Allowed

Punjab National Bank v. Mosan Ricetech Pvt. Ltd.

DRT13 Sept 2024OA/170/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal adjudicated a debt recovery application under the RDB Act. The applicant bank proved its case via documentary evidence and affidavit, while defendants failed to appear. The Tribunal determined the debt liability and issued a Recovery Certificate for joint and several payment.

What did the court decide?

Declaration of joint and several liability for Rs.43,75,711.30 with interest; issuance of Recovery Certificate; attachment of secured assets.

Punjab National Bank versus Mosan Ricetech Pvt. Ltd. — Banking and Recovery | DRT (2024)

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OA 170 of 2023 TJI

DRT. PATNA

Debts Recovery Tribunal, Patna

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Karpuri TIlakur Sadan, Aashiana Digha Road Patna-800025

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Presiding offlcer : Shri Kaushalendra Yadav

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OA Case No.170 of 2023

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Punjab National Bank, Patna Central School, New East Jaganpura, New Bypass Road, Patna.

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I...... Applicant

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VS.

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Mosan Ricetech Pvt. Ltd. Registered office Plot no. 22, Road No. 25. Sri Krishnanagar, Patna-I, Plant office:- at Bagwa Barap, P.O.-Garhani, Ara, District-Bhojpur-802203.

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Mr. Sanjay Kumar Sinha Legal Heir of Late Monika Sinha, Ex-Director of Mosan Ricetech Pvt. Ltd. Plot no. 22, Road No. 25, Sri Krishnanagar, Patna- I .

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Mrs. Rekha Kumari W/o Mr. Ajeet Kumar Sinpa, Bachi Vila, House no. 2 Danapur, Khagaul Road9 Near Saguna More, Patna-801503. Director of Mosan Ricetech Pvt. Ltd. Plot no. 22, Road No. 25, Sri Krishnanagar, Patna- 1 .

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....... Defendants

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Present:

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For the Applicant : Shri R.C. Narayan, Advocate For the Defendants : None

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Dated: 13.09.2024

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JUDGMENT

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The Applicant bank has made this application u/s l9 of the Recovery of Debts and Bankruptcy Act,1993 (here-in-after referred to as Act) onl.2.2023 against the defendants to recover its debts from defendants of Rs.43,75,711.30as on24. I .2023 along with pendente-lite and future interest at the contractual rate from 25. I .2023 with costs till realization.

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The application has been flled with the contention that the applicant bank, is a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having its Head Office at Bank House, 21 Rajendra Place, New Delhi-110008 and Branch Office at Patna Central School, New East Jaganpura, New Bypass Road, Patna.

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Defendants approached the bank for grant of term loan of Rs.20 lakh and cash credit loan of Rs.25 lakh, which was sanctioned by the bank on

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QLA170of2023u

QLRT.pAng

3.2.2020. Defendants further approached the bank for grant of GECL loan of Rs.4 1akh, which was sanctioned by the bank on 17.6.2020. Defendants executed the various loan documents.

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After availing the sanctioned credit facilities defendants became irregularinrepaymentoftheirduesasperagreedtermsandfailedtoadhereto the financial norms of the bank and avoiding the repayment of its dues to the bank,inspiteofseveralassurancesgivenbyittotheapplicantbankresultingin the account turning as NPA on25.10.2022

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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.43,75,711.30with pendenteliteandfutureinterestcontractualratefrom25.1.2023tilltherealization.

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This Tribunal issued summons/notices copies of application & paper booktothedefendantsbyregistered/speedposton24.5.2023,requiringthemto show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. But the defendants have not appeared, hence, theRegistryofthisTribunalhasorderedtopublishthenoticeinnewspaperand subsequently, substituted service by publication of notice by way of advertisementinnewspaperwasalsomadeagainstthedefendantson15.4.2024 in .`Prabhat Khabar" newspaper.

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Despite the registered summons/notices and publication of notice in newspaper,thedefendantshavenotappearedbeforethisTribunaltocontestthe case. The sufficient time has been given to the defendants to defend their case, but they failed to appear and to file WS, hence, the Tribunal has passed an ordertoproceedex-parteagainstthedefendantson10.5.2024

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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 givenevidenceonaffidavitbywayofaffidavitbyShriAwadheshKumarJha. SeniorManageroftheapplicantbank.Thedetailsofdocumentsareasfollows:

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qA 170 of 2023 [J]

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	Photoco ies				No.1
I	Loan application		CCRs.25 lakhTLRs.20lakh	fidt De en an s
2	S anction letter	3.2.2020	Rs.45 lakh	Bank	2
3	Term loan agreement	3.2.2020	Rs.20 lakh	Defendants	3
4	Deed ofhypothecation	3.2.2020	Rs.20 lakh	Defendants	4
5	PDR	3.2.2020	Rs.20 lakh	Defendants	5
6	Cash credithyothecation	26.2.2020	Rs.25 ialth	Defendants	6
7	PDR	26.2.2020	Rs.25 lckh	Defendants	7
8	Letter	17.6.2020	Rs.4 lakh	Defendants	8
9	Form no. 342	17.6.2020		Defendants	9
10	Undertaking	17.6.2020	Rs.4 lakh	Defendants	10
11	Term loan agreement	3.2.2020	Rs.4 1akh	Defendants	11
12	Legal notice	3.1.2023		Bank adv.	12
13	Statement of account	AsOn24.1.2023	Rs.43,75,711.3	0 Bank	13

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Heard arguments and perused the case record.

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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 bydocumentaryevidence.Allthetransactionswereenteredintheledgerofthe 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 byanddonotruncountertothedirectivesofReserveBankoflndia.

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It is further submitted by ld. 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.

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It 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 1acs. The applicantbankisfunctioningwithinthejurisdictionofthisTribunal.Therefore,

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OA 170 of 2023 |J|

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PATNA

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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 25.10.2022, whereas the present application has been filed on 1.2.2023. 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 presentapplicationhasbeenfiledwellwithintheperiodoflimitation.

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Shri Awadhesh Kumar Jha, Senior Manager of the applicant bank, has filed the affidavit in support of contents of application and the documents as evidenceandprovedonoaththepleadingsanddocumentsoftheapplicantbank 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.

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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 I of section 1 9 by the applicant.

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;.;:- rode Of proof Of entries in banFers' books..-Srbje.ct :o.the,Sect i on 4 of Banker's Books evidence Act, 1891 runs as under;;:v-i;i6-n; o.i trfis irct, -a I ertif i.ed copy of. any eytry :in .: P.:r.±::: I,o:,:^ r;;a;I-;;;ii;ega|proceeding;bere;eivedas.prima.faciee:i4enceof,tfee -i;islence Of'su;h entry, -and shall be. admitted as. e.vidence Of :fie matters, i;ansactions and accounts therein recorded .i_n every` c?se•;i;-r-;:and to the same extent as, the original entry itseif is now by low 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 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

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OA 170 of 2023 [J|

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 bonower under the agreed terms and conditions for repayment with interest. The balance amount till 24.1.2023 has been proved to be Rs.43,75,711.30 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 final 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.43,75,711.30along with pendente-lite and future interest @7% p.a. with compounded monthly rests from 1.2.2023 (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 j ointly and severally, ordered to pay the applicant bank its debt amounting toRs.43,75,711.30along with pendente-lite and future interest @ 7 % p.a. with compounded monthly rests from 1.2.2023(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.

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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

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DRT. PATNA

QLA170of2023lJ!

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 I 3thday of September, 2024.

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Dictated &corrected by me.

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----`---: --:---.---I: ---- : ----[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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-:?

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FORM NO. 9 [See Regulation 24( I )]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. 8 & F wing) Karprri Thakur Sadan, Kendriya Karamchari Parisar (GPOA). Ashiana Digha Road, Patna-800025.

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I. iiNT}HR sFrTloN I 9(I) RRAI) u/iTii sFr`Tiow I 9(z2) oF TiiR RF:CovBRv oF nHi}Ts & BANKRUPTCY ACTJ22£ AS AMENDED FROM TIME TO TIME.

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RC No.164#024

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IN Case No: OA/170#023

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in the Marm of. (CIL I) PUNJAB NATIONAL BANK PATNA CENTRAL SCHOOL NEW EAST JAGANPURA NEW BYPASS ROAD PENA |3VAR I)

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Applicant(s)

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------ \ crs\LS .--.-

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To, (CD- I) MOSAN RICETECII PVT. LTD. Plot No. 22. Road No.25, Sri Krishnanagar Patna f}lHAR Also At. MMosAriRlcETEcllpvTLTDAT-BAGWA,BARAp P.O.-GARHANl, ARA DISTRICT-BHOJPUR PIN802203

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(CD- 2) SANJAY KUMAR SINHA LEGAL HEIR OF LATE MONIKA SINHA EXDIRECTOR oF MosAN RICETEcil PVT. LTD. pLor NO.- 22, ROAD NO.- 25, SRI KRISIINAI`IAGAR PAINA- 800001

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Defendant(s)

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(CD-3) MRS. REKHA KUMARI wro MR. AjEET KUMAR slNHA , BACHi viLA, HOUSE Nor, DANAPUR KIIAGAUL ROAD, NEAR SAGUNA MORE PATNA-801503 DIRECTOR OF MOSAN RICETECII PVT LTD. PLOT NO.-22. ROAD NO.-25, SRI KRlsHNANAGAR pAm`iA-80000 I

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Etl~ Crllrht-for n 437571130 I Elm Forfu Tt]"! I,.nl Slnltv Thro The..a.dl Sartn HndT.d I]nl And hJ-TtiJrtT unu_I

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In terms of final ordei. dated 13/09re024 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. 4375711.30 along with cost, expenses and interest from the Olro2/2023 i.e. date of filing / with effective date of the OA/170/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter refeITed to as:-

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E	CDName iI	'nt. type/Mode	Tnt. I Rate	Bfrective ) Date	order , I)ate	,Amount(Rs.)Ii	Liability type	Int.'rest(asOd On r erDate)	RC Amount(Rs.)
i	MOSAN RICETECHPVT.ILTD. I	Compound Interest(Month,y )	I 7 :	ol/o2/2o23 i	i3/09re024	^{437571 I.30}	ointlyAnd! Severany (	^{Interest As} oD OrderDale	4375711.30
	121 ^{SANJAY I} KUMAR ISINHA1	Compound Interest(Monthly )	I 7! I	)0"02re023i	I 3/09/2024	4375711.30	IJointlyAnd Severally i	Interest As on OrderDate	4375711.30
31	^{MRS. REKHA} KUMARl	Compound Interest(Monthly )	I i I	I01/02/023	13/09/2024	4375711.30 I1	^{o,,1tly And} Severally i	^{Interest AsA} ^{on 0l erDate}	4375711.30

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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 final order under the recovery proceeding in pursuance of the Reeovery certificate issued under Section 19(22) of Recovery of Debts and Bairfuptcy Act 1993.

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Parties are directed to appear bet`ore MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 04/11/2024.

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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 Certif-icate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 13/09/2024

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........

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pREslDn`G OFFlcER DEBTS RECOVERY TRIBUNAL PATNA

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D.Sto%®5otvs:\ryaTr.\bunal
Palm

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. 8 & F Wing) Karpun Thakur Sadan, Kendriya Karamchari Parisar (GPOA),

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Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO 0F COSTS

RC No. 164/2024

Case No: OA/170/2023

Applicant(s): PUNJAB NATIONAL BANK

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Versus

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Defendant(s): MOSAN RICETHCH PVT. LTD.

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Sr. No.	Item of Costs	Amount in Rs.
I.	Fee on the application	50000
2.	Process Fees(Inc. Publication)	0
3.	iAdvocate Fees	0
4.	Commis s ion er/Receiver/Valuation/S ecurity Fee	0
5.	Miscellaneous Charges	0
	Total Costs: Rs.	50000

Place: PATNA

......

Date: 13/09/2024

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab National Bank v. Mosan Ricetech Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mosan Ricetech Pvt. Ltd.

Case brief

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