Allowed

Punjab National Bank v. Ms Shree Ganesh Traders

DRT17 Sept 2024OA/542/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Applicant bank's application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, determining the defendants' liability for a defaulted loan of approximately Rs. 57.18 lakhs, including interest, and directed the issuance of a Recovery Certificate.

What did the court decide?

To pay Rs. 57,18,273.41 with interest; Recovery Certificate issued; Assets attached and liable for sale.

Punjab National Bank versus Ms Shree Ganesh Traders — Banking and Recovery | DRT (2024)

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DRT. PATN A

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OA 542 of 2023 1.Jl

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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 KaushaIendraYadav

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OA Case No. 542of 2023

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Punjab National Bank. Barh Branch. District-Patna

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. . . . . . .Applicant

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M/s Shree Ganesh Traders through its proprietor Ravi Shankar Kumar registered office at NH 3 1. Court Area Barh District-Patna 803213 .

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Ravi Shankar Kumar S/o Bhuneswar Prasad Singh R/o at New Area Nath Nagar. Post Office and Police Station-Barh. District-Patna. PAN no. AUQPK9350D.

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Shankar Kumar S/o Bhuneswar Prasad Singh R/o Gola Road. Barh. District-Patna. PAN no. ASGPK6148P.

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. . . . . . . Defendants

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Present:

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For the Applicant Shri S.K. Tiwari. 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) on7.11.2023 against the defendants to recover its debts from defendants of Rs.57. 1 8.273.41 as on3 1.8.2023 along with pendente-lite and future interest (a1 1.75% 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 atBarh Branch. District-Patna

¶20

Defendant no. 1 is proprietorship concern. 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 facility of Rs.40 lakh on 10.3.2016. which was sanctioned by the bank on 11.5.2016. Defendant no. I through proprietor defendant no. 2 further approached the bank for grant of GECL loan of Rs.8 lakh. which was sanctioned by the bank on 24.11.2020. Defendants executed the various loan documents and defendant no. 3 also

X+q

OA 542 of 2023 1 Jl

DRT, PATN A

created the equitable mortgage of property details given at page 19 in Schedule –A of OA.

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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 1.7.202 1

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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.57.18.273.41 with pendentelite and future interest @11.75% p.a. with monthly rests from 1.9.2023 till 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 11.4.2024 in "Dainik Bhashkar-- 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 file 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 by Shri Pramod Kumar Mishra. Chief Manager of the applicant bank. The details of documents are as follows:

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Description of 1 Date of Amount Signature of I Ex./ Documents Execution in Lakh Executants Ann (it a

OA 542 of 2023 1 Jl

DRT, PATN A

	PhotocoDies				No.
1
9	Loanapplication	10.3.2016	Rs.40 lakh	e 1&2
/1j	Sanction letter	11.5.2016	Rs.40 lakh	a
4	) goods and book debts		Rs.40 lakh	e I&2
5	o			e
6	ar guarantee		Rs.40 lakh	e /Hj
7	Copyofsale deed				7
8	CERSAI				8
9	Loan application	24.11.2020	Rs.8 lakh	Defendantno I &2	9
10	Sanction letter	24.11.2020	Rs.8 lakh	Bank	10
11	r working capital termloan		Rs.8 lakh	e 1 &2
12	a		Rs.8lakh	e 1 &2
1 3	a confirmationletter			e 1 &2
	e			Bank
	r account	o 131.8.2023		Bank

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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.

OA 542 of 2023 1 Jl

DRT, PATN A

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 1.7.202 1. 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.

¶47

Shri Pramod Kumar Mishra. Chief Manager of the applicant bank. has filed 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 tIled 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 thc provisions Qf this Act, a certi.ned copy of c///y entrY in a banker's book shall in all legal proceedings be received as prinra facie evidence of the existence Qf such entry, and shall be admitted as evidence of the matters. transactions and accounts therein recorded in every case \’here. and to the same exlenl as, I Ire original entrv itself is non' hr Icr\' aclnrissible. huI not {lrrther or olhenvise.

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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

OA 542 of 2023 IJl

DRT, PATN A

account. more so since the entries in the statement of account have not been challenged.

¶57

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.

¶58

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.57.18.273.41 only by u-ay 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 anal realization of the claim.

¶59

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.57,18.273.41along with pendente-lite and future interest @ 11.75% 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.57.18,273.41 along with pendente-lite and future interest @ 11.75% 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

OA 5+2 of 2023 1 Jl

DRT, PATN A

Defendants are debarred from transferring. alienating encumbering or otherwise dealing with or disposing of the mortgdged 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 anal order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Banluuptcy 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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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

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

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DEBTS RECO\’ER- TRIBUNFAL PATNA

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

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RECo\’FRY CERTIFICATE UNDER SECTION 19(Z) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS .,\ITENDED FRC)NI TIME TO TlbIE.

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RC No. 192/2024 IN

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Case No: OA/542/2023

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In the Matter of (CH- 1) PUNJAB NATIONAL BANK BARH BRANCH PATNA ,BIHAR -803 213

Applicant( s)

–---- Versus -------

(CD- 1) MS SHREE GANESH TRADERS Through its Proprietor Ravi Shankar Kumar, Registered ofFice at NH 31 . Court Area Barb Patna .BIHAR -8032 1 3

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(CD- 2) RAVI SHANKAR KUMAR SON OF BHUNESWAR PRASAD SINGH RESIDENT AT NE\V AREA NATH NAGAR. POST OFFICE- POLICE STATION - BARH. DISTRICT - PAl-NA ( BORROWER )

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Defendant(s)

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(('D- 3) SHANKAR KL;NIAR SON OF BHUNESWAR PRASAD SINGH RESIDENT OF GOLA ROAD. BARH DISTRICTPATNA BIHAR

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Recovery CertifIcate for Rs 5718273.41 1 Rupees Fifty Seven Lakhs Eighteen Thousands Two Hundred Seventy Three And Paise Forty One OnI\ LI

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In terms of final order dated 17/09/2024 passed bv this Tribunal in the above mentioned case, it is ordered that the Applicant CertifIcate Holder Bank is entitled to recover a sum of Rs. 5718273,41 along with cost. expenses and interest from the 07/1 1 /2023 i.e. date of filing / with effective date of the OA/542/2023 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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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.

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The mollgaged 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 1993

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Panics are dirccted to appear before ASHISH KUNI AR . Rect)very Otllccr. DEBTS RE('OVERY TRIBUNAL PATNA on 04/11/2024.

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The Recovery Officer sh,III realize the amt)unI ds per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act. 1 993 (as amended from time to time) from the above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 1 7/09/2024

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(\hEb \

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F“ Registrar Debts Recovery Tribunal Patna

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PRESIDIVi OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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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) Karl)uri Thakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 192/2024

Case No: OA/542/2023

Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): MS SHREE GANESH TRADERS

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	Item ofCosts	.mount inRs
	Feeon theapplication
	ProcessFees(Inc. Publication)
3	R
	e
	MisccllancousCharges
	TotalCosts:Rs	m6

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Place: PATNA

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Date: 17/09/2024

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PRESIDINGtbMICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab National Bank v. Ms Shree Ganesh Traders

Case brief

What is this about?

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Punjab National Bank v. Ms Shree Ganesh Traders

Case brief

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