PUNJAB NATIONAL BANK vs MR MANIK PAUL on 3 July 2025

1. 1. **Mr. Manik Paul**, son of Narayan Chandra Paul, Proprietor of M/s Paul Traders, residing at 19/1A, Bamacharan Roy Road, C.M.C.-116, Behala, Kolkata – 700034.

2. 2. **M/s Paul Traders**, having office at 127/4, Satyen Roy Branch Road, Kolkata – 700034, and factory at 212, Rashbehari Avenue, Room No. CD-49, 01^st Floor, Kolkata – 700019.

3. 3. **Smt. Sumita Paul**, wife of Mr. Manik Paul, residing at 19/1A, Bamacharan Roy Road, C.M.C.-116, Behala, Kolkata – 700034.

4. 4. **Mr. Jallaluddin Shah**, son of Md. Matin, residing at Gopalpur-1, Maheshtala, Dist.-24-Parganas (South), Pin – 700141.

..... Defendants

Counsel for parties:

<table border="0"> <tr> <td>For the Applicant Bank</td> <td>: Md. Amjad Ali</td> </tr> <tr> <td>For the Defendants</td> <td>: Ex-parte.</td> </tr> </table>

**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.266 of 2018 filed in DRT-3, Kolkata on 16.04.2018 against four Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.10,64,129.60 (Rupees ten lacs sixty four thousand one hundred twenty nine and paise sixty) as on 31.03.2018 together with further interest as per Bank's Prime Lending Rate (BPLR), till the actual payment or realization thereof. 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./230 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./328 of 2021 dated 16.03.2021 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 07.04.2021, such has been recorded in Ld. Registrar-in-charge's order dated 07.04.2021.

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, Mr. Manik Paul being the proprietor of M/s Paul Traders approached and applied to the applicant Bank for cash credit facility vide loan Application dated 01.11.2011; and the defendants No.3 & 4 are the guarantors of the said loan; copy of said loan Application dated 01.11.2011 is annexed and marked as Annexure 'A'. Upon consideration of Application, Applicant Bank was pleased to grant / sanction a cash credit facility to the limit of Rs.9,00,000/- (Rupees nine lacs) in favour of the defendants vide letter of sanction dated 04.11.2011 which was subsequently enhanced to Rs.12,00,000/- (Rupees twelve lakhs) vide letter of sanction dated 27.01.2014 on certain terms and conditions therein accepted by the defendants by putting their signatures as the borrower. Copies of letters of sanction dated 04.11.2011 & 27.01.2014 are annexed and collectively marked as Annexure 'B'.

(ii) In consideration of the aforesaid sanction of said cash credit facility, the defendants executed the following security documents in favour of applicant Bank, as under:-

- (a) Hypothecation of goods Agreement dated 04.11.2011 & 13.01.2014;

- (b) Hypothecation of Movable Plant & Machinery dated 04.11.2011, 13.01.2014 & 18.03.2016;

- (c) Letter of Lien dated 04.11.2011, 13.01.2014 & 18.03.2016;

- (d) Letter of Continuity dated 04.11.2011, 13.01.2014 & 18.03.2016;

- (e) Demand Promissory Note dated 04.11.2011, 13.01.2014 & 18.03.2016;

- (f) Balance Confirmation dated 22.03.2016;

- (g) Text of Consent Clause.

3T.A./230 of 2019 - DRT-2/Kol

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

(iii) In consideration of the aforesaid sanction of cash credit facility and in acknowledgement of the grant thereof, the defendants No.3 & 4 duly signed the Letter of Consent Clause and letter of Guarantee dated 04.11.2011 & 13.03.2014 and executed and delivered in favour of applicant Bank. Copy of said letter of Consent Clause and letter of Guarantee dated 04.11.2011 & 13.03.2014 are annexed and collectively marked as Annexure 'D'.

(iv) The defendants vide his letter dated 20.07.2017 informed the applicant Bank that he is deposited Rs.1000/- in his cash credit Account; copy of defendants' letter dated 20.07.2017 is annexed and marked as Annexure 'E'.

5. The Defendants enjoyed the said cash credit facility by opening Account(s) in Bank's Watgunj Branch, 14, Watgunj, Kolkata - 700023. 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(s). In spite of repeated requests made by applicant Bank, the defendants failed to regularize the loan Accounts. Since the defendants did not pay any attention to regularize the Account(s), the Accounts became out of order and were classified as N.P.A. Since the defendants failed and neglected to repay the outstanding Bank's due, the applicant Bank compelled to issue demand notice dated 02.04.2018 upon the defendants calling upon them to regularize their Accounts as soon as possible, but the defendants did not pay any interest to repay the Bank's dues and regularize the loan Accounts, copy of said demand notice dated 02.04.2018 is annexed and marked as Annexure 'F'. Certified copies of Statement of Accounts along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, have been filed to show and prove the dues (Annexure 'G'), and future interest as per Bank's Prime Lending Rate (BPLR) on the debt of Rs.10,64,129.60 with effect from 01.04.2018, till the actual payment or realization thereof, 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 to 4 by the Tribunal; service of Notices / summons upon the Defendants by postal service and/or hand delivery has not been successfully effected, such has been recorded vide Ld. Registrar's order dated 21.12.2023. 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 paper publication; and Ld. Advocate of the applicant Bank has brought on record the affidavit of service on publication dated 15.04.2024 upon the Defendants along with relevant portion of paper cuttings in two newspapers, namely (i) 'The Indian Express' in English and (ii) 'Aajkal' in Bengali, both dated 14.03.2024, such has been recorded vide Ld. Registrar's order dated 15.04.2024. 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 30.07.2024. Applicant Bank has filed the written notes of arguments on dated

30.07.2024 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 22.01.2025.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Malay Khandait, Branch Manager of erstwhile Bank's Watgunj Branch, 14, Watgunj, P.S.- Watgunj, Kolkata – 700023 along with 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 Sri Ashish Jaiswal, Asstt. Manager of Bank's 49/1, K.T. Sarani, Kolkata – 700023 on 22.09.2022, such has been recorded in Ld. Registrar's order dated 22.09.2022. The documents produced by the Applicant Bank are exhibited and annexed at 'A' to 'I'.

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 facility of Rs.9.00 lakhs vide letter of sanction dated 04.11.2011 and subsequently enhanced to Rs.12,00,000/- vide letter of sanction dated 27.01.2014. Applicant Bank has proved the hypothecated movable assets, described in para 3A at page 9 and page 26 to 78 (Annexure 'C') of the original application.

9. On the point of limitation, Loan has been sanctioned on 04.11.2011 and subsequently enhanced on 27.01.2014; documents have been executed on 04.11.2011, 13.01.2014 & 18.03.2016; original Application has been filed on 16.04.2018. Further, the defendants have admitted and acknowledged the debt & liability by executing Balance Confirmation letter dated 22.03.2016 acknowledging the outstanding balance in loan Account(s). 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 Accounts (inclusive of accrued interest and other charges as calculated upto 31.03.2018) is **Rs.10,64,129.60** (Rupees ten lacs sixty four thousand one hundred twenty nine and paise sixty) as on 31.03.2018, which is the amount claimed by the applicant Bank in the original Application, and the defendants No.1 to 4 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 the contractual rate, i.e. 16.10% per annum with monthly rests from 01.04.2018 till the actual payment or realization thereof, while in letters of sanction dated 04.11.2011 & 27.01.2014 the rate of interest @ 13.6% per annum and 15.10% per annum respectively, have been mentioned; also in Demand Promissory Note dated 04.11.2011 the rate of interest @ 13.50% per annum with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 13.50% per annum, with quarterly rests, from 01.04.2018, 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./230 of 2019 (arising out of O.A./266 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./230 of 2019 (arising out of O.A./266 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the Defendants No.1 to 4. It is hereby ordered that the Defendants No.1 to 4 are hereby directed to pay, jointly and / or severally the total debt amount of **Rs.10,64,129.60** (Rupees ten lacs sixty four thousand one hundred twenty nine and paise sixty) due and payable, inclusive of interest and other charges as calculated upto 31.03.2018; and interest for the period *pendente lite* and future rate @ 13.50% per annum, with quarterly rests, from 01.04.2018, 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 to 4 are debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets; described in para 3A at page 9 and page 26 to 78 (Annexure 'C') of the original application, as under –

*"Hypothecation of Goods, Plant & Machinery."*

The Defendants No.1 to 4 are also debarred from transferring, alienating, encumbering or disposing of 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 to 4 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 to 4 both moveable and immovable and also proceed against the Defendants No.1, 3 & 4 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 & 4 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, 3 & 4, 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./230 of 2019 (arising out of O.A./266 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) J. 28 Presiding Officer DRT-2, Kolkata

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