Allowed

Punjab National Bank v. M/S Manav Rice Mills

DRT27 Sept 2024OA/1616/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab National Bank for recovery of Rs. 27 crores plus interest against M/s Manav Rice Mills and associated guarantors and legal heirs after proving the loan facilities and outstanding dues.

What did the court decide?

Recovery of Rs. 27,06,68,508.78 with interest at 8.90% p.a. for Cash Credit and 7.50% p.a. for GECL; issuance of Recovery Certificate.

Punjab National Bank versus M/S Manav Rice Mills — Banking and Recovery | DRT (2024)

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©EBTS R®C©VRRY TRIBUNAL-I, C:IIANIiIGARII

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(DA No.1616 of 2022

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Punjab National Bank Vs. M/s Manav Rice Mills And Others

27.09.2024

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File taken up today. It has been brought to my notice that in order dated 25.09.2024, disposing of the OA, the date with regard to gpronouncement of judgment has wrongly been mentioned as 25.10.2024 instead of 25.09.2024 Accordingly, the same is hereby corrected. The court master is directed to make necessary col'r'ection on the orighlal 8 order dated 25.09.2024.

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DR’r-1, Chanhigarh

IN THE DEBTS RECOVERY TRIBUNAL-1, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1616 of 2022 Date of Institution: 01.08.2022 Date of IDecision: 25.09.2024

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Punjab National Bank9 having its Head Office at Plot No.4, Sector 10, Dwarka9 New Delhi-110075 and one of its Branch offices at Circle SASTRA Centre, Fazilka, Punjab-. 151204 .

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..Applicant

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Vs.

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M/s Manav Rice Mills, Fazilka- Ferozepur Road, Jalalabad (West), District- Fazilka, Punjab- 152024.

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Rajesh Nagpal S/o Sh. Harbans Lal, R/o 910/3-BI, Aggwwal Colony, Jalalabad (West), District- Fazilka, Punjab-152024 since deceased and now representing through the following legal heirs:2(a). Smt. Reena Nagpal wd/o Late Sh. Rajesh Nagpal, R/o910/3-BI, Aggarwal Colony, Jalalabad (West), DistrictFazilka, Punjab-152024.

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2(b). Manav Nagpal S/o Late Sh. Rajesh Nagpal, R/o 910/3-BI, Aggarwal Colony, Jalalabad (West), District- Fazilka, Punjab152024.

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2(c). Ms, Neha Nagpal D/o Late Sh. Rajesh Nagpal, R/o 910/3B 1, Aggarwal Colony, Jalalabad (West), District- Fazilka, Punjab152024.

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2(d). Smt. Tripta Devi W/o Sh. Harbans Lal, R/o 910/3-BI, Aggarwal Colony, Jalalabad (West), District- Fazilka, Punjab152024.

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Manav Nagpal S/o Sh. Rajesh Nagpal, R/o 910/3-BI, Aggarwal Colony, Jalalabad (West), District- Fazilka, Punjab-152024.

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Smt. Tripta Devi W/o Sh. Harbans Lal, R/o 910/3-BI, AggMwal Colony, Jalalabad (West), District- Fazilka, Punjab-152024.

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Mohinder Partap Dhingra S/o Sh. Munsld Ram, Mo House No.891, 1Camra Street, Fazilka, Punjab- 152024.

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. . . . . .....I)efendants

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Advocates

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Sh- D. K. Gupta along with Ms. Seerat Sharma, Counsel for the applicant bank.

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Sh. Vivek Verma, Counsel for defendant nos. 1 and 3 to 5 None for LRs of defendant no.2

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OA for the Recovery of Rs.27,06,68,508.78p with interest @8.90% per annum with rnoathly rests in CC Limit and @7.50% per annum with monthly rests in Term Loan from the date of filing the present application i.e. 01.08.2022.

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ORDER

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Punjab National Bank (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 WB Act) for the recovery of Rs.27,06,68,508.78p with interest against M/s Manav Rice Mills And Others (defendants).

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Bank’s case is that on 14.10.1996, it had granted Cash Credit Limit of Rs.25.00 lacs to defendant no.1 through its partners defendant nos.2 to 4 for business purpose. Defendant no.5 stood as guarantor. Thereafter, at the request of defendant no.1 through its partners defendant nos.2 to 4, bank had enhanced the said Cash Credit Limit ftom time to time and lastly, on 24.09.2014, bank had enhanced the FBWC Limit from Rs.1200.00 lacs to Rs.1800.00 laos. The said FBWC Limit of Rs.1800.00 was renewed by the bank on 17.03.2020. On 12/20.06.2020, at the request of defendant no. 1 through its partners defendant nos.2 to 4, bank had granted Guaranteed Emergency Credit Line (GE(-'L) Scheme of Rs.350.00 laos. To secure the loan, Defendant nos.2, 4 and 5 had mortgaged their immovable properties and created hypothecation of plant and machinerY (fully detailed in para No.3 A of the application). The said loan facilities were chargeable to different rate of interest. On 30.06.2022, a sum of Rs.27,06,68,508.78p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 25.08.2022, summonses were sent to the defendants by registered post, which were duly served. However9 LRs of defendant

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no.2 did not put in appearance. Accordingly, LRs of defendant no.2 stand9 proceeded ex parte. So far as defendant nos,1, 3 to 5 are concerned, they failed to ale their written statement within the stipulated period of 30 days. In view of this, the right of defendant nos.1, 3 to 5 to file written statements is hereby closed.

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Kuldip Kumar, Chief Manager along with the loan and security documents and marked them as Exhibit A- 1 to A-52. 5. 1 have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the different loan facilities and on 30.06.2022, a sum of Rs.27,06,68,508.78p was due i.e. Rs.23,10,51,397.78p in Cash Credit Limit and Rs.3,96,17,111/-' in GECL.

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Accordingly, the application of the bank for the recovery of Rs.27,06,68,508.78p (Rupees Twenty Seven Crore Six Laos Sixty Eight & Thousand Five Hundred Eight And Paisa Seventy Eight Only) with interest @8.90% per annum with monthly rests in Cash Credit Limit and @7.50% per annum with monthly rests in GECL from the date of filing the present application i.e. 01.08.2022, till the date of payment is hereby allowed with costs. The liability of the defendant nos.1, 3 to 5 would be joint and several. The legal heirs of deceased Rajesh Nagpal/ defendant no.2 would be liable upto the extent of whatever properties they inherit from the deceased Rajesh Nagpal/ defendant no.2. Bank can recover its dues by the sale ofmodgaged properties, fully detailed in para No.3 A of the application as well as from the personal movable and immovable property(ies) of the defendant nos. 1, 3 to 5 . 7 Pending IAs, if any, stand disposed of.

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4 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 25.10.2024, who is directed to distribute the saIe proceeds of the mortgage properties and hypothecated plant and machinery as per the provisions of Section 19(20-AB) of the Act. 10. A Copy of this order along with Recovery Certificate be sent to I the Recovery Officer as well as the parties. $ WE% %&' Prono Dated, wwF)MiF Meld 77- g-2,2 g DRT-lp Chandigarh {+t'yl' LZ P.o. he “#Fog- JP/ q ” M&£# *C # FI/Dd o2 Q. .7/q/,'„ ) CCI,„/m“ &Ard:

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DEBTS RECOVERY TRIBUNAL-l, CIIANDIGARH

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OA No.1616 of 2022 Punjab National Bank Vs, M/s Manav Rice Mills And Others 25.09.2024 Item No.63

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Vide separate detailed order passed today, OA LS been allowed with costs. File be consigned to record room &$ $arang) Presidiny Officer DRT-1, Chandigarl1

Punjab National Bank v. M/S Manav Rice Mills

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Manav Rice Mills

Case brief

What is this about?

What did the court decide?

What the court decided

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