Allowed

Punjab National Bank v. Messrs Ifra Fashion and Others

DRT3 Jan 2025OA/522/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's application for recovery of a dues of Rs.21,71,404.11 from the respondents. The court granted uniform simple interest at 8.00% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; liable to pay Rs.21,71,404.11 with simple interest @08.00%p.a., costs, and interest from filing date till realization.

Punjab National Bank versus Messrs Ifra Fashion and Others — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.522/2022

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 21.07.2021

¶5

DATE OF DECISION: 03.01.2025

¶6

Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and it Branch Offices throughout India including Branch Office at Punjab National Bank, Kailash Chowk, Civil Lines, Near Pavillion Mall, Ludhiana, Tehsil and District Ludhiana, Punjab, through its General Power of Attorney Sh. Chander Shekhar, Deputy Manager, at Punjab National Bank, Kailash Chowk, Civil Lines, Near Pavillion Mall, Ludhiana, Tehsil and District Ludhiana, Punjab.

¶7

……..Applicant Versus

¶8

M/s IFRA Fashion, through its proprietor Sh. Iram Khan, B- 35/265, Village Sunet, Bhai Randhir Singh Nagar, Ludhiana141001.

¶9

Sh. Iram Khan d/o Sh. Mehfooz Khan resident of House No.466B, Bhai Randhir Singh Nagar, Ludhiana

¶10

also at House No.3-E, Bhai Randir Singh Nagar, Ludhiana- 141001.

¶11

Sh. Mehfooz Khan son of Sh. Amant Khan resident of House No. 466-B, Bhai Randhir Singh Nagar, Ludhiana-141001.

¶12

………. Defendants

¶13

Advocates:

¶14

Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Neeraj Madaan, Advocate for the applicant Defendants are ex-parte

¶15

FINAL ORDER

¶16

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial

¶17

¶18

Institutions Act, 1993, against the defendants for recovery of Rs.21,71,404.11p (Rupees Twenty One Lacs Seventy One Thousand Four Hundred Four and Eleven Paise Only). The Original Application has been filed through Sh. Chander Shekhar, Deputy Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.09.1999, which is Annexure A1 to this OA.

¶19

The brief facts of the OA are that the defendant no.1 through its proprietor of defendant no.2 had approached the applicant for CC Limit of Rs.13.00 Lacs and Term Loan of Rs.2.00 Lacs vide Loan Application dated 25.09.2016, which is Annexure A2 to this OA.

¶20

The applicant sanctioned CC Limit of Rs.13.00 Lacs and Term Loan of Rs.2.00 Lacs vide Sanction Letter dated 08.11.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

¶21

Defendant no.1 had Hypothecated its movable properties, i.e. Various raw materials viz. manufacturing material, raw material including excisable raw material, stock in process, semi-finished goods, finished goods (including bought out finished goods) viz. Ladies Ethnic Wear, Book Debts, Sewing Machines and other Machineries and other fixed assets vide Hypothecation of Goods and Book Debits to secure Cash Credit Facility and Hypothecation of Assets to Secure Term Loan dated 08.11.2016, which are Annexures A4 & A5 to this OA. Documents executed:- Master Undertaking, Agreement of Guarantor dated 08.11.2016 which are Annexures A6 & A7 to this OA; Balance cum Security Confirmation Letters dated 23.10.2019 and 01.11.2019 which are Annexures A8 & A9 to this OA; Legal Notice along with postal receipts dated 18.09.2019, which is Annexure A10 to this OA and Statement of Accounts along with Certificate under Banker’s Book Evidence Act, which is Annexure A11 & A12 to this OA.

¶22

The loan accounts became irregular and were classified as NPA

¶23

and after adjusting debit and credit entries in loan accounts there was

¶24

¶25

a debit of Rs.21,71,404.11p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶26

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 15.04.2024.

¶27

In support of the OA, affidavit of Sh. Chander Shekhar, Deputy Manager, Punjab National Bank has been filed.

¶28

Heard arguments and perused record.

¶29

It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,71,404.11p (Rupees Twenty One Lacs Seventy One Thousand Four Hundred Four and Eleven Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶30

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.10%p.a. plus penal interest @2.00%p.a. with monthly rests from 01.07.2021 till the realization. The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the

¶31

¶32

instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶33

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,71,404.11p (Rupees Twenty One Lacs Seventy One Thousand Four Hundred Four and Eleven Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶34

Parties to appear before Learned Recovery Officer of this Tribunal on 05.02.2025.

¶35

Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 03.01.2025

¶36

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

¶37

Punjab National Bank v. Messrs Ifra Fashion and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messrs Ifra Fashion and Others

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

Coram

Case details

Similar cases

Indian Bank versus M/S G G Industries and Another

Canara Bank versus Resham Singh

Canara Bank versus Messrs Nanak Chand Ram Chand and Others

State Bank of India versus M/S H D Sharma Hosiery and Another

Punjab Gramin Bank versus Hardial Singh

Canara Bank versus Sh. Vajinder Singh