Allowed

Punjab National Bank v. M/s Moms Food Products

DRT31 Jan 2025OA/164/2024

Case brief

AI extract

What is this about?

In an order passed ex-parte, the Tribunal allowed the bank's application under Section 19 of the RDB Act to recover Rs. 20.83 lakh, finding the defendants failed to appear and dispute the loan account despite service of notices. A Recovery Certificate was issued.

What did the court decide?

Allowed the application and passed a Recovery Certificate directing recovery of Rs. 20,83,300.59 with interest at 10% p.a. and costs from the defendants.

Punjab National Bank versus M/s Moms Food Products — Banking and Recovery | DRT (2025)

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OA 164 of 20241.11

¶2

DRT,PATNA

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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. 164 of 2024

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Punjab National Bank, branch office at Rajendra Chowk, Hajipur

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....... Applicant

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Vs.

¶10

I. MIs Moms Food Products, through its proprietor Smt. Manju Devi. At Imadpur Sultan, Hiialpur Chowk, Industrial Area Hajipur, P.O.Industrial Area Hajipur, District- Vaishali- 844502

¶11

Smt. Manju Devi, Wlo Sri Manoj Ray, At- Hilalpur Ward No.2. P.O.Halalpur Madarpur, District- Vaishali- 844502

¶12

....... Defendants

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Present:

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For the Applicant Shri Hemant Kr. Karn. Advocate For the Defendants None

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Dated:31.0J.2025

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JUDGMENT

¶17

I. 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 06.03.2024 against the defendants to recover its debts from defendants of Rs.20.83,300.59 as on 29.02.2024 along with pendente-lite and future interest at the contractual rate from 01.03.2024 with costs till realization.

¶18

The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to file the suit through various branches including the applicant.

¶19

Defendant no.l is a proprietorship firm engaged in manufacturing of Potato chips, namkin etc., of which defendant no.2 is proprietor. Defendants approached the bank i.e. erstwhile Oriental Bank of Commerce for sanction of Cash Credit limit of Rs.9 Lakh and Term Loan of Rs.4 Lakh, which were sanctioned by the bank on 24.09.2019 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security

¶20

¶21

P;esiJir.g Ojficpr Debts :-'c~::rvor:tTrib1ll" PATI~A

OA 164 of20241JI

DRT. PATNA

documents and also hypothecated the movables/stocks in favour of the applicant bank.

¶26

Defendants again approached the applicant bank for extension of relief announced by the RBI and the Government of India vide loan application dated 3I.08.2020 for availing facility under GECL scheme and after due consideration. the applicant bank sanctioned Working capital term loan of Rs.2.52 Lakh on 01.09.2020.

¶27

Defendant no.2 made an application on 13.04.2021 for renewal of credit facility ofRs.9 Lakh which was sanctioned/renewal the same on 13.04.2021 by the applicant bank.

¶28

After availing the sanctioned credit facilities. the 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 06.06.2021.

¶29

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 tiled by the bank.

¶30

The total liability in the loan account is Rs.20,83,300.59 as on 29.02.2024 with pendente-lite and future interest contractual rate from 01.03.2024 till the realization.

¶31

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 09.04.2024. 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 26.05.2024 in "Prabhat Khabar" newspaper.

¶32

Prl!sUin~ Off/cpr Oebtl Rec'J',"3ry Tnlje",I> fATNA

.,,

OA 164 of20241JI

DRT. PATNA

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 22.07.2024.

¶37

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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SI.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
1	Authorization letter and general power of attorney	13.06.2023 19.12.2020	--	Bank		1
") ~	Sanction letter	24.09.2019	9.00CC 4.00 TL	Bank accepted defendants	and by	2
, .)	Loan application	-- .- - 31.08.2020	2.52	Defendants		, .)
4	Undertaking	31.08.2020	9.00 4.00	Defendants		4
5	Sanction letter	01.09.2020	2.52	Bank accepted defendants	and by	5 --
6	Agreement for WCTL	01.09.2020	2.52	Defendants	.	6
7	Master aureement	01.09.2020	2.52	Defendants		7
8	DPNote	01.09.2020	2.52	Defendants		8
9	Provisional acknowledgement & Loan application	13.04.2021	9.00	Defendants		9 - --
10	Sanction_I_renewal	13.04.2021	9.00	Bank accepted defendants	and by	10
11	Hypothecation agreement	13.04.2021	13.00	Defendants		11
12	Format of Authorization	13.04.2021	--	Defendants .		12
13	Notice of Lok Adalat	--	--	--		13
14	Notice of Lok Adalat	--	--	--		14
15	Statement of accounts with interest chart	--	--	Bank --~.-	--.-.-'.	15

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,,..! c·.~ effie"

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De^...'.." iJirJ _.-".-^{....~ :~~....} .,^ri •^7:,;J~"'& FAUU"

OA 164 ofl0241JI

DRT. PATNA

Heard arguments and perused the case record.

¶45

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 Reserve Bank ofTndia.

¶46

It is further submitted by ld. 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.

¶47

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. 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.

¶48

On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 06.06.2021. whereas the present application has been tiled on 06.03.2024 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 oflimitation.

¶49

Shri Ajeet Kumar, Dy. Manager of the applicant bank has tiled 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.

¶50

~ Pres':!i.~r:O.ff1a, Debts Recovory Tribua_~ fAtN"

¶51

OA 164 of 20241JI

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DRT, PATNA

¶53

Section 19(3) of the Recovery of Debts and Bankruptcy Act. 1993 provides that the application uJs S,19 (I) shall be accompanied with true copies of all the documents relied on in support of the claim.

¶54

The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993,providesthat if the defendantdenies his liabilityto pay the claimmade by the applicant,the tribunalmay act upon the affidavitof the applicantwho is acquaintedwith the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of the applicationand the documentsas evidence.

¶55

The rule 12 (11) of the aforesaid Rules, provides that the provisionscontainedin section4 of the Banker'sBooksevidence that Act: 1891(18 of 1891)shall applyto a certifiedcopy of an entry in a Banker's Booksfurnishedalongwith applicationfiled undersubsectionI of section19bythe applicant.

¶56

Section 4 of Banker's Books evidence Act, 1891 runs as under- S,4. Mode of proof of entries in bankers' boob.-Suhject to the provisions ofthis Act. a certified copy of any entry in a hanker's hook shall in all legal proceedings he received as primafacie evidence of the existence of such entry. and shall he admitted as evidence of the matters. transactions and accounts therein recorded in every case where. and to the same extent as. the original entry itself is now by law admissible. but notfurther or otherwise.

¶57

As such the certitied 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.

¶58

On perusal of the application, documents, atlidavit 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.

¶59

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 29.02.2024 has been proved to be Rs.20,83,300.59 only by way of statement of accounts.

¶60

Prl!sidir.;: Offic» Debta Recovery T', " ..) .- "w .. PATB4

OA 164of20241JI

DRT,PATNA

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.

¶65

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.20,83,300.59 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 06.03.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

¶66

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.20,83,300.59 along with pendente-lite and future interest (a) 10% p.a. with compounded monthly rests from 06.03.2024 (The date of tiling of this OA) till realization of the entire sum due and recoverable with costs.

¶68

It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

¶69

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 mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the tinal 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.

¶70

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

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PI' n! tIi:: '! 0ffi c" Debts Recovery TribWlal PATJiA

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OA 164 of20241JI

ORT.PATNA

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.

¶77

Parties are directed to appear before the Recovery Officer. DRT. Patna on 11.03.2025.The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 31st day of January, 2025.

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Dictated &corrected by me.

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W0/

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[KaushalendraYadav] Presiding Officer

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Debts RecovI!'TfJ~~IJV1 Debts Recovery Tribunal PATNA

¶83

FORMNQ.9 [See Regulation 24(1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. B & F Wing) Kerpuri Thakur Sedan. Keudriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-80002S.

¶86

IlECQ.YERY CERTIFICATE l1NDER SECTION 19(1) READ WITH SECTION 191m OF THE RECOVERY OF DEBTS & BANKRI!PTCYACT,..l22l. AS AMENDED FROM TIME TO TIME.

RC No. 35/2025

Case No: OAll64/2024

In the Matter of: (CH· I) PUNJAB NATIONAL BANK BRANCH OFFICE AT RAJENDRA CHOWK. HAJIPUR

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Applicant(s)

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VAISHALI .BIHAR .()

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------ Versus -------

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To, (CD· I) MIS MOMS FOOD PRODUCTS through its Proprietor smt. Manju Devi, At lmadpur Sultan, Hilalpur Chowk. Industrial Area Hajipur, Vaishali ,BIHAR -844502

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Defendant(s)

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(CD.2) SMT. MANJU DEVI WIO· SRI MANO} RAY.AT·HILALPUR WARD NO·2, P.O., HALALPUR MADARI'UR DISTRICT· VAISHALI • 844502.

¶97

Recov~y Certificate for Rs 2083300.59 [__Rupees Twenty. I,akhs Eighty.Three Thousands Three Hundred And Pal" FiftY.

¶98

~y_1

¶99

In terms of final order dated 3110112025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a Slim ofRs. 2083300.59 along with cost, expenses and interest from the 06/OJ/2ilc4 i.e. date of filing I with effective date of the OAlI64/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to 3S:-

¶100

I ,IS,.n !,! I,...... ! '!I , ,I I......... '''	r:- j • o; CD NamelT ...~·. :'M/S MOMS FOOD :PRODUCTS J	I : Loan: ype, ,I ⁱ	1 Inl TypelMOde [Compocud Interest (Monthly)	lot. Rate' 1 10	Effective Dale ! 106/03/2024,	Order Date 311011202	II !Amount(Rs.) , 51120"3300.59	Liability Type Jointly ^And ISeverally	Interest (as on Order Date) Interest As on ^Order Date	RC 'Amount(Rs.) 2083300.59	Remarkl : !
- i :12 " ,I 'I	1 . ·SMT. ,MANJU ,DEVI ,		[Compound nterest Monthly)	~I 10	,.. 1061031202	:. '5 4131101120	1, 25; 2083300.59	, ointly And ,Severally _....	~~st on Order Date	2083300.59	j

¶101

In case 'of failure to pay Ihe 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.

¶102

The rnortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. Parties are directed to appear before MANOJ KUMAR. Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 11/03/2025

¶103

The Recovery Ofticer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors.

¶104

This Certificate has been issued under my signature and seal of the Tribunal on this 01/0212025 V

¶105

PRESIDING OFFICER DEBTS RECOVERYT~[IlUNA~~r T" .

¶106

-,1'

¶107

FORM NO. 10

¶108

[See Regulation 24(2)]

¶109

DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. B & I: Wing) Karpuri Thakur Sadan, KenclriyaKararnchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

¶110

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

¶111

RC No. 35/2025

¶112

¶113

Case No: OA/164/2024

¶114

Applicant(s): PUNJAB NATIONAL BANK Versus

¶115

Defendant(s): MIS MOMS FOOD PRODUCTS

¶116

Sr. No.	tern of Costs	AmountinRs.
I.	Fee on the application	23000
'1[:-2='.=--·===	==4FP=T<:,,,",_c=.e=s~~. F_ee~(lnc.~ublication)	o
3.	Advocate Fees	o
14:.	!CommissionerlReceiver/Valuation/SecurityFee	0
-!	TO!al Costs=:=R=s=. ===========_=~2=3=00_O	...II

¶117

Place: PATNA

¶118

PRESID~CER Date: 01/02/2025 DEBTS RECOVERYTRIBUNAL PATNA

¶119

Note: Strike out whichever is not applicable

Punjab National Bank v. M/s Moms Food Products

Case brief

What is this about?

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Punjab National Bank v. M/s Moms Food Products

Case brief

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