Allowed

Punjab National Bank v. Manoj Kumar Mandal

DRT6 Jul 2024TA/771/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues. The court directed defendants to pay the outstanding amount with interest and costs, or have it recovered via sale of hypothecated and mortgaged properties.

What did the court decide?

Directed defendants to pay Rs.2,15,77,398.05 with interest @12.40% per annum and costs within 30 days; in default, recover via sale of hypothecated and mortgaged properties.

Punjab National Bank versus Manoj Kumar Mandal — Contract and Commercial Disputes | DRT (2024)

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T.A. No.771 of 2022

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No. 771 of 2022

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Punjab National Bank Circle Sastra Centre East Delhi, CSC Pocket E Mayur Vihar Phase II, Delhi-110091

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Applicant

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Versus

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Manoj Kumar Mandal

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Proprietor of Sankalp Worldwide Tradelink 70 B/2, Rama Road Industrial Area Moti Nagar, New Delhi-110015

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Also at:

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Manoj Kumar Mandal 32/1, First Floor, Pocket D-6 Sector 6, Rohini, Delhi-85

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Also at:

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Manoj Kumar Mandal 805, 8th Floor, Pearls Omaxe Netaji Subhash Place Pitampura, Delhi-110034

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Also at:

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Manoj Kumar Mandal Village Bayen, Tehsil Gannaur Dist. Sonepat, Haryana-131101

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Mrs.Savita Gupta w/o Vipin Kumar Gupta Plot No.403, Virat Co-operative GHS Paschim Vihar, West Delhi-110087

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Sh.Vipin Kumar Gupta s/o Jai Kishan Gupta Plot No.403, Virat Co-operative GHS Paschim Vihar, West Delhi-110087

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T.A. No.771 of 2022

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V.K.Gupta Trade LLP B-5, Basement, Shankar Garden Vikas Puri, New Delhi-110018

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Sarvram Enterprises LLP B-5, Basement, Shankar Garden Vikas Puri, New Delhi-110018 Defendants

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Present: Sh.Ajay Shanker, Counsel for the applicant bank.

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Date of Institution: 17.12.2020

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Date of Pronouncement: 06.07.2024

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FINAL ORDER

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This original application has been filed by the applicant bank on 17.12.2020 before DRT-III, Delhi & then transferred to DRT-I, Delhi through Shri Akhouri Binay, authorized representatives of the applicant banks under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.2,15,77,398.05 (Rupees Two Crore Fifteen Lacs Seventy Seven Thousand Three Hundred Ninety Eight & paisa Five only) as on 05.12.2020 ©12.40% rate of interest from 05.12.2020 till the date of realization and costs.

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The brief facts of the case are the on the request of defendant no.1 as proprietor of Sankalp Worldlink Tradelink, the applicant bank sanctioned Cash Credit (Hypothecation) facility of Rs.325.00 lacs on 16.09.2015 against hypothecation of stock, moveable assets forming part of fixed & current assets and book debts @12.25% per annum with monthly rest for trading in fabric business. That defendant no.2 and 3

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T.A. No.771 of 2022

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stood as guarantors and defendant no.4 and 5 as guarantors and mortgagors to secure the credit facilities availed by defendant no.1 with the applicant bank. The applicant bank renewed the credit facility on 31.03.2017, failed to submit stock statement since September 2017 and it was observed that defendant no.1 was also maintaining account with other bank, hence limit was reduced to Rs.165.00 lacs and account was lastly reviewed on 31.03.2019.

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In order to avail the loan facility, the defendant no.1 executed Sanction letter along with schedule terms and conditions, Hypothecation of goods and book debts, Hypothecation of moveable assets forming part of fixed/block assets, Agreement for hypothecation of current assets and Undertaking dated 17.09.2015. Further, the defendant no.2 to 5 executed Agreement of Guarantee on 17.09.2015 and defendant no.4 & 5 passed Board Resolutions being LLPs to execute mortgage and agreement of guarantee with applicant bank to secure the credit facility availed by defendant no.1.

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In order to secure the credit facility, the defendant no.4 and 5 created mortgage of properties by deposit of title deeds of their respective property on 17.09.2015 with applicant bank as per below:

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Date of mortgage	Owned by	Property detail
17.09.2015	V.K.Gupta Trade LLP — Defendant no.4�	516, 5thFloor, B-XVII-478/2 — �a/5f/513, Taraf Barura, G.T.Road, Kundan Nagar, Near Bus Stand, Ludhiana, measuring 2828 sq.ft.
17.09.2015	Sarvram Enterprises LLP - Defendant no.5�	517, 5thFloor, B-XVII-478/2 - �a/5f/513, Taraf Barura, G.T.Road, Kundan Nagar, Near Bus Stand, Ludhiana, measuring 2828 sq.ft.

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T.A. No.771 of 2022

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendants have failed to maintain financial discipline and not deposited the interest overdue with the applicant bank. The applicant bank issued letter dated 04.10.2019 to the defendants for regularization of the account but no response. Ultimately, the applicant bank declared the account as NPA on 01.09.2019 as per applicable laws and regulations and hence the applicant bank has approached this Tribunal for recovery of their dues. The applicant bank invoked the guarantees executed by defendant no.2 to 5 vide notice dated 4.10.2019.

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Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 04.10.2019 along with letter of invocation of guarantee was issued to the defendants to liquidate the outstanding within 60 days but defendants neglected to clear the liability in the loan.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 07.06.2022, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Akhouri Binay, authorized representative of the applicant bank who has proved the documents such as General Power of Attorney Ex.AW1/1(0SR), Sanction Letter Ex.AW1/2, Hypothecation of

T.A. No.771 of 2022

Goods & Book Debts to Secure Cash Credit Facility Ex.AW1/3, Hypothecation of Moveable Assets forming part of Fixed Asset Ex.AW1/4, Agreement of Hypothecation of Current Assets Ex.AW1/5, Undertaking Form Cash Credit Borrowers Ex.AW1/6, Agreement of Guarantee Ex.AW1/5 to 8, Board Resolution Ex.AW1/9 & 10, Notice under Section 13(2) Ex.AW1/11 & 12, Certified Statement of Account as per Bankers Book of Evidence Act Ex.AW1/13.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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(I) I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.2,15,77,398.05 (Rupees Two Crore Fifteen Lacs Seventy Seven Thousand Three Hundred Ninety Eight & paisa Five only) as on 05.12.2020 together with pendentelite and future interest @12.40% per annum from 05.12.2020 till the date of realization and costs; failing which the aforesaid

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T.A. No.771 of 2022

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amount shall be recovered from the sale of hypothecated stock, book debts & current assets etc. and through sale of following mortgaged properties:

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516, 5 th Floor, B-XVII-478/2 — a/5f/513, Taraf Barura, G.T.Road, Kundan Nagar, Near Bus Stand, Ludhiana, measuring 2828 sq.ft. owned by defendant no.4;

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517, 5 th Floor, B-XVII-478/2 — a/5f/513, Taraf Barura, G.T.Road, Kundan Nagar, Near Bus Stand, Ludhiana, measuring 2828 sq.ft. owned by defendant no.5.

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In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 04.09.2024.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND I SHARMA) P;ES] ----- C1 ---MNG OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 06.07.2024

Punjab National Bank v. Manoj Kumar Mandal

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Manoj Kumar Mandal

Case brief

What is this about?

What did the court decide?

What the court decided

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