Allowed

Punjab and Sind Bank v. M/s Faisal Agrovet

DRT17 Sept 2024OA/380/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex-parte application by Punjab & Sind Bank to recover an NPAS loan of Rs. 1.55 crore from a proprietor and four guarantors, issuing a recovery certificate after defendants failed to appear. Costs were awarded, and attached assets were subject to sale.

What did the court decide?

Recovery certificate issued for Rs. 1,55,90,510.62 with interest; mortgaged/hypothecated assets attached and subject to sale; costs Rs. 1,50,000 awarded.

Punjab and Sind Bank versus M/s Faisal Agrovet — Banking and Recovery | DRT (2024)

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OA 380 of 2023 1 Jl

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DRT. PATN A

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Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 380 of 2023

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Punjab & Sind Bank. 42. Fraser Road. Lodipur Patna- 1.

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,Applicant

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M/s Faisal Agrovet through its proprietor Mohammad Mahmood Alam S/o Md. Maqsood Alam. Situated at village-Chauri. P.O. Sikariya P.S.Khiri More Paliganj District-Patna-801110 PAN no. BKXPA7388D.

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Mohammad Mahmood Alam S/o Md. Maqsood Alam Ahmad Nagar Paliganj Patna -8011 10 PAN no. BKXPA7388D.

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Mohammad Mahfooz Alam S/o Md. Maksud Alam Ahmad Nagar Paliganj Patna -801110 PAN no. ANJPA8718P.

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Mohammad Manjoor Alam S/o Md. Maqsood Alam Ahmad Nagar Paliganj Patna-801110 PAN no. CMTPA8445G.

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Yasmin Khatoon W/o Mahmood Alam Ahmad Nagar Nirakpur Pali Pa]igan j Patna-801110 PAN no. DJZPK6445N.

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri Jitendra Singh. Advocate For the Defendants : None Dated : 17.09.2024

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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 4.8.2023 against the defendants to recover its debts from defendants of Rs.1.55.90.510.62 as on 28.2.2023 along with pendente-lite and future interest at the contractual rate from 1.3.2023 with costs till realization.

¶20

The application has been filed with the contention that the applicant bank, is a body corporate, constituted under banking companies (Acquisition and Transfer of Undertakings) Act. 1980 and Head Office at Bank House 21 Rajendra Place New Delhi. Zonal C)fRee at 14/15 old Court House Street Kolkata and Branch offIce at Patna Fraser Road. Patna

(l\

1 1

OA 380 of 2023 IJ I

DRT, PATN A

Defendant no. 1 is a proprietorship firm and defendant no. 2 is the proprietor. Defendant no. 2.4 & 5 are guarantors to the loan. Defendant no. 1 through proprietor defendant no. 2 approached the bank for grant of cash credit loan of Rs.89 lakh and term loan of Rs.64 lakh on 27.12.2020, which was sanctioned by the bank on 23.2.2021. Defendants executed the various loan documents and defendant no. 2.3 & 4 also created equitable mortgage of properly details given at page 2 1 in schedule A of OA.

¶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 30.5.2022

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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. 1.55.90.510.62 with pendente-lite and future interest at the contractual rate nom 1.3.2023 till the realization

¶30

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 25.8.2023. 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.

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Despite the registered summons/notices which is evident from postal tracking report. 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 29.1 1 .2023

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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

DRT, PATN A

OA 380 of 2023 IJI

given evidence on affidavit by way of affidavit by Shri San jeev Kumar. Chief Manager of the applicant bank. The details of documents are as follows:

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SI.N	QIDescription of	1 Date of	Amount	Signature of
	Documents Photocopies	Execution		Executants	Ann No
1	TLoanapplication	23,2.2021	CCRs.89lakh- TLRs.64 lakh	Defendant no. I &2	1
a		23.2,2021	CCRs.89lakh TLRs.64 lakh	Bank	l
q )	e and Agreement of uarantee		Rs.153 lakh	m
4	e othecation			Defendant no. I &2	5
5	1 hypothecationand book debtfacility	23. 9.10l1		Defendant no. I &2	6
6	Draft attestation memo	23.2.2021		Bank	7
7	Certificate executIon documents of of	23.2.2021		Defendants	8
8	PDR	23.2.2021	Rs. 153 lakh	Defendant no.I& 9	9
9	Declaration	23.2.2021		Defendant no. I & I	10
10	Undertaking	23.2.2021		Defendant no.1& l	11
11	Authorization	23.2.2021		Defendant no.1& 9	la
12	e			Defendant no. I & I	1 3
1 3	Memorandum	23.2.2021		Bank	14
14	Titledeed				15
15	Acknowledgementof theloan			Defendants	16
16	e			Defendant no. I &2	17
17	Disclosureregarding creditinformation			Defendanfs	18
18	Affidavit				19
19	s creditinformation			Defendant no. 4&5	20
20	r			Bank	21
21	notIce	15.6.2022		Bank	11
11	Notice	22.9.2022		Bank
23	Possession notice	30.11.2022		Bank	24
24	Publication of 'ossessron notrce				25

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DRT. PATN A

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ATNA			OA380of2023IJI
Notice	2?.2093
Statementofaccount	o As 28 2202 3	a

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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 Id. 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 30.5.2022. whereas the present application has been filed on 4.8.2023. 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.

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Shri Sanjeev Kumar. Chief Manager of the applicant bank. has Bled the affidavit in support of contents of application and the documents as evidence

DRTI PATN A

OA 380 of 2023 IJ I

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 19 by the applicant.

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Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof of entries in bankers’ books.–Suhject Io the provisions of this Act. a certi.fled COPY Qf any entrY in a banker 's book shall in all legal proceedings be received as prima facie evidence of the existence of such entrY. and shall be adnritted as evidence of the matters, transactions and accounts therein recorded in every case \there. and to the same extent as, the original emIr: itself is now bv lcr\ adnlissiblc, but not further or othcrwvise

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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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15 On perusal of the application. documents. affldavit 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 380 of 2023 IJI

DRT, PATN A

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 till 28.2.2023 has been proved to be Rs. 1.55.90.510.62 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.1.55.90.510.62 along with pendente-lite and future interest @10.15% p.a. with compounded monthly rests from 4.8.2023 (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 jointly and severally. ordered to pay the applicant bank its debt amounting to Rs.1.55.90.510.62 along with pendente-lite and future interest @10.15% p.a. with compounded monthly rests from 4.8.2023 (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 Registrar/Sub- Registrar to endorse the charge over the secured assets

OA 380 of 2023 IJ I

DRT, PATN A

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 certincate 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 04.1 1.2024. The order be communicated accordingly.

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Judgment signed. sealed. dated and pronounced in the open court on 1 7th day of September. 2024.

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Pg//
h/=+~

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

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FORM NO. 9

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DEBTS RE('O\’ER\’ TRIBUNAL PATN A

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2nd rIot)r. ( A. B & F Wing) Karl)uri ThaI<ur Sudan. Kcndriya Karanrchari Parisar (GPOA). Ashiana Digha Road. Patna-800025

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[See Regulation 24( 1 )]

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RE(T-OVERY CERTIFIe’ATE UNDER SECTION IP(Z) READ WITH SE(:TION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY

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ACT, 1993, AS ANIE.ND£P FRQrVI TIIVIF TQ TIME.

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RC No. 188/2024 IN Case No: OA/380/2023

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In the Nlatter ot

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(CH- 1) PUNJAB AND SIND BANK 42 FRASER ROAD. I_C)DIPUR PATNA ,BIHAR -800001

AppIIcant(s )

-–--- Versus -–-–-

(CD- 1) M/S FAISALAGROVF.T

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through its Proprietor Mohammad Mahmood Alam.S/o- Md Nlaqsood AlaIn. Situated at Village-Chauri. P.O.- Sikari'y'a P.S.- Khiri More PullganJ Piltna ,BIHAR -8(III I o

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(CD- 2) MOHAMMAD MAHMOOD ALAM

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S/C) MD. NIAQSOOD ALAM AHMAD NAGAR

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PALIGANJ PATNA- 80 1110 PAN NO-BKXPA7388D

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(CD- 3) MOHAMMAD MAHFOOZ ALAM

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S/O MD. MAKSUD ALAM AHMAD N AGAR PALIGANJ PATN A- 80111 o PAN NO-ANJPA87 18p

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Defendant( s)

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(CD- 4) MOHAMM AD MANJOOR ALAM

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s/o- MD. MAQSOOD ALAM AHMAD NAGAR PALIGANJ PATN A- 80 III 0 PAN NO-CMTPA8++5G

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(CD- 5) YASMIN KHATOON

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W/ (-)- N’IA FI MOOD Al_ ANI A l-INI AD N AGAR NIR A K Pt_7 R

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PALI PAL_.IGANJ PA'l'N A- 80111 o PAN NO- DJZPK(N+SN

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Recovery CertifIcate for Rs 1559U510.62 [ Rupees One Crore Fifty Five Lakhs Ninety Thousands Five Hundred Ten And Pajge Sixty Two Onjy_

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In terms of final order dated 17/09/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 15590510.62 along with cost, expenses and interest from the 04/08/2023 i.e' date of filing / with effective date of the OA/380/2023 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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	Int.Type/Mode	Int. Rate	Effective Date	Order Date	Amount(Rs.)	Liability }pe	[nte as on Order	RC Amount(Rs.)
4/SFAISAL AGROVET		10.15	:033	l17/09/2t)24	:f15590510,62	Faintly And IIly	iInterest As on Date	155905 10.62
HAN'1MAD MAHMOODALAM	Mc)nthly )		F/08/2023	11 7/09/2024	f 155905 10.62		FInterestAs on lcrDate	5590510.62
OHANIMAD MAHEr)oz ALAM	mc Interest M		:023	ll7/c)9/2024	11559051o.62	Fointly And .’erally	[nterestAs on FOrderDate	15590510,62
MOHANIMAD MANJOORALAM	InIpd-und ntcrcst M	O.15		17/09/2024	i1559051o.62	lyAnd Severally	llnterest As on C	i5590510,62
YASMIN KHATOON	:ompound Interest F(Monthly)	10.15	F/08/3033	l17/09/2024	i15590510.62	,indy And ty	llnterest As on	15590510.62

¶104

In edge of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the morlgaged/hypothecated assets as well as other personal movable/ Immov,lble assets of the certificate debtors.

¶105

The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the Hn,Il order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993

¶106

Parties are directed to appear before MANOJ KUb'l AR , Reco'elv Officer, DEBTS RECOVERY TRIBUNAL PATNA on 04/ 11/2024.

¶107

The Recovery otncer shall rea]ize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Rccovel)' of Debts Due to Banks and Financia] Institutions Act, 1993 (as amended from time to time) from the above named Certitlcate Debtors

¶108

This Certi

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been issued under my signature and seal of the Tribunal on this 18/09/2024

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For Registrar Debts Recovery Tribunal Parna

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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•/

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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(GPOA). Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 188/2024

Case No: OA/380/2023

Applicant(s): PUNJAB AND SIND BANK

¶123

Versus

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Defendant(s): M/S FAISALAGROVET

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Item ofCosts	IAmountinRs
'eeontheapplication	150000
r	[0
AdvocateFees
3	ro
MiscellaneousCharges
TotalCosts: Rs	150000

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Place: PATNA

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Date: 18/09/2024

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PRESIDIN&£}fFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab and Sind Bank v. M/s Faisal Agrovet

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. M/s Faisal Agrovet

Case brief

What is this about?

What did the court decide?

What the court decided

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