Allowed

Punjab National Bank v. M/S Manav Rice Mills

DRT25 Sept 2024OA/1616/2022

Case brief

AI extract

What is this about?

Punjab National Bank sought recovery of approximately Rs. 27 Crore arising from Cash Credit, FBWC, and GECL limits against M/s Manav Rice Mills and associated defendants. The DT admitted the bank's evidence, noting the defendants failed to submit written statements. The Presiding Officer allowed the recovery application, declaring the liability as joint and several, and authorized recovery from mortgaged and hypothecated properties along with personal assets.

What did the court decide?

Recovery of Rs. 27,06,68,508.78 plus interest; issuance of Recovery Certificate; direction to distribute sale proceeds.

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

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1616 of 2022

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Date of Institution: 01.08.2022 Date of Decision: 25.09.2024

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Punjab National Bank, having its Head Office at Plot No.4, Sector 10, Dwarka, 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-B1, Aggarwal 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-B1, 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-B1, Aggarwal Colony, Jalalabad (West), District- Fazilka, Punjab152024.

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2(c). Ms. Neha Nagpal D/o Late Sh. Rajesh Nagpal, R/o 910/3B1, 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-B1, Aggarwal Colony, Jalalabad (West), District- Fazilka, Punjab152024.

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Manav Nagpal S/o Sh. Rajesh Nagpal, R/o 910/3-B1, Aggarwal Colony, Jalalabad (West), District- Fazilka, Punjab-152024.

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Smt. Tripta Devi W/o Sh. Harbans Lal, R/o 910/3-B1, Aggarwal Colony, Jalalabad (West), District- Fazilka, Punjab-152024.

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Mohinder Partap Dhingra S/o Sh. Munshi Ram, R/o House No.891, Kamra Street, Fazilka, Punjab-152024.

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……….Defendants

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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 monthly 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 (RDB 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 from time to time and lastly, on 24.09.2014, bank had enhanced the FBWC Limit from Rs.1200.00 lacs to Rs.1800.00 lacs. 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 (GECL) Scheme of Rs.350.00 lacs. 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.3A 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. However, LRs of defendant

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¶27

no.2 did not put in appearance. Accordingly, LRs of defendant no.2 stand proceeded ex parte . So far as defendant nos.1, 3 to 5 are concerned, they failed to file 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.

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I 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 Lacs 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 of mortgaged properties, fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendant nos.1, 3 to 5.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 25.10.2024 , who is directed to distribute the sale 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 the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 25.10.2024 Presiding Officer DRT-1, Chandigarh

Punjab National Bank v. M/S Manav Rice Mills

Case brief

What is this about?

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Punjab National Bank v. M/S Manav Rice Mills

Case brief

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What did the court decide?

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