Punjab National Bank vs SANTOSH SAHA on 27 June 2024

Page No.

KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2

ORDER SHEET (Continuation)

TA/308 of 2019 (O.A./303 of 2018)

Punjab National Bank (Erstwhile United Bank of India)

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

Vs

Santosh Saha

<table border="1"> <thead> <tr> <th data-bbox="115 203 195 275">Date of Order</th> <th data-bbox="195 203 770 275">Order with Signature</th> <th data-bbox="770 203 903 275">Office action with date and dated Signature of parties when necessary</th> </tr> </thead> <tbody> <tr> <td data-bbox="115 275 195 930"> <p>15<br/>27.06.2024</p> </td> <td data-bbox="195 275 770 930"> <p>Counsel for the parties:<br/> Ms. Swarnali Dutta, Ld. Advocate representing Ms. Rumpa Ghosh, Ld. Counsel for the applicant Bank.<br/> None appears for the defendants.<br/> T.A./308 of 2019 (arising out of O.A./303 of 2018) is allowed and disposed of.<br/> Final order / Judgment is in separate sheet.<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="770 275 903 930"></td> </tr> </tbody> </table>

1

TA/308 of 2019 – 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. 308 of 2019**

(arising out of O.A./303 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 Dum Dum Branch, at 1, Rastraguru Avenue, P.S.-DumDum, Kolkata – 700028.

..... Applicant Bank

-Versus-

- 1. **Santosh Saha**, proprietor of 'Sandip Steel Furniture' of 3/1, Hari Mohan Dutta Road, Dum Dum Cantonment, Kolkata – 700028.

..... Defendant

Counsel for parties:

For the Applicant Bank : Ms. Rumpa Ghosh, Ld. Advocate For the Defendant : *Ex-Parte*

**FINAL ORDER / JUDGMENT**

Delivered on 27.06.2024

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.303 of 2018 filed in DRT-3, Kolkata on 26.04.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.36,03,867.76 (Rupees thirty six lacs three thousand eight hundred sixty seven and paise seventy six) as on 03.04.2018 together with further interest @ 15.95% per annum (floating) , with quarterly rests, for 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 21.10.2019 and the same has been renumbered as T.A./308 of 2019 vide Ld. Registrar's order dated 29.10.2019.

- 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

2. TA/308 of 2019 – DRT-2/Kol

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./579 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 10.12.2021, such has been recorded in Ld. Registrar-in-charge's order dated 10.12.2021.

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 cash credit limit vide application; upon consideration of Loan Application, Applicant Bank was pleased to grant / sanction a cash credit facility to the limit of Rs.35,00,000/- (Rupees thirty five lacs) in favour of the defendant vide Sanction Letter dated 08.08.2012; copy of said Sanction Letter dated 08.08.2012 is annexed and marked as Annexure 'A'.

(ii) In consideration of the said sanction of Rs.35.00 lakhs, the defendant executed the following security documents in favour of applicant Bank all dated 10.08.2012, are as under:-

- (a) Demand Promissory Note for Rs.35,00,000/-;

- (b) Letter of Hypothecation of Goods,

- (c) Hypothecation Agreement;

- (d) Letter of Lien;

- (e) Letter of Continuity;

- (f) Letter of Guarantee.

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

5. The Defendant enjoyed the said cash credit facility by opening Account in Bank's Dum Dum Branch, G.T. Road, 1, Rastraguru Avenue, Kolkata – 700028. 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 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 31.03.2018. Thereafter, Applicant Bank issued letter dated 10.03.2017 upon the defendant confirming the overdue amount in the Account, but the defendant did not comply the said letter; copy of said letter dated 10.03.2017 is annexed and marked with Annexure 'C'. Subsequently, since the defendant failed and neglected to repay the outstanding Bank's due, the applicant Bank compelled to issue demand notice dated 03.04.2018 upon the defendant claiming 3TA/308 of 2019 – DRT-2/Kol payment of outstanding dues, but the defendant did not pay any interest to repay the Bank's dues, copy of said demand notice dated 03.04.2018 is annexed and marked as Annexure 'D'. Certified copies of Statement of Account along with Certificate under Bankers' Books Evidence Act, with interest calculation sheet, have been filed to show and prove the dues (Annexure 'E'), and future interest @ 15.95% per annum (floating), with quarterly rests, from the date of institution of the O.A., till final realization, has been prayed. Applicant Bank submitted that their claim in the Application is within limit.

6. The Notice / summons was sent to the sole Defendant by the Tribunal; service of Notice / summons upon the Defendant by postal service / hand delivery has been successfully completed, such has been recorded vide Ld. Registrar's order dated 15.01.2024. Ld. Advocate of the applicant Bank has filed a petition being I.A./579 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 10.12.2021. 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 25.04.2024. Ld. Advocate of the applicant Bank has filed the written notes of argument on 27.06.2024 wherein stated that the brief facts of the case as has been narrated in the original application.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Debasish Bhattacharya, Branch Manager of erstwhile Bank's DumDum Branch, 1, Rastraguru Avenue, Kolkata – 700028 along with the copies of original documents executed by the Defendant. 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 Abhijit Bhattacharjee, Senior Manager of Bank's DumDum Branch, 1, Rastraguru Avenue, Kolkata – 700028 on 28.02.2023, such has been recorded in Ld. Registrar's order dated 28.02.2023. The documents produced by the Applicant Bank are exhibited and annexed at '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, un-rebutted 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 limit of Rs.35.00 lakhs. Applicant Bank has proved the hypothecated movable assets of the defendant.

9. On the point of limitation, Loan has been sanctioned on 08.08.2012; documents have been executed on 10.08.2012; original Application has been filed on 26.04.2018. It is observed that the applicant Bank had issued letter dated 10.03.2017 to the defendant thereby confirming the outstanding balance and overdue interest in the Account, and the defendant has acknowledged receipt of the said letter by putting his signature on the same (Annexure 'C'). As such, the original Application appears to have been filed well within the period of limitation.

4TA/308 of 2019 – DRT-2/Kol

10. Applicant Bank stated that the outstanding balance in cash credit Account (inclusive of accrued interest and other charges calculated upto 03.04.2018) is **Rs.36,03,867.76** (Rupees thirty six lacs three thousand eight hundred sixty seven and paise seventy six) as on 03.04.2018, 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 @ 15.95% per annum (floating) with quarterly rests from the date of institution of the instant application, while in Demand Promissory Note dated 10.08.2012 the rate of interest @ 15.95% per annum with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest which has been claimed by applicant Bank in O.A., i.e. @ 15.95% per annum, with quarterly rests, from 04.04.2018, 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./308 of 2019 (arising out of O.A./303 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./308 of 2019 (arising out of O.A./303 of 2018), filed by the 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.36,03,867.76** (Rupees thirty six lacs three thousand eight hundred sixty seven and paise seventy six) due and payable, inclusive of interest and other charges as calculated upto 03.04.2018; and interest for the period *pendente lite* and future rate @ 15.95% per annum, with quarterly rests, from 04.04.2018, 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 Annexure 'B' at page 4 of the original Application:

*"Hypothecation of Goods."*

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 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 5TA/308 of 2019 - DRT-2/Kol also entitled to proceed against personal properties of the Defendant both moveable and immoveable 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./308 of 2019 (arising out of O.A./303 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 27^th day of June, 2024.

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

(Arbind Madhav) Presiding Officer DRT-2, Kolkata

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