PUNJAB NATIONAL BANK vs MS Mookambika Steel and Aluminium Works on 3 September 2025

1. M/s.Mookambika Steel and Aluminium Works, Door No.III/286 A, Anthikkad Gramapanchayath, Anthikad P.O. Thrissur District – 680 570, represented by its proprietor Manikandan M.T.

2. Manikandan M.T.,

S/o.Thilakan, Mannamthindiyil House, Vadakkummuri P.O., Thrissur – 680 570, Thrissur District.

…Defendants

This Original Application having been heard on 13.08.2025 in the presence of Advocates M/s.M.Mohamed Navaz and T.P.Sajan for the applicant bank and the defendants being exparte and stood over to this day for consideration, the Tribunal delivered the following: F I N A L O R D E R

This Original Application has been filed under S.19(1) of the Recovery of Debts and Bankruptcy Act, 1993 for recovery of a sum of Rs.17,82,104/- together with future interest and costs from the defendants jointly and severally and by sale of the hypothecated machinery. Facts of the case:

2. The applicant is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its head office in New Delhi and one of its branches at Thrissur.

3. The 1st defendant is a proprietary concern of the 2nd defendant. At the request of the defendants, erstwhile United Bank of India applicant bank sanctioned a cash credit limit of Rs.20 lakhs as per sanction letter dated 27.01.2011 under CGTMSE scheme. As security for the loan, stock of steel and aluminium items and machinery worth Rs.2 lakhs were hypothecated to the bank. After availing the facility, the defendants committed default in repayment and the account turned NPA on 30.09.2014. Hence the bank issued a lawyer notice to the 2nd defendant on 24.11.2014 calling upon him to repay the outstanding amount within seven days but he did not clear the liability. In such premises, the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.17,82,104/- together with pendente lite and post decree interest thereon from the defendants jointly and severally and by sale of the hypothecated machinery;

(ii) To recover the costs, charges and expenses from the defendants;

(iii) To issue Recovery Certificate to the Recovery Officer with a direction to recover the amount and pay it to the applicant bank.

4. The defendants were duly served with summons. But they neither appeared nor were they represented and hence the defendants were declared exparte on 13.11.2015. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Ms.Geetha Narayan, Manager of the applicant has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A18. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the credit facility is well established from the documents placed by the applicant bank. A sum of Rs.17,82,104/- is outstanding in the loan account as on 22.12.2014, which is clearly established from the account statements marked as Exts.A16 and A17.

6. Considering the amount advanced, interest applied, repayments effected and default committed, I am of the view that the applicant bank is entitled to get pendente lite and post-decree interest @11% per annum, which is reasonable in the facts and circumstances of the case.

7. The applicant bank, therefore, is entitled to get a final order on the following lines: In the result, the applicant bank is given a final order allowing it to recover:

(i) the sum of Rs.17,82,104/- (Rupees seventeen lakhs eighty two thousand one hundred and four only) due under the cash credit account from the defendants jointly and severally and by sale of the hypothecated items, if available;

(ii) Pendente lite and post-decree interest on the sum of Rs.17,82,104/- (Rupees seventeen lakhs eighty two thousand one hundred and four only) @11% per annum from 16.01.2015 till realization from the defendants jointly and severally and by sale of the hypothecated items, if available; and

(iii) costs and expenses borne by it for realization of the loan from the defendants.

8. The applicant bank shall file memo of costs within ten days from the date of this final order.

9. Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

10. Communicate copy of this order to both parties as provided in R.16 r/w R.2(c) of the Debts Recovery Tribunal (Procedure) Rules, 1993. (Dictated to my PA, corrected and pronounced by me in the open Tribunal on this the 3rd day of September, 2025)

[SOVAN KUMAR DASH]

A P P E N D I X Witness for Applicant: AW1: Ms.Geetha Narayan, Manager of the applicant bank. Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 27.01.2011 Sanction letter for loan under CGTMSE issued by the applicant bank and signed by the defendants. A2 27.01.2011 Agreement of term loan of Rs.20,00,000/-

A3 .. Declaration of sole proprietorship executed by the 1st defendant. A4 27.01.2011 Hypothecation agreement executed by the defendants in favour of the applicant bank. A5 27.01.2011 Demand Promissory note for Rs.20,00,000/-

A6 27.01.2011 Letter of continuity executed by the defendants. A7 27.01.2011 Letter of lien executed by the defendants in favour of the applicant bank. A8 .. Letter of renewal executed by the defendants. A9 27.01.2014 Letter of lien executed by the defendants in favour of the applicant bank. A10 27.01.2014 Demand Promissory note for Rs.20,00,000/-

A11 27.01.2014 Letter of continuity executed by the defendants. A12 27.01.2014 Hypothecation agreement executed by the defendants in favour of the applicant bank. A13 .. Balance confirmation letter executed by the defendants. A14 14.10.2014 Office copy of the letter issued by the applicant bank to the defendants.

A15 24.11.2014 Office copy of the lawyer notice issued by the applicant bank to the 2nd defendant. A16 06.01.2015 Certified copy of the statement of account relating to the cash credit facility from 28.01.2011 to 30.09.2014 along with system administration certificate. A17 06.01.2015 Certified copy of the statement of account relating to the cash credit facility from the date of NPA to 06.12.2014. A18 05.12.2014 Statement showing the rate of interest applied in the cash credit facility.

Defendants’ Exhibits – Nil

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 3rd September, 2025

TA No.1010/2016 (OA NO.26/2015)

Between

Punjab National Bank, Thrissur Branch, Lovedale Apartments, Kottappuram Road, Poothole P.O., Thrissur – 680 004. …Applicant

And

M/s.Mookambika Steel and Aluminium Works, Door No.III/286 A, Anthikkad Gramapanchayath, Anthikad P.O. Thrissur District – 680 570, represented by its proprietor Manikandan M.T. & another.

...Defendants

F I N A L O R D E R