PUNJAB NATIONAL BANK vs RANNI V. SHAJJY VETTOORAN on 31 August 2018

**FINAL ORDER**

The Original Application is filed on 07.04.2016 under Section 19(1) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 for recovery of a sum of Rs.23,77,136.09 [Rupees Twenty Three Lakhs Seventy Seven Thousand One Hundred and Thirty Six and paise Nine only] due from the defendants together with future interest thereon @ 13.60% with monthly rests from 04.04.2016 till realization and from the assets of the defendants and personally from the defendants.

**BRIEF FACTS OF THE CASE**

1 The applicant is a Body Corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 7,

Bhikhaji Cama Place, Africa Avenue, New Delhi - 110066 and having branches all over India including one of its Branch at Palkulagara, TC29\1646-1, P.O Vallakadavu Chambakassery Jn. Palkulagara. The applicant bank is represented by its Chief Manager and Power of Attorney Holder who is competent to sign and verify this application and represent the bank in this proceedings.

2 It is submitted by the applicant that the defendants were sanctioned Cash Credit for an amount of Rs.30,00,000/- and the security documents were executed on 15.10.2010 and confirmation of balance on 31.12.2012 and on 31.12.2015 for the Cash Credit Account. The applicant bank has filed the application on 07.04.2016 under section 19(1) of the said Act, for recovery of the amount due is within the limitation prescribed under section 24 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

3 It is the case of the applicant that the defendant is the proprietrix of M/s Queens, mainly dealing in manufacture of Sambar Powder, Chicken Masala Powder, Meat masala powder and Turmeric Powder etc. At the request of the defendant, the applicant sanctioned a cash credit limit of Rs.30,00,000/- and the defendant executed loan application and Hypothecation of goods and book debts agreement hypothecating the stocks which are kept in the premises of the defendant on 15.10.2010. The defendant executed a letter of undertaking in favour of the applicant bank agreeing to the terms and conditions of the loan transactions. Balance and Security Confirmation letter was executed by the defendant confirming the balance amount of Rs.27,82,793.50 and Rs.31,23,984/- as on 31.12.2012 and 31.12.2015 respectively.

4 After availing the credit facility, inspite of repeated reminders, the defendant did not care to settle the dues and a Registered demand notice dated 08.02.2016 was issued by the applicant bank. Finally a suit notice was sent calling upon the defendants to clear the dues to which the defendants replied stating 3 options which was not agreed by the applicant bank. As per the statement of accounts of the applicant bank the total outstanding in the loan account as on 31.03.2016 is Rs.23,77,136.09 and hence the applicant was constrained to file this original application for recovery of the said amount.

5 The notice issued by this Tribunal has been duly acknowledged by the defendant on 18.08.2016 but neither the defendant appeared nor she was represented by any counsel and hence the defendant was placed exparte on 03.10.2016.

6 The evidence on the side of the applicant bank consists of the proof affidavit of its Manager, duly authorized Power of Attorney holder, AW1 and Exhibits A1 to A11 is marked on the side of applicant and closed their side of evidence.

7 Heard arguments of the applicant bank and perused the records of the case. The following points arise for my consideration:

**(i) Whether the applicant is entitled for the reliefs prayed for in the OA?**

**(ii) What order?**

My findings on the above points are as follows:- **Point No.(i): In the affirmative**

**Point No.(ii): As per final order.**

**Reasons:-**

8 The evidence of the applicant bank by way of proof affidavit of its Manager, AW1, reiterates the facts pleaded in the OA and the affidavit is corroborated by the above referred Exhibits A1 to A11 which clearly establishes the case of the applicant bank to allow the present OA. Even otherwise the whole case of the applicant bank is based on the documentary evidence and the witness has duly proved all the documents exhibited by her. It is quite evident from the documents placed on record by the applicant bank that defendant have availed the financial assistance from the respondent bank and have failed to repay the dues of the respondent bank. Added to this, it appears that the defendant did not contest the matter as he admitted the entire case of the applicant as sought for in the OA. In view of the above, the present OA is to be allowed with costs as sought by the applicant bank.

9 Having regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, the tribunal is of the view that the applicant bank is entitled to get a final order on the following lines:- 

5**ORDER**

- (a) The OA is allowed with costs.

- (b) The defendant is directed to pay a sum of Rs.23,77,136.09 [Rupees Twenty Three Lakhs Seventy Seven Thousand One Hundred and Thirty Six and paise Nine only] together with future interest on sum of Rs.23,64,608.75 [Rs. 23,77,136.09 - Penal interest of Rs.12,528.15] @11% per annum with monthly rests from 04.04.2016 till realization and also its costs from the defendant;

- (c) In the event of failure of the defendant to pay the OA claim amount, the bank is at liberty to sell the OA Schedule property of the defendant and the sale proceeds be appropriated towards the OA claim amount as required under law;

- (d) In the event of non-realization of the OA claim amount despite the sale of the mortgaged properties referred above, the bank is at liberty to proceed against the other properties of the defendant, as required under law;

- (e) Schedule property shown in the OA shall become part and parcel of the final order of the OA and Recovery Certificate of present OA;

- (f) The applicant bank shall file memo of costs within ten days from the date of this final order;

- (g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

10 The Registry is directed to communicate copy of the order to the parties concerned by speed post or registered post with AD.

[Dictated to the steno, transcribed by him, corrected by me and then pronounced in the open court on this the 31^st day of August, 2018]


<table border="1"> <tr> <td>Exh. 1</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 2</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 3</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 4</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 5</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 6</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 7</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 8</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 9</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 10</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 11</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 12</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 13</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 14</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 15</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 16</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 17</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 18</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 19</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> <tr> <td>Exh. 20</td> <td>02.07.2018</td> <td>True copy of the order of the court</td> </tr> </table>

(M. C. ...)

A P P E N D I X

Witness for Applicant:

AW1: Mr. Anil.S.A, Manager of the applicant bank.

Witness for Defendant(s): Nil

Exhibits on the part of the applicant

<table border="1"> <thead> <tr> <th><u>Ext.No</u></th> <th><u>Date</u></th> <th><u>Particulars of documents</u></th> </tr> </thead> <tbody> <tr> <td>A1</td> <td>15.10.2010</td> <td>Original loan application form of the defendant in favour of the applicant bank</td> </tr> <tr> <td>A2</td> <td>15.10.2010</td> <td>Original Hypothecation of Goods and Book debts to secure cash credit facility executed by the defendant in favour of the applicant bank</td> </tr> <tr> <td>A3</td> <td>-</td> <td>Original undertaking letter by the applicant in favour of bank</td> </tr> <tr> <td>A4</td> <td>31.12.2012</td> <td>Original Balance and Security confirmation letter</td> </tr> <tr> <td>A5</td> <td>31.12.2015</td> <td>Original Balance and Security confirmation letter</td> </tr> <tr> <td>A6</td> <td>08.02.2016</td> <td>True copy of registered demand notice issued by the applicant bank to the defendant</td> </tr> <tr> <td>A7</td> <td>29.01.2016</td> <td>True copy of the reply notice from the defendant to the applicant bank</td> </tr> <tr> <td>A8</td> <td></td> <td>Certified statement of accounts from the date of CC Account opening to 17.02.2016</td> </tr> <tr> <td>A9</td> <td></td> <td>Rate of interest chart from the date of CC Account opening to 17.02.2016</td> </tr> <tr> <td>A10</td> <td></td> <td>Worksheet of penal interest calculation from the date of CC Account opening to 17.02.2016</td> </tr> <tr> <td>A11</td> <td>08.02.2016</td> <td>Worksheet of interest calculation after NPA</td> </tr> </tbody> </table>

Defendant's Exhibits - Nil

(PRE:

**PROPERTY SCHEDULE**

All tangible movables and stocks (Spices, Sambar Powder, Chicken Masala Powder, Meat masala powder and Turmeric Powder etc. and semi-finished and finished goods including machinery/ies and its accessories, kept in the factory premises located at MPV 1349, Maranalloor, Resalpuram, Trivandrum or any other places.

[PRI

**IN THE DEBTS RECOVERY TRIBUNAL-II, KERALA AT ERNAKULAM**

Dated this the 31^st day of August, 2018

**Present: S.V.Gowramma, B.A., LL.B** **Presiding Officer**

T.A.No.616 / 2016 (OA.No.371 / 2016)

**Between**

Punjab National Bank, Trivandrum,

...Applicant

**And**

Smt. Ranni V ShajjyVettooran, Trivandrum

...Defendant

**FINAL ORDER**