Allowed

Punjab National Bank v. Dharamnath Sah

DRT17 Sept 2024OA/538/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna, allowed the bank's application under Section 19 r/w Section 13(3) of RDB Act based on ex-parte evidence and affidavit due to defendants' absence. The Tribunal determined the principal debt and interest, issued a Recovery Certificate under Section 19(22), and directed the Recovery Officer to realize the dues.

What did the court decide?

Recovery certificate issued directing realization of Rs. 33,47,578.87 with interest from 07/11/2023 and attachment of secured assets.

Punjab National Bank versus Dharamnath Sah — Banking and Recovery | DRT (2024)

OA 538 of 2023 1 Jl

DRT, PATN A

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 538 of 2023

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Punjab National Bank. IVIDDM Branch. District-Muzaffarpur

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. . . . . . .Applicant

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Vs.

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Dharmnath Sah S/o Sri Vindeshwar Sah R/o Bhikhanpur. P.S.-Ahiyapur. Anchal-Mushahari. District-Muzaffarpur-842001 PAN no. DJEPS7992R.

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Sanju Devi W/o Sri Dharamnath Sah R/o Bhikhanpur, P.S.-Ahiyapur, Anchal-Mushahari, District-Muzaffarpur-842001 PAN no. CHZPD8167P.

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Defendants

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Present:

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For the Applicant Shri S.K. Tiwarv. Advocate For the Defendants None

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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 7.11.2023 against the defendants to recover its debts from defendants of Rs.33.47.578.87as on3 1.8.2023 along with pendente-lite and future interest @ 9.60% in term loan. @ 9.75% in construction of house loan and @10.70% in term loan p.a. with monthly rests from 1.9.2023 with costs till realization.

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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.

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Defendants approached the bank for grant of term loan of Rs. 11.74 lakh. which was sanctioned by the bank on 6.11.2015. Defendants further approached the bank for grant of overdraft facility of Rs. 6.50 lakh on 17.12.2016, which was sanctioned by the bank on 17.12.2016. Defendants further approached the bank for grant of term loan of Rs. 5 lakh on 23.1.2017. which was sanctioned by the bank on 24.1.2017. Defendants executed the various loan documents and defendant no. 2 also created equitable mortgage of property details give at page 18 in schedule-A of OA.

OA 538 of 2023 IJI

DRT, PATN A

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 16.4.2018

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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.33.47.578.87with pendentelite and future interest @ 9.60% in term loan, @ 9.75% in construction of house loan and @ 10.70% in term loan p.a. with monthly rests from 1 .9.2023till the realization

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 20.12.2023 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 10.4.2024 in "Dainik Jagaran" newspaper.

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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 19.6.2024.

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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 given evidence on affidavit by way of affidavit b)’ Shri Ajeet Kumar. Deputy Manager of the applicant bank. The details of documents are as follows:

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Sl-Nc+Description of	[Date of	Amount	Signatureo
Documents	Execution	(inLakh)	Executants	Ann
Photocopies				No
O

Vt,"~,

OA 538 of 2023 1 Jl

DRT, PATN A

9	a		s	T
a -1	c agreement		s	a
4	)				4
5	Consentclause			e
6	c		Rs.5 lakh	e 1
7	Quotation				7
8	Creditappraisaland sanction letter	24.1 .2017	Rs.5lakh	Bank	8
9	Hypothecation agreernent	24.1 .2017	Rs.5 lakh	Defendantno. 1	9
10	deliveryorder				10
11	Balance security confirmationletter	5.4.2018 5.4.2021 13.4.202		Defendants	11
	Recall notice	11 .4.201		Bank
	Demand notice	18.9.201 21 .2.202		Bank
14	a account of	As on 31.8.2023	s		14

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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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10, Tt 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.

DRT, PATN A

OA 538 of 2023 1 Jl

this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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12 On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 16.4.201 8. whereas the present application has been filed on 7.11.2023. 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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13 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

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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.–Subject to the provisions Qf this Act. a certified cop' Qf cm' entry in a banker's hook shall in all legal proceedings be received as prinrcl Rlcie evidence of Itre existence of such cunT. and shall be admitted as evidence of the nlallers, transacli(ms and accoutrls thereirt recorded in ever\’ case where. and to the sanre extent as. the original entry itself is /zorl' bY Icm admissible, but not further 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

OA 538 of 2023 1 Jl

DRT. PATN A

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.

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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 31.8.2023 has been proved to be Rs.33.47.578.87 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 tlnal 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.33.47.578.87along with pendente-lite and future interest @.9.60% p.a. with compounded monthly rests from 7.11 .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 toRs.33.47.578.87 along with pendente-lite and fUture interest @ 9.60% p.a. with compounded monthly rests from 7.11.2023 (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

DRT, PATN A

OA 538 of 2023 IJ I

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.

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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 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

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

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Judgment signed. sealed. dated and pronounced in the open court on 17thday of September. 2024.

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Dictated &corrected by me.

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daM' \aWE’A

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

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FORM NO. 9 [See Regulation 24( 1 )]

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DEBTS RE('o\’ER' TRIBLT NAI. PATN A

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2nd Floor. ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya K8ramchari Parisar (GPUA). Ashiana Digha Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(Z) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC No. 193/2024 IN Case No: OA/538/2023

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

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Applicant(s)

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MUZAFFAI{PUR .BIHAR -o

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It)

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(CD.. 1) DHAi{AN4NA'rH SAH

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Son of SrI Vindeshwar Sab

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R/o Bhikhanpur. PS- Ahiyapur, Anchal-Mushahari. VluzatTarptlr .BIHAR -84200 1

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Defendant(s)

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(CD- 2) SANJU DEVI

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W/0 SRI DHARAMNATH S AH R/0

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BHIKANPUR. PS- AHI\’APU it, ANCH ALNILTSH AH ARI. DISTRICT- MUZAFFARPUR PIN(’ODF- 84200 1 . (CO- BORROWER)

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Recovery Certificate for Rs 3347578.87 1 Rupees Thirty Three Lakhs Forty Seven Thousands Five Hundred Seventy EigU And Pajge EigUy Seven Only_1

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In terms of final order dated 1 7/09/2024 passed by this Tribunal in the above mentioned case. it is ordered that the Applicant Cel'titlcate Holder Bank is entitled to recover a sum of Rs. 3347578.87 along with cost, expenses and interest from the 07/11/2023 i.e, date of llling I with effective date oF the OA/538/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Cellificate Debtors, hereinafter referred to

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reno	CDN e	Loan Type	Int IType/Mode	Effective Date	Order Date	\In oun t( RSn)	;L!!jI:( y	Intc'rca (as on Order Date)	RC !Amount(Rs.)	Remar
	DHARAMNATH H		onlpound lterest :Monthly): .60	l07/11/2023			intly 3verall}	ntc!'cst IAs on C ler IIe	13347578.87
			'ompound nterest Monthly )		17/09/2024	}3347578.87	lintly lverall}	lterest FAs on	1347578.87

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

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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 Bankruptcy Act 1 993.

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Parties are directed to appear before ASHISH KIJM AR . Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on ()+ 1 /2024

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The Recovely Offlcer shall realize the amount as per this Certillcate 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

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This Certificate has been issued under my sjgnature and seal of the -l-ribunal on this 17/09/2024

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(>, FrI Registrar Debts Recovery Tribunal Patna

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[

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10 [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 (GPOA),

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Ashiana Digha Road. Patna-800025

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 193/2024

Case No: OA/538/2023

Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): DHARAMNATH SAH

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	Item ofCosts	I Amount inRs
	Feeon the application	m3
2	o	[0
3	T<br>ocateFees	[0
4	3	[0
	Miscellaneous Charges	Fo
	TotalCosts:Rs	m3

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Place: PATNA

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Date: 17/09/2024

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab National Bank v. Dharamnath Sah

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Dharamnath Sah

Case brief

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