Allowed

Punjab National Bank v. M/S Vijay Bricks

DRT31 Jan 2025OA/561/2023

Case brief

AI extract

What is this about?

The Patna Debt Recovery Tribunal allowed the Punjab National Bank's application to recover Rs. 56.52 lakhs from borrowers who defaulted on a sanctioned loan. In the absence of the defendants, the court treated the bank's documentary evidence as conclusive, including a recovery certificate.

What did the court decide?

Debt of Rs. 56,52,627.60 with interest @ 10% p.a. allowed; Recovery Certificate issued; mortgaged assets attached.

Punjab National Bank versus M/S Vijay Bricks — Banking and Recovery | DRT (2025)

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OA 561 of20231,11

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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. 561 of 2023

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Punjab National Bank, SASTRA Branch, P.S.- Kotwali. P.O.- G.P.O.. Patna. District- Patna 80000 I

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....... Applicant

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Vs.

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I. MIs Vijay Bricks

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Sri Vijay Kumar (Borrower), Prop. - MIs Vijay Bricks. S/o Sri Raghunath Ray, PAN No.AVTPK2572P. at village- - Byapur. ThanaManer. District- Patna and Rio at Nasriganj. Pathan Toli, Bel Par, P.S.Danapur, P.O.- Digha, District- Patna

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....... Defendants

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Present:

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For the Applicant Shri Ritendra Bhushan Awasthee, Advocate For the Defendants None

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Dated:31.0 1.2025

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JUDGMENT

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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 17.11.2023 against the defendants to recover its. debts from defendants of Rs.56,52,627.60 as on 31.08.2023 along with pendente-lite and future interest at the contractual rate from 01.09.2023 with costs till realization.

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The application has been tiled 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.

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On the request of defendant Sri Vijay Kumar and on the recommendation of GM, DIC, Patna dated 21.10.2010, the applicant bank's branch has sanctioned Rs.24 Lakh to the defendant for establishment and running of the manufacturing Unit Bricks Udyog on 22.12.2010 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 .hypothecated the

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OA 561 of20231JI

DRT. PATNA

movables and created mortgage in favour of the applicant bank. Defendants have also executed balance confirmation letter on 25.02.2021.

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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 28.01.2016.

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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.56,52,627".60 as on 31".08.2023 with pendente-lite and future interest contractual rate from 01.09.2023 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 15.01.2024, 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 ofthis 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 09.04.2024 in "Dainik Bhaskar" 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, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 04.09.2024.

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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

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OA 561 of2023!J1

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DRT, PATNA

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given evidence on affidavit by way of affidavit by Shri Pramod Kumar Mishra, SASTRA Head of the applicant bank. The details of documents are as follows:

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SJ.No	Description of Documents Photocopies	Date of Execution	Amount (In Lakh)	Signature Executants	of	Ex.! Ann. No.
I	Loan application	--	--	Defendants		I ~--
2	Letter of recommendation of GM, DIC, Patna	20.10.2010	--	--		2
, .'	Photocopy of Lease Agreement	--	--	--		3
4	Loan sanction order	22.12.2010	24.00	Bank accepted defendants	and by	4
5	Hypothecation agreement	24.12.2010	24.00	Defendants		5 ~----
6	Letter of undertaking	24.12.2010	--	Defendants		6
7	Consent clause & PDR Agreement	24.12.2010	24.00	Defendants		7
8	Demand notice	--	--	Bank		8
9	Balance and security confirmation letter	25.02.2021	--	Defendants		9
10	Legal notice	01.09.2023	--	Bank's adv.		10
11	Statement of account	--	--	Bank ~_	___	11~~~1

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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 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 tor, in OA.

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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

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OA 561 of20231JI

DRT.PATNA

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 28.01.2016. Defendants have also executed balance confirmation letter on 25.02.2021. whereas the present application has been filed on 17.11.2023. 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 tiled well within the period of limitation.

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Shri Pramod Kumar Mishra, SASTRA Head 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 U/S 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, provides that if the defendant denies his liability to pay the claim made by the applicant, the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the atlidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 (11) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker's Books evidence that Act, 1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker's Books furnished along with application tiled under sub section 1 of section 19by the applicant.

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Section 4 of Banker's Books evidence Act, 1891 runs as under- SA. Mode of proof of entries in bankers' boob.-Suh;ecl 10 the provisions of this Act, II certified copy of any entry ill a banker's hook shall ill all legal proceedings be received as primafacie evidence of the existence of such entry. and shall be admitted as evidence ofLhc matters. transactions and accounts therein recorded in everv case where. and to the same extent as. the original entry itself is now'bv law admissible. hut notfurther or otherwise. \4',

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Presiding 0 ffi c-r Debb TIcc-:JiT2ry Trl:';lllaJ FATNA

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OA 561 of20231,11

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DRT,PATNA

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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 tor repayment with interest. The balance amount till 31.08.2023 has been proved to be Rs.56,52,627.60 only by way of statement of account/affidavit. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and tinal 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,56,52,627.60 along with pendente-lite and future interest (0 10%p.a. with compounded monthly rests from 17.11.2023 (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.56,52,627.60 along with pendente-lite and future interest @ 10% p.a. with compounded monthly rests from 17.11.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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P",slding Office, Debts Recovery Tribu...na.

i'AT.NA

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OA 561 of20231,11

ORT,PATNA

It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not 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 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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[KaushalendraYadav] Presiding Officer Debts R:;),JR'.7TBJwJ~~'Patna Deb;J:"..::::-.~·:':7· 'i:i::,u.... k' ...., ... ,.~A

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FORMNQ,9 [See Regulation 24(I)J

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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 UNDER SECTION 19m READ WITH SECTION 19(2.1)OF THE RECOVERY OF DEBTS & BANKR!lPTCYACT,~, AS AMENDED FROM TIME TO TIME.

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RC No, 3612025 IN Case No: OAl56112023

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In the Matter of:

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(CH- I) PUNJAB NATIONAL BANK SASTRA BRANCH P.S.- KOTWALI P.O.- GPO

Applicant(s)

PATNA

PATNA.BIHAR -ROllOOt

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

r».

(CD- I) MIS VIJAY BRICKS AT-VILLAGE BYAPUR THANA MANER Patna,BIHAR -80001~

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(Cll- 2) SRI VIJAY (BORROWER) PROP MIS VIJAY BRICKS SIO SRI RAGHUNATH RAY.AT-VILLAGE- BYAPUR, THANA- MANER. DlSTRICT- PATNAAND RIO- AT NASRIGANJ. PATHAN TOLl. BEL PAR. P.S.- DANAPUR. P.O.- DIGHA. D1STRIC'I~ PATNA

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Defendantts)

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Rmmry. Certificate for Rs 5652627,60 1___Ry1mLfiDy. Six Lakhs Fifty Two ThouS'Dds Six HUndred Twenty $eyen And Paise Sixty....Q.n.!y_J

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In terms of final order dated 31101/2025passed 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. 5652627.60 along with cost, expenses and interest from the 17/1112023i.c. date of filing 1 with effective date of the OAl561/2023 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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~s r.no ~~	['CD N_ -J ame	Loanl --Inl. Type Type/Mode __~	Int. Rate __	Erreclie Date 1 ~	rer Dale ~	A I(Rs moun . +__·	) liability Type +__~~=D	I~::::t Order =M~~~	~ RC Amount(Rs.	__ ~ Remarli
I	_~f\1JS_VIJAY !BRICKS , II	Compound Inlerest (Monthly)	I lro	1711112023	311011202	5l,5652627.60	oinrly And 'Severally	~:erest ,,~on Order	5652627.60
									5652627.60

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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 Recoveryof Debts and BankruptcyAct 1993. Parties are directed to appear before MANOJ KUMAR, Recovery Officer. DEBTS RECOVERY TRIBUNAL PATNA on 1110312025.

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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, 199.3<as amended from time to time) from the above named CertificateDebtors.

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

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PRES[~ICER DEBTS RECOVERY TRIBUNAL PATNA
Presiding Officer
Deb^{'~ ,,~~,•.,-., Tr::.l:l!L} ~ ....... _-'.J, _6J l'ATNA

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FORM NO. 10

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[See Regulation 24(2)]

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 36/2025

Case No: OA/56112023

Applicant(s): PUNJAB NATIONAL BANK

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Versus

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Defendant(s): MIS VIJAYBRICKS

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S:-.:.:	lItem ofC~sts . : . ___:--. __: __	Amount inRs.
1[1. ... _...	J[ee _Qntheapplictio~ .	159000
'12.	ilPocessFees(Inc. Pu}ication)	o
		o
4.	IICommissionerlRece_i:,::erNaluationiSecurity Fee	o
[ - ·- -	·!ITotal Costs: Rs. --'	59000

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Place: PATNA

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Date: 01102/2025

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PRESID~FICER DEBTS RECOVERY TRIBUNAL PATNA P;tsUil1g Officer

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Note: Strike out whichever is not applicable

Punjab National Bank v. M/S Vijay Bricks

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Vijay Bricks

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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Case details

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