Allowed

Punjab National Bank v. Ms Shakti Roadways

DRT24 Jul 2024OA/736/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Bank's application under Section 19 RDB Act for recovery of dues. A recovery certificate was issued against the borrowers and guarantor for joint and several payment of the principal amount with interest.

What did the court decide?

Adjudged respondents to jointly and severally pay Rs. 32,13,910.72 in cash credit and Rs. 9,05,015 in term loans with 11% simple interest and costs; issued Recovery Certificate u/s 19(2).

Punjab National Bank versus Ms Shakti Roadways — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL : JABALPUR

¶2

(for the States of Madhya Pradesh and Chhattisgarh)

¶3

cAtAP COURT AT RATPUR (C.G.)

¶4

(Presiding Officer - Hon'ble Shri Ram Niwas Patet)

¶5

Original Applicotion No. - 736123

¶6

Punjab National Bank, SASTRA Centre, Raipur (C.G.)

¶7

.... Appticant

¶8

Versus

¶9

M/s Shakti Roadways, Through its ProprietorShri Rakesh Rajaram Agrawal

¶10

1. Shri Rakesh Rajaram Agrawal, S/o Shri Rajaram Agrawal

¶11

1. Smt. Sarita Agrawat, W/o Shri Rakesh Agrawal

¶12

(Att at Bungtow No.-3, Dotphin Ptaza,

¶13

Mowa Road, Near HDF Bank, Raipur, C.G.)

¶14

..... Defendants

¶15

Counsel for the Appticant : Shri Atok Mishra, Advocate

¶16

Defendants : Ex-parte

¶17

JUDGMENT

¶18

1oate?I7+\ily,^zoze</sup>

¶19

The Appticant-Bank has fited the present Original Apptication u/s 19 of Recovery of Debts and Bankruptcy Act on^{05/06/23against the} Defendants for recovery of Rs. 41,18, 925.77^{(RupeesFourty OneLac,} Eighteen Thousand, Nine Hundred Twenty Five and^{PaisaSeventyTwo onty)} atong with interest and other retiefs as stated.

¶20

The brief facts of the case are that on the^{request of} Defendant No.-1 & 2, the Appticant^{Bank sanctioned CashCredit} (Hypothecation) Limit of Rs. 25 Lac, Covid-19 Emergency^{Credit Facitity} (CECF) by way of stand line of Term Loan of Rs. 2.50 Lac^{and Working} Capitat Term Loan^(WCTL) of^Rs. 5^{Lac. ln consideration of the sanctionof} credit facitities the Defendant No.-1 t^{Z as borrower and DefendantNo.-3as} guarantor for cash credit timit in addition to^{execution of loanand} guarantee documents, have atso created^{equitabtemortgage over the} immovabte property, i.e., Commercial^{House No.-35/884 (new2405128)'}

¶21

¶22

oA136123

¶23

Khasra No.-13315, P.H. No.-108/38,^{situated at FafadihShahid HemuKatani} Ward No.-35, Raipur, area^{measuring510 sq.ft.; betongingto Defendant} No.-2. The Defendant No.-1 & 2^{avaited the credit facititiesbut did not} adhere to financia[ disciptine.^{The accountsbecame NPA and the} Defendants faited to liquidate the^{outstanding dues despiteissuanceof Legat} Notice on 03104121 and initiation of action^{under the SecuritisationAct by} the Appticant Bank. The^{Appticant-Bank has retied upon the documents at} Ex. A-1 to A-12 which were^proved by Shri^{AjeetKumar,Asst. Generat} Manager.

¶24

Despite service of notice, the Defendants neither^{appeared nor} fited written statement. They were^{proceededex-parte vide order dated} OBl01l24. There is therefore, no^reason to^{disbetieve the contentionsof the} Bank. Considering the facts of the case, I opine that^{the Defendantsare} jointty and severatty tiabte to pay the ctaim amount together with interest and costs. Admittedty the Defendant^{No.-3 has executed guarantee to} secure the cash credit limit onty and therefore,^{her tiabitityis restricted to} the dues in cash credit account. The Appticant-Bank^{in its appticationhas} ctaimed interest @11%^p.a. with monthty rests.^{However, I feel it fair and} reasonabte to grant interest @11%^p.a. simpte^{pendentetite and future titt} reatization of the dues. The mortgaged^{property is tiabte to be sotd for} recovery of amount due atong with the^{personatproperties and assets of the} Defendants.

¶25

The Originat Apptication is attowed and it is ordered as underi) The Defendant No.-1 to 3 do pay^jointty and severatty Rs. 32,13,910.72 (Rupees Thirty Two Lac, Thirteen Thousand, Nine Hundred Ten and Paisa Seventy Two onty) due in cash credit account and the Defendant No.-1 & 2 do further pay^jointty and severatty Rs. 9,05,015^(Rupees Nine Lac, Five Thousand and Fifteen onty) due in Term Loan account of Rs. 2.50 Lac and Working Capital Term Loan account of Rs. 5 Lac. The Defendants shoutd atso pay pendentetite and future interest @11% per annum simpte from the date of fiting of the OA, i.e.,05/06123, with costs titt its reatization.

¶26

ii) The Appticant Bank is entitted to setl the mortgaged as wetl as personal properties and assets of the Defendants for reatization of its dues. The Defendants are hereby restrained by means of injunction from

¶27

¶28

oA736123

¶29

depteting, transferring, encumbering,^{atienating or in any way deating with} their properties/assets without^{first paying the ctaim of the AppticantBank.}

¶30

iii) A Recovery Certificate be^{issued u/s 19(22) of Recoveryof} Debts and Bankruptcy Act. The appticant^{bank may fite a memo of cost} within 7 days for preparing^{Recovery Certificate.}

¶31

Judgment^pronounced in the open court on this^{24th Day} of^Juty ,2024^at Camp Court Raipur.

¶32

t2 (Ram N ) Presidine Officer

Punjab National Bank v. Ms Shakti Roadways

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ms Shakti Roadways

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

Similar cases

Idbi Bank versus M/S E R Trading Company

Union Bank of India versus Nitin Jain

Bank of India versus M/S Regal Refreshments Co.

Central Bank of India versus Ashok Kumar Shukla

Idbi Bank versus Suraj Verma

Punjab National Bank versus Shri Vinod