PUNJAB NATIONAL BANK vs M S KK ENTERPRISES AND ANR on 23 February 2026

1. 1. **M/s K.K. Enterprise**, proprietorship business of Kamruj Zaman, having its office and/or principal place of business one at Village – Choumoha, P.O.- Mudiahat, P.S.- Shasan, Dist.- North 24 Parganas, Kolkata – 700128, West Bengal.

2. 2. **Kamruj Zaman**, son of Sekh Noor Ali is the Proprietor, having its office and/or residence one at Village – Choumoha, P.O.- Mudiahat, P.S.- Shasan, Dist.- North 24 Parganas, Kolkata – 700128, West Bengal.

3. 3. **KAKULI BIBI**, wife of Kamruj Zaman is the guarantor, resides one at Village – Choumoha, P.O.- Mudiahat, P.S.- Shasan, Dist.- North 24 Parganas, Kolkata – 700128, West Bengal.

..... Defendants

Counsel for parties:

<table style="width: 100%; border: none;"> <tr> <td style="width: 40%;">For the Applicant Bank</td> <td style="width: 5%;">:</td> <td>Mr. Soudip Pal Choudhuri</td> </tr> <tr> <td>For the Defendants</td> <td>:</td> <td><i>Ex-Parte</i></td> </tr> </table>

FINAL ORDER / JUDGMENT

Delivered on 23.02.2025

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.188 of 2018 filed in DRT-3, Kolkata on 20.03.2018 against three Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of **Rs.10,55,485.78** (Rupees ten lacs fifty five thousand four hundred eighty five and paise seventy eight) including interest calculated upto 15.02.2018 together with interest *pendenti lite* and future @ 11.15% per annum with monthly rests from 16.02.2018, till realization of the entire due in full. Subsequently, the instant case has been transferred to DRT-2, Kolkata 

vide the Hon'ble Chairperson DRAT, Kolkata's direction vide letter No.4/6/DRAT/KOL/2018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 18.10.2019 and the same has been renumbered as T.A./159 of 2019 vide Ld. Registrar's order dated 02.11.2019

2. United Bank of India has been merged / amalgamated into Punjab National Bank vide Gazette Notification dated March 04, 2020, issued by the Government of India published under Extraordinary Part-II, Section 3, sub-section (i) in the Gazette of India in terms of Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970. In view of the merger / amalgamation of United Bank of India into Punjab National Bank, the applicant name in this case should be read / inserted as Punjab National Bank instead of United Bank of India.

3. In accordance with the Notice dated 30.07.2020 of this Tribunal, Ld. Advocate of Punjab National Bank has filed a petition being I.A./373 of 2021 praying for amendment of Cause Title in view of amalgamation of United Bank of India with Punjab National Bank vide G.O.I. Notification dated 04.03.2020; and in accordance with the direction of Ld. Tribunal necessary amendment in cause title has been carried out by Ld. Advocate of the applicant Bank on 12.04.2021, such has been recorded in Ld. Registrar-in-charge's order dated 12.04.2021.

4. The brief facts of the case as set out by the applicant Bank in its Original Application, as under:

(i) The Defendant No.1 is the proprietorship business of the Defendant No.2 and Defendant No.3 is the guarantor herein. The Defendant No.2 being the proprietor of defendant No.1 approached the applicant Bank for financial aid for the business by an application dated 19.03.2015; upon consideration of application, applicant Bank was pleased to sanction / grant one Cash Credit facility to the limit of Rs.10,00,000/- (Rupees ten lakhs) to the defendant No.1 on certain terms and conditions mentioned in the sanction letter. Copy of the application dated 19.03.2015 and copy of the sanction letter dated 25.03.2015 are annexed and marked with Letter "A" and "A-1".

(ii) In consideration of the aforesaid credit facility of Rs.10.00 lakhs granted to defendant No.1, the defendant No.2 being the proprietor of defendant No.1 executed and delivered the loan / security documents all dated 25.03.2015 in favour of applicant Bank:

- (a) One Demand Promissory Note for Rs.10,00,000/-;

- (b) One Agreement for Hypothecation of Goods;

- (c) One Agreement under United Mortgage Loan;

- (d) One Letter of Continuity;

- (e) One Letter of Lien;

- (f) One Consent Clause taken from Borrower; Copy of said documents are annexed and marked with letters "A-2", "A-3", "A-4", "A-5", "A-6" and "A-7" respectively.

(iii) In consideration of the loan granted to the defendant No.1 proprietorship concern of defendant No.2, the Defendant No.3 stood as guarantors and executed Guarantee Agreement dated 25.03.2015 and One Text of the consent clause in favour of applicant Bank. Copy of the Guarantee Agreement dated 25.03.2015 and copy of the consent clause are marked and annexed with letters "A-8" and "A-9" respectively.

(iv) To secure the aforesaid advance granted to defendant No.1, proprietorship business of defendant No.2, the defendant No.3 visited the applicant Bank's premises on dated 28.03.2015 and created equitable mortgage in respect of immovable property, morefully described in Schedule 'X' at page 19 and para 3A at page 7 & 8 of the original application, by depositing one original Title Deed being No.5019 of 2013 with the applicant Bank. Copy of specimen entry in the title deed and copy of the present valuation are marked and annexed with the letters "A-10", "A-11" & "A-12" respectively.

5. The Defendants enjoyed the said credit facility by opening Account in erstwhile Bank's Birati Branch, Mahajatinagar, P.O.- Rajbari, North 24-Parganas, Kolkata – 700081; presently account maintained by Sastra Division, Salt Lake, Kolkata – 700064. However, the defendants failed and neglected to abide by the terms and conditions of the facility. The Defendants did not repay the outstanding Bank's dues and overdue interests in loan Account(s). Inspite of repeated requests made by applicant Bank, the defendants failed to regularize the loan Account. Since the defendants did not pay any attention to regularize the Account, the Account became out of order and was classified as N.P.A. Thereafter, applicant Bank issued a notice U/s 13(2) and 13(13) dated 05.01.2018 upon the defendants demanding to repay the outstanding loan amount, but the defendants did not comply with the said notice; copy of notice dated 05.01.2018 is annexed and marked with letter 'A-13'. Considering aforesaid default and violation of the terms and condition s of the credit facilities, applicant Bank was compelled to issue Demand and/or recall Notices on dated 08.01.2018 and 01.03.2018 upon the defendants through its Advocate calling upon them to pay the outstanding loan amounts, but the defendants failed and neglected to do so; copy of said notice dated 08.01.2018 and 01.03.2018 is annexed and marked with Letter 'A-14'. Certified copies of Statement of Account along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, have been filed to show and prove the dues (Annexure 'A-15'), and interest *pendenti lite* and further interest @ 11.15% per annum with monthly rests from 16.02.2018, till realization of the entire due in full, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

6. The notice / summons was sent to the Defendants No.1 to 3 by the Tribunal. It is seen from the S/R on affidavit dated 17.10.2023 that service of Notices / summons by postal service has been successfully effected upon the Defendants, such has been recorded vide Ld. Registrar's order dated 30.11.2023. Despite service, the defendants did not appear nor filed the written statement; thus, all the defendants were ordered to be 4T.A./159 of 2019 -- DRT-2/Kol proceeded *ex-parte* vide order dated 29.04.2025. Ld. Advocate of the applicant Bank has submitted argument on dated 21.01.2026.

7. Applicant Bank has filed the evidence on Affidavit affirmed by M.K. Sardar, Manager of erstwhile Bank's Birati Branch, Mahajatinagar, P.O.- Rajbari, Kolkata - 700081 along with the copies of original documents executed by Defendants. Original documents have been produced by applicant Bank; the same have been verified with copies of the documents annexed with O.A. and after verification the original documents have been returned to Sri Somnath Kundu, Sr. Manager of erstwhile Bank's Birati Branch, Mahajatinagar, Kolkata - 700081 on 22.07.2024, such has been recorded in Ld. Registrar-in-Charge's order dated 22.07.2024. The documents produced by applicant Bank are exhibited and annexed as Exhibits 'A' & 'A-1' to 'A-15'.

I have heard the Ld. Advocate of the applicant Bank and perused the records.

8. Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, unrebuted and its veracity cannot be put to dispute. Applicant Bank has corroborated the averments made in the O.A. / T.A. Applicant Bank has proved the sanction of cash credit facility of Rs.10.00 Lakhs vide sanction letter dated 25.03.2015. Applicant Bank has proved the creation of mortgage in respect of immovable property; described in Schedule 'X' at page 19 and para 3A at page 7 & 8 of the original application.

9. On the point of limitation, Loan has been sanctioned on 25.03.2015; loan / security documents have been executed & delivered on dated 25.03.2015 and original application has been filed on 20.03.2018. As such, the original Application appears to have been filed well within the period of limitation.

10. Applicant Bank has stated that the outstanding balance in cash credit Account (inclusive of accrued Interest and other charges as calculated upto 15.02.2018) for a sum of **Rs.10,55,485.78** (Rupees ten lacs fifty five thousand four hundred eighty five and paise seventy eight) as on 15.02.2018, which is the amount claimed by applicant Bank in the original Application, and the defendants No.1 to 3 are, jointly and/or severally, liable to repay the said amount to the applicant Bank with *pendente lite* and future interest, till realization in full. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed further interest @ 11.15% per annum with monthly rests from 16.02.2018 till realization of the entire due in full, while in sanction letter and Demand Promissory Note dated 25.03.2015 the same rate of interest, i.e. @ 11.15% per annum, has been mentioned. Therefore, the *pendente lite* & future rate of interest @ 11.15% per annum, with quarterly rests, from 16.02.2018, is allowed.

11. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved its claim made in the O.A. The original application being TA 159 of 2019 (arising out of OA/188 of 2018) deserves to be allowed; hence allowed.

12. In view of the above, I pass the following order :-

**ORDER**

(i) T.A./159 of 2019 (arising out of O.A./188 of 2018) filed by applicant Bank, is allowed and debt is determined with cost against the Defendants No.1, 2 & 3. It is hereby ordered that the Defendants No.1, 2 & 3 are hereby directed to pay, jointly and / or severally, the total debt amount of **Rs.10,55,485.78** (Rupees ten lacs fifty five thousand four hundred eighty five and paise seventy eight) due and payable, inclusive of interest and other charges as calculated upto 15.02.2018; and interest for the period *pendente lite* and future @ 11.15% per annum, with quarterly rests, from 16.02.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan account or amount, if any, recovered by applicant Bank after filing of the Original Application, the same may be taken into account while arriving at the exact amount of dues/debt payable by the Defendants No.1 to 3. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) Defendants No.1 to 3 are debarred from transferring, alienating, encumbering or disposing of the mortgaged immovable property(s); described in Schedule 'X' at page 19 and para 3A at page 7 & 8 of the original application:

Mortgaged Immovable Property(s):

*"All that piece and parcel of land and building measuring Mouza – Chowmuha, J.L. No.176, Touzi No. 146 (SABEK), 12 (HAL), R.S. No.109, 110, L.R. Khatian No.1273, R.S. & L.R. Dag No.1516, 1574, P.S.- Shasan, A.D.S.R.O.- Barasat, District – 24-Parganas (North)."*

The Defendants No.1 to 3 are also debarred from transferring, alienating, encumbering or disposing any other property(s) and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants.

(iv) Defendants No.1, 2 & 3 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 them. In 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.1 to 3 both moveable and immoveable and also proceed against the Defendants No.2 & 3 personally to recover the dues, in accordance with law.

(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 & 3 in favour of applicant Bank under Section 19(22) of the Recovery of Debts and Bankruptcy Act, 1993 (amended from time to time) and put up the same for signature for issuance.

(vi) Ld. Recovery Officer shall realize the amount as per the Recovery Certificate from Defendants No.1, 2 & 3, in accordance with law.

(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.

**Accordingly, the Original Application, being T.A./159 of 2019 (arising out of O.A./188 of 2018) is allowed and stands disposed of.**

File be consigned to Record room.

This order is dictated and corrected by the undersigned and pronounced on this the 23^rd day of February, 2026.

Copy of the Final Order / Judgment be uploaded on the Tribunal's Website.

*Arbind Madhav* (Arbind Madhav) Presiding Officer DRT-2, Kolkata

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