Debts Recovery Tribunals and Appellate Tribunals
PUNJAB NATIONAL BANK vs M/S. MOCHA TRADING PVT. LTD. on 19 March 2024
Registered on : 16.09.2016
Decided on : 19.03.2024
IN THE DEBT RECOVERY TRIBUNAL-I AT MUMBAI
TRANSFER ORIGINAL APPLICATION NO. 1892 of 2016
PUNJAB NATIONAL BANK, (erstwhile
Oriental Bank of Commerce) A body
corporate constituted under the Banking
Companies
(Acquisition
Transfer
of
Undertaking) Act V of 1970, having their Head Office at : Plot No.4, Sector-10 Dwarka, New Delhi – 110075 and having one of its branch office at Overseas Branch, Dalamal Towers, 211, Nariman Point, Mumbai – 400021 and now Account transferred to Circle Sastra Centre Mumbai City” having its office at 6th Floor, UBI
Building Sir P. M. Road Fort, Mumbai –
400001.
...APPLICANT
VERSUS
1. M/S. MOCHA TRADING PVT. LTD.
A company registered under Companies Act, 1956, carrying on business at it’s Registered office at
53.
Anand
Bhuvan,
Banganga
Road,
Walkeshwar, Mumbai – 400006.
2. MR. ROMEN M. PATEL
Adult, Indian Inhabitant, residing at 40, Bhansali Banganga Cross Road, Walkeshwar, Mumbai –
400006.
3. MR. MOHANLAL M. PATEL
Adult, Indian Inhabitant, residing at 40, Bhansali Banganga Cross Road, Walkeshwar, Mumbai –
400006.
(since deceased represented through his Legal Heirs)
3(A). MRS. KOKILA BEN M. PATEL
Adult, Indian Inhabitant, residing at 40, Bhansali Banganga Cross Road, Walkeshwar, Mumbai –
400006.
3(B). MR. PANKAJ M. PATEL
Adult, Indian Inhabitant, residing at 40, Bhansali Banganga Cross Road, Walkeshwar, Mumbai –
400006.
3(C). MR. ROMAN M. PATEL
Adult, Indian Inhabitant, residing at 40, Bhansali Banganga Cross Road, Walkeshwar, Mumbai –
400006.
...DEFENDANTS
_____________________________________________
Counsel for the Applicant : Advocate Riya i/b O. A. Das Associates.
Counsel for the Defendant :
Ex-Parte
_____________________________________________
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J U D G M E N T
1. The present OA has been filed by the Applicant for recovery of a sum of Rs. 4,31,78,089/- (Rupees Four Crores Thirty One Lakh Seventy Eight Thousand Eighty Nine Only) along with the interest at the rate of 17.50% with monthly rests from the date of filing of this application till the date of realization.
2. Facts as succinctly set out in the OA are that Defendant No.1 is a company and Defendant No. 2 & 3 are directors of the Defendant No.1. Defendant No. 1 has approached the Applicant for Cash Credit facility for an amount of Rs. 400 Lakh and the same was sanctioned by the Applicant vide order sanction letter dt. 09.08.2010.
3. It is also stated the Defendant No.3 created has executed an equitable mortgage in respect of it’s immovable property being office No. 402, 4th Floor, Jyoti Chabers Premises Co-op. Soc. Ltd., Narsi Natha Street, Mumbai in favour of the Applicant by executed memorandum of deposit of title deeds dt.20.08.2010 and further the Defendant No.3 again extended the said equitable mortgage on 28.09.2012.
4. In order to secure the aforesaid said Cash Credit facility the Defendants the following document in favour of the Applicant Bank:-
a. Defendant No. 1 executed the Copy of Board Resolution dt.11.08.2010.
b. Defendant No.1 executed the Agreement of Hypothecation of Assets dt.13.08.2010.
c. Defendant No.1 executed the Common Agreement dt.13.08.2010.
d. Defendant No.2 executed the Agreement of Guarantee dt.20.08.2010.
e. Defendant No.3 executed the Agreement of Guarantee dt.20.08.2010.
f. Defendant No.1 executed the undertaking dt.20.08.2010.
g. Defendant No. 1 executed the NPA Declaration/Undertaking dt.12.12.2008.
h. Defendant No.1 executed a Declaration/Undertaking dt.20.08.2010.
i. Defendant No. 2 & 3 executed an Affidavit dt.01.10.2010 whereby Defendant No. 2 & 3 has disclosed his legal heirs.
j. Defendant No.2 executed a Declaration/Undertaking dt.20.08.2010.
k. Defendant No.1 has executed an Authority letter dt.20.08.2010.
l. Defendant No.2 executed two Undertaking both dt.20.08.2010.
5. It is also stated that the Defendant No. 1 again approached the Applicant for the Ad-hoc Cash Credit facility of Rs. 50 Lakh, vide its letter dt.06.06.2012 but the Applicant sanctioned Rs.40 Lakh, Ad- hoc facility in the account of Defendant No.1 vide sanction note dt.11.06.2012.
6. In order to secure the aforesaid said Ad-hoc Cash Credit facility the Defendants the following document in favour of the Applicant Bank:-
a. Defendant No.1 executed Copy of the Board Resolution dt.11.06.2012.
b. Defendant No. 1 executed supplemental agreement to secure the facility dt.28.09.2012.
c. Defendant No.2 executed an agreement of guarantee dt.28.09.2012.
d. Defendant No.3 executed an agreement of guarantee dt.28.09.2012.
7. It is further stated that to secure the aforesaid credit facilities Defendant No.3 created the mortgage it’s office No. 402, 4th Floor, Jyoti Chabers Premises Co-op. Soc. Ltd., Narsi Natha Street, Mumbai in favour of the Applicant on 20.08.2010 and further the Defendant No.3 again extended the said Equitable mortgage on 28.09.2012 and the Applicant Bank has got first charge in respect of the above stated mortgaged property.
8. However, after availing the said Home Loan Facility, the Defendant failed to adhere to the terms and conditions of the Sanction of aforesaid Credit Facility and neglected to make the payment to the Applicant bank. Therefore, the account was declared as NPA and further the Applicant issued the Demand Notice dt.09.03.2013 called upon the Defendant to make the payment of the outstanding dues but the Defendants failed to pay the dues. Hence, the present OA has been filed.
9. Notices were issued to the Defendants. Defendant No. 1 & 2 put their appearance through counsel, however, no WS has been filled.
10. During the pendency of the OA, the Defendant No.3 expired and accordingly, the Applicant moved an application (Exb.9) to bring on record the Legal Heirs of the Deceased Defendant No.3 which was allowed by this Tribunal vide order dated 03.08.2017 and Legal Heirs of deceased Defendant No.3 were impleaded in the present matter as Defendant No.3(a) to (c). Notices were issued to the Defendant No.3(a) to (c) but they failed to appear before this Tribunal thus, they were proceeded ex-parte vide order dated 06.12.2023.
11. The witness of the Applicant Bank has fully corroborated the averments made in the OA, even otherwise the whole case of the Applicant Bank is based on documents and the witness has duly proved all these documents as against the Defendants. In my view there is no question of disbelieving the evidence led by the Applicant Bank and the Applicant Bank has proved its case beyond reasonable doubt. The liability of Defendant No.1 & 2 are joint and several. The liability of Defendant No. 3(a) to 3(c) is up to the extent of estate inherited by them from the deceased Defendant No. 3.
12. In the light of above discussions, the Original Application deserves to be allowed against the Defendant No.1, 2 & Defendant No. 3(a) to 3(c).
O R D E R
(i) I allow the present OA and direct the Defendant No.1, 2 & Defendant No. 3(a) to 3(c) to pay to the Applicant Bank, within a period of 60 days, a sum of Rs. 4,31,78,089/- (Rupees Four Crores Thirty One Lakh Seventy Eight Thousand Eighty Nine Only) along with the interest at the rate of 17.50% with monthly rests from the date of filing of the present OA till its realization.
(ii) Failing which the aforesaid amount shall be recovered from the sale of hypothecated assets, mortgage property and other personal moveable and immoveable assets of the Defendants.
(iii) It is made clear that the liability of Defendant No. 3(a) to 3(c) is up to the extent of estate inherited by them from the deceased Defendant No. 3.
(iv) Defendants is hereby directed not to deal with his properties till further direction of Ld. Recovery Officer.
(v) Defendants shall also pay the cost and expenses of the OA.
(vi) Recovery Certificate be issued forthwith and be sent to the Recovery Officer of this Tribunal. Copy of this order be sent to the parties as per rules.
File be consigned to record.
Place: Mumbai.
(Dr. Rekha G. Dhakar) Date : 19.03.2024
Presiding Officer,
DRT-1, Mumbai