Allowed

Punjab National Bank v. M/s Gayatri Steel Furniture Udyog

DRT29 Jan 2025OA/209/2024

Case brief

AI extract

What is this about?

In an ex-parte application under Section 19 of the RDB Act, the Debts Recovery Tribunal, Patna allowed the bank's claim to recover debts of Rs. 29,42,877 along with interest, noting that defendants failed to appear.

What did the court decide?

Recovery of Rs. 29,42,877 with interest from RI/0/0/2/024 till realization; attachment of mortgaged assets; issuance of recovery certificate.

Punjab National Bank versus M/s Gayatri Steel Furniture Udyog — Cheque Dishonour | DRT (2025)

OA 209 of2024 IJI

DRT,PATNA

Debts Recovery Tribunal, Patna KarpuriTbakurSadan,AasbianaDigbaRoad Patoa-800025

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Presiding Officer : Shri Kausbalendra Yadav OA Case No, 209 of 2024

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Punjab National Bank, Dumri Manjhi Branch, Saran

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....... Applicant

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I. Mis Gayatri Steel Furniture Udyog through its proprietor Nilam Kumari, Wlo Sri Chandra Pratap Singh, having registered office/shop at village/Mohalla- lnayatpur Tola Pilue, P.S.+ Post- Daudpur. Manjhi. District- Saran, Chhapra- 841205

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Nilam Kumari, Wlo Sri Chandra Pratap Singh. resident of village/Mohalla- lnayatpur Tola Pilue, P.S.+ Post- Daudpur. Manjhi, District- Saran, Chhapra- 841205, PAN No.BVBPK5949K

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Present:

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For the Applicant Shri Anuj Kumar, Advocate For the Defendants None

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Dated:29,01.2025

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JUDGMENT

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I. The Applicant bank has made this application uls 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 10.04.2024 against the defendants to recover its debts from defendants of Rs.29,42,877/- as on 31.03.2024 along with pendente-lite and future interest at the contractual rate from 01.04.2024 with costs till realization.

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

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Defendants approached the applicant bank for sanction oftcrm loan and cash credit facility vide loan application dated 21.03.2016 and after due consideration, the applicant bank has sanctioned Term Loan of Rs.9,58,550/and Cash Credit facility of Rs.14,16,4501- fur the business of Steel Furniture Udyog on 21.03.2016 on various terms and conditions. as stipulated in the

DRT,PATNA

OA 209 ofl024 I.I!

sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and also created mortgage in favour of the applicant bank, details of which are given in OA. The defendants have also executed balance and security confirmation letter on 03.03.2022.

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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 19.04.2018.

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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.

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The total liability in the loan account is Rs.29,42,877/- as on 31.03.2024 with pendente-lite and future interest contractual rate from 01.04.2024 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 14.05.2024, 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, vide order dated 12.07.2024, the Registry of this Tribunal has ordered to publish the notice in newspaper.

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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, hut they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 11.09.2024.

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To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also

DRT,PATNA

OA 209 ofl0241JI

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 of Executants	Ex.! Ann. No. -
I	Power of attorney	22.06.2022	--	Bank	I
2	Loan application	21.03.2016	14.16 CC 9.59 TL	Defendants	2
, .)	Sanction letter	21.03.2016	Rs.l4,16,450/- Rs.9,58,550/-	Bank and accepted by defendants	^, ., --
4	Hypothecation agreement	21.03.2016	Rs.14,16,450/-	Defendants	4
5	Loan agreement	21.03.2016	Rs. 14,1_6,450/-_ Rs.9,58,550/-	Defendants	5
6	Photocopy of sale deed	07.10.2015	--	--	6
7	Notices	29.11.2018 27.07.2019 09.10.2019 06.09.2021 & 07.09.2021	--	Bank's adv.	7
8	Statement of accounts	--	--	Bank	8
9	Certificate	--	--	Bank	9
10	Balance and security confirmation letter	03.03.2022	--	Defendants	10

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Heard arguments and perused the case record.

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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 of India.

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It is further submitted by Id. 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.

OA 209of20241JI

DRT,PATNA

II. 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.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 19.04.2018, whereas the present application has been tiled on 10.04.2024. 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 of limitation.

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

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

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

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The rule 12 (II) 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 Books furnishedalongwith applicationtiled undersubsectionI of section19bythe applicant. Section 4 of Banker's Books evidence Act, 1891 runs as under- S,4, Mode of proof of entries in bankers' books,-Subjecl 10 the provisions ofthis Act, a certifiedcopy a/any entry in a banker's hook shall in all legalproceedingshe receivedasprimafacie evidenceol the existence of such entry, and shall he admitted as evidence ol the matters, transactions and ac~ therein recorded ill e'e~v case

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DRT,PATNA

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OA 209 of 2024 1.11

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where. and to the same extent as. the original entry itself is now hv law admissible, hut notfurther or otherwise.

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As such the certified 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,

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On perusal of the application, documents, affidavit 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.

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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 31.03.2024 has been proved to be Rs.29,42,877/- only by way of statement of accounts. 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,

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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.29,42,877/- along with pendente-lite and future interest @ 11.85% p.a. with compounded monthly rests from 10.04.2024 (The date of tiling of this OA) till realization. So the final order may be passed accordingly. to meet the ends of justice.

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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.29,42,877/- along with pendente-lite and future interest @ 11.85% p.a. with 0\

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•

OA 209of20241JI

DRT,PATNA

compounded monthly rests from 10.04.2024 (The date offiling of this OA) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendants, be deducted in the claim amount, ifnot deducted.

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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 final 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.

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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 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.

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Parties are directed to appear before the Recovery Officer, DRT. Patna on 10.03.2025. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 29th day of January, 2025.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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mRMNO,9 [See Regulation. 24( I )1

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor.(A. B & F Wing) Karpuri Thakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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RECOVERY CERTIFICATE IJNDER St:CTION 19(7) READ WITH SECTION 19(22) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT,.l22J, AS AMENDED FROM TIME m TIME,

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RC No. 28/2025 IN

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Case No: OAl209/2024

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In the Matter of: (CH-l) Pj]NJAB NATIONAL BANK DUMRI MANJHI BRANCH, SARAN ,BIHAR.O

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Applicant(s)

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-""- Versus -------

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To, (CD- I) MIS GAYATRISTEEL FURNITURE UDYOG Through its Proprietor Nilam Kumari W 10 - Sri Chandra Pratap Singh. having registered office/shop at villege/Mohalla- I.nayatpurTola Pilue, P.S. and Post, Daudpur, Manjhi. Saran ,BIHAR -841205

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Defendant(s)

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(CD· 2) NILAM KUMARI (BORROWER) W/O- SRI CHANDRA PRATAPSINGH, RESIDENT OF VILLAGEIMOHALLAINAYATPURTOLA PILUE, P.S. + POSTDAUDPUR, MANJHI, DISTRICT- SARAN CHHAPRA· 841205.:

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~ Certificate for as . 2942877 00 l....Ru.peesTwentY. Nine Laklw Forty Two Thousand. Eight Hupdred Seyepty..&ml

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2!!ly_1

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In terms of final order dated 29/0112025 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2942877.00 along with cost, expenses and interest from the 10/04/2024 i.e, date of filing 1 with effective date of the ON20912024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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~sr.n :1 H 'I j i _	ol CD Name jMISGAYATRI 'STEEL ~."FURNITURE JUDYOG	Loan Type.	Int. Typt'/Mode 'Compound Interest (Monthly)	! Int.' Rate 11.85	Effective Date I_O/04i2024j _	Order Date 29/01 12025	I ~AmouDt(Rt . ;2942877.00	.)Liability Type Jointly And Severally	Interest <ason Order I Date) 'AIntereSI ,son IOni., Date	RC in-mark IAmount{RI.) f-l'C1 ! I' 2942877.00
i i2 il	INiLAM :KUMARI :(BORROWER)		Compound Interest (Monthly)	11.85 ,	10/04/2024	9/01/2025	2942877.00 '	Jointly And Severally	I:~s rSon prd., Ioate	t 2942871.00

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In case offailure to pay the aforementioned adjudicated amount within 30 days. same shall be recovered from the sale of tile mortgaged/hypothecated assets as well as other personal movable! Immovable assets of the certificate debtors.

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The mortgaged 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 10/03/2025.

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The Recovery Officer 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) frOITI the above named Certificate Debtors.

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r G~· This Certificate has been issued under my signature and seal of the Tribunal on this 30/0112025 V ~Registrar DEBTS RECOVERY TRIBUNAL PATNAPRESIDrNG OFFICER Debts.RecDv0ry Tribunal -__ Patna

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PRESIDrNG OFFICER DEBTS RECOVERY TRIBUNAL PATNAPRESIDrNG OFFICER

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FQRMNO.I0 [See Regulation 24(2)]

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 28/2025

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Case No: OAJ209/2024

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Applicant(s): PUNJAB NATIONAL BANK Versus

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Defendant(s): MIS GAYATRI STEEL FURNITURE UDYOG

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I~~:N().: .:	J^{!tem of Costs_} ".--"-" ... ... ...- ..-•.....•. .,.."......,--,."..,.	[Amount inRs.
II.	_ IFee on the application	32000
2. ... .._ ,_	Process Fees(Inc. Publication) .	0
3.	~lBvocate fees .	0
4. _ .,"'-	r;:; issioner/Receivr!yl~~tionl~ecllri!y Fee	0
5. _	J'v1"iscellaneousCharges i -----------,-	0
L .. L :: _	::J ^{Total Costs: Rs.} -	32000

Place: PATNA

PRESIDIN~R

Date: 30/0112025

DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Punjab National Bank v. M/s Gayatri Steel Furniture Udyog

Case brief

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Punjab National Bank v. M/s Gayatri Steel Furniture Udyog

Case brief

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What the court decided

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