. SARAN.-84 1301 PAN NOBHUPS2+00J

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Recovery CertifIcate for Rs 5789991.00 [ Rupees Fifty Se\ en Lakhs EigUy Nine Thousands Nine Hundred Ninety One Only I

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In terms of final order dated 1 7/09/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 5789991.00 along with cost, expenses and interest from the 04/02/2023 i.e. date of filing / with effective date of the OA/133/2023 and future interest from order date till the date of realisation in full. jointly or severally from the Certificate Debtors, hereinafter referred to as

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r.noI CDName	Loan Type	Int FType/Mode	Int Rate	Effective Date	Order Date	L m o u 11 t ( 1i sp)	1[Jj a b i I i ty	Interest (ason Order Date)	RC R IAmount(Rs.)
}SANGITA GH		:ompound Fnterest Monthly )			1 ] 7/09/2024	:;5789991. oo	bSeveraUy	[ntcrcstAs Ion Order IDate	15789991.00
KUMAR ISINGH		-mp.iI.d ltcrcst Monthly )			17/09,202+	!5789991.00	iiI=1 tl<br>,nd Severally

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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 movable/ Immovable assets of the certificate debtors.

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The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the anal order under the rccovely proceeding in pursuance of the Recovery certificate issued under Section 1 9(22) of Recovery of Debts and Bankruptcy Act 1 993.

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Parties are directed to appear before MANOJ KUMAR . Recovery Officer. DEBTS RECOVERY TRIBUNAL PATNA on 04/ 1 1/2024

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The Recovery Officer 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

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This Certificate has been issued under my signature and seal of the Tribunal on this 18/09/2024

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(b I) e = !! !! 11: re:qr i b u n a 1 Paula

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PRESID OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10 [See Regulation 24(2)]

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qP’

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DEBTS RECOVERY TRIBUNAL PATNA

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

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Ashiana Digha Road. Patna-800025

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 186/2024 IN

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Case No: OA/133/2023

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Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): SANGITA SINGH

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Item of Costs	lount inRs
Feeon the application	m6
Process Fees(Inc. Publication)	rij
AdvocateFees	[0
Commissioner/Receiver/ Valuation/SecurityFee	ro
MiscellaneousChdrges	ro
o	m6

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Place: PATNA

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Date: 18/09/2024

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PRESIDI@OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab National Bank v. Sangita Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sangita Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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