Allowed

Punjab National Bank v. M/S Fashion Garments

DRT26 Apr 2024TA/280/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs.30,21,456.43p with interest from defendants who failed to repay a term loan and cash credit facility. The court authorized sale of hypothecated assets and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.30,21,456.43p with interest allowed; Recovery Certificate issued; Sale of hypothecated assets and personal property directed.

Punjab National Bank versus M/S Fashion Garments — Contract and Commercial Disputes | DRT (2024)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

¶2

BEFORE: A S NARANG, PRESIDING OFFICER

¶3

TA No: 280/2023 Date of Institution: 18.05.2022 Date of Decision: 26.04.2024

¶4

Punjab National Bank, Branch Office Dalgate Srinagar, Kashmir.

¶5

……..Applicant

¶6

Vs.

¶7

M/s Fashion Garments, Nai-Sarak, Kaka Road, Habba Kadal, Srinagar, through its prop. Ms. Anjum Hamid Khan.

¶8

Ms. Anjum Hamid Khan D/o Abdul Hamid Khan, R/o NaiSarak, Kaka Road, Habba Kadal, Srinagar.

¶9

At present: Iram Lane, Natipora, Srinagar.

¶10

……….Defendants

¶11

Advocates

¶12

Ms. Suditi Suri, Counsel for the applicant bank. None for defendants.

¶13

TA for the Recovery of Rs.30,21,456.43p with interest @13% per annum with monthly rests from 18.05.2022.

¶14

ORDER

¶15

On 18.05.2022, Punjab National Bank filed the suit for the recovery of Rs.30,21,456.43p with interest against M/s Fashion Garments and another (defendants) in the Civil Court Jammu. However, vide order dated 25.11.2022, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-I, Chandigarh.

¶16

Bank’s case is that defendant No.1 is a sole proprietorship concern and defendant No.2 is its proprietress. On 10.02.2016, bank had granted a Term Loan of Rs.6.00 Lacs and Cash Credit (Hypothecation) Limit of Rs.10.00 Lacs to defendant No.1 through defendant No.2 for business purpose. To secure the loan, Defendant No.2 had hypothecated all type of machinery, stocks and book debts (fully detailed in para No.6

¶17

¶18

of the application). The loan was chargeable to interest @13% per annum with monthly rests. On 18.05.2022, a sum of Rs.30,21,456.43p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.

¶19

The, Civil Court, sent summons to the defendants by registered post, which was duly served. Defendants did not put in appearance, before Civil Court, which proceeded ex parte against the defendants. 4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Praveen Kumar Verdia, Branch Manager, along with the loan and security documents.

¶20

I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.16.00 Lacs and on 18.05.2022, a sum of Rs.30,21,456.43p was due. 6. Accordingly, the case of the bank for the recovery of Rs.30,21,456.43p (Rupees Thirty Lacs Twenty One Thousand Four Hundred Fifty Six and Paisa Forty Three Only) with interest @13% per annum with monthly rests from 18.05.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated all type of machinery, stocks and book debts fully detailed in para No.6 of the application as well as from the personal movable and immovable property(ies) of the defendants.

¶21

Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 30.05.2024, who is directed to distribute the sale proceeds of the

¶22

¶23

hypothecated all type of machinery, stocks and book debts as per the provisions of Section 19(20-AB) of the Act .

¶24

A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 26.04.2024 Presiding Officer DRT-1, Chandigarh

¶25

Pankaj

Punjab National Bank v. M/S Fashion Garments

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Fashion Garments

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Shree Ram Proteins Ltd. versus Union Bank of India

Manilal Ratanshibhai Patel versus Indian Bank

Poonam Bakery and Colding General Stores and Ors. versus Bajaj Housing Finance Ltd.

Jammu and Kashmir Bank Limited versus Nazir Ahmad Dar

Hdfc Bank versus Narendrabhai

Central Bank of India versus Smt. Seema Devi