Allowed

Punjab National Bank v. Messers Sobhachandka Enterprise

DRT28 Aug 2024OA/383/2023

Case brief

AI extract

What is this about?

The Tribunal considered an application under Section 19 of the Recovery of Debts and Debts Due to Banks and Financial Institutions Act, 1993. It examined the loan documents, repayment history, and outstanding dues. The bank proved the defendants' liability through evidence and documents. The Tribunal allowed the application and ordered the issuance of a recovery certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs. 20,59,857.21 with pending interest and cost of the application against the respondents.

Punjab National Bank versus Messers Sobhachandka… — Contract and Commercial Disputes | DRT (2024)

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oA 3E3r/2o2yoRT-Guwahati

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal of Assam, Nagaland, Meghalaya I\ranipur, l,,lEoram Arunachal Pradesh & Tripura)

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Before Shri Shiv Sharan Dubev. Presidino Officer

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O.A. No. 38312023

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ln the matbr of -

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PUNJAB NATIONAL BANK Fancy Bazar Branch,

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P.O. Fancy Bazar ln the District of Kamrup (Metrog), Assam-781001.

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'Appllcant

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v3.

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I'S SOBHACHANDKA ENTERPRISE

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A Proprietorship Firm,

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Represented by its Proprietor Mr. Rakesh Kumar AgaMal, Situated at 30, Baruah Market, T. R. Phukan Road, Fancy Bazat, Guwahati, P.O. Fancy Bazar, P.S. Fancy Bazar Assam in the District of Kamrup (Metro), Assam-781001.

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2. MR. RAKESH KUIIIAR AGARWAL

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Resident of Ganga Bhawan,

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J.P. Agarwal Road, Santipur, Guwahati-g,

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Assam, in the District of Kamrup (Metro), Assam-781009.

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3. MRS. PREETI AGARWAL

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Wife of Mr. Rakesh Kumar AgaMal

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Resident of Ganga Bhawan,

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J.P. AgaMal Road, Santipur, Guwahati-g,

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Assam, in the Oistrict of Kamrup (Metro), Assam-781009.

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RS. CHANDA DEVI AGARWAL

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Daughter of Manna Lal Jalan, Resident of Ganga Bhawan,

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J.P. Agarwal Road, Santipur, Guwahati-g,

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Assam, in the District of Kamrup (Metro), Assam-781009.

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Defendants

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Pressnce of tho Counsel :

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For the Applicanl : Mr. Shoubhik Chanda, Advocate

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For the Defendants : None (Ex-parte)

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Dated .2A10812024

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JUDGiIENT

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This is an application under s€ction 19 of the Recovery of Debb

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Due to Banks and Financial lnstitutions Act,^'1993 filed by the PUNJAB NATIONAL

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*"Y,ftfi,?" DRT. Guwahati

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O A 363/2023/ORT-Guw.hali

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BANK Fancy Bazar Branch, P.O. Fancy^{Bazar,ln the District of Kamrup(Metrog),} Assam-781001, with a^prayer to issue^{Recovery Certificatefor the sum of R3.} 20,59,857.21^(Rupees Twenty^{Laca Fifty-Nlns Thou3andEight HundredFifty'} Seven end PaLa Twsntyone)^{onlyas on 30.09.2023 againsl the defendants with} pendenlelite and future interest at the contractual rate with monthly rests till realization, along with cost and other relief.

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A few facts giving rise to the^present application are as^under. The Oefendant No.1 is a Proprietorship Firm of Defendant^{No.2and the} Defendant No. 3 & 4 are the^guarantors for^{repayment of the creditfacility availed by} Defendant No.1.

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The Oefendant No.2 being the Proprietor of^{Oefendant No.l firm,vide} Application dated 04.06.2003,^{had approached before the Applicant Bank and} requested for financial assistance for their^{Wholesale Trading stockof Food Grains,} Pulses, Edible oil, Sugar, Wheat & Wheat^{products and Salt. After considering the} said Application, the Applicant Bank^{vide Sanction Letter dated04.07.2003had} sanctioned a sum of Rs.15,00,000/-^{as Cash Credit Limit, withrate of interest} PLR+2% with monthly rest^(lhe then PLR being'13%^{p.a.) subiectto change from} time to time at Bank's decision.^{TheCash Creditlimit was repayable on demand.} The Defendant No.2 had signed on the acceptance^{letter dated04.07.2003and} lhereby accepted all the terms and^{condalions contained therein.}

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ln consideration of the aforesaid Cash^{Credit of Rs.15,00,000/-,theDefendant} No.2 duly executed the following documents^{in terms of} lhe^{sanction,a Demand} Promissory Note, a Letter of Undertaking and a^{HypothecationAgreement inter-alia} giving due effect to the terms and condition of sanction,^promising to repay the loan and to secure the dues of Applicant Bank.

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Thereafler, the Oefendant No.2 requested the Applicant Bank^for enhancemenl of the Cash Credit^limit and^{vide Sanction Lotter dated 16.05.201 1, the} Applicant Bank had enhanced the existing cash^{credit limit of Rs.'15,00,000.00to}

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su Presiding DRT.

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o'A 343'2023'DRf€uw!h'ti

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Rs.50,00,000.00,^with rate of intergst^{BR+4.0% i.4.14.00% subject to change from} time to time.

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The Defendant^{No.3 & 4, stood as guarantors by executinga Letterof} Guarantee dated^{08.06.2011 thereby agreed to repay the loan on demand availedby} them.

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The Defendant^{No2 in his capacityas proprietor of theDefendantNo l Firm} along with^{defendant No.4 had confirmedthe outstanding balance in the loan} account by signing^{and executingtwo Balance and Security ConfirmationLetters} dated 30.06.2012.

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Thereafter,theDefendantNo.2,onbehalfofDefendantNo'l'videApplication dated 05.06.2020,^{had approached before the Applicant Bank and requestedfor a} GECLamountofRs.25,oO,ooo/-.AfterconsideringthasaidApplication'the Applicant Bank^{vide sanctionletter dated08 06 2O2O had sanctioned a sum of} Rs.g'sTLacswhereintherateofinterestbeingRLLR+1.00%(thethenRLLRbeing 7.650/o^p.a.) subject^{to change from time to time as per bankguidelines The said} term loan was^{to be repaidin 48 months including moratorium period of 12 months}

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lnconsiderationoftheaforesaidamountofRs.g.sTLacsonly,theoefendants duly executed the^{followingdocumentsin terms of the sanction'a Demand} Promissory Note,^{a MasterAgrsement and an Agreementfor WorkingCapital Term} Loan^{(VVCTL)inter-alia giving due effect to the terms and condition of sanctjon'} promising to repay the loan^{and to secure the dues of Applicant Bank'}

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The Defendant^{No.3, stood as a guarantorby executing an Agreement of} Guarantee dated^{08.06.2020 thereby agreed to r€pay the loan on demand availed by} the defendant^{No. 2 on behalfof defendantNo1}

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After availing the^{Loan, the Defendantsfailed and/orneglectedto repay the} loan amount. as such^{the Loan account became NPAon 0711012022 as per the} guidelines of Reserve Bank of lndia.^{Therefore'the Applicant Bank lssued a 13(2)} Notice dated 16.08.2023 under^{the SARFAESIAct, 2002 thereby called upon the} D8fendants to discharge^{their liabilities in full within 60 days.But the Defendants} fail6d to discharge their liabilities^{within the stipulated period of time.}

sri/"k"*ftt

ORT, Guwahati

oA 363r2o2YDRTGus'hdi

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The Statemenls^{of Account maintainedby the ApplicantBank in the usual and} ordinary course^{of business shows that thereis a total outstanding balance of Rs'} 20,59,857.21 as^{on 30.09.2023. The outstandingin tha Cash CreditAccount No'} 0189OO87OOOO8O41^{as on 30.09.2023shows a balance of Rs '15'31'59691} whereas, the^{GECL AccountNo. O189oO|LoOOOOO56shows a balanceof Rs} S,zS,gsT.l2ason3o.og.2o23andtheamountofpenalinterestcapitalizedcomesto Rs. 96.82. The^{account became N P.A. on 0711012022and as such' all the} Defendants are^{legally boundand jointly and severally liableto repay the said} amount to^{the Applicant Bank wilhinterest till realization with cost and charges}

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The applicant bank^{has pleadedthat the defendantsdeposited piecemeal} amount in the^{Loan accounti.e. on 21.05.2005 an amountof Rs 2'25'00000 was} daposited, on^{24.03.2006 an amount of Rs 2,30,00000 was deposited'on} 07.03.2007 an^{amountof Rs.3,50'OOO.OOwas deposited,on 22 032oo8an amount} of Rs. 1,OO,OOO.OO^{was deposited,on 16 04 2oog an amountof Rs 2'00'000'00was} deposited, on^{05.05.2010an amount of Rs 4,45,00000 wasdeposited'on} 14.05.20'11 an^{amount of Rs.3,OO,OOO.0Owas deposited, on 27 04 20'12an amount} of Rs. 3,00,000.00^{was deposited,on 'l 1 .04 2013 an amountof Rs 3'20'00000 was} deposited, on^{11,042014 an amount of Rs 5'65,00000 was deposiled'on} 18.08.2015 an^{amountof Rs.9,OO,OOO.OO was deposited, on '16 02 2016 an amount} of Rs.^{5,OO,OOO.OO was deposited, onO l.03 2O17an amountof Rs 9'00'00000 was} deposited, on^{08.03.2018on amounl of Rs 6,00,00000 was deposited'on} 05.04.2019 an^{amount of Rs. 4,35,OOO.OOwas deposited,on 11 06 2020 an amount} of Rs. 5.60,000.00^{was depositod,on 15.022021anamountof Rs' 2'50'00000 was} deposited and^{similarly on 08.02.2022an amountof Rs 5,20,000 00 was deposited} and on 07l1Ol2O22^{the loan account was declared as NPA}

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TheapplicantbankthusbecameconshainedtofilethepresentoriginalApplication for the recovery^{of R3. 20,59,857.21 (RuPoesTwonty LecaFifty'Nine Thou3tnd} Elght Hundrod^{Fifty-Sovon and Pab. Twontyone)only as on 30 09 2023 along with} interest and cost of the^application.

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After filing of the^{OA the Tribunal issued notices upon the defendants through}

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OA 3$r2023loRl'GR'htli

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registered^{post and the applicant bank filed service reporton 19 12 2023and brought} on record^{the postal receipts alongwith track consignment report which shows that} the notice^{hasbeen sgrved uponthe defendant No l and the notices have not been} seNed^{upon the defendants No 2,3 & 4 Thereafterlhe Tribunal ordered paper} publication of notice^{uponthe defendants No 2'3 & 4 and the applicant bank} issued^{notice to the defendantsNo' 2'3 & 4 through Paper Publicationin two} newspapers^{namely "Times of lndi" and 'DainikAssam"both dated15022024 ltisis} observed^{that inspite of proper serviceof notice upon the defendantNo 'l and even} afrer issuing^{notice throughpaper publication upon the defendantsNo 2'3 & 4} there has been^{no representationon behalf of the defendantsNo1 ' 2'3& 4 eitherby} the counsel^{or the personand hence the defendants No' 1' 2'3 & 4 were set ex'parte} ono8.o5'2o24andthematterwaspostedforex.partehearingonbehalfofthe applicant^bank.

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Supporting the^{claim of the applicantbank Sri Samir Gid' ChiefManager} (Recovery Centre)^{of the Applicant Bankhas filed evidenceon affidavit coupledwith} the security^{documents marked as Exhibitl to 25, supportingthe claimofthe applicant} bank.

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Heardthelearnedcounselfortheapplicantbankwhoprayedforissuanceof Recovery Certificate^{againstthe defendantsas per pleadings madein the Application'} supported by^{evidence on affidavitof their witnesswho attirmed on oath the execution} ot the security^{and other documents by the defendant and also execution of their own} documents^{relied upon, which have been marked exhibits'}

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Considering^{the facts and circumstancesof the case' I am ol theconsidered} view that the^{documentsliled by the applicant bankare supporting the claim of ihe} applicant bank^{and establishing theliability of the defendants lt is proved that the} defendants are^{jointly and severally liableto pay to the applicantbank the claim} made in the Original^{ApPlication.Theloanswere obtained and documentshave} been executed on^{04.06.2003,08 062O1 l & 08 06 2020 Balanceand Security} confirmationLettersaredated30'06'2012'ltisalsoobservedthatthedefendants have deposited^{piecemeal amountin lhe Loanaccounl ie on 21 05 2005 an}

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SLi^rdaaatauaa ,,*"^3#Jffi['l^V DRT Guwahali

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oA 3slzo2YoRTGuwahali

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amount of Rs.^{2,25,000.00was deposited, on 24.03 2006 an amount of Rs} 2,3O,OOO.OO was^{deposited,on 07.03 2007 an amountof Rs 3,50,000.00 was} deposited, on^{22.03.2009 an amount of Rs 1'00,000,00 was deposited,on} 16.04.2009 an^{amount of Rs. 2,00,000,00was deposited, on 05052010an} amount of Rs.^{4,45,OOO.OOwas deposited,on 1405201lan amount of Rs'} 3,OO,OOO.OO^{was deposited,on 27.04.2012an amountof Rs3,00,00000 was} deposited, on^{11.04.2013an amount of Rs 3,20,00000 was deposited,on} 11.04.2014 an amount of^{Rs 5,65,000.00was deposited, on 18082015an} amount of Rs.^{9,OO,OOO,OO was deposited,on 16022016an amount ot Rs'} 5,OO,OOO.OO was^{deposited,on 01 03 2017 an amountof Rs 9,00'000 00 was} deposited, on 08.03.2018^{on amount of Rs 6,00,000.00 was deposited,on} 05.04.2019 an amount^{of Rs.4,35,000.00 was deposited, on 11062020an} amount of Rs. 5,60,000.00^{was deposited, on 15.02.2021an amount of Rs'} 2,5O,OOO.OO was deposited^{and similarly on 08.02.2022 an amount of Rs'} 5.2O.OOO.OO was^{deposited.The accountsbecameNPA on 07.10'2022and the} OA has been filed on^{30.10.2023Hence' the OA is liled well within the periodof} limitation and this Tribunal^{havinga jurisdictionto adjudicatethe OriginalApplication'} Considering the^{unchallenged/ unrebutted vsrsion of Sri SamirGiri' the} applicant's witn€ss^{and all the documents markedas exhibits,includingduly certified} copy of the stalement^{of account along with interest calculation sheet maintainedby} the applicant Bank in it's^{regular course of business,I hold that the applicantis entitled} to get the Recovery Certificate^{as prayed for.}

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ln the result, the^present Original^{ApplicationNo. 383 of 2023 is allowed with} cost as under :-

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l) The delendants No.^{1, 2, 3 & 4 are jointly and severally liable to payto the} applicant bank a sum^{of Rs.20,59,857.21(Rupoe3Twonty L.caFifty-Nins} Thou3and Eight Hundr€d^{Fifty'Sevenand PaisaTwonty€no)onlywith} pendentelite and fr:ture interest @15.00o/o^per annum^{with monthly rests from} 01.10.2023 till the date of full^{paymenurealizationand also cost o, the} application.

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SL;.tdata^^Alu 0 ';r+.x,ffiYn

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O A 383/2023/ORI.Guwehati

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ll) The charge of the cedmcated amount^{be kept alive on hypothecaled properties,} as described in Schedule of the OA till the amount^{is realizedin full.}

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iii) The applicant bank is entitled to^{proceed against the secured items towards} recovery of the debts.

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iv) The applicant bank is also entitled to^{proceed againstthe personal assets and} prope.ties of the dabndants towards recovery of the dues.

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v) The applicant bank is entitled to^{the costsof the O.A. which includes the} advocate fees of the applicant^{bank. Applicant is directed to tile the cost memo} within 2 weeks from today.

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vi) lssue Recovery Certificate accordingly^{for a sum Rr' 20,59'E57.2'l (Rupee3} Twonty Lacs Flfry-Nino Thousand^{Eight Hundr€dFifty€.v.n .nd Paba} Twentyone) only in favour^{of the applicant bank againstthe defendantsNo. 1,} 2,3 & 4.

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vi0 Communicate copy of this order to^{the concerned parties.}

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This order is dictated and corrected^{by the undersigned}

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Judgment dated 28t^{August 2024, signedand pronounced in the Tribunal}

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today under my signature.

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Copy of the JudgmsnuFinal Order^{be uploadedin the Tribunal'sWebsite and file}

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be consigned to Record^Room.

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or,,*:Mff?Presiding Officer ORT, Guwahati

Punjab National Bank v. Messers Sobhachandka Enterprise

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messers Sobhachandka Enterprise

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

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