PUNJAB NATIONAL BANK vs ALLIED CRAFT PRODUCT AND ANR on 7 September 2026

1. Allied Craft Products, a proprietorship firm of Tarun Paul, having its office and/or carrying on business at 1/A, Vivekananda Nagar Lane, North 24-Parganas, Kolkata

- 700130.

2. Tarun Paul, Son of late Sri Bimal Pauk, proprietor of Allied Craft Products - having its office and/or carrying on business at '1lA, Vivekananda Nagar Lane, North 24- Parganas, Kolkata - 700130. . Defendants Counsel for parties: For the Applicant Bank For the Defendants ttlr. Saudip Pal Choudhuri (Pal Choudhuri & Co - Lawfirm). Ex-Parte. RDER / JUDGME Delivered on 07 .09.2026 Applicant (Punjab National Bank) erstwhile Oriental Bank of Commerce instituted the present Application being the Original Application No.248 of 2018 filed in DRT-3, Kolkata on 05.04.2018 againsttwo Defendants under Section 19(1) of the Recovery of Debts & BankruptcyAct, 1993 (amended from time to time) for recovery of the dues amount of Rs.76,75,758.00 (Rupees seventy six lakh seventy five thousand seven hundred fifty eight) including interest as calculated upto 28.02.2018 together with interesl pendenti lite and further @ 10.25o/o per annum with monthly rests, from 01.03.2018, 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/DRArKOL1201g(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3',s Order dated 19.10.2019 and the same has been renumbered dT.A.l197of2o1gvideLd.Registrar,sorderdated02.11.2019. T.A. No. 197 of 2019 (Arising out of O.A.1248 of 2018)

T.A.1197 of 2019 - DRT-2/Kol

2. Oriental Bank of Commerce has been merged / amalgamated into Punjab National Bank vide Gazette Notification dated [Vlarch 04,2020, issued by the Government of lndia published under Extraordinary Part-ll, Section 3, sub-section (i) in the Gazette of lndia in terms of Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970. ln view of the merger / amalgamation of Oriental Bank of Commerce into Punjab National Bank, the applicant Name in this case should be read as Punjab National Bank instead of Oriental Bank of Commerce.

3. ln accordance with the Notice dated 30.07.2020 of this Tribunal, Ld. Advocate for Punjab National Bank has filed a petition being l.A./1309 of 2022 dated 07.09.2022 praying for amendment of Cause Title in view of amalgamation of Oriental Bank of Commerce with Punjab National Bank vide G.O.l. 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 on28.02.2024, such has been recorded in Ld. Registrar's order dated 28.02.2024.

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

(i) The Defendant No.1 is the proprietorship firm and the defendant No.2 is the proprietor of the said firm. At the request of the defendants, applicant Bank was pleased to sanction a cash credit facility of Rs.5,00,000/- (Rupees five lakh) to the defendants vide sanction letter dated 01.09.2003. The said facility was enhanced time to time, i.e. on 08.02.2005, 11 .03.2006, 17 .01 .2008, 23.10.2009 and lastly on 10. 11 .2010 from erstwhile Bank's Madhyamgram Branch on hypothecation of business assets and collateral security covered under CGTMSE. Further, at the request of the defendant by way of an application, applicant Bank was pleased to enhance the cash credit facility to the limit of Rs.60,00,000.00 (Rupees sixty lakh) in favour of defendants vide sanction letter dated 18.10.2011. The said sanction is collaterally secured under CGTMSE. Copy of said sanction letter dated 18.10.2011 is annexed and marked with Letter'A'.

(ii) !n acknowledgement of granting the enhanced credit facility to the overall limit of Rs.60.00 lakh, the defendant No.2 being the proprietor of defendant No.1 duly executed the following loan documents all dated 10.11.2010 in favour of applicant Bank:

(a) One Sole Proprietorship letter;

(b) One Common agreement;

(c) One Supplemental Agreement to secure credit / loan facilities' Copy of said documents are annexed and marked with Letters'A-1','A-2'&'A-3' respectivelY.

(iii) The defendants acknowledged and admitted the said credit facility on dated 1g.10.2011 by executing Balance and Security Confirmation Letters dated 18.10.2011 and 15.01 .2013 in favour of applicant Bank, and the defendant also applied one loan application on dated 21.12.2015 for working capital purpose for an amount of Rs'70'00 -c

I.4.1197 of 2019 - DRT-2/Kol lakh and also acceptance letters dated 12.05.2015 and 23.06.2015 on behalf of Allied Craft Products. Copy of said documents are annexed and collectively marked with Letter'A-4'.

5. The Defendants enjoyed the said credit facility by opening Account(s) in erstwhile Bank's Madhyamgram Branch, Dist.- North 24-Parganas, Kolkata -700129. 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). lnspite 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 / served a demand and/or recall notice dated 01 .03.2018 upon the defendants through its Advocate demanding to repay the outstanding loan amount, but the defendants did not comply with the said notice; copy of notice dated 01 .03.2018 is annexed and marked with letter'A-5'. 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-6'), together with interest pendenti lite and further @ 10.25% per annum with monthly rests from 01 .03.2018, 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 notices / summons was sent to the Defendants No.1 & 2 by the Tribunal. lt is seen from the S/R on affidavit dated 08.11 .2024 and its enclosures that service of summons upon the Defendants is successful, such has been recorded vide Ld. Register's order dated 11.11.2024. 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 dated 30.06.2025. Applicant Bank has filed the written notes of argument thereby stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted argument on dated 15.07.2026.

7. Applicant Bank has filed the evidence on Affidavit affirmed by K.C. Panda, l/anager of erstwhile Bank's DD-tl, Sector-1, Salt Lake, RRL Kolkata 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 documents annexed with O.A. and after verification the original documents have been returned to Sri Ajoy Kumar Saha, Sr. lvlanager of Bank's Madhyamgram Branch, Dist.- North 24-Parganas, Kolkata - 7OO12g on2g.08.2023, such has been recorded in Ld. Registrar's order dated 29.08.2023. The documents produced by applicant Bank are exhibited and annexed as Exhibits'A' & 'A-1'to'A-6'. I have heard the Ld. Advocate of the applicant Bank and perused the records. g. Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, un- rebutted 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 dcilityofRs.5.00Lakhvidesanctionletterdated01.09.20o3;subsequently,enhancedthe

T.A.1197 of 2019 - DRT-2/Kol said facility to the limit of Rs.60.00 lakh vide sanction letter dated 18.10.2011. The aforesaid credit facilities secured by hypothecation of business assets and collateral security covered under CGTMSE; described in para 3,A at page 7 & 8 of the original application.

9. On the point of limitation, Loan has been sanctioned on 01.09.2003; and subsequently enhanced the facility on dated 18.10.2011; loan / security documents have been executed on dated 10.11 .2010 and original application has been filed on 05.04.2018. Further, the defendant applied one loan application on dated 21.12.2015 for working capital purpose for an amount of Rs.70.00 lakh and also acceptance letters dated 12.05.2015 and 23.06.2015 on behalf of Allied Craft Products, the defendant No.1. As such, the originalApplication appears to have been filed wellwithin the period of limitation.

10. Applicant Bank has stated that the outstanding balance in cash credit Account (inclusive of accrued lnterest and other charges as calculated upto 28.02.2018) for a sum of Rs.76,75,758.00 (Rupees seventy six lakh seventy five thousand seven hundred fifty eight) as on 28.02.2018, which is the amount claimed by applicant Bank in the original Application, and the defendants No.1 & 2 are, jointly and/or severally, liable to repay the said amount to the applicant Bank wllh pendente lite and future interest, till realization in full. I allow the claim as made by the applicant Bank in the originalApplication. Applicant Bank has prayed interest pendentilite and further @ 10.25Yo per annum with monthly rests from 01 .03.2018, till realization of the entire due in full, while in the Supplemental Agreement dated 10.11.2010 the rate of interest @ 2Yo per annum over and above the normal rate of interest as agreed under the agreement, has been mentioned. Therefore, the pendente lite & future rate of interest which has been claimed by applicant Bank in the original application, i.e. @ 10.25o/o per annum, with quarterly rests, from 01.03.2018, is allowed.

11. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. TheApplicant Bank has proved its claim made in the O.A. The originalapplication being T.A.1197 of 2019 (arising out of O.A.l24B of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./1 97 of 2O1g (arising out of O.A.1248 of 2018) filed by applicant Bank, is allowed and debt is determined with cost against the Defendants No.1 & 2. lt is hereby ordered that the Defendants No. 1 &2 are hereby directed to pay, jointly and / or severally, the total debt amount of Rs.76,75,258.00 (Rupees seventy six lakh seventy five thousand seven hundred fifty eight) due and payable, inclusive of interest and other charges as calculated upto 2g.02 .2018; and interest for the period pendente lite and future @ 10.25% per annum, _yith quarterly rests, from 01 .03.2018, till realization of the entire sum due and recoverable' ^e-

f .4.1197 of 2019 - DRT-2/Kol

(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 & 2. Accordingly, the pendente lite and future interest shall be calculated on the reduced amount.

(iii) Defendants are debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets. The aforesaid credit facilities secured by hypothecation of business assets and collateral security covered under CGTII/SE; described in para 3A at page 7 & 8 of the original application. " Hypothecated Movable Assefs. " The Defendants No.1 & 2 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 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. 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 property(s) of the defendants No.1 & 2 both moveable and immoveable and also proceed against the Defendant No.2 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 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, 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.1197 of 2019 (arising out of O.A.t248 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 07th day of September,2026. oaded on the Tribunal's Web A lt/a Presiding "/-rr.! fr;r r tb Copy of the Final Order / Judgment be upl DRT-2, Kolkata r/r