PUNJAB NATIONAL BANK vs M/S SOMU TEXTRADE PVT LTD on 27 December 2023

J U D G M E N T

1. The Original Application has been filed by the Applicant against the Defendants before Ld. DRT-III, Mumbai, which stands transferred to this Tribunal as per the Govt. Notification dated 26/09/2016 and registered as TA No. 342/2016. The OA has been filed by the Applicant for recovery of Rs. 13,64,81,739.74 (Rupees Thirteen Crores Sixty Four Lakhs Eighty One Thousand Seven Hundred Thirty Nine and Paise Seventy Four Only) together with interest at the rate of 14.10 % p.a. (Compounding) with monthly rests and penal interest 2 % (simple) and other charges under the Cash Credit Facility from the date of filing application.

2. Facts as succinctly set out in the present OA/TA are that Defendant No. 1 is the company run by Defendant No. 2 & 3 who are the Directors as well as Guarantors for the Defendant No. 1.

3. It is stated that at the request of the Defendant No. 1 through its Directors, Applicant Bank vide sanction letter dated 11.01.2013 sanctioned cash credit facility of Rs. 925 Lakhs.

4. In consideration of sanction of said cash credit facility, Defendant No. 1 through its directors, Defendant No. 2 & 3 executed loaning and security documents on 15.01.2013 which includes; deed of hypothecation of goods and book debts; Deed of Hypothecation of moveable assets forming part of Fixed/ Block Assets; Agreement of Guarantee.

5. In order to further secure the said facility Defendant No. 1 has executed letter of deposit of title deeds with an intention to create equitable mortgage of Plot of land bearing Survey No. 54,55,64 & 52 situated at Village Kahir, Tal- Patan, Dist. Satara and Survey No. 479 and 428 situated at Village Salve, Tal- Patan, Dist. Satara alongwith Title Deeds respectively. Defendant No. 1 through Defendant No. 2 & 3 executed necessary documents in favour of the Applicant.

6. However, after availing the said credit facility, Defendant No. 1 became irregular to pay the outstanding dues to the Applicant thus, the account was declared as NPA on 30.09.2013. Thereafter, the Applicant issued notice dated 12.10.2013 under section 13 (2) of the SARFAESI Act, 2002, to the Defendants and called upon the Defendants to make the payment of outstanding dues. Further Applicant issued notice on 30.12.2013 under section 13 (4) of the SARFAESI Act, 2002 along with possession notice and panchnama on 26.03.2014. Thereafter, paper publication was done in two newspapers viz. Free Press and Navshakti on 30.03.2014. Hence, the present OA.

7. Notices were issued to the Defendants. Despite service, none appeared for the Defendants nor filed the WS thus, Defendant No. 3 was proceeded ex-parte vide order dated 27.06.2017, Defendant No. 1 & 2 were proceeded ex-parte vide order dated 06.12.2023.

8. The Applicant Bank has produced all the Original Loan documents and other relevant documents along with their Claim Affidavit filed through Manager Manisha Kumari.

9. I have heard the Ld. Counsel for the Applicant Bank and perused the record.

10. The witness of the Applicant Bank has fully corroborated the averments made in the OA/TA, 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 to 3 is joint and several.

11. In the light of above discussions, the Original Application filed by the Applicant Bank deserves to be allowed against the Defendants.

O R D E R

(i) I allow the present O.A. and direct the Defendant No. 1 to 3, to pay to the Applicant, jointly and severally, within a period of 60 days, a sum of Rs. 13,64,81,739.74 (Rupees Thirteen Crores

Sixty Four Lakhs Eighty One Thousand Seven Hundred Thirty Nine and Paise Seventy Four Only) together with interest at the rate of 14.10 % p.a. (Compounding) with monthly rests and penal interest 2 % (simple) and other charges under the Cash Credit Facility from the date of filing application.

(ii) Failing which the aforesaid amount shall be recovered from the sale of the hypothecated goods, mortgaged property, immoveable assets as well as other personal moveable of the Defendants.

(iii) Defendants are hereby directed not to deal with their properties till further direction of Ld. Recovery Officer.

(iv) Defendants shall also pay the cost and expenses of the OA.

(v) 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 : 27.12.2023

Presiding Officer, DRT-1, Mumbai.

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