Allowed

Punjab National Bank v. Alok Kumar

DRT17 Sept 2024OA/578/2023

Case brief

AI extract

What is this about?

Defendants approached Punjab National Bank for a business loan, later defaulted, and the account turned NPAs. Failing to appear, the defendants were pursued ex-parte. Based on affidavit evidence and loan documents, the Tribunal held the defendants liable for the outstanding principal and interest.

What did the court decide?

Defendants jointly and severally ordered to pay Rs.25,78,858/- with interest @10.75% p.a. and costs; mortgaged assets attached; Recovery Certificate issued.

Punjab National Bank versus Alok Kumar — Banking and Recovery | DRT (2024)

OA 578 of 2023 IJ I

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. 578 of 2023

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Punjab National Bank. Chhapra Branch, District-Saran.

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. . . . . . .Applicant

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Vs.

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Alok Kumar S/o Sri Sachida Nand Prasad R/o AI'ya Nagar Kathari Bagh. District-Saran. Chhapra-841301 and Business-Bhagwat Imark. At Sonarpatti. Bhagwati Market District-Saran Chhapra, Pin-84 1301. PAN no. BJBPK0837N.

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Sachida Nand Prasad S/o Mohan LaI Sah. R/o Arya Nagar Kathari Bagh, District-Saran. Chhapra-841301 and Business-Bhagwat Imark. At Sonarpatti. Bhagwati Market District-Saran Chhapra. Pin-841301 PAN no. AEJPP87 1 3 Q

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Asha Devi W/o Sachidanand Prasad, Arya Nagar Kathari Bagh. DistrictSaran, Chhapra-841301 and Business-Bhagwat Imark, At Sonarl)atti. Bhagwat i Market District-Saran Chhapra. Pin-841301 PAN no. ANWPD3758P.

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Anuj Kumar, 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 20.10.2024 against the defendants to recover its debts from defendants of Rs.25.78.858/- as on 31.9.2023 along with pendente-lite and future interest (’@ 10.75% p.a. with monthly rests from 1.10.2023 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. V of 1970. having its registered and Head Office at Plot no. 4 Sector-10. Dwarka New Delhi-110075 and Branch Office at Chhapra Branch, District-Saran

DRT. PATN A

OA 578 of 2023 IJ I

Defendants approached the bank for grant of loan of Rs. 21 lakh on 6.3.2018 and 12.3.2018. which was sanctioned by the bank on 13.3.2018. Defendants executed the various loan documents and defendant also mortgaged his landed property in favour of the bank details give at page 25 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 3 1.3.202 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.25,78.858/- with pendentelite and future interest @10.75% p.a. with monthly rests from 1.10.2023 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 6.1.2024, 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. 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 5.3.2024 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 file WS. hence. the Tribunal has passed an order to proceed ex-parte against the defendants on 3.5.2024.

V.a

DRT, PATN A

OA 578 of 2023 1 Jl

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. Dy. Manager of the applicant bank. The details of documents are as follows:

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Sl.N'l	IDescriptionof Documents Photocopies	Dateof IExecution	Amount	Signature Executa	Ex./ FAnn No.
e
9	Loanapplication	6.3.2018 12.3.2018		Defendants	a
'1j	Sanction letter	13.3.2018	Rs.21 lakh	Bank	3
4	r loan		s	mr
5	o		s	Or
6			s	mr 3
7	Copyofsale deed				7
8	notices	3.1.2023		Bank	8
9	Statement account O	31.9.2023	s		9

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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 Reselve 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.

DRT. PATN A

OA 578 of 2023 IJ I

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 3 1.3.202 1, whereas the present application has been filed on 20.12.2023. 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 Ajeet Kumar. Dy. 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 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 Io the provisions qf this Act, a certifIed COPY qf any entrv in a banker's book shall in all legal proceedings be received as prima facie evidence of lhc 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 exlent as, the original enIm itself is no\' by lcr\' adtnissible, but not further or otherwise.

DRTq PAT’NA

OA 578 of 2023 IJ I

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.

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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 31.9.2023 has been proved to be Rs.25.78.858/- 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.25.78.858/- along with pendente-lite and future interest @10.75% p.a. with compounded monthly rests from 1.10.2023 (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.25,78,858/- along with pendente-lite and future interest @10.75% p.a. with

OA 578 of 2023 IJ I

DRT, PATN A

compounded monthly rests from 1.10.2023 (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 mortgage(1 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 04.11.2024. The order be communicated accordingly.

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Judgment signed. sealed. dated and pronounced in the open court on 17th day 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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FORM NO. 9 [See Regulation 24( 1 )]

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b/n

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DEBTS RECOVER' TRIBUNAL PA'l’NA

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2nd Flot Jr. ( A. B & F Wing) Karpuri Thakur Sudan. Kendriya Kamnrchari Parisar (GPC)A). Ashiana Digha Road. Patna-800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(2) READ WITH SE('TION 19(L2) OF THE REC'oVERY OF DEBTS & BANKRUPTCY £\eT. 1993, AS AMENDED FRONI TIME TO TIME.

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RC No. 191/2024

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IN Case No: OA/578/2023

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In the Matter ot (('1-1- 1) PLIN JAB N ATI( )NAL BANK ( HH APRA RR ANC-H SARAN .BIHAR -o

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Applicant( s )

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(CD- 1) Al_OK KUMAR Son Sri Schida Nand Prasad R/o - Ar:/a Nugar Kutharl hugh. SartIn .BIHAR -841301 Also At '\DDRESS (JI'’ bUSINESS- BHACiWA'l- IM ARK. A-1 SONARPATTI. BHAGWATJ MARKET DISTRICTSARAN. (-'HHAPRA PIN- 841301

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(CD- 2) SA('HIDA NANAD PRASAD (BORROWER) S/0- MOHAN LAL SAH, RESIDENT OF VILLAGE/NtOH ALLA- ARYA NAGAR KATHARI BAGH, DISTRICT- SAR AN. CHH APRA, PIN CODE- 841 301 ADDRESS OF BUSINESS - BHAGWAT IMARK. ATSC)NAIIPATTI. BHAGWATI MARKET DISTRICTSARAN, CI{HAPR A PIN - H+ 1301

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Defendant(s)

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(CD- 3) ASHA DEVI (BORROWER/MORTGAGOI{) \'/O- SACHINDAN AND PRASAD. RESIDENT OF ViLLAGE/MOH ALLA- ARYA NAG AR KATH ARI BAGH, DISTRICT- SARA N , (-Hll APRA, PIN CODE- 841301 ADDRESS 01'' BUSINESS - BHAGWA’r 1 MARK. ATSONARPATTI. BH AG WATT MARKET DISTRICTS.'\RAN. CHHAPR A PIN - 84 1 301

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Recovery CertifIcate for Rs 2578858.00 1 RuE>ccs Twenty Five I.akhs Scvent)Bght Thousands Eight Hundred Fift}Hght Onjy_I

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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. 2578858.00 along with cost, expenses and interest from the 01/10/2023 i.e. date of tlling / with efFective date of the OA/578/2023 and future interest from order date till the date of realisation in full. jointjy or severally from the Certificate Debtors. hereinafter referred to as:-

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	Int. IType/Xlodc	Ill t. iRate	Effective Date	Ordcr Date	Amount(Rs.)	Liability Type	asOII Irdcr	RC R FArnount(Rs.)
ALOKKUMAR	Monthly)		/I o/2023	1 17/09/2024	]2578858.oo		IS on C
,CHIDA NAN AD PRASAD RROWER)	'0 Interest :Nlonthlv )		1/10/2023	1 17/09/2024:	I2 00		ml on Order le	12578858.00
HA DEVI BORROWER/MORTGAG OR)	}mpound Interest Monthly )	Io.75	1/I1)/2023	117/09/ l024	12578858.oo	lolnt ly i ::vdu 1Ha 1 1 )1	IIntcrcst on C

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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 mortgaged or hypothecated asscts to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursllancr of the Recovery certincatc issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993

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Parties are directed to appear before ASHISH KUI\1 AR . Recovery Oftlcer. DEBTS RECOVERY TRIBUNAL PATN A on 04/11/2024.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mt)de prescribed under Sections 25 to 28 of the Recovery uf 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 Ccrti11ciltc llils been issued tlndcr nl' signatLlrc ilnd seal t)t' thc TribtlniIl c)n this 1 7/09/2024

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Gh'

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L/ PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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A' Registrar Debts Rec:very Tribunal

I r +I L 1 A +1

FORM NO. 10

san

[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), Ashiana Digha Road. Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 191/2024

Case No: OA/578/2023

Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): ALOK KUMAR

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	Item ofCosts	mount
	Feeon the application	10
7	r	Fo
i	Rvocate Fees	[0
4	3	ro
	MiscellaneousCharges	[0
	TotalCosts:Rs	128000

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Place: PAl-NA

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Date: 17/09/2024

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PRESIDINfOFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab National Bank v. Alok Kumar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Alok Kumar

Case brief

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