Allowed

Punjab National Bank v. Basant Kumar Giri

DRT31 Jan 2025OA/372/2024

Case brief

AI extract

What is this about?

In an ex-parte application for recovery of dues, the Tribunal allowed the applicant bank's claim against borrowers and guarantors who failed to appear. The debt was quantified based on bank statements, and a recovery certificate was issued to attach and sell mortgaged assets.

What did the court decide?

Debt amounting to Rs. 20,10,602/- along with interest and costs to be recoverable from respondents jointly and severally by attaching and selling mortgaged assets.

Punjab National Bank versus Basant Kumar Giri — Execution and Attachment | DRT (2025)

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OA 372 ofl0241JI

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DRT,PATNA

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. 372 of 2024

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Punjab National Bank, Chetan Chhapra Branch, District- Saran, Bihar.

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..... ..Applicant

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Vs.

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I. Basant Kumar Giri, (Borrower). s/o Late Birendra Giri, resident of village- Nagdiha, P.O.- Nagdiha, P.S.+ Circle- Baniyapur, DistrictSaran. Chhapra- 841403, PAN NO.AJBPG8659D

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Mostt, Sushila Kunwar, (Guarantor/Mortgager). W/o Late Birendra Giri, resident of villageNagdiha, P.O.Nagdiha, P.S.+CircleBaniyapur, District- Saran, Chhapra- 841403

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Ramesh Kumar Giri, (Guarantor/Mortgagor). S/o Late Birendra Giri, resident of village- Nagdiha, P.O.- Nagdiha, P.S.+Circle- Baniyapur, District- Saran. Chhapra- 841403.

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.. ..... Defendants

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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:31.01.2025

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JUDGMENT

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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 03.07.2024 against the defendants to recover its debts from defendants of Rs.20,10,602/- 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 of Term Loan facility of Rs.14 Lakh vide loan application dated 21.06.2017. which was

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Pr:.•;"".'~ Officer Debt ..)^- ..^{~- -,} ~ ...... ,-, .... ^-^"'J _.-^'!ric,IL"llU l'AnA

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OA 372 of 20241JI

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DRT,PATNA

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sanctioned by the applicant bank on 21.06.2017 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 documents and also created registered mortgage in favour of the applicant bank, details of which are given in ~A. The defendants have also executed the balance and security contirmation letter on 06.06.2023.

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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 31.03.2021.

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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 filed by the bank.

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The total liability in the loan account is Rs.20,I 0,602/- 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 01.08.2024, 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.

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Despite the service of registered summons/notices, 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 21.11.2024.

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

OA 372 of 20241JI

DRT,PATNA

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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Sl.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature of Executants	Ex.! Ann. No.
I	Authority letter	22.06.2022	--	Bank	I - -- -
2	Loan application	21.06.2017	14.00	Defendants	2
, ~	Sanction letter	21.06.2017	14.00	Bank	, ~
4	Hypothecation agreement	21.06.2017	14.00	Defendant no.I	4
5	Deed of guarantee	21.06.2017	14.00	Defendant no.2&3	5
6	Photocopy of mortgage deed	21.06.2017	--	--	6 c
7	Balance and security confirmation letter	06.06.2023	--	Defendants no.1	7
8	Demand notice	15.01.2022 24.01.2022 31.05.2022	--	Bank	8
9 & 10 --	Statement of account	--	--	Bank .-	9& 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 def~ndant 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 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 ~A.

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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.

OA 372 of20241JI

DRT,PATNA

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 31.03.2021, whereas the present application has been filed on 03.07.2024. 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.

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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.

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Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application uls S.19 (1) 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 defendantdenieshis 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 (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 Booksfurnishedalong with applicationfiled undersubsection1of section19by theapplicant.

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Section 4 of Banker's Books evidence Act, 1891 runs as under- SA. Mode of proof of entries in bankers' books.=Subject to the provisions of this Act. a certified copy of any entry in a hanker's hook shall in all legal proceedings be received as primafacie evidence of the existence (if' such entry. and shall he admitted as evidence of' the matters. transactions and accounts therein recorded in evet:.vcase where. and to the same extent as. the original entry itselfis now by law admissible. but 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

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OA 372 of20241JI

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DRT,PATNA

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account, more so since the entries in the statement of account have not been challenged.

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IS. On perusal of the application, documents, aftidavit 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.20,10,602/- 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.20,10,602/- along with pendente-lite and future interest @ 10.85% p.a. with compounded monthly rests from 03.07.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

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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.20JO,602/- along with pendente-lite and future interest cal 10.85% p.a. with compounded monthly rests from 03.07.2024 (The date of tiling 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

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deducted in the claim amount, if not deducted. <t4,

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PresiJ!;; '! a.meN ...eb..... u j,O;J or ;j." ',_.-Jv ...., 9.:" ~.... r"" } ir rfo tl;ltri l-'l,.'!' Ii A

OA 372 of20241JI

DRT,PATNA

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 mortgagedl 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 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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FORMNQ , [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 Sudan, Kendriya Karamchan Parisar (GPOA). Ashiana Digha Road, Patna-800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(7)READ WITH SECTION 19(W PFTRE RECoyEBYOF DEBIS & BANKRJJPTCYA(;I, 1993, AS AMENDED FR()M TIME J() TIME.

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BC No. 3812025

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Case No: OAl372/2024

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1n the Mutter of: (CH1) PUNJAB NATIONAL BANK CHETAN CHHAPRA BRANCH, SARAN .BIHAR-O

Applicant(s)

----Versus ------

To.

(CD· I) BASANT KUMAR GIRl. SiD LATEBIRENDRA GIRl' Residence of Village - Nagdiha. P.O.- Negiha. P.S.... Circle- Baniyapur; Saran .BIHAR -841403

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(CD· 2) MOSrf. SUSHILA KUNWAR IGUARNAroRIMORTGAGOR) W/O- LATE BIRENDRA GIRl, RESIDENCE Of VILLAGE- NAGDIHA, P,O.- NAGDIHA, P.S.+ Defendanl(s) CIRCLE- BANIYAPUR, DISTRICT- SARAN. CHHAPRA· R41403

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(CD· 3) RAMESH KUMAR GIRl (GUARANTORIMORTGAGOR) SIO· LATE BIRENDRA GIRl. RESIDENCE OF VILLAGE- NAGDIHA, P.O.- NAGDIHA, P.S.+ CIRCLE- BANIYAPUR. DISTRICT- SARAN, CHHAPRA - 841403.

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Rt=covery Certifil'ate ror Rs 2010602.00 ( RUI!-~l"sTwenly Lakhs Ten thuusands Six Hundred Two Only_]

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In terms of final order dated 31/01/2025 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. 2010602.00 along with cost, expenses and interest from the 03/07/2024 i.e. date of filing 1 with effective date of the ON372/2024 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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[ , I, sr.no , ''-	J { lLoan ~,.. CD Nanle· ; [Type ;!~~~~"~~ ~~~ +L...~L	Int. Type/Mode! '=c"	.11Iet. Rate """J	Efft.'(:tive Dale j .L	. Order Date	Amount(Rs.	Uabilit Type	Intern y (as00 Order Date)	RC AmouDt(Rs.)
_ j I	,_, ... ..., ! iJ ~,:BASANTKUMAR GIRl • '	..,,_ Compound [Interest (Monthly)	,.. 10.85	;1 03/07/20241 "	31/01/2025	:2010602.00	Jointly A d n . Severally	'Inres rson "rde 'D~ter	t 2010602.00
2	I tSTT. SUSHILA KUNWAR . ! IGUARNATORIMORTGAGOR , , )I ------- -r==	Compound ..Interest (Monthly)	10.850	3107120243	110112025 I	2010602.00	ointly And Severall	I~:crest r_~n yttc r	Ot0602.00
3 tL	,,, , ! j 1RAr-.'IESHKUMAR GIRl j ,(GUARANTOR/MORTGAGOR)j 1 _. t	I.' [Compound [Interest (Monthly)	:' 110.1-1 J j	'i J 5103/07.'202 __	4131 _fO_1/2025 1 .	· 20 I0602.00 1."	.' ,Jointly .And Severally	Interest A son ~roer Date	010602.00

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In case of failure to pay the 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.

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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 arc directed 10 appear before MANOJ KUMAR. RecoveryOfficer. DEBTS RECOVERY TRIBUNAL PATNA on 1110312025. 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) from the above named Certificate Debtors. .

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This Certificate has been issued under my signature and seal ofthe Tribunal on this 01/0212025
(}V,
RC1·1;f;·.'"7
DEBTS RECOVERY
Debts I

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PRESI~ER
DEBTS RECOVERY TRIBUNAL PATNA
!"'~.

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r·

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FORM NO, 10 [See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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«(; :'OA), Ashiana Digha Road, Patna·800025.

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.......•. .-_.-'-------

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 38/2025

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¶103

Case No: OA/372/2024

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Applicant(s): PUNJAB NATIONAL BANK

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Versus

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Defendanus): RASA],;';' KUMAR GIRl

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IIS1".No u il~~ern.ofCosts .. . .	IAmountinRs.
	23000
1[2. Ir!l.cessFees(Inc. Pulicati~n)	o
i13: JAdvoc~tt' Fees. . . .. .	o
114... Js::~~mi~.s-ionr~~~cei'er/ValuationiSecuity Fee	o
lis. Jl\1iscelIaneousChargcs . L II.. m [TotalCosts: Rs.	110 23000

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Place: PATNA

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PRESID~CER Date: 01/02/2025 DEBTS RECOVERYTRIBUNAL PATNA P.. ~§! ".", OfJiCPf Note: Strike out whichever is not applicable Debts TIc~,)t Jry rrri::'.l"'la, PATNA

Punjab National Bank v. Basant Kumar Giri

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Basant Kumar Giri

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

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Case details

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