PUNJAB NATIONAL BANK vs M/S T.D. ENTERPRISE on 30 April 2025

1. **M/s T.D. Enterprise**, Proprietor: Smt. Tumpa Das, Wife of Sri Satya Das, Village – Purba Ichapur, P.O.- Kadambagachi, P.S.- Barasat, District – North 24-Parganas, Kolkata – 700125, West Bengal.

..... Defendant

Counsel for parties:

<table> <tbody> <tr> <td>For the Applicant Bank</td> <td>: Mr. Swastik Saha</td> </tr> <tr> <td>For the Defendant</td> <td>: <i>Ex-Parte</i></td> </tr> </tbody> </table>

**FINAL ORDER / JUDGMENT**

Delivered on 30.04.2025

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.595 of 2018 filed in DRT-3, Kolkata on 16.07.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.23,87,605.00 (Rupees twenty three lacs eighty seven thousand six hundred five) as on 28.06.2018 together with further interest at the prescribed rate compounded monthly rests, till the date of payment of recovery from 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 26.10.2019 and the same has been renumbered as T.A./270 of 2020 vide Ld. Registrar's order dated 10.06.2020.

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./1189 of 2021 along with put-up being I.A./1188 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) That the Defendant approached and applied the applicant Bank for financial accommodation vide loan application dated 'Nil'; copy of said loan application is annexed and marked with letter 'A'. Upon consideration of Application, Applicant Bank was pleased to grant / sanction a cash credit facility to the limit of Rs.22,50,000/- (Rupees twenty two lacs fifty thousand) in favour of the defendant vide Sanction Letter dated 17.03.2017 which is duly accepted by the defendant; copy of sanction letter dated 17.03.2017 is annexed and marked with letter 'B'.

(ii) In terms of the aforesaid sanctioned cash credit facility of Rs.22.50 lakhs, the defendant executed the following security documents all dated 17.03.2017 in favour of applicant Bank:

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

- (b) Demand Promissory Note of Rs.22,50,000/-;

- (c) Letter of Continuity;

- (d) Letter of Lien;

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

- (f) Agreement of Term Loan.

Copy of said documents are annexed and marked with letters / Annexures 'C', 'C-1', 'C-2', 'C-3', 'C-4' and 'C-5' respectively.

5. The Defendant enjoyed the said cash credit facility by opening Account in Bank's Birati Branch, at Mahajatinagar, 88, Sarat Bose Road, Kolkata – 700081. 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. Thereafter, Applicant Bank issued a demand notice dated 03.07.2018 upon the defendant through its Advocate demanding to pay the outstanding Bank's dues, but the defendant did not comply the said notice; copy of notice dated 03.07.2018 is annexed and marked with letter 'D'. 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 'E' & 'F'), and future interest at the prescribed rate with compounded monthly rests, till the date of payment or recovery from the defendant, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

6. The Notice / summons was sent / serve to the sole Defendant by the Tribunal. It is observed from the S/R on affidavit dated 15.03.2023 filed by the applicant Bank that service of Notice / summons upon the Defendant by postal service has been successfully completed, such has been recorded vide Ld. Registrar's order dated 15.03.2023. Despite service, the defendant did not appear nor filed the written statement; thus, the defendant is hereby ordered to be proceeded *ex-parte*. Ld. Advocate of the applicant Bank has submitted arguments on 11.07.2024.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Musa Karim Sardar, Senior Manager of erstwhile Bank's Birati Branch, P.S.- Airport, Dist.- North 24-Parganas, Kolkata – 700081 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 Mr. Musa Karim Sardar, Senior Manager of erstwhile Bank's Birati Branch, Dist.- North 24-Parganas, Kolkata – 81 on 18.02.2019, such has been recorded in Ld. Registrar, DRT-3's order dated 18.02.2019. The documents produced by the applicant Bank are exhibited and annexed at 'A' to 'F'.

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, unrebuted 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 cash credit limit of Rs.22.50 lakhs. Applicant Bank has proved the hypothecated movable assets of the defendant; described in Schedule 'X' at page 58 and para 3A at page 3 of the original application.

9. On the point of limitation, Loan has been sanctioned on 17.03.2017; documents have been executed on 17.03.2017; original Application has been filed on 16.07.2018. 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 cash credit Account (inclusive of accrued interest and other charges calculated upto 28.06.2018) is **Rs.23,87,605.00** (Rupees twenty three lacs eighty seven thousand six hundred five) as on 28.06.2018, 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 at the prescribed rate with compounded monthly rests from 01.07.2018, while in Demand Promissory Note dated 17.03.2017 the rate of interest @ 11.80% per annum with monthly rest, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 11.80% per annum, with quarterly rests, from 01.07.2018, 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./270 of 2020 (arising out of O.A./595 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./270 of 2020 (arising out of O.A./595 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.23,87,605.00** (Rupees twenty three lacs eighty seven thousand six hundred five) due and payable, inclusive of interest and other charges as calculated upto 28.06.2018; and interest for the period *pendente lite* and future rate @ 11.80% per annum, with quarterly rests, from 01.07.2018, 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 Schedule 'X' at page 58 and para 3A at page 3 of the original application:

"ALL THAT the Defendant present and furniture and fixtures, goods, produce, merchandise, book debts, bills, money receivables, plant and machineries, tools, equipments, implements, spare parts, stores and all other assets, rights at whichever they may be situated at including its place of business at Village – Purba Ichapur, Post Office – Kadambagachi, Police Station – Barasat, District – North 24-Parganas, Kolkata – 700125, West Bengal, India and also at residential address of the borrower at 25/10, West Rabindra Nagar, Dum Dum Cantonment, District – North 24-Parganas, Kolkata – 700065, West Bengal, India or wherever the same might be are remaining hypothecated to United Bank of India as a security for payment of its claim."

The Defendant is also debarred from transferring, alienating, encumbering or disposing any other property(s) either movable or immovable and assets belonging to him 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./270 of 2020 (arising out of O.A./595 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 30^th day of April, 2025.

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

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

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