Allowed

Punjab National Bank v. Ms Vaibhav Bricks Company

DRT17 Sept 2024OA/381/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act to recover a determined debt of Rs.21 lakhs. Relying on documentary evidence and the Bankers' Books Evidence Act, the Tribunal passed a final order determining the debt and issued a Recovery Certificate against the non-appearing respondents for sale of assets.

What did the court decide?

Debt of Rs.21,14,139.52 with interest determined; Recovery Certificate issued for realization via sale of mortgaged/assets.

Punjab National Bank versus Ms Vaibhav Bricks Company — Banking and Recovery | DRT (2024)

b +

OA 381 of 2023 IJl

DRT, PATN A

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 381of 2023

¶8

njab National Bank. Branch C)fRee MDDM Branch. District-Muzaffarpur

¶9

Applicant

¶10

¶11

M/s Vaibhav Bricks Company through its proprietor Bibha Devi ai Vibha Devi W/o Sri Pramod Kumar Trivedi registered ofnce/business at Madhopur. Mushahari. Muzaffarpur

¶12

Smt. Bibha Devi @ Vibha Devi W/o Sri Pramod Kumar Trivedi. R/o Madhopur. Mushahari. Muzaffarpur-842003 Pan no. AXXPD6837C.

¶13

Vaibhav Kumar S/o Anjani Kumar Trivedi R/o IVladhopur. Mushahari. Muzaffarpur-842003 PAN no. CFEPK6364H.

¶14

. . . . . . . Defendants

¶15

Present:

¶16

For the Applicant : Shri S.K. Tiwari. Advocate For the Defendants : None

¶17

Dated: 17.09.2024

¶18

JUDGMENT

¶19

1 . 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) on9.8.2023 against the defendants to recover its debts from defendants of Rs.21.14. 139.52as on30.6.2023 along with pendente-lite and future interest rd) 12.25% p.a. with monthly rests from 1.7.2023 with costs till realization.

¶20

The application has been filed with the contention that the applicant bank. is a body corporate. constituted under the banking companies ( Acquisition and Transfer of Undertaking) Act- 1970 having its head office at Plot no. 4 sector 10. Dwarka New Delhi-1100075 and Branch Office at MDDM. District-Muzaffarpur.

¶21

Defendant no. 1 is proprietorship fIrm and defendant no. 2 is proprietor and defendant no. 3 is guarantor. Defendant no. 1 through proprietor defendant no. 2 approached the bank for grant of cash credit loan of Rs.15 lakh. which was sanctioned by the bank on 28.3.2014. Defendants executed the various loan documents and defendant no. 2 also created equitable mortgage of the property details give at page 2 1 in schedule-A of OA.

OA 381 of 2023 IJI

DRT1 PATNA

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 on30. 12.2019

¶26

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 tlled by the bank.

¶27

The total liability in the loan account is Rs.21.14.139.52with pendentelite and future interest @,12.25% p.a. with monthly rests from 1.7.2023 till the realization.

¶28

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 15.9.2023. 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 9.11.2023 in "Dainik Bhashkar" newspaper.

¶29

Despite the registered summons/notices and publication of notice in 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 nIe WS. hence. the Tribunal has passed an order to proceed ex-parte against the defendants on 11.1.2024

¶30

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 Ajeet Kumar. Deputy Manager of the applicant bank. The details of documents are as follows:

¶31

Sl.N'1	of 1Description	Date of	Amount	Signature of
	Documents	Execution	(inLakh)	Executants	Ann
	Photocopies				No
	Powerofattorney
I	Sanction letter	28.3.2014	Rs.15 lakh	Bank

V:\„

OA 381 of 2023 1 Jl

DRT. PATN A

3	1Letter of undertakin	28.3.2014	Rs.15 lakh	Defendant no. 1 &2	3
4	o goods and book debts		Rs. 15 lakh	e I&2
5	r cashcredit		Rs.15 lakh	Defendantno. I&2	5
6	c			Defendantno. a -)	6
7	r !uarantee		Rs. 15 lakh	Defendantno. 3	7
8	)				8
9	a connrnlation letter	123.2.2023		e 1 &2
10	e			a
e	c	2a			11
a	c account	c 130.6.2023	4a		jl

¶36

Heard arguments and perused the case record.

¶37

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

¶38

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.

¶39

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.

¶40

On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.12.2019.

In\n

DRT, PATN A

OA 381 of 2023 IJl

whereas the present application has been filed on 9.8.2023. 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 .

¶46

Shri Ajeet Kumar. Deputy Manager of the applicant bank. has Bled 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.

¶47

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.

¶48

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.

¶49

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.

¶50

Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof of entries in bankers’ books.–Suhjecl to thc provisions qf this Act. a certifjed copy of cm' entrY in a banker’s book shall in all legal proceedings be received as prima facie evidence of the existence of such enTr'. and shall he admitted as evidence of the lrIclflers, transactions and accounts therein recorded in ever' case \there. and to the same exlent CIS. Itle original entry itself is /lou’ bY la\t adnlissible. but not f’rwlher or ol henvise.

¶51

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.

¶52

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

OA 381 of 2023 IJI

DRTI PATN A

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.

¶57

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 30.6.2023 has been proved to be Rs.21.14.139.52 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.

¶58

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.21.14,139.52along with pendente-lite and future interest @12.25% p.a. with compounded monthly rests from 9.8.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly. to meet the ends of justice.

¶59

ORDER

¶60

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.21.14.139.52 along with pendente-lite and future interest (a 12.25% p.a. with compounded monthly rests from 9.8.2023(The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶61

It is made clear that any amount deposited by the defendants. be deducted in the claim amount. if not deducted.

¶62

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 mortgage(i 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

\4\

OA 381 of 2023 1.Jl

DRT, PATN A

Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

¶68

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 Of’acer. The Recovery c)fncer 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

¶69

Parties are directed to appear before the Recovery Officer. DRT. Patna on 4.11.2024. The order be communicated accordingly.

¶70

Judgment signed. sealed. dated and pronounced in the open coun on 17tl'day of September. 2024.

¶71

Dictated &con'ected by me.

¶72

[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

¶73

¶74

[ S e e R e ::[i!! I n 2 4 ( 1 ) 1

¶75

DEIITS RECO\’ER\’ TRIBI'X AL PATNA

¶76

2nd Floor, ( A. B & F Wing) Kurpuri Thakur SULtan. Kcndriya Karaml.hari Pilrisar (GPOA ), . +hiand Digha Rudd, Patna-800025

¶77

RECOVERY CERTIFICATE UNDER $ECTION R ZJ2 _ IF Tl BANKRUPTCY ACT9 m, AS ANIENDE] !\ ,TC Tt i TIME

¶78

RC No. 190/2024

¶79

¶80

Case No: OA/381/2tJ23

¶81

In the Matter of (CH- 1) PUNJAB NATIONAL BANK BRANCH OFFICE MDDM

¶82

Applicant(s)

¶83

MUZAFFARPUR .BIHAR -0

¶84

¶85

(CD- 1) MS VAIBH AV BRICKS COMPANY through ItS Proprietor BiLlha Devi (q' Vibha Devi wife ot SrI Pramod Kumar Trivcdi regjstered oflicc/Business at Madhopur. MushuJrari. MuzatTarpur .BIHAR -8420€J3

¶86

(CD- 2) SMT. BIBHA DEVI (a VIBHA DEVI \; '0 SRI PRAMOD KUMAR TRIVEDI, R/0 MADHOPUR. MUSH AH ARI. MUZAFFARPt JR842003

¶87

Defendant(s)

¶88

(CD- 3) VAIBHAV KUMAR

¶89

S/0 ANJANI KUMAR TRIVEDI, mO NIADHOPUR, MUSHAHART, MUZAFFARPUR- 842003

¶90

Rccovcry Certificate for Rs 2114139.52 1 Rupees Twenty One Lakhs Fourteen Thousands (?ne Hundred Thirty Ning And Paise Fifty T\vo Onjy -1

¶91

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. 2114139.52 along with cost, expenses and interest from the 09/08/2023 i,e. date of filing / with effective date of the OA/381 /2023 and future interest from order date till the date ofrcalisation in full, jointly or severally from the CelliHcdte Debtors, hereinafter refeITed to as:-

¶92

CDName 0	Int. I Type/Mode	Int. } Rate	IEffective Date	Order Date	Amount(Rs.)	Li„biffa Type	[	RC Amount(Rs.)
iq (imf::\ RICKS MPANY	’ompotlnd Itcrest :Monthly )	] 2.25	109/08/2023	17/09'2024	12114139,52	FointlyAnd	rcrcst As Order IDnte	2114139.52
1'111l1131ll EVI(A IBHA DEVI		12.25	109/08/2023	17/09/2024l	21 14139.52
VAIBHAV KUMAR	'0 lrtcrcst Monthly )	12.25	109/08/2023

¶93

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.

¶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 recovely proceeding in pursuance of the Recovely certificate issued under Section 19(22) of Recovel)' of Debts and Bdnkruptcy Act 1993

¶95

Parties are directed to appear before MANOJ KUMAR . Recovelv c)nIcer. DEBTS RECOVERY TRIBUNAL PATNA on 04/11/2024

¶96

The Recovery Officer shall realize the amount as per this Cel{iHcate in the manner and mode prescribed under Sections 25 to 28 uf the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as dmended 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 1 7/09/2024

¶98

_(}*
D et= {1::{:: qr i b u n a 1
Patna

¶99

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶100

FORM NO. 10

¶101

[See Regulation 24(2)]

¶102

DEBTS RECOVERY TRIBUNAL PATNA