Allowed

Punjab National Bank v. Messers Top Brick Industry

DRT18 Apr 2024OA/84/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Applicant Bank's application for a Recovery Certificate of Rs. 22,16,114.00. The Tribunal held that the defendants were jointly and severally liable, the mortgage was within the limitation period, and the charge on mortgaged properties should remain alive until full realization.

What did the court decide?

Issuance of Recovery Certificate for Rs. 22,16,114.00 with interest and costs against respondents jointly and severally liable; charge kept alive on mortgaged property.

Punjab National Bank versus Messers Top Brick Industry — Execution and Attachment | DRT (2024)

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OA 842023/ORr4uwahati

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal ofAssam, Nagaland, Meghalaya, Manipur, Mizoram, Arunachal Pradesh & Tripuaa)

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Before Shri Shiv Sharan Oubev. Pre3idino Officor

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O.A. No. 84/2023

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ln the matter of -

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PUNJAB NATIONAL BANK^(Erstwhile Unit€d Bank of lndia)

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Moirabari Branch,

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Moirabari in the District of Morigaon,^{Assam-782126.}

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Applicant

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Va.

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I. i,I'S TOP BRICK^INDUSTRY

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A Partnership firm represented^{by its Proprietor}

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Md. Aminul Hoque,^{Village- Panbari, P.O.- Salkati, P.S. Dhing,}

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ln the District of^{Nagaon, Assam-782123.}

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][R AMINUL HOQUE

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Son of Late Nur^Mohammad,

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Resident of Village-^{Panbari, P.O - Salkati,P'S Dhing,} ln the District ot^{Nagaon,Assam-782123'}

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MR REAZUDDIN^AHIIiED

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son of Haji Md.^{Suraj Ali,}

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Resident of Bhulaguri'^Moirabari,

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ln the District^{of Morigaon,Assam-782126'}

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Oelendants

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Prosonce ot^{tho Counsel:}

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For the Applicant : Mr' Shoubhik^{Chanda'Advocate} For the Detendants : None^(Ex-parte)

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Dated :18'041202i1

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JUDGiiENT

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This is an^{applicationunder section 19 of the Recoveryof OBbts Due to Banks} and Financial^{lnstitutionsAct,1993 filed by the PUNJABNATIONAL BANK' (Erstwhile} United Bank^{of lndia),Moirabari Branch, Moirabariin the Districtof Morigaon' Assam-} 782126,^{with a prayer to issueRecoveryCertilicate for thesum of R3'22'16'1'14'00} (Rupe8 fwenty'Two^{Lakh3 SixtgonThousand ons Hundred Fourtaen)onlyas} on 31.0'1.2023^{against the defendantswith pendenteliteand future interest at the} contractual^{rates with monthlyreststill realization along with cost and other relief}

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sl.!l^{d.o/a""Ail'-+} (t(a4J)q U Pr6alding Offcer^' DRT. Guwahali

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OA. 8/U2O2rDRT€uY.hali

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A few facts giving rise to the present application are as under.

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The Defendant No.1 is a Proprietorship Firm and the Defendant No.2 is the Proprietor as well as Mortgagor. The Defendant No.3 is the Guarantor for repayment of the credit facility availed by the Defendant No.'l Firm.

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The Defendant No.2 as Proprietor of Oefendani No.'l Firm had approached before lho Applicant Bank and requasted for financial assistance for its business by submitting an Application for Loan dated nil and after considering the said Application, tha Applicant Bank vide Sanction Letter dated^{26.08.2016had} sanctioned an Ovetdraft Limii of Rs.17,00,000/-^{in lhe name of Oefendant No 1,} with rate of interest @11.60%^{(MCLR-Y +} 2.15o/ol^{per annumwith monthlyrest} subject to changes as^{per Bank's decision.The credit facility was repayableon} demand. The Defendant No.2 as^{Proprietorof Oefendant No.1 Firm had signedon} the said Sanction Lettar thersby accepting^{all lhe terms and conditionscontained} therein.

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ln consideration of the^{aforesaid OverdraftLimit of Rs.17,00,000/-'the} Defendant No.2 as Proprietor of the^{Defendant No.1 Firm, duly executedan} Agreement under Mortgage^{Loan Scheme, DemandPromissory note and a Letter} of Continuity all dated^{26.08.2016in termsof the sanction, lnter-alia givingdue} etfact to the terms^{and conditionof sanction, promising to repay the loan and to} secure the dues^{of APplicant Bank}

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The Dafendant^{No.3 by 6xecutinga Letter ot Guarantee dated26 08 2016} stood as^{personalguarantor for repaymentof the credit facility availed by the} defendant No.1.

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Furthsr the aforesaid^{Credit Facilityof Rs 17,00,000/-was secured with the} creation of equitable^{mortgageby the Defendant No 2 over the Land measuring 4} (Four) Katha 10^{(Ten) Lecha covered by DagNo 3O4(Old)/641(Naw)of K P'} Patta No.21 of^{Revenue village Panbari Satra under Mouza Dhingin ihe District of}

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d;uddw+,k'b-+ i,"",'di^s onJF loa140 DRT, Guwahati

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O.A. 8a/2023t/DRT-Ga.h.ti

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Nagaon, Assam, by deposit of Title Deeds. Accordingly, the Oefendant No.2 had deposted the Title Deeds for creation of equitable mortgage of his immovable property in favor of the Applicant Bank and confirmed the creation of mortgage by signing a letier dated 22.08.2016.

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After availing the credit facility, the Defendants^{failed and neglectedto repay} the loan amount, as such the^{Loan account becameNPAon 31.03.2021 as perthe} guidelines of Reserve Bank of lndia. Tharefore, the^{ApplicantBankon 21.O4-2O21} issued Loan Recall Notices^{and thereby calledupon the Defendantsto discharge} their liabilities in full^{within 30 days from the date of this failing which the Applicant} Bank shall be constrained to^{take Legalaction: But the Defendantsfailedto} discharge their liabilities^{within the stipulated period of time.}

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The defendants had availed the^{said credit facilityfromthe applicant bankbut} have not^paid the outstanding^{loan amount as per termsand conditionsas} agreed upon with lhe^{aPPlicantbank,in spiteof repeated demandsand requestby the} applicant bank.^{As the defendantsfailed to repaythe loan amount,the saidloan} account became^{NPA on 31.03.2021. Aftertheaccount became NPA the applicant} bank issued notices^{for repaymentof the due amount,but thedefendants failed to} repay the loan amount.

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The applicant bank thus^{becanEconstrained to lile the presentOriginal} Application for he^recove ry^{of Rs. 22igi11.o0(Rup.€sTwenty-TwoLakh3Sixteen} Thousand One^{Hundr.d Fourtssn)only as on 31.012023alongwith interestand} cost of lh€ application.

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After filing oI lhe^{OA the Tlibunalissued notices upon the defendsntsthrough} registered^{post and the applicant bank filed service reporton 17 05 2023 and brought} on record^{the postal receipts along with track consignment repott which shows that} notices have not been^{seNedupon the defendanlsThereaflerthe Tribunalordered} paper publica$on of notice upon the^{defendants and the applicant bank issued notice} tothedefsndantson09.06.2023throughPaperPublicationintwonewspapersnamely "The Times of ldh" aN^{'DainikAsom" Even after issuanceof notice through papeJ}

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^^t 'x*?ffi"w DRT. Guwehati

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O A. a4,2O2rDRT-Guwahatr

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publication also there was no repres€ntation on behalf of the defendants either by the counsel or the^person and hence the defendants were set ex-parte on 29-09-2023 and their right to file written statement cum evidence on affidavit was closed and the matter was listed for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Sri Bibeka Nand Jha, Chief Manager of the Applicant Bank has fled evidence on affidavit coupled with the security documents marked as Exhibit 1 to 16 supporting the claim of the applicant bank.

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Heard the learned counsel for the applicant bank who^prayed for issuance of Recovery Certificate against the defendants as^{per pleadings} madeⁱⁿ the^Application, supported by evid€nce on affidavit of their witness^{who affirmed on oath lhe execution} of the security and ofier documents by the defendants^{and also execution of their own} documents relied upon, which have been^{marked exhibits.}

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Considering the facts and circumstances of^{the case, I am of the considered} vi6w that the document filed by^{the applicantbank are supporting the claim of} the applicant bank and establishing^{the liability of the defendants.lt is proved that the} defendants are iointly^{and severally liable to pay to the applicant bank the claim} made in the Original Application.^{The loans were obtained and documenlshave been} executed on 26.08.2016.^{Moreover, afier perusing the documenE on record and taking} into mnsideration of the fac{s and circumstances^{of the case,I tind thatthe mortgage has} beencreatedbythedefendantNo'2wlrerethelimitiationavailableisfor12yearsandas such taking^{intoaccount d lhe cEationof the mortgage the applicationappearsto have} been filod t €ll^{within the periodof limitiation.The accountsbecame NPA on 31 03'2021} andtheOAhasbeenlibdonO2.O3.2O23Hence,theOAisfiledwellwithintheperiod of limitation and^{this Tlibunalhavinga jurisdiction to adiudicatethe Original} Application.

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Considering ihe unchallenged/unrebutted^{version of Sri Bibeka Nand Jha' the} applicant's witness^{and allthedocuments marked as exhibits, including duly certified} copy of the^{stiatementof account along with interest calculation sheet maintained by}

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S;M de,,a,^E"b* e,.',a|ns onel^E [o4^(2rl DRT. Guwahst^w

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O.A. 6/!2023/DRT-Guwantti

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the applicant Bank in it's regular course^{of business,I hold that the applicantis} entitled to^get the Recovery Certificate^{as prayed for.}

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ln the rasult, the^present Original^{ApplicationNo84 of 2023 is allowed with} cost as under: -

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(i) The defendants No. 1, 2 & 3^{are jointly and severally liableto pay to the} applicant bank a sum of^{R3. 22,16,114.00(Rupo$ Twenty-TwoLakhg} Sixtaon Thousand Ono^{Hundrsd Foude3n) only with pendenteliteand} future interest @11.600/o^{p.a. with monthly rests from 01.02.2023till the date} of full^{paymenurealization and also cost of the application}

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(ii) The charge of the certilicated amount be^{kept alive on hypothecated} properties as described in SchedulaA of^{the OAtill the amount is realized in} full.

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(iii) The charge of the certmcated^{amountbe kept aliveon mortgaged propertyi e'} All that^piece and^{parcelof all that part and parcel of land measuring4(fou0} katha^'to(ten) lecha covered^{by Dag No 304 (old)/641 (new)of K P Patta No'} 21 of Revenue^{VillagePanbariSatra under Mouza Dhingin the Districtof} Nagaon, Assam,^{standingin the name of defendant No 2 which is bounded by} North: Moiibur^{Rahman; South: Vendors own land; East: Nur Mohammad:} West: Mojibur^{Rahman, as described in Schedule-B of the OAtill lhe amount} is realized^{in full.}

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(iv) The applicant bank^{is entitledto proceed against the secured items towards} recovery of the^debts.

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(v) The applicant bank^{is also entitledto proceed againstthe personal assets and} properties of the defendants^{towards recoveryof the dues'}

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(vi) The applicant^{bankis entitledto the costs of the O'A which includes the}

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advocate^{fe€sof the applicantbank Applicant is directedto file the cost memo} within 2 weeks^{from today'}

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(vii) lssue^{Recovery Certificate accordingly for a sum Rs' 22'16'114'00(Rupees} Twsnty-Two^{[.khsSlxben Thousand OneHundBd Fourteen)only in} favour of^{the applicant bank against the defendantsNo 1' 2 & 3}

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mtrW

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O-A. 8/r2023/DRT€ur.h.ti

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(viii) Communicate copy of this order to the concemed^parties.

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This order is dic-tated and conected by the undsrsigned.

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Judgment dat8d 18u April 2024, signed and^{pronouncedin the Tribunaltoday}

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under my signature.

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Copy of the JudgmenuFinal order be uploaded^{in the Tribunal's Websiteand}

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file be consigned to Roco]d Room.

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<Li, d-u",A^L,-,trlo+l⁽ (Shiv Sharan DUbeY) Presiding Officer DRT, Guwahati.

Punjab National Bank v. Messers Top Brick Industry

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messers Top Brick Industry

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

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