PUNJAB NATIONAL BANK vs NEW SANKHASREE AND ANR on 28 September 2020

1. New Sankhasree 105, Raj Kumar Mukherjee Road, police Station Baranagar, Kolkata - 700035,24 parganas North

2. Sri Radhe Shyam Dutta, son of Late Anil Chandra Dutta, proprietor of New Sankhasree, 43/t/8, p.K. Saha Lane, police Station Baranagar, Kolkata 7003 6 Counsel for the Applicant Bank: - Counsel Applicant Bank. Defendants. Sri Debasis Bhandari , Ld ... Set ex-parte on 03.01.2020

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2. Counsel for the Defenda nts:- ]UDGEMENT This is an Original Application under Section 19 of the Recovery of Debts 0ue to Banks and Financial Institutions Act, 1993 initiated by the applicant against the defendant Nos. 1 and 2 praying for issuance of Recovery Certificate to the tune of Rs. 11,S0,575.11 (Rupees eteven lacs fifty thousand five hundred seventy five and eleven paise) together with interest, cost and other usual reliefs. The brief facts of the case as made out in the Original Application by the applicant bank is that the defendant No. 1 is a proprietorship firm ()

and is carrying on Sankhasree" through Defendant No. 2.

business under the name and style of "New its proprietor namely Sri Radhe Shyam Dutta, 3,

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5. following security documents: - i) Demand promissory Note dated 05.10 2010 ii) Hypothecation of movable plant and machlnery executed on 0 s. 10.2 0 10 Hypothecation of goods executed on 05 10 2010 Hypothecation of debts and movable assets executed on 05 10 2010 Letter of Lien dated 05.10.2010 Letter of continuity dated 05.10.2010 As per the representation of the defendant No' 2, the cash credit limit of the defendant No. 1 was revised by the Applicant Bank to Rs.9,50,0OO/- through letter dated 18 03 2011 which was accepted by the defendant No. 2. The defendant No 2 also executed three documents on 18.03.2011 Declaration of sole proprietorship in Form No. D6 dated 18 03'2011 A letter dated 18.03.2011 in Form No. D 40 Demand Promissory Note of Rs. 9,50,000/- dated 18 03'2011 The defendant No. t had a cash credit account with the Applicant Bank since long which was enhanced From time to time On 05.10.2010 the defendant further requested the Applicant Bank for enhancement of the cash credit Iimit. The Applicant Bank after proper consideration, enhanced the Cash Credit limit from Rs. 9,50,000/- to Rs 12,00,000/- which will be repaid on demand by issuing a sanction letter on 05 10'2010' In consideration of the said sanction the defendant No' 1 executed the iii) iv) v) vi)

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7. After availing the loan, the defendants had utilized the said loan amounts in his business and operated the loan accounts at the initial stage but subsequently the defendants had failed to operate the said loan accounts in terms of the agreement between the parties as a result of which the loan accounts became irregular and was declared as NPA on 07.06.2072" A sum of Rs. 11,50,575'11 (Rupees eleven lacs fifty thousand five hundred seventy five and eleven paise) is due against the defendants which the defendants had not paid despite of repeated demands and request. Finding no other way to recover the dues of the bank, the applicant bank had filed this Original Appllcation for the recovery of the aforesaid amount and for the issuance of Recovery Certificate against the defendants. Notices were issued to the defendants to show cause as to why the relief prayed for by the applicant bank be not granted After issuance of the notice, the defendants had appeared through their Counsel but the defendants failed to file the show cause reply and absented themselves from the proceedings. Consequently, the said defendants were set ex-parte. The Tribunal had no other option but to hear ex- parte against the defendants. I have heard the learned Counsel perused the relevant documents. The defendants had not contested Thus, the point for determination in of the applicant bank is within time utilized the loan facilities granted deFendants are liable to the amount for the applicant bank and have B, 9, 1o.

11. The applicant bank by oral and documentary evidence has established its case. The documentary evidence comprises from Ex - 1 to Ex - 14 which are available in paper book flled by the applicant bank. the case of the applicant bank. this case is (i) Whether the claim ? (il) Whether the defendants had by the bank ? (iii) Whether the due to the applicant bank or not ? a-

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74. From the perusal of the documents referred above and the certified copy of the statement of account, which ls filed as Ex-1 to Ex 14' it is established that the defendants had availed the financial facilities from the applicant bank and had withdrawn the amount through the account. The oral testimony comprises of an affidavit of Mr' Abinash Srivastava, son of Sri Sheo Nath Prasad, working as Branch Manager of the Applicant Bank's Baranagar Branch at premises No 57, Cossipore Road, Police Station - Cosslpore, Kolkata -700057 The averments in the application and the facts stated by the witness of the applicant in his affidavit are unrebutted. From the perusal Annexure/Exhibit- 14, (Rupees eleven lacs eleven paise) which defendants. of the Statement of Account which is the total outstanding comes to Rs. 11,50,575.11 fifty thousand five hundred seventy five and the applicant bank is entitled to recover from the

15. ln view of the above discussion and after considering the entire evidence-on-affidavit of the applicant bank and the documents filed by the applicant bank, I have no hesitation to hold that the applicant bank is entitled to recover a sum of Rs. 11,50,575.11 (Rupees eleven lacs fifty thousand five hundred seventy five and eleven Paise) from the defendants who are liable for the same. The applicant bank shall also be entitled to pendentelite and future interest on the said amount @ 72,? 5o/o per annum with simple from the date of filing of the Original Application till the date of realization. o\

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ORDER

T,A, No. 916 of 2014 filed by the Applicant Bank is allowed and debt is determined with cost against the defendants. It is hereby ordered that applicant bank is entitled to recover from the defendants the total amount to the tune of Rs. 11,50,575,11 (Rupees eleven lacs fifty thousand flve hundred seventy five and eleven paise) with pendentelite and future interest @ 12.75a/o per annum with simple on the amount due from the date of filing of the Original Application, i.e. 24th September, 2013 till fult and final realization of the claim amount. Amount, if any, paid by the defendants in the loan accounts or arnount, if any, recovered by the App icant Bank after filing of the O.A. the same be taken into account while arriving at the exact amount of dues/debt payable by the defendants. Accordingly, pendentelite and future interest shall be calculated on the reduced amount. Defendants are debarred from disposing, alienating or dealing with any of the properties belonging to defendants till the aforesaid decretal debt is recovered from the defendants. Defendants are given a time of thirty days from the date of the ludgement/Final Order for repaying 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 assets, if any. Applicant bank is also entitled to proceed against personal proper es of the defendants (Both movabe and immovable) and also proceed against the defendants personally to recover the dues in accordance with law. O

(5) Let the certificate of ReJSvery be drawn up by Ld. Registrar forthwith in terms of ludgement for issuance of the same against defendants in favour of the applicant bank under Section 19 (22) of the Recovery of Debts and Bankruptcy Act, 1993 and put up the same for issuance of the Certificate.

(6) Ld. Recovery OFficer shali realize the amount as per the Recovery Certificate from the defendants in accordance with law.

(l) Ld. Registrar of this Tribunal is directed to deiiver recovery certificate in term of the final order/judgement for recovery of the sum against the defendants in favour of the Applicant Bank under Section 19 (22) of the Recovery of Debts due to the Bank and Financial Institutions Act, 1993 now known as Recovery of Debts and Ba n k ruptcy Act, 199j. (B) The parties are directed to appear before the Recovery Officer on 17.11.2020 for further action in accordance with law in the event the entire amount is not paid by the said date. Accordingly, the Original Application being T.A. No. 916 of 2014 is allowed and stands disposed of. Copy of the Judgement/Final Order be uploaded in the Tribunal,s website, i,?f:x',".H"#ilJi inqffiHffiX",i; i?ii,i'sfuiir$^f.ts-0,0, y''rr*s-"*a ( ANIL KUMAR CHATURVEDI PRESIDING OFFICER.

LA. 916 of201,1 'liilf rL" order pronounced (vide separate sheets). t iniled Banl of India New Sankhasree & ors In the result, T.A. No. 916 of 2014 is allowed with costs. Issue Recovery Certificate accordingly. A'* t*'*"4$Y, (A.K. Chatunedi) Pr!'siding Olficer I)R I-i. Kolkata.