Allowed

Punjab National Bank v. Ms Sumitra Kishan Seva Kendra

DRT18 Sept 2024OA/571/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application under Section 19 of RDB Act for recovery of a loan. The bank proved loan documents and account statements. The defendants did not appear. The Tribunal determined the debt amount and issued a recovery certificate.

What did the court decide?

Debt determined at Rs. 54,53,238.83 plus interest @ 8.10% p.a. from filing date; recovery certificate issued; hypothecated assets attached.

Punjab National Bank versus Ms Sumitra Kishan Seva… — Contract and Commercial Disputes | DRT (2024)

DRT. PATN A

OA 571 of 2023 IJl

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. 571 of 2023

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Punjab National Bank, Wajirganj, Town and District-Ga)'a.

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. . . . . . . Applicant

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M/s Sumitra Kishan Seva Kendra through its proprietor Sanju Sharma W/o Sri Sadhu Sharma situated at village –Kurkihar, P.S.-Wajirganj, District-Gaya-805 13 1 .

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Sanju Sharma W/o Sri Sadhu Sharma R/o at village –Kurkihar, P.S. Wajirganj, District-Gaya-805 131 PAN no. DEFPS8775N

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Defendants

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Present:

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For the Applicant Shri Prashant Kumar, Advocate For the Defendants None

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Dated : 18.09.2024

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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 4.12.2023 against the defendants to recover its debts from defendants of Rs.54,53,238.83 as on 30.11.2023 along with pendente-lite and future interest at the contractual rate from 1.12.2023 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 Undertakings) Act 1970 having its corporate office at Plot no. 4 sector 10 Dwarka, New Delhi-110075 and Branch Office at Wajirganj, Town and District-Gaya

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Defendants approached the bank for grant of loan of Rs. 50 lakh on 25.8.2021, which was sanctioned by the bank on 6.9.2021. Defendants executed the various loan documents.

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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

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OA 571 of 2023 1 Jl

DRT, PATNA

bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 20.6.2023

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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.54,53,238.83 with pendentelite and future interest at the contractual rate from 1.12.2023 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 5.1.2024, 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.

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Despite the registered summons/notices, 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 1.4.2024.

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

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of Description Documents PhotocoDies	of Date Execution	Amount	Signatureof Executants
)	25.8.2021	Rs.55 lakh	Defendant no 1 &2
Sanctionletter	6.9.2021	Rs.55 lakh	Bank
of Hypothecation goods and book debts	15.9.2021	Rs.55 lakh	Defendantno 1 &2
Masteragreement	15.9.2021	Rs.55 lakh	Defendantno 1 &2
Notice	13.12.2022 15.4.2023		Bank

Z-i.,i,\

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	15.6.2023
	5.7.2023
Statement	Ason s
account	30.11.2023

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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 20.6.2023, whereas the present application has been filed on 4.12.2023. 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 Rakesh Kumar, Deputy 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. \ /' _ V\8Lq

DRT. PATNA

OA 571 of 2023 IJl

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 of this Act, a certified copy of any entry in a banker’s book shalt in aU legal proceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law 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,

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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.

¶54

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

OA 571 of 2023 1 Jl

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and conditions for repayment with interest. The balance amount till 30.11.2023 has been proved to be Rs.54,53,238.83 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.54,53,238.83 along with pendente-lite and future interest @ 8.10% p.a. with compounded monthly rests from 4.12.2023 (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.54,53,238.83 along with pendente-lite and future interest @ 8.10% p.a. with compounded monthly rests from 4.12.2023 (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.

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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

OA 571 of 2023 IJl

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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 mortgage(i/ 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 04.11.2024. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 18th day of September, 2024.

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b/t/
/ , to

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Dictated &corrected by me.

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L/PF IMF~ [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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

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DEBTS Rt.C'OVER' TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Kdrpuri Thdkur SacIan, Kendriyu Karamchari Parisar (GPOA), Ashiana Digha Road. Patna-800025.

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RECOVER\ 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. 201/2024 IN

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Case No: OA/571/2023

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In the Matter Ilt (CH- I) PUNJAB NATIONAL BANK WAJ IRG AN J. TOWN AND DISTRIC’I-GA\’A .BIHAR -0

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Applicant( s )

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----– Vel'stIS -----–

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(CD- 1) MS SUMITRA KISHAN SEVA KENDRA Through its Proprietor Sanju Sharma W/o- Sri Sadhu Sharma. Situated at Village-Ktlrkihi,Ir, P. S.- Wa.i irganj C}aya ,BIHAR -805 1 31

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Defendant(s)

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(CD- 2) SANJU SHARMA W/0- SRI SADHU SHARMA R/0 AT VILLAGEKURKIHAR. P.S.- WAJIRGANJ, DISTRICTGAYA - 805 131

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Recovery CertifIcate for Rs 5453238.83 1 Rupees Fifty Four Lakhs Fifty Three Thousands Two Hundred Thirty Eight And Paise EigHy Three OnI)J

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In terms of final order dated 1 8/09/2024 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. 5453238.83 along with cost, expenses and interest from the 04/12/2023 i.e. date of filing / with effective date of the OA/571/2023 and future interest from order date till the date of realisation in full. jointly or severally from the Certitlcate Debtors, hereinafter referred to as

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r.noCDName	Lo Type	Int FType/Mode	Int.IEffective Rate 1 Date	Order Date	,mount(Rs.)	LiabilitY le	Interest (as on Order Date)	RC :IAmount(Rs.)	Remar
		rn Interest :onthly)	12/2023 :	1 : 8/09/2024	.53238.83	ro IAnd FSeverally	[Interest on >rder	;453238.83
ANJU HARIVIA		IInterest Monthly )	12/2023	118/09/2024	13238.83	ltly IAnd ISeverally	Interest on ,cr	15453238.83

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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 mortgagcd/hypothecated assets as well as other personal movable/ Tmmovable assets of the certillcate 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 1993

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Parties are directed to appear before MANOJ KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 04/1 1 /2024

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The Recovery OHlcer shall realize the amount as 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, 1993 (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 19/09/2024

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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e;! I .', z / ' Re cave ! ) r bun Bl D€b$ -+-nUn. p3ilW

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FORM NO. 10

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J+ J

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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, Kcndriya Karamchari Parisar (GPOA),

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Ashiana DiFlha Road. Palna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 201/2024

Case No: OA/571/2023

Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): MS SUMITRA KISHAN SEVA KENDRA

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Sr.No	ItemofCosts	FA
	Feeon theappL=	m7
9	o	Dc
	AdvocateFees	[0
	rmmmm=FEeT	ro
5	©scellaneous Charges	b
	TotalCosts:Rs	m5

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Place: PATNA

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Date: 19/09/2024

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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. Ms Sumitra Kishan Seva Kendra

Case brief

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Punjab National Bank v. Ms Sumitra Kishan Seva Kendra

Case brief

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