Allowed

Punjab National Bank v. Prabhakar Kumar and Others

DRT20 Jul 2024OA/275/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal affirmed an ex-parte application by Punjab National Bank under Section 19 of the RDB Act 1993 for recovery of Rs. 70.23 lakhs with interest from defaulting borrowers and guarantors who failed to appear after service of summons.

What did the court decide?

Recovery of Rs. 70,23,625.23 with interest at 11.85% p.a. jointly and severally from respondents; attachment of mortgaged assets; issuance of Recovery Certificate.

Punjab National Bank versus Prabhakar Kumar and… — Contract and Commercial Disputes | DRT (2024)

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OA 275of2023 [J]

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DRT,PATNA

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 275 of 2023

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Punjab National Bank, Branch office- Kuraich, Gorashani, Sasaram, DistrictRohtas.

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. Applicant

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Vs.

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Prabhakar Kumar, Son of Sri Anil Kumar Singh, Residence of Mohalla- Santoshi Maa Path, Gaurakshni, P.O. Sasaram, P.S. Sasaram, District- Rohtas, Bihar-821115 and PAN No. CXJPK0454L.

¶10

Raju Kumar Singh, Son of Shri Surabhan Singh, Residence of Gali no. lla, Santoshi Maa Path, Gaurakshni, P.O. Sasaram, P.S. Sasaram, District- Rohtas, Bihar-821115.

¶11

Anil Kumar Singh, Son of Late Sita Ram Singh, Residence of MohallaSantoshi Maa Path, Gaurakshni, P.O. Sasaram, P.S. Sasaram, DistrictRohtas, Bihar-821115 and PAN No. AJGPS4895N (Guarantor).

¶12

Binda Devi, Wife of Ani! Kumar Singh, Residence of MohallaSantoshi Maa Path, Gaurakshni, P.O. Sasaram, P.S. Sasaram, DistrictRohtas, Bihar-821115 and his PAN No. BDQPD5918J. (Guarantor).

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....... Defendants

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Present:

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For the Applicant Shri Raj Nandan Prasad, Advocate For the Defendants None

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Dated: 20.07.2024

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JUDGMENT

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The Applicant bank has made this application U/S 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 24.05.2023 against the defendants to recover its debts from defendants of Rs.70,23,625.23 as on 30.04.2023 along with pendente-lite and future interest at the contractual rate from 01.05.2023 with costs till realization.

OA 275 of 2023IJ)

DRT,PATNA

The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to file the suit through various branches including the applicant.

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At the request of the defendants the financial assistance mentioned

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below, was provided to defendant no.1and 2

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SI.N o.	Nature of loan	Amount (InLakh)	ROI	Security, if any, by def.	Sanction date
1.	TL underGCC Scheme	9.50	11.85%	Hypothecation as well as mortgage	04.03.2016
2.	Term loan (vehicle)	6.50	--	-do-	04.04.2016
3.	ODIP facility	25.00	--	-do-	15.09.2017
4.	Working capital (vide cash credit)	20.00	--	-do-	22.05.2019

¶26

To secure the loan facilities the defendants executed various loan and security documents including the guarantee agreement and also created mortgage and hypothecated the movables/vehicle in favour of the applicant bank. Details whereof have been given in Schedule- I and II of the OA. The defendants also executed balance and security confirmation letter on 29.01.2022.

¶27

After availing the sanctioned credit facilities defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 31.03.2021. Thereafter the applicant bank sent notice on 05.04.2021 to the defendants but the notice was completely without any effect.

¶28

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.

OA 275 of2023 [J]

DRT,PATNA

The total liability in the loan account is Rs.70,23,625.23 with pendentelite and future interest contractual rate from 01.05.2023 till the realization.

¶33

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 21.06.2023, requiring them to 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, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement In newspaper was also made against the defendants on 02.08.2023 in "Dainik Jagran" newspaper. 6. Despite the registered summons/notices and publication of notice in the newspaper, the defendants have not appeared before this Tribunal to contest the 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 order to proceed ex-parte against the defendants on 01.12.2023.

¶34

To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Ujjwal Prakash, Deputy Circle SASTRA Head, of the applicant bank. The details of documents are as follows:

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SI.No	Description of Documents Photocopies	Date of Execution	Amount (in Lakh)	Signature of Executants	Ex.! Ann. No.
1	Loan ~ication	04.03.2016	9.50	--	I
2	Agreement of guarantee	04.03.2016	9.50	def. no. 2	2
3	Agreement for loan		9.50	def. no. 1	3
4	Application/sanction from for Car loan and certificate of r~stration	04.04.2016	--	Bank accepted Def. no.l & 2	4 & 4/1
5	Agreement of guarantee	20.04.2016	6.50	Defno.2	5
6	Letter of ~othecation	20.04.2016	6.50	Def. no. 1	6
7	Loan application for finance against mortgage of immovable property	02.06.2017	......	Defno. 1,3 & 4	7 & 7/1
8	Agreement of guarantee	15.09.2017	25.00	Defno.4	8
9	Term loan agreement	15.09.2017	25.00	Defno. 1 & 3	9
10	Loan a_Q(!lication	22.05.2019	20.00	Defno.l	10
11	A_gt'_eementof guarantee	22.05.2019	20.00	Defno.3 & 4	11
12	Hypothecation of goods and book debts	22.05.2019	20.00	Defno.l	12
13	Acknowledgment letter	09.10.2017	25.00	Def. no. 1& 3	13

OA 275 of 2023 [J]

DRT,PATNA

14	Letter of confirmation	09.10.2027	25.00	Bank	14
15 to 18	Photocopies of Sale deeds	--	--	--	IS to 18
19	Balance & security confirmation letter	29.01.2022	--	Def. no. 1	19
20	Recall Notice	05.04.2021	--	Bank	20
21	Statement of accounts	As on 29/30.04.2023	Rs.70 ,23, 625. 23	Bank	21
22	Certificate uls 2 A of bankers book evidence act	--	--	Bank	22

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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 by documentary evidence. All the transactions were entered in the ledger of the 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 by and do not run counter to the directives of Reserve Bank of India.

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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 lacs. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore, 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 31.03.2021, whereas the present application has been filed on 24.05.2023. 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 present application has been filed well within the period of limitation.

OA 275of 2023[J]

DRT,PATNA

Shri Ujjwal Prakash, Deputy Circle SASTRA Head, of the applicant bank, has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank 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 1 of section 19by the applicant.

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Section 4 of Banker's Books evidence that Act, 1891 runs as under- S.4. Mode of proof of entries in bankers' books.-Subject to the provisions of this Act, a certified copy of any entry in a banker's book shall in all legalproceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law admissible, but notfurther 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 challenged.

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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.

OA 275 0(2023 [J]

DRT,PATNA

The evidence discussed above goes to establish that the amount of loan as mentioned in the O.A., was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount in all the accounts till 29/30.04.2023 has been proved to be Rs.70,23,625.23 only by way of statement of accounts (Page 125 to 147). There is nothing to prove the amount more than that disclosed in the aforementioned statements. 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.70,23,625.23 along with pendente-lite and future interest @ 11.85% p.a. with compounded monthly rests from 24.05.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

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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 herebyjointly and severally, ordered to pay the applicant bank its debt amounting to Rs.70,23,625.23 along with pendente-lite and future interest @ 11.85% p.a. with compounded monthly rests from 24.05.2023 (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 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 RegistrarlSub- Registrar to endorse the charge over the secured assets.

OA 275 of 2023 [J]

DRT,PATNA

Let a certificate of recovery be drawn up forthwith. The Recovery Officer will start the recovery proceedings, if an application on behalf of the Certificate Holder is filed within one month along with the details of amount due upto date to be recovered 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 30.08.2024. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 20 th day of July, 2024.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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[ORMNO.9

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[See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya .......... Kararncbari_ __ _ .. . .. Parisar .. __ .-(GPOA),------.-Ashiana__Digha . -Road, ..-.-..~.. - Patna-800025._ - _ .

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RECOVERY CERTUICATE UNDER SECTION 19m READ WITH SECTION 191m OF THE RECOVERY OF DEBTS & BANKRUPTCY

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AC:,J!!l, AS AMENDED FROM TIME TO TIME.

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BC No. 8812024

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Case No: OAl275/2023

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In the Matter of: (CH- 1) PUNJAB NATIONAL BANK BRANCH OFFICE KURAICH SASARAM ROHTAS ,BIHAR -821115

Applicant(s)

Versus ---

To,

(CD- 1) PRABHAKAR KUMAR AND OTHERS Anil Kumar Singh Residence of Mohall a Santoshi Maa Path Gaurakshni Rohtas ,BIHAR -821115

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(CD-l) RAJUKUMAR SINGH
SON OF SHRl SURABHAN SINGH, RESIDENCE OF
GALl NO IIA, SANTOSHI MAA PATH, GAURAKSHNI,
P.O.- SASARAM, P.S.- SASARAM DISTRICT- ROHTAS
BIHAR- 821115

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Defendant(s)

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(CD- 3) ANIL KUMAR SINGH (GUARANTOR)
SON OF LATE SITA RAM SINGH RESIDENCE OF
MOHALLA- SANTOSHI MAA PATH, GAURAKSHNI,
P.O.- SASARAM, P.S.- SASARAM DISTRICT- ROHTAS
BIHAR-8211l5

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(CD- 4) BINDA DEVI (GUARANTOR)
WIFE OF ANIL KUMAR SINGH RESIDENCE OF
MOHALLA- SANTOSHI MAA PATH, GAURAKSHNI,
P.O.- SASARAM, P.S.- SASARAM DISTRICT- ROHTAS BIHAR- 821115

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lU!:II!uY.Certificate for Rs 7023625.23 Rupees SeveptY. I.akhs TweptY.Three Thousapds Six Hupdred IweptY. Five Apd Paise Twepty....Illm

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Qaly_)

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In terms of final order dated 20/07/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum ofRs. 7023625.23 along with cost, expenses and interest from the 24/05/2023 i.e. date of filing / with effective date of the ON275/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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Sr.oo	CD Name	lot. TypeJMode	lot. Rate	Etredl,ve Date	Order Date	Amouot(Rs.)	Llahility Type	loterest (as 00 Order Date)	RC Amouot(Bs.) Remark
I	RABHAKAR jKUMARAND laTHERS	Compound Ioterest (Monthly)	11.85	4/05/2023	20/0712024	7023625.23	ointly And Severally	IoterestAs ioo Order Ioate	7023625.23
12	iRAIUKUMAR SINGH	Compound Ioterest (Monthly)	11.85	124/05/2023	20/07/2024	7023625.23	ointlyAod Severally	IIoterest As on Order Date	7023625.23
3	IANlLKUMAR SINGH . GUARANTOR)	Compound Ioterest (Monthly)	11.85	24/05/2023	20/0712024	7023625.23	bointiyAnd Severally	IoterestAs Ion Order Date	7023625.23
4	JsINDADEVI : GUARANTOR)	Compound Interest (Moothly)	11.85	24/05/2023	20/07/2024	7023625.23	bointlyAnd Severally	Interest As Ion Order Date	7023625.23

¶93

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgagedlhypothecated assets as well as other personal movable! Immovable assets of the certificate debtors..

¶94

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 Recovery certificate issued under Section 19(22) of Recovery of Debts and BankruptcyAct 1993.

¶95

Parties are directed to appear before ASUISH KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 30/0812024.

¶96

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 Certificate Debtors.

¶97

This Certificate has been issued under my signature and seal of the Tribunal on this 20/07/2024

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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¶100

FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

¶103

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 88/2024

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¶106

Case No: OAl275/2023

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Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): PRABHAKAR KUMAR AND OTHERS

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Sr.No.	Item of Costs	AmountinRs.
1.	IIFeeon the application	73000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
14.	CommissionerlReceiverNaluationiSecurity Fee	0
Is.	Miscellaneous Charges	0
	Total Costs: Rs.	73000

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Place: PATNA

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Date: 20/07/2024

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PRES~FFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab National Bank v. Prabhakar Kumar and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Prabhakar Kumar and Others

Case brief

What is this about?

What did the court decide?

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