Allowed

Punjab National Bank v. Sri Alok Kumar Ghosh

DRT20 Aug 2024OA/289/2023

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's application for a Recovery Certificate under Section 19 of the RDBFI Act. The court found the defendant liable for Rs. 1.92 crore based on unchallenged evidence of executed loan documents, security agreements, and a regularized account statement.

What did the court decide?

Recovery Certificate issued for Rs. 1,92,28,719.68 with interest at 12.75% per annum from 01.08.2023.

Punjab National Bank versus Sri Alok Kumar Ghosh — Contract and Commercial Disputes | DRT (2024)

¶1

O A 269/2023/DRT-Gwahai

¶2

IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

¶3

(North Eastern Region)

¶4

(Tribunal of Assam, Nagaland, Meghalaya Manipur, Mizoram, Arunachal Pradesh & Tripura)

¶5

Before Shri Shiv Sharan Oubev. Presidina Officer

¶6

O.A. No. 289/2023

¶7

ln the mattoi of - PUNJAB NATIONAL BANK (Er3twhilo United Bank of lndla) Usha Market Branch, Agartala, P.O.- Agartala Airporl, Tripura-799009.

¶8

..Applicant Vs.

¶9

SRI ALOK KUMAR GHOSH
S/o Late Jitendra Chandra Ghosh,
Chinaihani, Ghosh Para,
P.S. Airporl, District- West Tripura,
Tripura, Pin-799002.

¶10

Defendant

¶11

Presence of the Counsel :

¶12

For the Applicant : Mr. Akhtar Parvez, Mr. Dipanka Gogoi, Mr. Bidul Roy, Advocates

¶13

For the Defendant : None (Ex-parte)

¶14

Oaled :2OlOBl2O24

¶15

JUDGMENT

¶16

This is an application under section 19 of the Recovery of Debts Oue to Banks and Financial lnstitutions Aci, 1993 filed by the PUNJAB NATIONAL BANK (Erstwhile United Bank of lndia), Usha Market Branch, Aga(ala, P.O.- Agartala Airport, Tripura-799009, with a prayer to issue Recovery Certificate for the sum of Rs. 1,92,28,719.68p (Rupoes Ono Crore Ninety-Two Laca Twenty-Eight Thou3and Seyen Hundrod Nineteon and Pai3a Sixty-Elght) only as on 31.07.2023 against the defandant wilh^pendentelite and future interest at the contractual rate till realization along with cost and other relief.

¶17

A few facts sivins rise to rhe present apprication are as under.

¶18

;kffie"/

¶19

O A. 2892023/DRT-Guwahati

¶20

Based upon application made by the defendant, the competent authority of the applicant bank had sanclioned Over Draft (OD) limit of Rs.45.00 Lacs only to the defendant vide Sanclion letter dated 08-09-2009. The defendant had accepted all the terms and conditions of sanc{ion by^putting his signatures on the foot of the Sanction letter. The defendant had further executed Acknowledgement of Sanclion Letter dated 08-09-2009.

¶21

Subsequently, based upon defendant's request, the competent authority of the applicant bank had enhanced the existing OD limit from Rs.45.00 Lacs only to Rs.100.00 Lacs only vide Sanciion Letter dated 21-09-2010. The defendant had accepted the terms and conditions of sanciion by executing acceptance letter dated 21-09-2010,

¶22

Again, vide letter dated 15-11-2012 the defendant had requested the applicant bank to enhance the existing OD limit from Rs.'100.00 Lacs only to Rs.150.00 Lacs only by converting the existing OD loan account into Cash Credit^(CC) acmunt. Vide that same letter the defendant further had requested additional facility of Bank Guarantee of Rs.50.00 Lacs only. Considering the application, the competent authority had enhanced the existing OD limit to Overall limit of Rs.200.00 Lacs only [i.e., Rs.150.00 Lacs as Cash Credit (fund based) and Rs.50.00 Lacs only as Performance Guarantee^(Non fund based)] by converting the OD loan a@ount into Cash Credit^(CC) loan account No. 0664250037013. The defendant had acknowledged and accepted the same by^putting his signatures on the foot ofthe Sanclion lefter dated 01-12-2012.

¶23

Subsequently, vide letter dalet 21-07-2014 the defendant had requested the applicant bank for sanc{ion of Temporary Over Draft CrOD) of Rs.30.00 Lacs only against the existing Cash Credit loan account for a^period of 02 months. Considering the application, vide Sanction letter dated 12-0A2014, the competent authority of the applicant bank had sanciioned Ad-hoc limit of Rs.30.00 Lacs only to the defendant against the existing CC account for a^period of 60 days. ln order to avail the sanctioned limit, on 18-08-2014 the defendant had executed securi9 documents viz., Balance Conrirmation Letter, Demand Pmmissory Note, Letter of Continuity, Hypothecation Agreement, Agreement for Hypothecation of debts and Movable Assets and letter of^lien. Since the defendant was very much inegular in maintaining^{the loan account, afrer}

¶24

sl.il

¶25

¶26

wnunicat^g 3 the defendan ^i:^{"""'"o ;":;'"il::,',r#,::**, ;;;;} ;;,, the defendant and had r the existns ovefafl lmit to Rs.1oo.o, a" "r.,.-"1 existi,,e Bank cuaraffi;",J"::il", ,u0,, ;;;:: :,d rhe same uy putting ;; #"'; ;:",]^i: :,",,",;;;;;,,';:'"fiI -- -" ' t""tion lefier dated 02-0z-1016. on 01-I1-2016 the d"f" *** to ," +pr"rt-r "tt"' appricant bank rhat he had o"o"]lll"o ""-^{intihatinsthe} some amount accounr inter-aria ',;;;;" "or,nrn^,r"rlto o' "', facirity from -ioIlr::: defendant was very ineguhr, ,roln ;" vide letter dated 14-'0-20'9 thr requested tie applicant b"rk.or"hu po"rungreor"roue_r;;;,:"**" ". on 21-03_2019 the defen( n"o executed fresh security documents viz ' Ealance conlirmatisn retter, o,'tnt '"no^{Promissory Note'} Letter of continuity, Hypothecation Agreement ,o, , o"ott' Phnt & Machineries)' Hypothecation of Debts and Movabre Asseb, ,-"n"r'oo* of Lien and Link Letter inter-alia acknowledging execution of security documents.

¶27

On 25{3-2020 the defendant further had executed fresh security documents viz., Balance Conflrmation letbr, Demand promissory Note, Letter of Continuity, Hypothec€tion Agreement (Good, Book Debts, plant & Machineries) and Letter of Lien. EQUITABLE MORTGAGE:

¶28

ln order to secure the loan availed by the defendant, he had created equitable mortgage of his lmmovable^properties being "Land & Building situated at Ushabazar, Chanihani, Ghosh Para, Airport, District-West Tripura, Tripura, Mouza-Singarbil, Tehasit - Lankamura, Khatian No. 21,14 & 2145, R.S. Plot No. 4570, 4595/8834, 4594 & 4570/8536 (Hal), Area measuring 0.12 Aqes i.e., 5184 Sq. fr." (fully described in Schedule-A of the OA) and "Equitable^{Mortgage of Land} &^{Building situated at Ushabazar, Chanihani,} chosh Para, Airport, Distric{-West^{Tripura,TripuraMouza-Singarbil,Tehasil -Lankamura,} Khatian No. 2849,^{R.S. Plot No. 4589i9122(Hal),Area measuring 0.06 Acres ie, 2592} Sq. ft."^{(fully describedin ScheduleBof the OA) by depositof tiue deedswith the} applicant bank. lnitially^{the defendant had createdmo(gageof ScheduleAproperty by}

¶29

s4';d.ra,3'1", ,*"""n8P"{,6&Ju{⁽ DRT. Guwahali

¶30

O A 269/2023i/DRT-Gus.haii

¶31

executing letter relating to deposit of title deeds dated^{09{S2009 and had extendedthe} same from time to time. The defendant^{had extended mortgageof ScheduleBproperty} with the applicant bank by executing letter regarding^{Extensionof EquitableMortgage} dated^'18-0& 2014.

¶32

The applicant bank has obtained Valuation Reports^{of the Mortgaged propedies} from its empanelsd Valuer. As^per the Valuation^{Reporb dated 22-03-2023, the distress} sale value of lhe ScheduleA^{propertyas on dateis Rs.87.00 Lacsonly anddislress sale} value of Schedule.B^propedy as on data^{is Rs. 27.53 Lacs only.}

¶33

lnitially the detundant had availed the Credit^{facilityfromthe applicant bank by} opening and op€rating Over Oraft^{Loan Account No. 06e/,210031277 with the applicant} bank. Subsequentty on request of th6 defendant,^{the saidOD accountwas converted into} Cash Credit Account No. 0664250037013.^{Sincethe defendant was very much inegular} in maintaining the loan account, vide^{letterdated 22-03-2021theapplicantbankhad} asked the defendant to regularize the^{loan account, bul in vain. Oueto lnegularities} committed by tho defendant, the^{loan accounts of the defendanthasbecomeNPA} (Non-Performing Assets) on 234*2021. After becoming the loan account^NPA,the applicant bank has served Seclion^{13(2) SARFAESI Notice dated 07-07-2021 upon the} defendant asking him to^pay the^{entire debts withina p€riod of 60 (sixty) days from the} date of the notice. Ho,sver, the^{defendant has failed to pay anyheed the applicant} bank's notice dated 0747-2021.^{Against Seclion 13(2) SARFAESI Noticedated} 7fin02'l,lhe defendant did not^{Iila any representationunderSection 13(3A) of the} SARFAESI Ad., 2002.^{lnsteadthe defendantapprrctl€dtheBankfor OTS and Bank} ofiered the defendant an opportunity^{to pay an amountof Rs.l.30 Croresfor OTS. As per} OTS, the defendant had to^{pay Rs.26 Lacs as upfrontamount The defendant had paid} upfront amount of Rs.26^{Lacsonly on 311f2O22and vide letterdated5/82022requested} the applicant bank to^{grant him3 months time to paythe balance OTS amount.Applicant} Bank vide its letter dated^{1OlOgDOz2extendedthe timeof repaymanttill 31/032023} Hotr/ever, the defandant has^{failed to pay the OTS amountwithin time due to which OTS} has fail€d and the defendant^{hasto paythe enlire loan amount}

¶34

Due to inegularities committed^{by the defendant, the loanaccountsof the}

¶35

Prosiding Otrc* DRT, Guwaheli

¶36

O A 28920231/ORT4uwahati

¶37

defendants have b€come NPA on 23{5-2021. The Applicant Bank has applied interest in the loan account as per covenant entered with the Defendant. The interest has been charged and compounded at such rates, and capitalized at such periodical rests, as are permitted by, and do not run counler to, the direclives of the Reserve bank of lndia.

¶38

After classilication of ac@unt NPA, as per RBI guidelines applicanl Bank has though shown interest in the loan account but the same has not been booked and treated as^profit. The applicant bank has not charged Penal lnterest in the Loan Account. As such, as on 31-07-2023 the defendant is liable to pay a sum of Rs.1,92,28,719.68 to the applicant bank along with fiIure interest till the date of payment.

¶39

The applicant bank thus b€came constrained to tile the present Original Application for the recovery of Rs. '1,92,28,719.68p (Rupoes Ono Crors Ninoty-Two Lacs Twenty-Eight Thousand Seven Hundred Nineteon and Paisa Slxty-Eight) only as on 31.07.2023 along with interest and cost of the application.

¶40

After filing of the OA the Tribunal issued notice upon the defendant through registered post and the applicant bank filed service report on 12.10.2023 and brought on record the postal receipt along with lrack consignment report which shows that the notice has not been served upon the sole defendant by name. Thereafter the Tribunal ordered paper publication ol notice upon the sole defendant and the applicant bank issued notice to the defendant through Paper Publication in two nawspapers namely "Ttipun 77mos'and^"Syandan Patika" 6olh daled 07.02.2024. Even after issuing notice through^{paper publication} upon the defendant there has been no represeniation on behatf of the sole defendant either by the counsel or the^person and hence the defendant was set ex-parte on 22.03.2024 and the matter was^posted for ex-parle hearing on behatf of the applicant bank.

¶41

Supporting lhe claim of the applicant bank Smt Anjana Das, Chief Manager of the Applicant Bank has filed evidence on affdavit coupled with the security documents marked as Exhibit AW-1/1 to AW-1/44 & A, supporting^{the claim of the} applicant bank.

¶42

Heard the learned counsel for the applicant bank who^{prayed for issuanceof}

¶43

O A 269/2023/DRT-G@ahatl

¶44

Recovery Certilicale against the defendant as per pleadings made in the Application, supponed by evidence on affidavit of their witness who affimed on oath the execution of the security and other document by the defendant and also execution of their own documents relied upon, which have been marked exhibits.

¶45

Considering the facls and circumstan@s of the case, I am of the considered view that the documents filed by the applicanl bank are supporting the claim of the applicant bank and establishing the liability of the defendant. lt is proved that the defendant is liable lo pay to the applicant bank the claim made in the Originat Application. The loans wers obtained and documents have been executed on 08.09.2009, 21.09.2010, 01.12.2012, 18.08.2014, 02.04.2016, 2.t.03.2019 & 25.03.2020. Balance Confirmation Letter are dated^.18.08.2014, 21.03.2019 & 25.03.2020. The accounts became NPA on 23.05.202,1and the OA has been filed on 16.08.2023. Hence, the OA is fitod well within the period of limitation and this Tribunal having a^jurisdiction to adjudicate the Original App cation.

¶46

Considering the unchallenged/ unrabutted version of Smt Anjana Oas, the applicanl's witness and all tha documents marked as exhibits, including duly certiried copy of the statement of account along with interest calculation sheet maintained by the applicant Bank in it's regular crurse of business, I hold that the applicant is entitled to get the Recovery Certificate as prayed for.

¶47

ln the result, the present Original Apptication No. 289 of 2023 is a owed with cost as under :-

¶48

i) The sole defendant is liabte to pay to the applicant bank a sum of Rs. 1,92,2E,719.68p (Rupeo! Ona Crors Nlnoty-Two La€ Twenty-Eight Thousand Seven Hundrod Ninetsen and paba Sixty-Eight) only with pendentelite and future interest @12.75% per annum with monthly rests from 0'1.08.2023 till the dale of full paymenuraatization and also cost of the application.

¶49

ii) The charge of the certificated amount be kept alive on mortgaged property i.e. Equitable Mortgage of Land & Building situated at Ushabazar, Chanihani, Ghosh Para, Airpon, District-West Tripura, Tripura, Mouza-singarbil, Tehasil -

¶50

sfiilR"d/r^Ar/d, DRT. Guwahal "."",nffid{a(

¶51

¶52

oa are.2o23lorrr'c*hal'

¶53

Lankamura,^{KhatianNo. 2144 &2145' R S Plot No 4570' 4595/8834' 4594 &} 4570/8536^{(Hal), Area measuring 012 Acres ie' 5184Sq ftwhich is} bounded by-^{North: Road; South: Road & Makhan Lal Ghosh; East: Parimal} Sarkar: West^{Makhan Lal Ghosh' as describedin Schedule-A of theOA till} the amount^{is realizedin full}

¶54

ili) The^{charge of the certificated amountbe keptalivo on mortgaged propertyie} Equitable^{Mottgageof Land & Building situated at Ushabazar' Chanihani'} Ghosh Para,^{Airport,Oistrict-WestTripura' Tripura' Mouza-Singarbil' Tehasil -} Lankamura,^{Khatian No 2849'R S Plot No 4589/9122(Hal)' Area measuring} 0.06Acresi.e',zSglsq.ft.,whichisboundedbyNorth:Passage/Road: South:^{Passage/Road;EastRoad; West ParimalSarkar' as describedin} Schedule'B^{of the OA till the amount is realizedin full'}

¶55

iv)^{TheapPlicantbank is entitled to ptoceed against the secured items towards} recovery^{of the debts'}

¶56

v) The^{aPplicant bank is also entitledto proceed againstthe personal assets and} properties of^{the d€fendanttowards recoveryof the dues'}

¶57

vi)^{The apPlicantbankis entitledto the costs of the O A which includes the} advocate^{fees of the applicant bank' Applicant is directed to lile the cost} memo^{within 2 weeks trom today'}

¶58

vii)^{lssue Ro@very Certiticate ac''ordingly tor a sum Rs' t '92'28'7't9'68P} (Ruposs^{One Croro Ninety-TwoLeca TrYonty-EightThou3and Sovon} Prisa^{Slxty-Elght) only in favour of the applicant}

¶59

Hundrsd^Nineteon 'nd

¶60

bank^{againstthe sole dafendant'}

¶61

viii)^{CommunicatecoPy of this orderto the concemedparties'} This order^{is dictated and corrected by the undersignBd'}

¶62

Judgment^{dated2OuAugust2024' signedand pronounced in the Tribunal}

¶63

today^{under mY signature'}

¶64

uploaded^{in the Tribunal's Websiteand}

¶65

CoPY^{of the JudgmenuFinalorderbe}

¶66

flle be^{consignedto RecordRoom'}

¶67

(Shiv Sharan-D Presiding^Officer DRT,^Guwahati

Punjab National Bank v. Sri Alok Kumar Ghosh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sri Alok Kumar Ghosh

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

Coram

Case details

Similar cases

Punjab National Bank versus Messers Sahina Begum Laskar

State Bank of India versus Shri Deepjyoti Nath

Punjab National Bank versus Messers Goyary Oil Service

Union Bank of India versus Mrs Rani Devi

Bank of Baroda versus Mr Dibyajyoti Bora

Canara Bank versus Messrs Biswakarma