PUNJAB NATIONAL BANK vs BALJINDER SINGH on 3 July 2025

1. **Baljinder Singh**, son of Gurmukh Singh of Flat No.5, 22, Matrimandir Lane, Baranagar, Kolkata – 700035,

..... Defendant

Counsel for parties:

For the Applicant Bank : Ms. Rumpa Ghosh For the Defendants : *Ex-Parte***FINAL ORDER / JUDGMENT**

Delivered on 03.07.2025

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.514 of 2018 filed in DRT-3, Kolkata on 26.06.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.27,79,659.00 (Rupees twenty seven lacs seventy nine thousand six hundred fifty nine) as on 04.05.2018 with interest @ 13.10% per annum (floating), with quarterly rests, from the date of institution of the instant application, till final realization. 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./132 of 2020 vide Ld. Registrar's order dated 07.11.2019.

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./750 of 2021 dated 05.08.2021 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 27.04.2022, such has been recorded in Ld. Registrar's order dated 27.04.2022.

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

(i) The defendant had applied to the applicant Bank for overdraft limit for the purpose of purchasing Truck LPT 2518 TC EGRO BSIV. The defendant was further requested to furnish relevant documents in support of his credibility. Upon detailed enquiry and verification, the applicant Bank being satisfied with the credibility of the defendant pleased to grant / sanction the overdraft facility to the limit of Rs.18,00,000/- (Rupees eighteen lakhs) in favour of defendant vide sanction letter dated 16.03.2012. Copy of loan application Form and sanction letter dated 16.03.2012 are annexed and collectively marked as Annexure 'A'.

(ii) In consideration of the aforesaid credit facility of Rs.18.00 lakhs, the defendant executed and delivered the following loan documents all dated 19.03.2012 in favour of applicant Bank:

- (a) Demand Promissory Note for Rs.18.00 lakhs;

- (b) Consent Letter for disclosure of information to CIBIL;

- (c) Deed of Hypothecation;

- (d) Letter of Lien.

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

5. The Defendant enjoyed the said credit facility by opening Account in erstwhile Bank's Baranagar Branch, 57, Cossipore Road, Kolkata – 700036. However, the defendants 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 the loan Account. In spite 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. on 30.09.2013. Subsequently, applicant Bank issued notice U/s 13(2) of the Sarfaesi Act, 2002 dated 20.11.2013 upon the defendant thereby demanding payment of the outstanding Bank's dues, but the defendant did not comply the said notice; copy of said notice dated 20.11.2013 is annexed and marked as Annexure 'C'. Thereafter, applicant Bank issued notices dated 20.05.2015 and 20.06.2017 upon the defendant calling upon him to repay the outstanding loan amount; copy of said notices dated 20.05.2015 and 20.06.2017 are annexed and collectively marked as Annexure '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'), and interest @ 13.10% per annum (floating) with quarterly rests, from the date of institution of the instant application, 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 Defendants by the Tribunal; service of Notice / summons by postal service has been successfully effected upon the Defendant, such has been recorded vide Ld. Registrar's order dated 31.01.2024. 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 15.05.2024. Written notes of argument has been filed by applicant Bank on 08.08.2024, 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 08.08.2024.

7. Applicant Bank has filed the Examination-in-Chief on Affidavit / evidence-on-affidavit affirmed by Somnath Basu, Chief Manager of erstwhile Bank's Baranagar Branch, 57, Cossipore Road, Kolkata – 700036 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 Mr. Monojit Sadhukhan, Asstt. Manager of Bank's Baranagar Branch, Kolkata – 700036 on 31.01.2024, such has been recorded in Ld. Registrar's order dated 31.01.2024. The documents produced by applicant Bank are exhibited and annexed at 'A-1' to 'A-9'.

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.18.00 lakhs vide sanction letter dated 16.03.2012. Applicant Bank has proved the hypothecation of movable assets – Truck, morefully described in para III.A at page 3 of the O.A.

9. On the point of limitation, Loan has been sanctioned on 16.03.2012; loan documents have been executed on 19.03.2012; original Application has been filed on 26.06.2018. Upon scrutinizing the statement of Account, it is seen that the defendant has deposited / paid for an amount of Rs.7000/- (cash deposit) in loan Account on dated 19.03.2018 confirming the outstanding balance in loan Account; 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 interests and other charges as calculated upto 04.05.2018) is **Rs.27,79,659.00** (Rupees twenty seven lacs seventy nine thousand six hundred fifty nine) as on 04.05.2018, which is the amount claimed by the applicant Bank in the original Application, and the defendant is 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 @ 13.10% per annum, while in Demand Promissory Note dated 19.03.2012 the same rate of interest, i.e. @ 13.10% per annum, with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 13.10% per annum, with quarterly rests, from 05.05.2018, is allowed.

11. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. Applicant Bank has proved to claim made in the O.A./T.A. The T.A. being T.A./132 of 2020 (arising out of O.A./514 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./132 of 2020 (arising out of O.A./514 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the sole Defendant. It is hereby ordered that the Defendant is hereby directed to pay the total debt amount of **Rs.27,79,659.00** (Rupees twenty seven lacs seventy nine thousand six hundred fifty nine) due and payable, inclusive of interest and other charges as calculated upto 04.05.2018; and interest for the period *pendente lite* and future rate @ 13.10% per annum, with quarterly rests, from 05.05.2018, 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 debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets; para III.A at page 3 of the original application, as under –

"Truck of model TATA LPT 2518, Chassis No. MAT448033C1A01564, Engine No. 21A63224263 being Registration No. WB 23C 5152."

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 him. 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 immoveable and also proceed against the sole 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 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 sole 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./132 of 2020 (arising out of O.A./514 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 03^rd day of July, 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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