IN THE DEBTS RECOVERY TRIBUNAL-I,

4TH FLOOR, JEEVAN TARA BUILDING, 5, PARLIAMENT STREET,

NEW DELHI

S.A. NO. 139 OF 2016

IN THE MATTER OF: -

PUNJAB NATIONAL BANK …APPLICANT

VERSUS

Punjab & Sindh Bank & Others ...RESPONDENTS

MEMO OF PARTIES
BETWEEN

PUNJAB NATIONAL BANK, A BODY

CORPORATE CONSTITUTED UNDER
THE PROVISIONS OF THE BANKING
COMPANIES (ACQUISITION &
TRANSFER) UNDERTAKING ACT, 1970,
HAVING ITS HEAD OFFICE AT 7,
BHIKHAIJI CAMA PLACE, AFRICA
AVENUE, NEW DELHI-110066, AND
HAVING ITS BRANCHES THROUGHOUT
INDIA INCLUDING ONE AT: ARMB, D-5,
Local Shopping Complex, Vasant Vihar,
NEW DELHI, THROUGH: MANAGER, SH.
RAJESH KUMAR, AVAILABLE AT: ARMB,
D-5, Local Shopping Complex VASANT
VIHAR, NEW DELHI.

….APPLICANT BANK

VERSUS

1. PUNJAB & SINDH BANK

SECTOR-12 PLOT NO. 5, PANKAJ PLAZA,
DWARKA, NEW DELHI-110075.

2. M/S KRISHNA POLYPACK

A SOLE PROPRIETOR FIRM OF
DR. C.S. YADAV

H.No.-766/9, STREET NO. 7

PALAM COLONY, RAJ NAGAR II
DWARKA SECTOR-8,
NEW DELHI-110045

ALSO AVAILABLE AT:

H.No. 767/10, Street No.7,

PALAM COLONY, RAJ NAGAR II
DWARKA SECTOR-8,
 NEW DELHI-110045

3. C.S. YADAV
SOLE PROPRIETOR OF:
M/S KRISHNA POLYPACK
HAVING OFFICE AT
H.No.-766/9, STREET NO. 7
PALAM COLONY, RAJ NAGAR II
DWARKA SECTOR-8,
NEW DELHI-110045

ALSO AVAILABLE AT:

H.No. 767/10, Street No.7,

PALAM COLONY, RAJ NAGAR II
DWARKA SECTOR-8,
NEW DELHI-110045

…RESPONDENTS

APPLICANT
PUNJAB NATIONAL BANK

THROUGH:

(____________________)
MANAGER/CONSTITUTED ATTORNEY

THROUGH:

Sondhi Narula Dalal & Associates

Law Offices
C-633 [LGF], New Friends Colony
New Delhi-110065
MOB: 9871863446
Email: info@sndlawyer.com
Dated: .04.2017
New Delhi
 IN THE DEBTS RECOVERY TRIBUNAL-I,
4TH FLOOR, JEEVAN TARA BUILDING, 5, PARLIAMENT STREET,
NEW DELHI

S.A. NO. 139OF 2016

IN THE MATTER OF: -

PUNJAB NATIONAL BANK … APPLICANT

VERSUS

Punjab & Sindh Bank & Others ... RESPONDENTS

APPLICATION UNDER SECTION 17 OF THE SECURITIZATION &

RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF
SECURITY INTEREST ACT, 2002
1. PARTICULARS OF THE APPLICANT:

i) Name of the Applicant:

Punjab National Bank, a body corporate constituted under The Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its
Head Office at 7, Bhikaji Cama Place, New Delhi-110066 and inter-alia,
ARMB at Vasant Vihar, New Delhi.

ii) Address of Head Office:

Bhikaji Cama Place, New Delhi- 110 066.

iii) Address for service of all notices:

(a) Punjab National Bank, ARMB, _____________________, New Delhi

(b) SANGEETA SONDHI, ADVOCATE, C-633 New Friends Colony New

Delhi-110065.

2. PARTICULARS OF THE RESPONDENT:-

i) Name of the Respondents

a. Respondent No.1
Punjab & Sind Bank

b. Respondent No.2
M/s Krishna Polypack

c. Respondent No.3
Dr. C.S.Yadav

ii) Address for services of all notices:

 a. Respondent No.1
Sector-12 Plot NO. 5, Pankaj Plaza,
Dwarka, New Delhi-110075.

b. Respondent No.2
H.No.-766/9, STREET NO. 7
PALAM COLONY, RAJ NAGAR II
DWARKA SECTOR-8,
NEW DELHI-110045

ALSO AVAILABLE AT:

H.No. 767/10, Street No.7,

PALAM COLONY, RAJ NAGAR II
DWARKA SECTOR-8,
NEW DELHI-110045

Respondent No.3

H.No.-766/9, STREET NO. 7

PALAM COLONY, RAJ NAGAR II
DWARKA SECTOR-8,
NEW DELHI-110045

ALSO AVAILABLE AT:

H.No. 767/10, Street No.7,

PALAM COLONY, RAJ NAGAR II
DWARKA SECTOR-8,
NEW DELHI-110045

4. JURISDICTION OF THE TRIBUNAL:

The Applicant Bank declares that the subject matter of the application
falls within the jurisdiction of this Hon’ble Tribunal. The Branch of the
Applicant Bank from where the loan was disbursed is situated within
the jurisdiction of this Hon'ble Tribunal. Further the cause of action i.e.
the loaning documents and security documents were executed at Jor
Bagh Branch, of the Applicant Bank at Delhi, which is within the
jurisdiction of this Hon'ble Tribunal. The properties in respect of which
the present application is being filed are situated within the jurisdiction
of this Hon’ble Court. Hence, this Hon’ble Tribunal has territorial as well
as pecuniary jurisdiction to try and entertain the present Original
Application.

5. LIMITATION:
The Applicant Bank submits that the application is within the period of
limitation as prescribed under the provisions of section 17 of SARFAESI
ACT, 2002. It is submitted that about the e-auction by the Respondent
 No.1 of the properties mortgaged with the applicant bank came into
knowledge of applicant bank through the publish Public Notice for E-
Auction for sale of immovable properties on 29.04.2016 in newspaper.

6. FACTS OF THE CASE

I. That the Applicant Bank is a Body Corporate constituted under
the Banking Companies (Acquisition & Transfer of Undertakings)
Act, 1970, having its head office at 7, Bhikhaiji Cama Place,
Africa Avenue, New Delhi-110066, and inter alia ARMB, D-5,
Local Shopping Vasant Vihar, New Delhi.

II. That_________________, Manager/principal officer, constituted

attorney of the applicant bank is converse with the facts of the
case. Sh._________________ is duly constituted attorney of the
Applicant Bank and empowered to sign, verify, institute Plaint,
Securitization Application, Counter Claim, Cross Suits, all
interlocutory applications, defend any suit and proceeding of any
nature whatsoever initiated against the Applicant Bank, swear
affidavits, execute documents, engage counsel and to do all acts
as may be found incidental and as may be necessary or
consequential thereto. Sh. _____________, Manager, holds a
Bank’s General power of attorney. Copy of General Power of
Attorney is annexed herein as Annexure “A”.

III. The Respondent No. 1 is a nationalized bank having one of its

branch at Sector-12 Plot NO. 5, Pankaj Plaza, Dwarka, New
Delhi-110075. Respondent No.2 is a sole proprietary of the
Respondent No.3. The Respondent No.3 has been the proprietor
thereof for all material times and for all material purpose, infact
Respondent No.2 is the manifestation of Respondent No.3 only
and any reference to either of them, shall be construed as
reference to both of them unless and until the context so
otherwise provides.

IV. The Respondent No.3 being sole proprietor of Krishna Polypack

i.e. the Respondent No.2 approached the Applicant bank for
sanction of credit facilities for furtherance of his business for
 manufacturing of HDPE Bags and plastic granules etc. The
Respondent No.3 submitted a loan application form dated
14.12.2010 for the sanction of the cash credit facility and grant
of the inland letter of credit.

V. On request and assurance of Respondent No. 2 & 3 the

Applicant bank sanctioned and lent cash credit facilities to tune
of INR 110 lacs (Indian Rupees Hundred and ten lacs Only) and
Inland letter of credit to the tune of INR 40 lacs (Indian Rupees
Forty Lacs Only) through sanction letter dated 04.01.2011. It is
pertinent to mention here that the Respondent No.3 claimed that
he has not availed loan facilities from any other bank or financial
institute for same business and all the assets to be kept as
collateral security are free from all encumbrances. The terms
and conditions for this cash credit facility were duly accepted by
the Respondent No.3 . The entire loan amount was disbursed to
the Respondent No.3 as per its requirement. Copies of the Loan
Application form dated 14.12.2010 and sanction letter dated
04.01.2011 are annexed herein as Annexure “B” and
Annexure “C” respectively.

VI. That in consideration of the sanctioning of the Cash Credit

facility and Inland Letter of Credit, the Respondent No.3 ,
executed the following documents to secure the loan:
i. Master agreement for inland documentary credit dated
12.01.2011.

ii. Deed of Hypothecation of good and book debts to secure the

cash credit facility dated 12.01.2011.

iii. Agreement of Personal Guarantee dated 12.01.2011

executed by the Respondent No.3.

VII. The credit facilities i.e. Cash Credit Facilities and Inland Letter of
Credit granted to the Respondent No.2 were secured against
hypothecation of machinery goods and book debts as primary
security. In order to further secure the loan, the equitable
mortgage was created by Respondent No.3. The Respondent No.3
deposited the tile documents of the mortgage properties. Copy
 of Sale deed dated March 2003 and 15th September 2006 is
annexed herein as Annexure “D” & Annexure “F”
respectively. The Detail of properties along with documents
submitted with bank are as follows:

i. Sale Deed dated 15.09.2006 with regard to Residential

House no. 767/10B, Street No. 7, Raj Nagar 2, Palam Colony,
Dwarka Sector 8, New Delhi – 110045.

ii. Sale Deed dated march 2003 with respect to Residential

House no. F766/9, Street No. 7, Raj Nagar 2, Palam Colony,
Dwarka Sector 8, New Delhi – 110045.

iii. Lease Agreement along with permission letter with regard to

Leased premises Industrial Plot No. H1/856, Phase III, RIICO
Industrial Area, Bhiwadi Rajasthan.

VIII. It is pertinent to mention here that at the time of availing loan

facilities from Applicant Bank the Respondent No.3 claimed that
he had not availed loan facilities from any other bank or financial
institution for same business and all the above mentioned
mortgaged properties kept as collateral security were free from
all encumbrances.

IX. It is submitted that the Respondent No. 2 & 3 did not adhere to
the terms of the sanction letter. Despite availing finance from
the Applicant Bank, they failed to adhere to the financial
discipline as envisaged in the sanction letter. That the account of
the Respondent No.2 was classified as an NPA on 14.06.2012 but
was upgraded on 30.07.2012 after the Respondent No.3 assured
the Applicant bank that he will adhere to the financial discipline.
The credit facilities were reviewed as per rules.

X. That the irregularity in the account again resumed since January,

2013. There has been no credit transaction in the account of the
Respondent No.2 since 13.03.2013. The officials of the Applicant
Bank wrote several letters including letters dated 03.10.2012,
07.12.2012, 06.03.2013, 03.05.2013 calling upon the
Respondent No. 2 & 3 to submit the inventories and clear or
bring its account in order. However, the Respondent No. 2 & 3
have deliberately failed to do so. In these circumstances, the
 Applicant Bank was constrained to again classify the account as
an NPA on 30.09.2013. The Respondent No. 2 & 3 continued to
default in the repayment of the loan and the Applicant Bank was
constrained to issue a notice under section 13(2) dated
12.12.2013, calling upon Respondent No. 2 & 3 to clear the
outstanding dues to the tune of Rs. 1,20,78,699/- with further
interest with effect from 30.09.2013. This notice was duly served
upon the Respondent No.2 & 3. Copy of notice U/s 13(2) of
SARFAESI Act 2002 dated 1607.2012 is annexed herein as
Annexure “G”.

XI. That the Respondent No.2 & 3 failed to clear the dues, despite
being in receipt of the notice under section 13(2) dated
12.12.2013. The Applicant Bank sent possession notice dated
24.02.2014 to the Respondent No.2 & 3 with respect to
mortgage properties as mentioned above. The possession notice
was also published in two news papers, being The Economic
Times and Rashtriya Sahara stating that the symbolic possession
of the property was taken on 24.02.2014. That despite being in
receipt of these, the Respondent No.2 & 3 did not bring its
account in order. Hence, the Applicant Bank was constrained to
take steps under section 14 of the SARFAESI Act, and pursuant
to its actions, the Ld. CMM passed an order dated 18.03.2014,
appointing a receiver and permitting the Applicant Bank to take
physical possession of the mortgaged properties. Copy of
possession notice U/s 13(4) of SARFAESI Act 2002 dated
24.02.2014 are annexure herein as Annexure “H”.

XII. The Respondent No.2 & 3 has filed a Securitization Application

bearing No. 79/2014 before this Hon’ble Tribunal and sought
interim stay on the order dated 18.03.2014 passed by the Ld.
CMM. The Hon’ble Tribunal in said S.A. bearing no 79/2014 vides
its order dated 08.05.2014 granted interim relief stayed sale
proceedings of abovementioned Residential properties on the
condition that the Respondent No.2 & 3 has to deposit Rs. 20
lacs within 60 days in two equal monthly installments. However,
the Respondent No. 2 & 3 has not paid even a part of it. It is
 submitted that due to failure of the Respondent No.2 & 3 to
deposit 60 lacs this Hon’ble Tribunal vide its Order dated
06.04.2015 vacated the said interim relief. Copy of Order dated
08.05.2014 and 06.04.2015 is annexed herein as Annexure “I”
and Annexure “J” respectively.

XIII. That as per the order dated 06.04.2015 of this Hon’ble Tribunal
the interim stay over sale of residential property was vacated,
the Applicant bank proceeded with sale of the mortgage
residential properties bearing no. Residential House no. 767/10B,
Street No. 7, Raj Nagar 2, Palam Colony, Dwarka Sector 8, New
Delhi – 110045 and Residential House no. F766/9, Street No. 7,
Raj Nagar 2, Palam Colony, Dwarka Sector 8, New Delhi –
110045. It is submitted that the Applicant Bank initiated fresh
proceedings under section 14 of SARFAESI Act 2002 and
obtained fresh possession order from the court of Sh. Vivek
Kumar Gulia, Ld. CMM Dwarka Courts, New Delhi. It is submitted
that the Ld. CMM vide its order dated 04.05.2016 appointed
receiver and allowed the applicant bank to take physical
possession of the abovementioned residential properties. It is
pertinent to mention here that the Original sale deeds of the
abovementioned properties are with Applicant bank. It is also
apposite to mention here that the Respondent No. 3 gave
undertaking to the applicant bank that the said residential
properties are not kept as securities with any other bank or
financial institutions. Copy of Order dated 04.05.2016 passed by
Sh. Vivek Kumar Gulia, Ld. CMM Dwarka Courts, New Delhi is
annexed herein as Annexure “K”.

XIV. To the shock and surprise of the Applicant Bank it came to know
that the Respondent No.1 has proceeded with sale of
abovementioned residential properties which are mortgaged with
the Applicant bank by Respondent No. 3. It is submitted that
Respondent No.1 has published a Public Notice dated
29.04.2016 for E-Auction for sale proceedings of
abovementioned residential properties under the SARFAESI Act
alleging that the said properties are mortgaged with them. Copy
 of Public Notice for E-Auction dated 29.04.2016 for Sale of
abovementioned residential properties is annexed herein as
Annexure “L”.

XV. It is submitted that if Respondent No.1 succeeded in sale

proceedings of abovementioned residential properties, the
applicant bank will suffer irreparable and irreversible losses.

XVI. It is submitted that the original documents of the

abovementioned residential properties are with the applicant
bank. Further, Respondent No.3 has given personal undertaking
that the abovementioned residential properties are not mortgage
with any other bank or financial institution. It is further
submitted that the Respondent No.1 has no valid charge over
the above mentioned mortgage properties , Hence the Applicant
Bank being aggrieved by the measure taken by the Respondent
No. 1 is filing the present Securitization Application.

XVII. That Respondent No. 2 & 3 are jointly and severally, co-
extensively and individually liable in their capacity of borrower,
guarantors and mortgagors to the Applicant Bank to pay an
aggregate sum of INR 1,66,20,972/- in the cash credit facility
and Inland letter of credit, including interest calculated up to
31.04.2016 along with further interest and all costs, charges and
expenses till the actual realization.

GROUNDS:

(i) Because the above said residential properties are mortgaged with
the Applicant Bank and the Respondent No. 1 has no charge on the
said properties, any action taken by the Respondent No. 1 Bank
against the said properties is bad in law.

(ii) Because Original Sale Deed of the residential properties bearing no.
Residential House no. 767/10B, Street No. 7, Raj Nagar 2, Palam
Colony, Dwarka Sector 8, New Delhi – 110045 and Residential
House no. F766/9, Street No. 7, Raj Nagar 2, Palam Colony, Dwarka
 Sector 8, New Delhi – 110045 are with the Applicant Bank and the
Respondent No. 1 has no charge on the said properties, any action
taken by the Respondent No. 1 Bank against the said properties is
bad in law.

(iii) Because the Respondent No.3 has given undertaking that the
residential properties bearing no. Residential House no. 767/10B,
Street No. 7, Raj Nagar 2, Palam Colony, Dwarka Sector 8, New
Delhi – 110045 and Residential House no. F766/9, Street No. 7, Raj
Nagar 2, Palam Colony, Dwarka Sector 8, New Delhi – 110045 are
not kept as securities with any other bank or financial institution and
hence, the Applicant Bank acted bonafide and conducted proper due
diligence.

(iv) Because the Possession taken by the Respondent No. 1 and steps if
any initiated by the Respondent Bank towards auction of the said
residential properties under section 13(4) of the Securitization Act
are contrary to facts and bad in law.

(v) Because no action under section 13(4) of the Securitization Act

could have been taken by the Respondent No.1 without any prior
information / notice/ permission from the Applicant Bank in this
regard.

(vi) Because the Respondent No. 1 not having a valid charge over the
said properties could not have proceeded against the said properties
under the SARFAESI Act.

(vii) That the Applicant Bank crave the leave of this Hon’ble Tribunal to
raise additional / further grounds at the time of addressing
arguments of the present Securitization Application.

(viii) That the Applicant Bank is ready and willing to abide by any terms
and conditions as may be imposed by this Hon’ble Tribunal.

(ix) That the present application / appeal is quite bonafide.

6. RELIEF SOUGHT:
In the view of the facts mentioned in para 5 of the present application,
the applicant bank prays for the following relief:

a) Allow the Securitization Application in favour of the Applicant

Bank and against the Respondents.; and

b) That the Respondent may be restrained from selling, alienating,

disposing of or creating any third party interest or encumbrance
in any manner whatsoever in the mortgaged properties bearing
no. Residential House no. 767/10 B, Street No. 7, Raj Nagar 2,
Palam Colony, Dwarka Sector 8, New Delhi – 110045 and
Residential House no. F766/9, Street No. 7, Raj Nagar 2, Palam
Colony, Dwarka Sector 8, New Delhi – 110045; and

c) Declare that the action taken by the Respondent No. 1 under

Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 against the
properties bearing No. Residential House no. 767/10 B, Street
No. 7, Raj Nagar 2, Palam Colony, Dwarka Sector 8, New Delhi –
110045 and Residential House no. F766/9, Street No. 7, Raj
Nagar 2, Palam Colony, Dwarka Sector 8, New Delhi – 110045 as
null and void; and

d) Grant a decree / order of declaration that the property bearing

no. entire first floor without roof rights portion of property
bearing no. Residential House no. 767/10B, Street No. 7, Raj
Nagar 2, Palam Colony, Dwarka Sector 8, New Delhi – 110045
and Residential House no. F766/9, Street No. 7, Raj Nagar 2,
Palam Colony, Dwarka Sector 8, New Delhi – 110045, mortgaged
to the Applicant Bank, is not charged / mortgaged / encumbered
with the Respondent No.1 and the Respondent No.1 is not
entitled to proceed with respect to the said property; and

e) Any other relief as this Hon’ble Tribunal may deem fit under the
circumstances of the case may also be awarded to the Applicant
Bank and against the Respondent.
7. INTERIM RELIEF:
Pending final decision on the Securitization Application, the Applicant
Bank most humbly prays the Hon’ble Tribunal to grant the following
interim order:-

a) To grant an Ex-partie interim stay on the auction of

abovementioned residential Properties scheduled by the
Respondent No. 1 Bank on 08.06.2016.

b) Restrain the Respondent No.1 to 3 their successors, servants,

agents, representatives or any other person
deriving/claiming title under them from disposing off,
transferring, creating any further charge, alienating in any
matter whatsoever the properties mortgaged with the
Applicant Bank.

c) Restrain the Respondent Bank from creating any third party

interest of any nature whatsoever in the property bearing No.
Residential House no. 767/10B, Street No. 7, Raj Nagar 2, Palam
Colony, Dwarka Sector 8, New Delhi – 110045 and Residential
House no. F766/9, Street No. 7, Raj Nagar 2, Palam Colony,
Dwarka Sector 8, New Delhi – 110045.

d) Any other interim order which this Hon’ble Tribunal may deem fit
in view of the facts and circumstances of the case be passed in
favour of the applicant.

8. MATTER PENDING IN ANY OTHER COURT ETC.

The Applicant Bank states that a Securitization Application bearing
79/2014 filed by Respondent No. 2 & 3 is pending for adjudication
before this Hon’ble Tribunal.

9. PARTICULARS OF THE BANK DRAFT/POSTAL ORDER IN

RESPECT OF THE APPLICATION FEE

a) Name of the Bank on which the draft is drawn: Punjab National Bank
 b) Date & No. of the demand draft: Dated _________ bearing No.
______________.
c) Amount of the demand draft: Rs. ________/-.

10. DETAILS OF THE INDEX

An index, in duplicate, containing the details of the documents to be
relied upon is enclosed.

11. LIST OF ENCLOSURES:

(As detailed in the Index)

APPLICANT
PUNJAB NATIONAL BANK

THROUGH:

(SH. _______________)
CHIEF MANAGER/CONSTITUTED ATTORNEY

THROUGH:

Sondhi Narula Dalal & Associates

Law Offices
C-633 [LGF], New Friends Colony
New Delhi-110065
MOB: 9871863446
Email: info@sndlawyer.com

VERIFICATION: -

I, _________, working as Manager with the Applicant Bank and duly

authorized, do hereby verify that the contents of the paras 1 to 11 are true to
my knowledge as per the books of the Bank and record duly maintained and I
have not suppressed any material facts.

APPLICANT
PUNJAB NATIONAL BANK
THROUGH:
 (___________________)
MANAGER/CONSTITUTED ATTORNEY

DELHI:
DATED: .04.2017
 IN THE DEBTS RECOVERY TRIBUNAL-I,
4TH FLOOR, JEEVAN TARA BUILDING, 5, PARLIAMENT STREET,
NEW DELHI

S.A. NO. 139OF 2016

IN THE MATTER OF: -

PUNJAB NATIONAL BANK … APPLICANT

VERSUS

Punjab & Sindh Bank & Others … RESPONDENTS

AFFIDAVIT
AFFIDAVIT OF ___________ S/O __________ ABOUT _____YEARS,
AVAILABLE AT: PUNJAB NATIONAL BANK: ____________________, the
DEPONENT named hereinabove, do hereby solemnly affirm and state as
under: -

I___________, the DEPONENT named hereinafter, do hereby solemnly

affirm and state as under:-

1. I ______________ say that I am the working as Manager and a duly

constituted attorney of the Applicant Bank and as such am competent
and authorized inter-alia to sign and verify this Application and to file
and institute the same and am well conversant with the facts and
circumstances of the present case, and am competent to file this
affidavit.

2. I say that the accompanying Securitization Application has been drafted

under my instructions. I say, that I have perused the same, and I say,
that except for the contents of the legal averments contained therein,
the contents thereof are true and correct to my knowledge and belief. I
say, that the contents of the accompanying Securitization Application
may be read as a part of this affidavit, and the same are not being
reproduced herein in order to avoid prolixity.

DEPONENT

VERIFICATION:
I, _____________ the deponent named hereinabove, do hereby solemnly
affirm and verify that the contents of the above Affidavit are true and correct
to my knowledge. No part of it is false, and nothing material has been
concealed therefrom.

Verified at New Delhi on this _____ day April, 2017.

DEPONENT