Allowed

Punjab National Bank v. M/S Armina Traders

DRT20 Mar 2026OA/167/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Punjab National Bank for recovery of Rs. 52,43,969.31 from M/s Armina Traders and Armina Khatun. The court determined the debt, ordered payment with interest, debarred transfer of hypothecated assets, and directed issuance of a recovery certificate under Section 19(22) of the RDB Act, 1993.

What did the court decide?

Debt of Rs. 52,43,969.31 determined; defendants directed to pay with future interest; Recovery Certificate to be drawn up and issued.

Punjab National Bank versus M/S Armina Traders — Banking and Recovery | DRT (2026)

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Page No.

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KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2 ORDER SHEET (Continuation) Punjab National Bank

Punjab National Bank

O.A.t167 ot 2O2t

, _VS

Case No

ill/s Armina Traderc t Anr.
Office action with
Date date and dated
of. Order with Signature Signature of
Order parties when
necessary
Counsel for the parties:
20.o3.202 Ms. Mehzabeen Begum, Ld. Advocate representing Mr
Agniv Sinha, Ld. Counsel for the applicant Bank.
None for the defendants.
0.A.1167 ol 2023 is allowed and disposed of.
Final Order / Judgment is in separate sheet of 6 pagds. -
File be consigned to record room.
Order be uploaded on the Tribunal's website.
( adhav)
Presiding fficer
DRT-2, Kolkata

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O.A./167 of 2023 - DRT-2/Ko|

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DEBTS RECOVERY TRIBUNAL - 2, KOLKATA Jeevan Sudha Bldg.07h Floor,42lC, J.L. Nehru Road, Kolkata -7OOO71 Before Shri Arbind Madhav. Presidin Officer

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O.A. No. 167 oI2023

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ln the matter of

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Punjab National Bank, a body corporate constituted under Banking companies . (Acquisition & Transfer of Undertakings) Act, 1970, having its Head office at plot No.4, sector-10, Dwarka, New Delhi - 110075, and carrying on business, inter-alia, through one of its branches, namely Debagram Branch, Debagram Station Road, Kaliganj, p.O.Debagram, P.s.- Kaliganj, Pin -741137, west Bengal; and one of its ofiices namely circle ' Sastra - Nadiia, situated atlqPandit L.K. Moitra Road, Krishnagar, District - Nadia, pin - 741101, West Bengal.

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Applicant Bank

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-Versus-

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1 M/s Armina Traderc, represented by its Proprietor, Armina Khatun, wife of Manjur Rahaman, resident of Vill.- Debogram, Old Bus Stand, Near Kabiruddin Nursing Home, P.O.- Debogram, P.S.- Kaliganj, Dist.- Nadia, Pin-741137, West Bengal.

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2 Armina Khatun, wife of Manjur Rahaman, resident of Vill.- Debogram, Old Bus Stand, Near Kabiruddin Nursing Home, P.O.- Debogram, P.S.- Kaliganj, Dist.- Nadia, Pin -741137 , West Bengal.

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Defendants

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Counsel for parties: For the Applicant Bank : Mr. Agniv Sinha For the Defendants : Ex-Parte.

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FINAL ORDER / JUDGMENT Delivered on2003.2026

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Applicant, Punjab National Bank tendered the present Application being the Original Application No.167 of 2023 on 16.06.2023 against two Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.52,43,969.31 (Rupees fifty two lacs forty three thousand nine hundred sixty nine and paise thirty one) including interest and other charges as calculated upto 28.OZ.ZOZ3 ana future interest at contractual rate compounded annually with monthly rests thereon from 01.03.2023, till actual realization.

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O.A.fl 67 of 2023 - DRT-2/Kot

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The brief fucts of the case as set out by the Applicant Bank in its original Application, as under:

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(i) The defendant No.2 carries on her proprietorship business under the name and sgle of 'M/s Armina Traders' and engaged in the wholesale and retail of hardware materials. The defendant No.2 being the proprietor of defendant No.1 approached the applicant bank for credit facility for an amount of Rs.3s,00,000/- vide loan application dated 05j0.2017 . Upon consideration of application, applicant Bank was pleased to grant / sanction one credit facility to the limit of Rs.35,00,000.00 (Rupees thirty five lacs) to the defendant No.1 vide sanction letter dated 13.11.2017 on certain terms and conditions mentioned in the sanction letter which was accepted by the defendant No.2. copy of said loan application dated 05.10.2017 and sanction letter dated 19.11.2017 are annexed and marked as Annexure 'A & 'B'.

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(ii) ln acknowledgement of granting the said credit facility to the defendant No.1, the defendant No.2 executed and delivered the following security documents all dated 13.11.2017 in favour of applicant Bank:

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(a) Demand Promissory Note for Rs.35,00,000/-;

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(b) Letter of Continuity;

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Copies of said documents are annexed and marked as Annexure^,C, ,^.C_1, &,C_2' respectively. The credit facility was primarily secured by the pledge of current asset, book debts, plant and machinery raw material and other movable asset of the firm. The loan amount was disbursed at the instance of the defendant No.1 on 13.11.2017 .

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(iii) The defendant No.2 being the proprietor of defendant No.1 approached and applied ' the applicant bank for credit facility for an amount of Rs.7,00,000/- in the form of rerm Loan under GECL scheme vide loan application dated 02.06.2020. Upon cpnsideration of application, applicant Bank was pleased to grant / sanction the Term Loan in view of covid . 19 Lockdown of Rs.7,00,000.00 (Rupees seven lacs) to the defendant No.1 vide sanction letter dated 2312 4.06.2020 on certain terms and conditions mentioned in the sanction lefter. Copy of loan application dated 02.06.2020 and sanction letter dated 23124.06.2020 are annexed and marked as Annexure 'D' & 'D-1' respectively.

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(iv) ln order to secure the repayment of aforesaid credit facility to the defendant No.1, the defendant No.2 executed and delivered the following security documents all dated 29.06.2020 in favour of applicant Bank:

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(a) Demand Promissory Note for Rs.7,00,000/-;

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(b) Letter of Undertaking;

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(d) Master Agreement;

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(e) Agreement of Working Capital Term Loan;

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(f) Hypothecation Agreement.

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O.A.t167 ot2123 -ORT-2yKo| .

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Copies of said documents are annexed and marked as Annexure ,E, &,E_1,,,E_2,, 'E-3', 'E-4'and'E-5'.

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The loan amount was disbursed at the instance of the defendant No.1 0n 29.06.2020.

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(v) The aforementioned credit facility was reviewed / renewed from time to time and lastlyon29.06.2o2obytheappricantBank. InordErtosecuretherepaymentofaforesaid credit facility to the defendant No.1 , the defendant No.2 signed and executed the folrowing loan / security documents all dated 29.06.2020 in favour of applicant Bank:

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(a) Demand^promissory Note for Rs.35,00,000/_;

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(b) MasterAgreement;

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(d) Hypothecation of Goods & Book Debts;

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(e) Hypothecation Agreement.

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copies of said documents are annexed and marked as Annexu-re ,F' & ,F-1' , ,F-2,, 'F-3' and 'F4' respectively.

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The defendants availed and enjoyed the said credit facirities by opening Accounts in Defendants No-1's name (M/s Armina Traders) in Bank,s Debogram Branch, p.o.- , Debogram, Dist.- Nadia, pin - 741137 . However, the defendants did not compry with the agreed terms and conditions of said facility, thus violated the terms and conditions of the sanction of the said roan. The defendants did not repay the outstanding Bank,s dues and . overdue interest of loan accounts. Despite severar requests made by appricant Bank, the defendants did not pay any attention to regurarize the Accounts; consequenfly, the accounts became irregular and was classified as NpA on 31 .o3.2o2L Since the defendants / borrower(s) failed to liquidate the dues with the applicant Bank inspite of repeated requests and reminders, applicant Bank compelled to issue Demand Notice dated o1.07.201g along with the Demand Notice dated og.11.2021 upon the defendants No.1 & 2 to repay the outstanding Bank's dues, but the defendants did not comply with the , said notice, copy of demand notice dated 0g.11.2021 is annexed and marked asAnnexure 'G'. Thereafter, applicant Bank issued another demand Notice dated 21.03.2023 upon the defendants demanding a sum of Rs.52,43,969.31 with interest calculated upto 28.02.2023 plus further interest at the contractual rate and the said demand notice was . duly received by defendant No.2, but the defendants have not made any payment as demanded in the said notice; copy of said demand notice dated 21.03.2023 along with postal receipt and postal track report are annexed and collectively marked with Letter ,H,. Certified copies of Statement of Accounts along with Certificate undeiBankers'Books of Evidence Act, with interest calculation sheet (Annexure 'l'), have been filed to show and prove the dues, and future interest at the contractual rate compounded annually with monthly rests, till actual realization, has been prayed. Applicant Bank submitted that their , claim in the originalApplication is within limitation.

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o.A.t16r or2o23-oRr-2.ot

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4' The Notices / summons were sent to Defendants No.1 & 2 by the Tribunal. lt is seen , ftom the afidavit of service dated 13.0'1.2025 and its enclosures that service of Notices / summons upon the Defendants was made successfully effected by postal service, such has been recorded vide Ld. Asstt. Registrar's order datd 22.01.2025. Despite service, the defendants did not appear nor filed the written statement; thus, both the defendants . were ordered to be proceeded ex-parte vide order date d 05.12.2025. Applicant Bank has filed the written notes of argument on dated 24.o2.2o26thereby stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted argument on24.02.2026.

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5' Appricant Bank has fired evidence-on-Affidavit, affirmed byAnup Dungdung, chief Manager cum circle sastra Head of Bank,s % pandit L.K. Moitra Road ofiice, Krishnanagar, Dist.- Nadia along with the copy of original documents executed by the defendants. Original documents have been produced by applicant Bank; the same have been verified with copies of documents annexed with the o.A. and after verification the Branch, originars^p.o.- have Debagram, been returned Dist.- to Nadia sri Anuj on shaw, 12.02.2024, Assft. such has been Manager of Bank,s Debagram recorded in Ld. . Registrar's order dated 12.02.2024. The documents produced by appricant Bank are exhibited and marked as Exhibits,AW_1,to^,AW_21,.

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r have heard the Ld. Advocate of the appricant Bank and perusEd the records.

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Evidence-on-affidavit, fired by appricant Bank, has remained unchailenged, un_ rebutted and its veracity cannot be put to dispute. Appricant Bank has proved the averments made in the original Application. Applicant Bank has proved the sanction of . credit facilities to the limit of Rs.35.00 lakhs vide sanction lefter dated 13.11 .2017 and Term Loan of Rs.7.00 lacs vide sanction letter dated 23124.06.2020. Applicant Bank has proved the hypothecated movable assets of defendant No.1, morefully described in Schedule,X, at page 28 and para 3A at page 7 to 9 of the original application.

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On the point of limitation, the loan has been sanctioned on 13.11.2011 and 24.06.2020' loan / security documents have been executed on 13.11.2017 &29.06.2020 and original Application has been filed on 16.06.2023. As such, the-original Application appears to have been filed well within the period of limitation.

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Applicant Bank stated that the outstanding balance in Loan Accounts (inclusive of accrued interests and other charges as calculated upto 28.02.2023) for an aggregated sum of Rs.52,43,969.31 (Rupees fifty two lacs forty three thousand nine hundred sixty nine ' and paise thirty one) as on28.02.2023, which is the amount claimed by applicant Bank in the originalApplication, and the defendants No.1 & 2 are, jointly and/or severally, liable to repay the said amount to the applicant Bank with pendente tite and future interest, till . realization. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest at contractual rate compounded annually with monthly rests thereon from 01 .03.2023, till actual realization, while in the Demand -Promissory^{Note dated 13.11.2017 the rate of interest} @^11.600/oper annum with monthly

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4'-3-,

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OA:/1AT d 2t2g - DRT-2/Kot '

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rest and sanction retter dated 29.06.2020 the rate of interest @ 7.65%per annum, have been mentioned- Therefore, in my view, rhe pendente rite& future rate of interest @ g.75% per annum, with quarterry rests, from 01.0g.2023, tirr rearization of the-entire due in fuil, is allowed.

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The matter arso fails within the territoriar as wefl as pecuniary iurisdiction of this Tribunal' The applicant Bank has proved its craim made in the o.A. The originar apprication being 0.4./167 of 2023 deserves to be allowed; hence allowed.

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ln view of the above, I pass the following order:_

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o RDER

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(i) o'A. No.167 ot 2023, fired by appricant Bank, is aflowed and debt is determined with , cost against the Defendants No.1 & 2. rt is hereby ordered that the Defendants No.1 & 2 are hereby directed to pay, joinly and / or severary, the totar debt amount of Rs.52,43,969.31 (Rupees fifty two racs forty three thousand nine hundred sixty nine and paise thirty one) due and payabre, incrusive of interest and other charges as carcurated upto 28.02.2023; and interest for the period p endente liteand future @ g.750/oper annum, with quarterly rests, ftom 01.03.202g, tirr rearization of the entire sum due and recoverabre.

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(ii) Amount, if any, paid by the Defendants No.1 & 2 in the roan accounts or amount, if . any' recovered by appricant Bank after firing of the originar Apprication, the same may be taken into account whire arriving at the exact amount of dues/debt payabre by the Defendants No.1 & 2. Accordingly, lhe pendente titeand future interest shall be calculated on the reduced amount.

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(iii) Defendants No.1 & 2 are debaned from transferring, arienating, encumbering or disposing of the hypothecated movabre assets, described in schedure ,X, at page 2g and para 3A at page 7 to g of the original application, as under _

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Hvo othecated Movable Assets:

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'All the^prcducts, enti,e stock of vaious materiars or manufacturing mateiar, semi finished goods etc. whether nw materiar or wo* in proceii,-iiin"ei'gioas, ooox debts and biils receiyglt9 etc. 3nd machinery and movaba'prcpeiiiii any nna . yhigh mav b9 brought into or stored or be in ibout the defendatnfi iimiies at vitt.Debogram, ord Bus stand, NearKabiruddin Nurcing Home, i.o.-Eiio:"sim, p.s.Katiganj, Dist.- Nadia, west Bengal, pin - 741 137 ina any otnerc jooai ii tnnsit..

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The Defendants are also debarred from transferring, arienating, encumbering or , disposing any other property(s) and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants No.1 & 2.

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(iv) Defendants No.'l & 2 are given a time of sixty days from the date of this Final Order / Judgment for repayment of the above mentioned dues, so intimated to tnem. ln case the Defendants fail to pay the dues within the above mentioned time, the applicant Bank is entitled to recover its dues by sale of secured property(s), as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendants No..l & 2 both . moveable and immoveable and also proceed against the Defendant No.2 personally to recover the dues, in accordance with law.

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0.A.1167 ot 2029 - ORT-2IKoI

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(v) Let the certificate of Recovery be drawn up by Ld. Registrar forthwith in terms of Final order / Judgment for issuance of the same against the Defendants No. 1 & 2 in favour of applicant Bank under section 19(22) ofthe Recovery of Debts and Bankruptry Act, 1993 (amended from time to time) and put up the same for signature for issuance.

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(vi) Ld. Recovery officer sharr rearize the amount as per the Recovery certificate from Defendants No.1 & 2, in accordance with law.

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(vii) Ld. Registrar of this Tribunal is directed to place Recovery Certificate in terms of this Final Order / Judgment under section 19(22) of the Act of 1993.

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Accordingly, the original Apptication, being o.A. No.{67 ol 2023 is attowed and stands disposed of.

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File be consigned to Record room.

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This order is dictated and corrected by the undersigned and pronounced on this the 20h day of March, 2026.

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copy of the Finar order / Judgment be uproaded on the Tribunals website.

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l4;,,(tf,;1(Arbind Mad Presiding Officer DRT-2, Kolkata

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Punjab National Bank v. M/S Armina Traders

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Armina Traders

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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