PUNJAB NATIONAL BANK vs M/S S.B. TRADERS on 30 June 2025

Page No.

KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2

ORDER SHEET

(Continuation)

T.A./400 of 2020

Punjab National Bank (erstwhile United Bank of India)

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

Vs

M/s S.B. Traders & Ors.

<table border="1" style="width: 100%; border-collapse: collapse;"> <thead> <tr> <th style="width: 15%; text-align: center;">Date of Order</th> <th style="width: 70%; text-align: center;">Order with Signature</th> <th style="width: 15%; text-align: center;">Office action with date and dated Signature of parties when necessary</th> </tr> </thead> <tbody> <tr> <td style="vertical-align: top; padding: 10px;"> <p style="text-align: center;">18<br/>30.06.2025</p> </td> <td style="vertical-align: top; padding: 10px;"> <p>Counsel for the parties:<br/> Ms. Ahana Rakshit, Ld. Advocate representing Ms. Rumpa Ghosh, Ld. Advocate for the applicant Bank.<br/> None for Defendants.<br/> T.A./400 of 2020 (arising out of O.A./782 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> <div style="text-align: right; margin-top: 20px;"> <br/> (Arbind Madhav)<br/> Presiding Officer<br/> DRT-2; Kolkata </div> </td> <td style="vertical-align: top; padding: 10px;"></td> </tr> </tbody> </table>

1

T.A./400 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. 400 of 2020**

(arising out of O.A./782 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 Paikpara Branch, at 19/1, Raja Manindra Road, P.S.- Tala, Kolkata – 700037.

..... Applicant Bank

-Versus-

- 1. **M/s S.B. Traders**, a proprietorship firm having its place of business at 467, Jessore Road, Satgachi More, Kolkata – 700074,

- 2. **Bidhan Saha**, residing at AE – 245, Sushil Jyoti Avenue, Krishnapur, Kolkata – 700101.

- 3. **Lakshman Chandra Naskar**, residing at CF – 137, Chandiberia, P.O.- Krishnapur, Kolkata – 700102.

..... Defendants

Counsel for parties:

For the Applicant Bank : Ms. Rumpa Ghosh For the Defendants : *Ex-Parte*

**FINAL ORDER / JUDGMENT**

Delivered on 30.06.2025

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.782 of 2018 filed in DRT-3, Kolkata on 05.10.2018 against three Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.41,66,709.96 (Rupees forty one lacs sixty six thousand seven hundred nine and paise ninety six) as on 31.08.2018 with current interest @ 12.5% per annum (floating), with quarterly rests, from the date of institution of the instant application, till final realization of the entire dues. 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 

30.10.2019 and the same has been renumbered as T.A./400 of 2020 vide Ld. Registrar's order dated 20.06.2020.

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./549 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) The defendants No.2 & 3 are the partners of defendant No.1 firm engaged in trading of Ply Board & interior decoration. The defendants duly filled up the application for Bank Finance and had furnished relevant documents reflecting their credit worthiness. Upon detailed enquiry and verification, the applicant Bank being satisfied with the credibility of the defendants pleased to grant / sanction the overdraft facility of Rs.25,00,000/- (Rupees twenty five lakhs) in favour of defendant No.1 vide sanction letter dated 28.10.2005. Copy of loan application Form dated 31.08.2005 and sanction letter dated 28.10.2005 are annexed and collectively marked as Annexure 'A'.

(ii) In consideration of the aforesaid credit facility of Rs.25.00 lakhs granted to defendant No.1, the defendants No.2 & 3 executed and delivered the following loan documents all dated 28.10.2005 and 18.12.2015 in favour of applicant Bank:

- (a) Demand Promissory Note for Rs.25.00 lakhs;

- (b) Agreement for Trade Credit;

- (c) Letter of Guarantee;

- (d) Agreement for Hypothecation of debts and movable assets;

- (e) Agreement for Hypothecation of goods;

- (f) Letter of Lien.

Copy of said documents are annexed and collectively marked as Annexure 'B'.

5. The Defendants enjoyed the said credit facility by opening Account in erstwhile Bank's Paikpara Branch, 191, Raja Manindra Road, Kolkata – 700037. 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 the loan

Account. In spite of repeated requests made by the 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. on 14.12.2007. 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 'C'), and interest @ 12.5% per annum (floating) with quarterly rests, from the date of institution of the instant application, till final realization against the defendants, 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; service of Notice / summons by postal service has been successfully effected upon the Defendant No.3, such has been recorded vide Ld. Registrar's order dated 23.08.2023. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal is directed to carry-out substituted service upon the defendants No.1 & 2; and Ld. Advocate for applicant Bank has brought on record the affidavit of service on publication dated 17.10.2023 upon the Defendants No.1 to 3 along with relevant portion of paper cuttings in two newspapers, namely (i) 'The Times of India' in English and (ii) 'Aajkal' in Bengali, both dated 12.10.2023, such has been recorded vide Ld. Registrar's order dated 18.10.2023. Despite service, the defendants did not appear nor filed the written statement; thus, all the defendants were ordered to be proceeded *ex-parte* vide order dated 06.03.2024. Written notes of argument has been filed by applicant Bank on 01.08.2024, 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 09.06.2025.

7. Applicant Bank has filed the Examination-in-Chief on Affidavit / evidence-on-affidavit affirmed by Prabir Kumar Saha, Branch Manager / Authorized Officer of erstwhile Bank's Paikpara Branch, 19/1, Raja Manindra Road, Kolkata – 700037 along with the copies of original documents executed by 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 Sri Arindam Harbab, Asstt. Manager of Bank's Paikpara Branch, 19/1, Raja Manindra Road. Kolkata – 700037 on 13.12.2022, such has been recorded in Ld. Registrar's order dated 13.12.2022. The documents produced by the applicant Bank are exhibited and annexed at 'A-1' to 'A-3'.

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 overdraft facility of Rs.25.00 lakhs vide sanction letter dated 28.10.2005.

9. It is pertinent to mention that in Para III.A at page 6 and Para VI-B at page 10 of the original application applicant Bank has mentioned one immovable property being "*Land with building and a vacant plot of land situated at Chandiberia, P.S.- Rajarhat under Rajarhat Gopalpur Municipality, Ward No.15, Holding No. RGM/15/2315 in the name of Lakshman Chandra Naskar*" (hereinafter referred to as defendant No.3). Upon scrutinizing the relevant papers and documents it is observed that the aforesaid immovable property neither mortgaged nor any documentary evidence have been annexed / enclosed with the original application. Also, during pendency of the case applicant Bank has not filed any supporting documents / papers and/or any petition in respect of the said immovable property.

10. On the point of limitation, Loan has been sanctioned on 28.10.2005; documents have been executed on 28.10.2005 and 18.12.2015; original Application has been filed on 05.10.2018. It is seen that the defendants executed and delivered the Demand Promissory Note on dated 18.12.2015. As such, the original Application appears to have been filed well within the period of limitation.

11. Applicant Bank stated that the outstanding balance in loan Accounts (inclusive of accrued interests and other charges as calculated upto 31.08.2018) is **Rs.41,66,709.96** (Rupees forty one lacs sixty six thousand seven hundred nine and paise ninety six) as on 31.08.2018, which is the amount claimed by the applicant Bank in the original Application, and the defendants No.1, 2 & 3 are, jointly and/or severally, liable to repay the said amount to the applicant Bank with *pendente lite* and future interest, till realization. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest @ 12.5% per annum (floating) with quarterly rests from the date of institution of the instant application, till final realization; while in Demand Promissory Note dated 18.12.2015 the same rate of interest @ 12.50% per annum with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 12.50% per annum, with quarterly rests, from 01.09.2018, till realization in full, is allowed.

12. 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 T.A./400 of 2020 (arising out of O.A./782 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./400 of 2020 (arising out of O.A./782 of 2018) filed by the 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.41,66,709.96** (Rupees forty one lacs sixty six thousand seven hundred nine and paise ninety six) due and payable, inclusive of interest and other charges as calculated upto 31.08.2018; and interest for the period *pendente lite*

and future @ 12.50% per annum, with quarterly rests, from 01.09.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan accounts 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 No.1, 2 & 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 hypothecated movable assets; described in Annexure at page 51 to 77 of the original Application, as under –

*"Hypothecation of goods and movable assets."*

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

(iv) Defendants No.1, 2 & 3 are 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 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 both moveable and immovable 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 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./400 of 2020 (arising out of O.A./782 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 30^th day of June, 2025.

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

(Arbind Madhav) 30.6.25 Presiding Officer DRT-2, Kolkata

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