Allowed

Punjab National Bank v. Messrs New Bhagwati Packers and Another

DRT21 Nov 2024OA/1505/2022

Case brief

AI extract

What is this about?

The TRIBUNAL allowed an Original Application filed by Punjab National Bank against defendants for recovery of dues. The Court accepted the claim and granted interest at 8% p.a., authorizing recovery through sale of hypothecated assets or attachment of personal property.

What did the court decide?

Order for payment of Rs. 54,22,759.27 plus costs and 8% simple interest; direction to issue Recovery Certificate; liberty to attach/sell personal assets.

Punjab National Bank versus Messrs New Bhagwati Packers… — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1505/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.08.2022

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DATE OF DECISION: 21.11.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Dhandhar Kalan, GT Road, Ludhiana through Sh. Daljit Singh, Officer and Attorney holder presently posted at Circle Sastra Centre, Ludhiana West.

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……..Applicant Versus

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M/s New Bhagwati Packers, a sole proprietorship concern situated at C-110, Phase V, Focal Point, Ludhiana through its Proprietor Sh. Sanjeev Sharma son of Sh. Ram Lal Sharma.

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Sh. Sanjeev Sharma son of Sh. Ram Lal Sharma resident of LIG 321, Sector 32, Near Karma Hospital, Chandigarh Road, Ludhiana.

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………. Defendants

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Advocates:

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Argued by Sh. Manish Singla, Advocate for the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.54,22,759.27p (Rupees Fifty Four Lacs Twenty Two Thousand Seven Hundred Fifty Nine And Paise Twenty Seven Only). The Original Application has been filed through Sh. Daljit Singh, Officer of the applicant, who is competent to institute the Original Application vide

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General Power of Attorney dated 27.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its proprietor i.e. defendant no.2 was already availing CC Limit of Rs.28.00 Lacs and had approached the applicant for grant Term Loan of Rs.7.90 Lacs vide Loan Application dated 05.05.2016, which is Annexure A3 to this OA.

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The applicant sanctioned Term Loan (covered under CGTMSE) of Rs.7.90 Lacs vide Sanction Letter dated 05.05.2016, which is Annexure A4 to this OA.

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Defendants had hypothecated their movable properties, i.e. Hypothecation of entire stocks of raw material, stock in progress, finished goods of all kind corrugated boxes and stores and spares etc. lying at borrower place of business or in transit and all kind of receivables and Machinery purchase out of Loan etc. vide Agreement of Hypothecation of Assets dated 09.07.2018, which is Annexure A8 to this OA.

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Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement of Term Loan & Common Agreement both dated 05.05.2016, which are Annexures A5 & A6 to this OA; Supplemental Agreement to Secure Credit/Loan Facilities, , Common Agreement & Sole Proprietor Letter all dated 09.07.2018, which are Annexures A7, A9 and A10 to this OA; Balance & Security Confirmation Letters dated 27.07.2012, 27.07.2013, 07.07.2015, 09.07.2018 & 21.12.2019, which are Annexures A11 to A15 to this OA; Notice dated 17.09.2021, which is Annexure A16 to this OA and Statement of Accounts along with Certificate under Banker’s Book Evidence Act, which are Annexures A17 & A18 to this OA.

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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.54,22,759.27p, which is recoverable and the defendants

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were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 18.11.2024.

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In support of the OA, affidavit of Sh. Daljit Singh, Officer, Punjab National Bank h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A18 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The 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 is entitled to recover a sum of Rs.54,22,759.27p (Rupees Fifty Four Lacs Twenty Two Thousand Seven Hundred Fifty Nine And Paise Twenty Seven 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 in relief clause has claimed interest @12.15%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.08.2022 till the realization.

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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

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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 @08.00%p.a. in 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.54,22,759.27p (Rupees Fifty Four Lacs Twenty Two Thousand Seven Hundred Fifty Nine And Paise Twenty Seven Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 applicant 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 18.12.2024. 15. Copy of this order be given dasti to the applicant 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. Pronounced by me in the open Tribunal . Dated: 21.11.2024

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

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Punjab National Bank v. Messrs New Bhagwati Packers and Another

Case brief

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Punjab National Bank v. Messrs New Bhagwati Packers and Another

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