PUNJAB NATIONAL BANK vs MR MEHBOOB ALI on 5 December 2025

Page No.

KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2

ORDER SHEET

(Continuation)

Case No. T.A./670 of 2020

Punjab National Bank (erstwhile Oriental Bank of Commerce)

vs

Mr. Mehboob Ali

<table border="1"><thead><tr><th data-bbox="130 197 205 265">Date of Order</th><th data-bbox="205 197 770 265">Order with Signature</th><th data-bbox="770 197 895 265">Office action with date and dated Signature of parties when necessary</th></tr></thead><tbody><tr><td data-bbox="130 265 205 915">19<br/>05.12.2025</td><td data-bbox="205 265 770 915"><p>Counsel for the parties:<br/>Ms. Ankita Ganguly, Ld. Advocate representing Mr. Onkar Ganguly, Ld. Counsel for the applicant Bank.<br/>None for the defendant.</p><p>T.A./670. of 2020 (arising out of O.A./642 of 2018) is allowed and disposed of.</p><p>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><p style="text-align: right;"><br/>(Arbind Madhav)<br/>Presiding Officer<br/>DRT-2, Kolkata</p></td><td data-bbox="770 265 895 915"></td></tr></tbody></table>

1

T.A./670 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. 670 of 2020** (arising out of O.A./642 of 2018)

**In the matter of** -

**Punjab National Bank** (erstwhile Oriental Bank of Commerce), 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*, at 79, Vivekananda Road, P.S.- Girish Park, Kolkata – 700006, commonly known as C.R. Avenue Branch.

..... Applicant Bank

-Versus-

**1. Mr. Mehboob Ali**, Proprietor of M/s Suhag Kangan, a Proprietorship Firm and carrying on business at 32, Munsi Sadaruddin Lane, Kolkata – 700007, West Bengal.

..... Defendant

Counsel for parties:

For the Applicant Bank : Mr. Onkar Ganguly For the Defendant : *Ex-Parte*

**FINAL ORDER / JUDGMENT** Delivered on 05.12.2025

Applicant (Punjab National Bank) erstwhile Oriental Bank of Commerce instituted the present Application being the Original Application No.642 of 2018 filed in DRT-3, Kolkata on 31.07.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of **Rs.17,76,927.00** (Rupees seventeen lacs seventy six thousand nine hundred twenty seven) including interest as calculated upto 30.06.2018 together with further interest @ 11.95% per annum with monthly rests, from 01.07.2018, till 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 18.12.2020 and the same has been renumbered as T.A./670 of 2020 vide Ld. Registrar's order dated 29.12.2020.


2. Oriental Bank of Commerce 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 G.S.R. 153(E) – in exercise of the powers conferred by Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 (40 of 1980). In view of the merger / amalgamation of Oriental Bank of Commerce into Punjab National Bank, the applicant name in this case should be read / inserted as Punjab National Bank instead of Oriental Bank of Commerce.

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./1410 of 2022 praying for amendment of Cause Title in view of amalgamation of Oriental Bank of Commerce 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 07.02.2024, such has been recorded in Ld. Registrar's order dated 07.02.2024.

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 the applicant Bank with the request to grant him credit facility vide loan Application dated 06.10.2015. Upon consideration of Loan Application, applicant Bank was pleased to grant / sanction a cash credit facility to the limit of Rs.15,00,000/- (Rupees fifteen lacs) in favour of the defendant vide Credit Report dated 17.10.2015. Copies of loan application dated 06.10.2015 and Credit Report dated 17.10.2015 are annexed and marked as Annexure 'A'.

(ii) In consideration of the aforesaid sanction of Rs.15.00 lakhs, the defendant executed and delivered the following security documents all dated 17.10.2015 in favour of applicant Bank:

- (a) Agreement of Hypothecation of Assets for Rs.15,00,000/-;

- (b) Common Agreement;

- (c) Sole Proprietorship Letter.

Copy of said documents are annexed and collectively marked with Annexure 'B', 'B-1' & 'B-2'.

5. The Defendant enjoyed the said credit facility by opening Account in erstwhile Bank's C.R. Avenue Branch, 79, Vivekananda Road, Kolkata – 700006. 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. In spite of repeated requests made by 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 31.07.2017. Thereafter, the applicant Bank issued notice dated 11.07.2018 upon the defendant

through its Advocate demanding to pay the entire dues amount with interest, but the defendant failed and neglected to repay the same; copy of said notice dated 11.07.2018 is annexed and marked with Annexure 'C'. 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 'ED'), and further interest @ 11.95% per annum with monthly rests, from 01.07.2018 till realization, has been prayed. Applicant Bank submitted that their claim in the application is within limitation.

6. The notice / summons was sent to the Defendant by the Tribunal. It is seen from the affidavit of service dated 14.03.2019 that service of Notice / summons upon the Defendant by postal service / hand service is insufficient, such has been recorded vide Ld. Registrar, DRT-3's order dated 25.06.2019. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal is directed to serve the summons upon the defendant by way of paper publication; and Ld. Advocate for applicant Bank has brought on record the affidavit of service on publication dated 09.07.2019 along with relevant portion of paper cuttings in two newspapers, namely (i) '*The Indian Express*' in English and (ii) '*Aajkal*' in Bengali, both dated 29.06.2019, such has been recorded vide Ld. Registrar's order dated 03.09.2019. Despite service, the sole defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded *ex-parte* vide order dated 03.11.2025. Applicant Bank has filed the written notes of argument on dated 13.05.2024 thereby stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted argument on 03.11.2025.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Rahul Srivastava, Chief Manager / Constituted Attorney of erstwhile Bank's C.R. Avenue Branch, 79, Vivekananda Road, Kolkata – 700006 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 documents annexed with O.A. and after verification the original documents have been returned to Sri Satyam Bharati, Sr. Manager (Law) of Bank's Resolution Recovery & Law, DD-II, Sector – I, Salt Lake, Kolkata – 700064 on 25.06.2019, such has been recorded in Ld. Registrar, DRT-3's order dated 25.06.2019. The documents produced by the Applicant Bank are exhibited and annexed as Annexure 'A' to 'D'.

I have heard the Ld. Advocate of 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 to the limit of Rs.15.00 lakhs vide Credit Report dated 17.10.2015. Applicant Bank has proved the primary security of the aforesaid credit facility was the hypothecation of movable assets; described in Schedule at page 14 and para 3A at page 6 to 8 of the original application.

9. On the point of limitation, Loan has been sanctioned on 17.10.2015; documents have been executed on 17.10.2015; original Application has been filed on 31.07.2018. 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 loan Account (inclusive of accrued interest and other charges calculated upto 30.06.2018) is **Rs.17,76,927.00** (Rupees seventeen lacs seventy six thousand nine hundred twenty seven) as on 30.06.2018, 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 @ 11.95% per annum with monthly rests from 01.07.2018, till realization; while in the Agreement of Hypothecation of Assets dated 17.10.2015 the same rate of interest, i.e. @ 11.95% per annum at monthly rests, has been mentioned. Therefore, the *pendente lite* & future rate of interest @ 11.95% 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./670 of 2020 (arising out of O.A./642 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./670 of 2020 (arising out of O.A./642 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.17,76,927.00** (Rupees seventeen lacs seventy six thousand nine hundred twenty seven) due and payable, inclusive of interest and other charges as calculated upto 30.06.2018; and interest for the period *pendente lite* and future rate @ 11.95% 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 at page 14 and para 3A at page 6 to 8 of the original application, as under:

Hypothecated Movable Assets:

"All movable items and assets including stocks of raw materials, stocks in process and finished goods of Bangles lying at 32, Munsi Sadaruddin Lane, Kolkata – 700007, West Bengal and wherever the movable items and assets lying for the business purpose of Defendant."

The sole Defendant is also debarred from transferring, alienating, encumbering or disposing any other property(s) 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 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 property(s) 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./670 of 2020 (arising out of O.A./642 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 05^th day of December, 2025.

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

(Arbind Madhav) 5.12.25 Presiding Officer DRT-2, Kolkata

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