PUNJAB NATIONAL BANK vs SHOBHA RATHI on 20 March 2025

Page No.

KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2

ORDER SHEET

(Continuation)

Case No. T.A./252 of 2019

Punjab National Bank (erstwhile United Bank of India)

Vs

Shobha Rathi

<table border="1"><thead><tr><th data-bbox="111 187 184 251">Date of Order</th><th data-bbox="184 187 755 251">Order with Signature</th><th data-bbox="755 187 885 251">Office action with date and dated Signature of parties when necessary</th></tr></thead><tbody><tr><td data-bbox="111 251 184 904"><p>16<br/>20.03.2025</p></td><td data-bbox="184 251 755 904"><p>Counsel for the parties:<br/>Ms. Shreyasi Sen, Ld. Advocate representing Ms. Rumpa Ghosh, Ld. Counsel for the applicant Bank.<br/>None for the defendant.<br/>T.A./252 of 2019 (arising out of O.A./288 of 2018) is allowed and disposed of.<br/>Final order / Judgment is in separate sheet of 5 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="755 251 885 904"></td></tr></tbody></table>

1

T.A./252 of 2019 – 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. 252 of 2019

(arising out of O.A./288 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*, through its Baguiati Branch, at Baguiati Road, Desh Bandhu Nagar, Baguiati, P.S.- Baguiati, Kolkata – 700059.

..... Applicant Bank

-Versus-

- 1. **Shobha Rathi**, Proprietor of M/s Stitch Arts, wife of Kanhaiya Lal Rathi, having its factory at AC – 120, Prafulla Kanan (West), Krishnapur, Kolkata – 700101, and residing at NB 1, North Arjunpur, Baguiati, Kolkata – 700059.

..... Defendant

Counsel for parties:

<table border="0"> <tr> <td>For the Applicant Bank</td> <td>: Ms. Rumpa Ghosh</td> </tr> <tr> <td>For the Defendant</td> <td>: <i>Ex-Parte</i></td> </tr> </table>

**FINAL ORDER / JUDGMENT**

Delivered on 20.03.2025

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.288 of 2018 filed in DRT-3, Kolkata on 20.04.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.42,45,742.34 (Rupees forty two lacs forty five thousand seven hundred forty two and paise thirty four) as on 02.02.2018 together with further interest @ 10.65% per annum (floating) with quarterly rests, till final realization against the defendant. 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 19.10.2019 and the same has been renumbered as T.A./252 of 2019 vide Ld. Registrar's order dated 28.10.2019.

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./555 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 17.12.2021, such has been recorded in Ld. Registrar-in-charge's order dated 17.12.2021.

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

(i) That the Defendant approached and applied the applicant Bank with the request for bank finance vide loan application dated 22.06.2009. Upon consideration of loan application, Applicant Bank was pleased to grant / sanction a credit facility to the limit of Rs.21,09,000/- (Rupees twenty one lacs nine thousand) in favour of the defendant vide Sanction Letter dated 07.07.2009 which is duly accepted by the defendant; copy of loan application dated 22.06.2009 and sanction Letter dated 07.07.2009 are annexed and marked with letter / Annexure 'A'.

(ii) In consideration of the said sanctioned credit facility of Rs.21,09,000/-, the defendant executed and delivered the Demand Promissory Note, Hypothecation Agreement, Agreement for Term Loan dated 07.07.2009. Copies of said documents are annexed and collectively marked as Annexure 'B'.

5. The Defendant enjoyed the said credit facility by opening Account in Bank's Baguiati Branch, at Baguiati Road, Desh Bandhu Nagar, P.S.- Baguiati, Kolkata – 700059. However, the defendant failed and neglected to abide by the terms and conditions of the facility. The Defendant did not repay the outstanding Bank's dues and overdue interests in loan Account. Inspite of repeated requests made by the applicant Bank, the defendant 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 loan amount, the applicant Bank compelled to issue notice dated 13.11.2017 upon the defendant demanding payment of outstanding loan amount; the notice was though received by the defendant or her authorized representative on 18.11.2017 but the defendant did not comply with the said notice, copy of said notice dated 13.11.2017 is annexed and marked with letter / Annexure 'C'. 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 'D'), and future interest @ 10.65% per annum (floating) with quarterly rests, till final realization against the defendant, has been prayed. Applicant Bank submitted that their claim in the application is within limitation.

6. The Notice / summons was sent to the sole Defendant by the Tribunal. It is observed that service of Notice / summons upon the Defendant by postal service and hand delivery has not been successfully effected, such has been recorded vide Ld. Registrar-in-charge's order dated 04.03.2024. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal was directed to serve the summons / notice upon the defendants by way of substituted service; and Ld. Advocate of the applicant Bank has brought on record the affidavit of service on publication dated 25.06.2024 upon the Defendant along with relevant portion of paper cuttings in two newspapers, namely (i) 'The Indian Express' in English and (ii) 'Aajkal' in Bengali, both dated 20.04.2024, such has been recorded vide Ld. Registrar's order dated 25.06.2024. Despite service, the defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded *ex-parte* vide order dated 04.09.2024. Applicant Bank has filed the written notes of arguments wherein stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted arguments on 19.02.2025.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Subodh Kumar Sharma, Sr. Branch Manager of erstwhile Bank's Baguiati Branch, at Baguiati Road, Desh Bandhu Nagar, Baguiati, Kolkata – 700059, along with the copies of original documents executed by the Defendant. 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 Sri Arnab Majumder, Asstt. Manager of Bank's Baguiati Branch, at Baguiati Road, Desh Bandhu Nagar, Baguiati, Kolkata – 700059 on 05.10.2023, such has been recorded in Ld. Registrar's order dated 05.10.2023. The documents produced by the applicant Bank are exhibited and annexed at 'A-1' to 'A-4'.

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.21,09,000/-. Applicant Bank has proved the hypothecated movable assets of the defendant; described in para III.A at page 5A of the original application.

9. On the point of limitation, Loan has been sanctioned on 07.07.2009; documents have been executed on 07.07.2009; original Application has been filed on 20.04.2018. Applicant Bank issued a notice dated 13.11.2017 upon the defendant thereby infirming her Special Compromise Scheme to settle the NPA Account through OTS and the same was duly received by the defendant on 18.11.2017. As such, the original Application appears to have been filed well within the period of limitation.

10. Applicant Bank stated that the outstanding balance in Loan Account (inclusive of accrued interest and other charges calculated upto 02.02.2018) is **Rs.42,45,742.34** (Rupees forty two lacs forty five thousand seven hundred forty two and paise thirty four) as on 02.02.2018, which is the amount claimed by the applicant Bank in the original Application, and the sole defendant is 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 @ 10.65% per annum (floating) with quarterly rests from the date of institution of the instant application, but it is seen that the rate of interest column is showing blank in Sanction Letter and Demand Promissory Note dated 07.07.2009. Therefore, in my view, the *pendente lite* & future rate of interest which has been claimed by applicant Bank in original application i.e. @ 10.65% per annum, with quarterly rests, from 03.02.2018, is allowed.

11. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved to claim made in the O.A. Hence, the O.A./T.A. being T.A./252 of 2019 (arising out of O.A./288 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./252 of 2019 (arising out of O.A./288 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the Defendant. It is hereby ordered that the Defendant is hereby directed to pay the total debt amount of **Rs.42,45,742.34** (Rupees forty two lacs forty five thousand seven hundred forty two and paise thirty four) due and payable, inclusive of interest and other charges as calculated upto 02.02.2018; and interest for the period *pendente lite* and future rate @ 10.65% per annum, with quarterly rests, from 03.02.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendant 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 Defendant. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) The defendant is debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets, described in Annexure 'B' at page 28 to 38 and para III.A at page 5A of the original application; "Goods, Book Debts, Plant & Machineries."

The Defendant is also debarred from transferring, alienating, encumbering or disposing any other property(s) either movable or immovable and assets belonging to her till the aforesaid adjudicated debt amount are recovered from the Defendant.

(iv) The defendant is given a time of forty-five days from the date of this Final Order / Judgment for repayment of the above mentioned dues, so intimated to them. In case the Defendant fails 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 Defendant both moveable and immovable and also proceed against the Defendant 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 sole Defendant 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 Defendant, 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./252 of 2019 (arising out of O.A./288 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 20^th day of March, 2025.

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

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

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