PUNJAB NATIONAL BANK vs SANJAY KUMAR MAHATO on 31 October 2025

1. **Sanjay Kumar Mahato**, son of Birendra Prasad Mahato, Rabindra Nagar, P.O.-Noapara, P.S.- Barasat, Dist.- 24-Parganas (North), Pin – 700125.

....., Defendant

Counsel for parties:

For the Applicant Bank : Mr. Rathin Dey

For the Defendant : *Ex-Parte***FINAL ORDER / JUDGMENT**

Delivered on 31.10.2025

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.210 of 2018 filed in DRT-3, Kolkata on 22.03.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.23,39,665.83 (Rupees twenty three lacs thirty nine thousand six hundred sixty five and paise eighty three) as on 31.01.2018 with further interest at the prescribed rate per annum with monthly rests, till the period of 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 18.10.2019 and the same has been renumbered as T.A./170 of 2019 vide Ld. Registrar's order dated 02.11.2019.

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 of Punjab National Bank has been filed an I.A. being I.A./1491 of 2021 along with put-up I.A./1490 of 2021 dated 30.12.2021 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 03.01.2022, such has been recorded in Ld. Registrar-in-charge's order dated 03.01.2022.

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 a Term Loan for purchasing a commercial vehicle vide application; upon consideration of Loan Application, Applicant Bank was pleased to grant / sanction a Term Loan of Rs.16,90,000/- (Rupees sixteen lacs ninety thousand) in favour of the defendant under applicant Bank's Commercial Vehicle Scheme vide sanction letter dated 11.01.2012 and the said transport loan was covered by CGTMSE coverage; copy of said Sanction Letter dated 11.01.2012 is annexed and marked as Annexure 'A'. At the relevant point of time the rate of interest was at the base rate + 3.50% per annum (floating) with monthly rests. The said term loan was to be repaid in 84 EMIs @ Rs.33,000/- each.

(ii) In consideration of the said sanction of Rs.16.90 lakhs, the defendant executed the following security documents in favour of applicant Bank, as under:-

- (a) Demand Promissory Note dated 11.01.2012 for Rs.16,90,000/-;

- (b) Letter of Lien dated 11.01.2012;

- (c) Agreement for Hypothecation of Debts & Movable Assets on dated 10.06.2016;

- (d) Deed of Hypothecation for Transport Equipment dated 11.01.2012.

Copy of said documents are annexed and marked as Annexure 'B', 'C', 'D' & 'E'.

5. The Defendant enjoyed the said term loan facility by opening Account in Bank's Hridaypur Railway Station Road Branch, P.O.- Hridaypur, P.S.- Barasat, North 24-Parganas, Kolkata – 700127. However, the defendant failed and neglected to abide by the terms and conditions of the facility. The Defendant did not repay the agreed EMIs and overdue interests in loan Account. Inspite of repeated requests made by applicant Bank, the defendant failed to regularize the 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 demand notice dated 10.11.2012 through its 

Advocate and demand notice dated 25.05.2014 upon the defendant demanding payment of outstanding loan amount, but the defendant did not comply the said notices; copy of said demand notices dated 10.11.2012 and 25.05.2014 are annexed and marked with Annexure 'F'. Subsequently, since the defendant failed and neglected to repay the outstanding Bank's due, the applicant Bank compelled to issue demand notice dated 13.03.2018 upon the defendant through its Advocate claiming payment of entire dues, but the defendant did not pay any interest to make repayment of Bank's dues, copy of said demand notice dated 13.03.2018 is annexed and marked as Annexure 'G'. 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 'H'), and future interest at the prescribed rate per annum with monthly rests, till the period of realization, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation. The defendant has furnished the details of security / other property in 3(A) format; the same is annexed and marked with Annexure 'I' at page 47 of the original application. h

6. The Notice / summons was sent to the sole Defendant by the Tribunal. It is seen from the affidavit of service dated 14.11.2022 that the service of Notice / summons upon the Defendant by postal service has been successfully completed, such has been recorded vide Ld. Registrar's order dated 17.11.2022. 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 13.11.2024. Ld. Advocate of the applicant Bank has filed the written notes of argument on 10.09.2025 thereby stated the brief facts of the case as has been narrated in the original application. Ld. Advocates of the applicant Bank has submitted argument on dated 10.09.2025.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Smt. Krishna Das, Chief Manager of erstwhile Bank's Hridaypur Railway Station Road Branch, P.O.-Hridaypur, P.S.- Barasat, North 24-Parganas, Pin – 700127 along with the copies of original documents executed by the Defendant. Original documents have been produced by 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 Ms. Priyanka Bag, Dy. Manager of Bank's Hridaypur Railway Station Road Branch, P.O.- Hridaypur, North 24-Parganas, Pin – 700127 on 17.11.2022, such has been recorded vide Ld. Registrar's order dated 17.11.2022. The documents produced by applicant Bank are exhibited and annexed as Exhibits 'A-1' to 'A-5'.

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, unrebutted 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 term loan under Bank's commercial vehicle Scheme of Rs.16.90 lakhs. Applicant Bank has proved the hypothecated movable assets – Vehicle, described in Schedule Annexure 'J' at page 48, page 7 and para 3A at page 5 & 6 of the original application.

9. On the point of limitation, Loan has been sanctioned on 11.01.2012; documents have been executed on 11.01.2012 and 10.06.2016; original Application has been filed on 22.03.2018. 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 Term Loan Account (inclusive of accrued interest and other charges as calculated upto 31.01.2018) is **Rs.23,39,665.83** (Rupees twenty three lacs thirty nine thousand six hundred sixty five and paise eighty three) as on 31.01.2018, which is the amount claimed by 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 per annum, with monthly rests, till the period of realization, while in Demand Promissory Note dated 11.01.2012 the rate of interest thereon @ 3.50% per annum above the Base Rate, with monthly rests, has been mentioned. It is observed that the present Base Rate of Punjab National Bank is @ 9.50%. Therefore, the *pendente lite* & future rate of interest @ 13% per annum, with quarterly rests, from 01.02.2018, 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./170 of 2019 (arising out of O.A./210 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./170 of 2019 (arising out of O.A./210 of 2018), filed by 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.23,39,665.83** (Rupees twenty three lacs thirty nine thousand six hundred sixty five and paise eighty three) due and payable, inclusive of interest and other charges as calculated upto 31.01.2018; and interest for the period *pendente lite* and future rate @ 13% per annum, with quarterly rests, from 01.02.2018, 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 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 – Vehicle, described in Schedule Annexure 'J' at page 48, page 7 and para 3A at page 5 & 6 of the original application:

5T.A./170 of 2019 – DRT-2/KolHypothecated Movable Assets:

**"Maker's Name : Ashoke Leyland Ltd., Engine No. MBP125871, Chassis No. MB1CTDYC2BPMC9374, Unladen Weight – 6180 kg., Fuel – Diesel, Number of Cylinder – Six, Year of Manufacture – 2012."**

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 sixty 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./170 of 2019 (arising out of O.A./210 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 31^st day of October, 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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