PUNJAB NATIONAL BANK vs M/S DEEPI KNITTING on 7 February 2025

Page No.

KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2

ORDER SHEET (Continuation)

Punjab National Bank

T.A./111 of 2020

Case No. \_\_\_\_\_

Vs M/s Deepi Knitting & Anr.

<table border="1"><thead><tr><th data-bbox="131 214 208 278">Date of Order</th><th data-bbox="208 214 766 278">Order with Signature</th><th data-bbox="766 214 893 278">Office action with date and dated Signature of parties when necessary</th></tr></thead><tbody><tr><td data-bbox="131 278 208 920"><p>20<br/>07.02.2025</p></td><td data-bbox="208 278 766 920"><p>Counsel for the parties:<br/>Mr. Swastik Saha, Ld. Advocate with Mr. Arpan Bose, Ld. Advocate for the applicant Bank.<br/>None for the defendants.<br/>T.A./111 of 2020 (arising out of O.A./394 of 2018) is allowed and disposed of.<br/>Final order / Judgment is in separate sheet of 6 pages.<br/>File be consigned to record room.<br/>Order be uploaded on the Tribunal's website.</p><p style="text-align: right;"><br/>(Arbind Madhav)<br/>Presiding Officer<br/>DRT-2, Kolkata</p></td><td data-bbox="766 278 893 920"></td></tr></tbody></table>

1

T.A./111 of 2020 – DRT-2/Kol

**DEBTS RECOVERY TRIBUNAL - 2, KOLKATA**

Jeevan Sudha Bldg. 07^th Floor, 42/C, J.L. Nehru Road, Kolkata – 700071

**Before Shri Arbind Madhav, Presiding Officer**

**T.A. No. 111 of 2020**

(arising out of O.A./394 of 2018)

**In the matter of** -

**Punjab National Bank** (erstwhile United Bank of India), 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 Banking business, *inter-alia*, at Habra Branch, situated at Ganguly Mansion, Jessore Road, Habra, District – North 24-Pargans, Pin – 743263.

..... Applicant Bank

-Versus-

- 1. **M/s Deepi Knitting**, Proprietor: Smt. Chameli Behera, Wife of Ranjeet Behera, 37/1, Gour Banga Road, By Lane-2, Vill.- Banipur, Purba Para, P.O.- Banipur, P.S.- Habra, District – North 24-Parganas, Pin – 743233, West Bengal.

- 2. **Ranjeet Behera**, Son of Late Prahllad Behera, 37/1, Gour Banga Road, By Lane-2, Vill.- Banipur, Purba Para, P.O.- Banipur, P.S.- Habra, District – North 24-Parganas, Pin – 743233, West Bengal.

..... Defendants

Counsel for parties:

For the Applicant Bank : Mr. Swastik Saha For the Defendants : Ex-parte.

**FINAL ORDER / JUDGMENT**

Delivered on 07.02.2025

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.394 of 2018 filed in DRT-3, Kolkata on 18.05.2018 against two Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.40,94,913.23 (Rupees forty lacs ninety four thousand nine hundred thirteen and paise twenty three) as on 28.02.2018 together with interest thereon at the rate prescribed as amended from time to time compounded with monthly rests, till the date of payment or recovery from the defendants. 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

21.10.2019 and the same has been renumbered as T.A./111 of 2020 vide Ld. Registrar's order dated 06.11.2019.

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 for Punjab National Bank has filed a petition being I.A./1183 of 2021 along with put-up I.A./1182 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 the Tribunal necessary amendment in cause title has been carried out by Ld. Advocate of the applicant Bank on 08.10.2021, such has been recorded in Ld. Registrar-in-charge's order dated 08.10.2021.

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 a proprietorship concern namely M/s Deepi Knitting, represented by its proprietor, Smt. Chameli Behera. That the Defendants No.1 & 2 jointly approached and applied the applicant Bank with the request to grant an overdraft facility under United Mortgage Loan Scheme vide application dated 05.08.2014; copy of said loan application dated 05.08.2014 is annexed and marked with Letter 'A'. Upon consideration of loan application, Applicant Bank was pleased to grant / sanction a credit facility by way of overdraft to the limit of Rs.35,00,000/- (Rupees thirty five lacs) in favour of the defendants vide sanction Letter dated 18.08.2014 for working capital requirements of her manufacturing of woolen garments business; copy of said Sanction Letter dated 18.08.2014 duly accepted by defendant No.1 is annexed and marked with Letter 'B'.

(ii) In consideration of the said sanction of Rs.35.00 lakhs, the defendants executed the following security documents in favour of applicant Bank all dated 18.08.2014, are as under:-

- (a) Declaration on execution of documents;

- (b) Declaration of sole proprietorship;

- (c) Text of the consent clause from the borrower along with documents;

- (d) Demand Promissory Note of Rs.35,00,000/-

- (e) Letter of Continuity;

- (f) Letter of Lien;

- (g) Agreement under Mortgage Loan Scheme;

- (h) Hypothecation Agreement (Goods, Book Debts, Plant & Machineries)

Copy of said documents are annexed and marked with Letters 'C', 'C-1', 'C-2', 'C-3', 'C-4', 'C-5', 'C-6' & 'C-7' respectively.

(iii) Pursuant to the applicant Bank having granted credit facilities to the defendants, the defendant No.2 has created equitable mortgage in respect of his immovable property, morefully described in para 5 (VII) at page 8 and para 3A at page 3 & 4 of the O.A., by deposit of Title Deed being No.195 for the year 2007 with the applicant Bank. The defendant No.2, Ranjeet Behera also confirmed the deposit of Title Deed by executing letter of confirmation for deposit of Title Deed dated 18.08.2014. Copy of title deed and a copy of Parcha along with English translated version of the Bengali Sale Deed and letter of confirmation to deposit of title deeds, are annexed and marked with letter 'D', 'D-1' & 'D-2'.

5. The Defendants enjoyed the said credit facility by opening Account in Bank's Habra Branch, at Ganguly Mansion, Jessore Road, Babra, Dist.- North 24-Parganas. 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. Inspite of repeated requests made by the applicant Bank, the defendants failed to regularize the loan Account. Since the defendant did not pay any attention to regularize the Account, the Account became out of order and was classified as N.P.A. Since the defendant failed and neglected to repay the outstanding Bank's due, the applicant Bank issued reminder notice dated 15.06.2015 upon the defendants requested them to maintain regular transaction; copy of said reminder notice dated 15.06.2015 is annexed and marked with Letter 'E'. Applicant Bank was sent another reminder notice dated 26.06.2015 to the defendants and requested them to make repayment of loan overdue amounts and requested to maintain regular transactions in loan Account; copy of said reminder notice dated 26.06.2015 is annexed and marked with Letter 'F'. To avail the sanctioned credit facilities and confirmed the balance of the loan accounts, the defendant No.1 executed the necessary security documents on dated 21.09.2015 in favour of applicant bank, i.e. (a) Demand Promissory Note and (b) Balance Confirmation. Copies of said documents are annexed and collectively marked with Letter 'G'. Since there was no transactions made in loan account and no overdue amount have been paid by the defendants, applicant Bank compelled to issue demand notice U/s 13(2) of the Sarfaesi Act, 2002 dated 03.04.2017 along with the statement of Account upon the defendants calling upon them to pay a sum of Rs.37,14,015.23, but the defendants did not pay any interest to repay the Bank's dues, copy of said notice dated 03.04.2017 is annexed and marked with Letter 'I'. Thereafter, applicant Bank issued a possession notice under Rule 8(1) dated 13.07.2017 upon the defendants, but the defendants did not comply the said notice; the same were served upon the defendants and affixed on the outer door of the mortgaged property. Copy of said possession notice dated 13.07.2017 are annexed and marked with Letter 'J'. The said possession notice were published in two leading daily newspapers, one in vernacular and another in English; copy of newspaper publication dated 18.07.2017 are annexed and marked with Letter 'K'. Since the defendants has failed and neglected to make payment of outstanding Bank's dues, applicant Bank issued a demand notice on dated 19.04.2018 upon the defendants through its Advocate and the same were received by defendants No.1 & 2 on April 20, 2018; copy of said demand notice dated 19.04.2018 and the postal consignment track reports are annexed and marked with Letter 'L'. 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 'M'), and future interest at prescribed rate compounded monthly rests, from 01.03.2018, till the date of payment or recovery from the defendants, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

6. The Notices / summons were sent to the Defendants No.1 & 2 by the Tribunal; service of Notices / summons upon the Defendants by postal service has been successfully completed, such has been recorded vide Ld. Registrar's order dated 22.08.2023. 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 30.01.2024. Ld. Advocate of the applicant Bank has submitted arguments on 21.06.2024.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Anil Kumar, Chief Manager of erstwhile Bank's Babra Branch, P.S.- Habra, Dist.- North 24-Parganas along with the copies of original documents executed by the Defendants. Original documents have been produced by the 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 Mr. Anil Kumar, Chief Manager of erstwhile Bank's Babra Branch, Ganguly Mansion, Jessore Road, Habra, Dist.- North 24-Parganas on 25.01.2019, such has been recorded in Ld. Registrar's order dated 25.01.2019. The documents produced by the applicant Bank are exhibited and annexed at 'A' to 'M'.

I have heard the Ld. Advocate for the Applicant Bank and perused the records.

8. 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. Applicant Bank has proved the sanction of credit limit of Rs.35.00 lakhs. Applicant Bank has proved the mortgaged immovable properties, morefully described in para 5 (VII) at page 8 and para 3A at page 3 & 4 of the O.A.

9. On the point of limitation, Loan has been sanctioned on 18.08.2014; documents have been executed on 18.08.2014; original Application has been filed on 18.05.2018. As such, the original Application appears to have been filed well within the period of limitation. The defendant No.2 created equitable mortgage in respect of his immovable property by depositing title deed being No.195 for the year 2007 in favour of applicant Bank. Further, the said defendant No.2 confirmed the creation of mortgage by executing the letter of confirmation for deposit of Title Deed on dated 18.08.2014. As per law 12 years period from the date of mortgage is available to the applicant Bank to enforce it's claim (Article 62 Schedule I of Limitation Act); hence, on the basis of mortgage created on 18.08.2014, the claim / original Application is filed well within the period of limitation as prescribed u/s 24 of RDB Act, 1993 (as amended from time to time)

10. Applicant Bank stated that the outstanding balance in loan Account (inclusive of accrued interest and other charges calculated upto 28.02.2018) is **Rs.40,94,913.23** (Rupees forty lacs ninety four thousand nine hundred thirteen and paise twenty three) as on 28.02.2018, which is the amount claimed by the 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 with *pendente lite* and future interest, till realization of entire dues. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest at prescribed rate with compounded monthly rests from 01.03.2018 till the date of payment or recovery from the defendants, while in Demand Promissory Note dated 18.08.2014 the rate of interest @ 11.75% per annum with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 11.75% 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. The Applicant Bank has proved to claim made in the O.A. Hence, the O.A./T.A. being T.A./111 of 2020 (arising out of O.A./394 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./111 of 2020 (arising out of O.A./394 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the Defendants No.1 & 2. It is hereby ordered that the Defendants No.1 & 2 are hereby directed to pay, jointly and / or severally the total debt amount of **Rs.40,94,913.23** (Rupees forty lacs ninety four thousand nine hundred thirteen and paise twenty three) due and payable, inclusive of interest and other charges as calculated upto 28.02.2018; and interest for the period *pendente lite* and future rate @ 11.75% per annum, with quarterly rests, from 01.03.2018, 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 the 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. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) The defendants No.1 & 2 are debarred from transferring, alienating, encumbering or disposing of the mortgage immovable property; morefully described in para 5 (VII) at page 8 and para 3A at page 3 & 4 of the original application, are as under –

*"Bengali Sale Deed (Saaf Bikroy Kobala) No.195 for the year 2007, registered in the office of the Additional District Sub-Registrar at Habra, North 24-Parganas, West Bengal, recorded in Book No.I, Volume No.4, Pages from 19 to 22, being No.195 for the year 2007 and all that piece and parcel of "Bastu" land measuring about 2.63 decimals be the same or a little more or less along with a two storied residential cum commercial building located and situated in the District – North 24-Parganas, Police Station & A.D.S.R.- Habra, Mouza – Asrafabad, J.L. No.84, Touzi No.14, L.R. Khatian No.879, L.R. Khatian*

*No.2935 (in the name of Ranjeet Behera), R.S. & L.R. Dag No.1824, P.S.- Habra under local jurisdiction of Habra Municipality, Holding No.37/1, of Banipur Purba Para, The aforesaid property stands in the name of Sri Ranjeet Behera."*

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

(iv) The 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. 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 properties, as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendants No.1 & 2 both moveable and immovable and also proceed against the Defendants 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 the 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./111 of 2020 (arising out of O.A./394 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 07^th day of February, 2025.

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

(Arbind Madhav) Presiding Officer DRT-2, Kolkata

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