Allowed

Punjab National Bank v. M/S Plancraft

DRT19 Jan 2024OA/20/2022

Case brief

AI extract

What is this about?

The applicant bank filed an application under Section 19 of the RDBFI Act seeking a Recovery Certificate for an unpaid loan facility. The Tribunal, finding the evidence unchallenged and documents valid, allowed the application and directed the issuance of a Recovery Certificate along with liberty to proceed against secured and unsecured assets.

What did the court decide?

Recovery Certificate issued for Rs. 37,27,473.71; liberty to proceed against secured and personal assets; cost awarded.

Punjab National Bank versus M/S Plancraft — Contract and Commercial Disputes | DRT (2024)

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O.A. 20/202zORT_cryahati

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region) (Tribunal of Assam, Nagaland, Meghalaya Manipur, Uizora'm, nrunachal pradesh & Tripura)

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O.A. No. 20t2O22

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ln the matter of - PUNJAB NATIONAL BANK Guwahati Branch H.B.Road, Guwahati-78100i, Dislrict: Kamrup (M), Assam

Appricant

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I. II'S PLANCRAFT

A Prcprietorship firm, registered office at H.No.48,2"d Ftoor, Ananda Nagar, Six Mile, cuwahati-78't 022, Kamrup (M), Assam.

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And showroom at Patharguarry, Magzine, Guwahati-781 036, Kamrup (M), Assam.

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RAJDIP BHUYAN

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Son of Lakhi Bhuyan

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Rgsident of H.No. 48, 2nd Floor, Ananda Nagar, Six Mile, Guwahati-781022, Kamrup (M), Assam

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.........................Defondants

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Presence of the Counsel:

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For the Applicant : Mr. Prasenjit Sengupta, Mr. Ridip Kumar Dutta, Advocates

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For the Defendants : None (Ex-parte)

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Daled :1910'112024

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JUDGMENT

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This is an application under section 19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act, 1993 fited by the punjab National Bank, Guwahati Branch, H.B.Road, Guwahati-781001, District: Kamrup (M), Assam, with a prayer to issue Recovery Certificate for the sum ol Rs.31,27,473.71 (Rupees Thirty-Seven Lakhs Twenty-Seven Thousand Four Hundred Seventy-Three and paise Seventy-One) onty as on 15.0,t.2022 against the defendants with pendentelite and future interest lhereon at the contractuar rate tirr rearization arong with cost and other . relief. ^l SlA.L4)

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O Jq. Zy2O2z/DRT€tmh.ta

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A few facts giving rise lo the present application are as under.

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The Defendants had approached the Applicant Bank and applied for financial assistance under Cash Credit Loan Scheme for business relating to trading of used cars by submitting a Loan Application before the Applicant Bank on 01j22018 and after considering the said Apptication, the appropriate authority of the Applicant Bank vide its Sanction Advice dated 24.12.2018 had sanctioned a cash credit- Generar facirity of Rs.65.00 Lacs to the Defendants, with interest charged 11.60% per annum subject to change from time to time as per HO guidelines. The Cash Credit Loan facility is repayable on demand. The Defendants has agreed upon the terms and conditions of the Sanction Le er dat ed 24.12.2O1A

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ln connection with lhe sanciion of the financial facility of Rs. 65.00 Lacs (cash credit) sancrioned by the Appricant Bank and avaired of by the Defendants in the name of Defendant No. 1 firm, a Hypothecation Agreement (coods, Book debts, Plant & Machinery) dated 24..12.201A, Oeed of Hypothecation (Transport Equipment) dated 24.12.2018, Letter of lien dated 24.12.201g, Letter of Continuity dated 24.12.20'1,8, Demand promissory Note dated 24.12.201A, other retated agreements and documents dated 24.12.20,19 had been signed and executed by the Defendants and the Applicant Bank as security for repayment of the loan facilities, thereby agreeing to a[ the terms and conditions raid down in the said Agreement in favour of the Appricant Bank. Moreover, the Defendants to secure the loan had kept a Fixed Oeposit of Rs. 26.74 Lacs and a Life lnsurance policy as collateral security.

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The Defendants had execuled a Balance and Security Confirmation Letter on 29.02.2020 acknowledging their debt of Rs. 64,83,4g0.83/_.

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The defendants had availed of the said loan facility from the applicant bank, but have not paid the loan amount as per the lerms and conditions as agreed upon with the applicant bank, inspite of repeated demands and request by the applicant bank. As such the loan account declared NpA on 29_06_2021. After the account became NPA the applicant bank issued notices for repayment of the due amount. bui

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.q[.i,&a a^A"L.l castoins snfllo^l l2t1 I DRT, Guwaheti

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OA 20r202?ORr-cwrh.ti

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the defendants have neither chosen for repayment of the loan account nor approached to the applicant bank for renewal of the loan account.

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The applicant bank thus became constrained to fle lhe present Oiginal Application for the recovery ol Rs. 32,21,473.11 (RupE* Thirty€even Lakhg Twenty-Seven Thousand Four Hundred Seventy_Three and paise Sevonty_Ono) only as on 15.0,1 .2022 along with interest and cost of the application.

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After filing of the OA the Tribunal issued nolice upon the defendants through registered post and the applicant bank fited service report on 18.O5.2L22and brought on record the postar receipt arong with track consignment report which shows that notices have not been served upon the defendants. Thereafter the Tribunal ordered paper publication of notice upon the defendants and the applicant bank issued notice to the defendants on 28.OS.ZO22 thtough paper publication in two newspapers namely "The Times of lndia,, and .Dainik Asom,,. Even after issuance of notice through paper publication also there was no representation on behalf of the defendants either by the counsel or lhe person and hence the defendants were set ex_parte on 05.0g.2022 and his right to file written statement cum evidence on affidavit was closed and the matter was posted for hearing on behalf of the applicant bank.

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supporting the craim of the appricant bank sri Guru prasad rarukdar, chief Manager of the Applicant Bank has filed evidence on affidavit coupled with the security documents marked as Exhibit 1 to 1S(a) supporting the claim of the applicant bank.

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Heard the learned counsel for the applicant bank who prayed for issuance of Recovery Certificate against the defendants as per pleadings made in the Application, suppo(ed by evidence on affidavlt of their witness who affirmed on oath the execution of the security and other documents by the defendants and also execution of their own documents relied upon, which have been mafted exhibits.

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considering the facts and circumstances of the case, r am of the considered view that the document filed by the applicant bank are supporting the claim of the applicant bank and estabrishing the riabirity of the defendants. rt is proved that the ygnWz

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DRT, Gi.rwahali

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O.A 2cv2o22loRT€uwahati

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defendants are liable lo pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 24.12.20'18. Balance and Security Confirmation Letter is dated 29.02.2020. The account became NPA on 29.06.2021 and the OA has been filed on 24.01.2022. Hence, the OA is filed well within the period of limitation and this Tribunal having a jurisdiction to adjudicate the Originat Apptication.

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considering the unchalenged/unrebutted version of sri Guru prasad rarukdar, the applicant's witness and all the documents marked as exhibits, including duly certified copy of the statement of account arong with interest carcuration sheet maintained by the applicant Bank in it,s regular course of business, I hold that the applicant is entitled to get the Recovery Certificate as prayed for.

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ln the result, the present Original Application No.20 ot 2022 is alowed wilh cost as under: -

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i) The defendants No. 1 & 2 are joinfly and severally liable to pay to the applicant bank a sum of Rs. 37,27,413,21 (Rupees Thirty_Seven Lakhs Twenty-Seven Thousand Four Hundred Seventy_Three and paise Seventyone) only with pendentelite and future interest @1 .l.60% p.a. with monthly rests from 16.0.1.2022 till the date of full paymenurealization and also cost of the application.

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ii) The applicant bank is enti ed to proceed against the secured items towards recovery of the debts.

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iii) The applicant bank is also entifled to proceed against the personal assets and properties of the defendants towards recovery of the dues.

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iv) The applicant bank is entifled to the costs of the O.A. which includes the advocate fees of the applicant bank. Applicant is directed to file the cost memo within 2 weeks from today.

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v) lssue Recovery Certificate accordingly for a sum Rs.37,27,473.7i (Rupees Thirty-Seven Lakhs Twenty-Seven Thousand Four Hundred SsventyThree and Paise Seventy-One) only in favour of the applicant bank against the defendants No. 1 & 2

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iPM,Wr DRT. Gutvahali

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OA. 2Ol2o22lDRT-G@ahat

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vi) Communicate copy of this order to the concerned parties. This order is dictated and conected by the undersigned.

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Judgment dated lgrh January 2024, signed and pronounced in the Tribunar today under my signature.

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copy of the JudgmenuFinar order be uproaded in the Tribuna|s website and file be consigned to Record Room.

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-s0,;lsfiota., fsrri, sr'"r.n ouJSJOf Presiding Oflicer DRT, cuwahati.

Punjab National Bank v. M/S Plancraft

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Plancraft

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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