Punjab National Bank vs KARAMJIT KAUR on 7 November 2024

1. **Karamjit Kaur**, wife of Gurbal Singh, Flat No.12, 22, Matrimandir Lane, Baranagar, Kolkata – 700035.

..... Defendant

Counsel for parties:

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

-Delivered on 07.11.2024

Applicant (Punjab National Bank) erstwhile United Bank of India instituted the present Application being the Original Application No.818 of 2018 filed in DRT-3, Kolkata on 12.10.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs. 16,54,231.00 (Rupees sixteen lacs fifty four thousand two hundred thirty one) as on 30.06.2018 together with further interest @ 15% per annum (floating), with quarterly rests, from 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 30.10.2019 and the same has been renumbered as T.A./632 of 2020 vide Ld. Registrar's order dated 09.12.2020.

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./831 of 2021 praying for amendment of Cause Title in view of amalgamation of United Bank of India with Punjab National Bank vide G.O.1. 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 23.12.2021, such has been recorded in Ld. Registrar-in-charge's order dated 23.12.2021.

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 of overdraft limit for the purchase of purchasing Truck LPT 2518 TC EGRO BSIV; upon consideration of Loan Application, Applicant Bank was pleased to grant / sanction a credit facility to the limit of Rs.18,00,000/- (Rupees eighteen lacs) in favour of the defendant vide Sanction Letter dated 26.03.2012; copy of Loan Application Form and sanction communication dated 26.03.2012 is annexed and marked as Annexure 'A'.

(ii) In consideration of the said sanction of Rs.18.00 lakhs, the defendant executed various security documents in favour of applicant Bank all dated 28.03.2012:

- (a) Demand Promissory Note for Rs.18,00,000/-;

- (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 Bank's Baranagar Branch, 57, Cossipur Road, Kolkata – 700036. 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 30.09.2013. Subsequently, due to non-payment of outstanding dues, the defendant surrendered the mortgaged vehicle and the applicant repossessed the mortgaged vehicle on 20.08.2016, the said letters of surrender and repossession are annexed and marked as Annexure 'C'. Thereafter, the applicant Bank sold the mortgaged vehicle by way of e-Auction on 22.02.2017 for Rs.8,80,000/- and issued Certificate of Sale in favour of auction purchaser incurring loss on sale; copy of Certificate of Sale dated 22.02.2017 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 @ 12.15% 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 limitation.

6. The notice / summons was sent to the Defendant by the Tribunal; service of Notice / summons upon the Defendant by postal service has not been effected, such has been recorded vide Ld. Registrar's order dated 11.09.2023. 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 08.02.2024 upon the Defendant along with relevant portion of paper cuttings in two newspapers, namely (i) 'The Statesman' in English and (ii) 'Dainik Statesman' in Bengali, both dated 10.01.2024, such has been recorded vide Ld. Registrar's order dated 08.02.2024. 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 21.05.2024. Written notes of argument has been filed by the applicant Bank on 07.11.2024, wherein stated 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 Madhumita Sengupta, Chief Manager of erstwhile Bank's Baranagar Branch, 57, Cossipur Road, Kolkata – 700036 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 Saket Kumar Jha, Senior Manager of Bank's Baranagar Branch, Kolkata – 700036 on 06.05.2022, such has been recorded in Ld. Registrar's order dated 06.05.2022. 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 overdraft facility to the limit of Rs.18.00 lakhs. .

9. On the point of limitation, Loan has been sanctioned on 26.03.2012; documents have been executed on 28.03.2012; original Application has been filed on 12.10.2018. It is observed that the movable asset (Truck) sale value of Rs.8,80,000/- has been credited / deposited in loan Account on 16.03.2017. 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.16,54,231.00** (Rupées sixteen lacs fifty four thousand two hundred thirty one) 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 @ 12.15% per annum (floating) with quarterly rests from the date of institution of the instant application, while in Demand Promissory Note dated 28.03.2012 the rate of interest @ 13.10% per annum with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 12.15% 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./632 of 2020 (arising out of O.A./818 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./632 of 2020 (arising out of O.A./818 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.16,54,231.00** (Rupees sixteen lacs fifty four thousand two hundred thirty one) 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 @ 12.15% 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 any other property(s) either movable or immovable and assets belonging to her 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 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./632 of 2020 (arising out of O.A./818 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 07^th day of November, 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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