Allowed

Canara Bank v. Sri Deepanjal Bora

DRT28 Jul 2023OA/144/2022

Case brief

AI extract

What is this about?

The Tribunal allowed Canara Bank's original application for a recovery certificate of Rs. 62,63,854 along with future interest. The respondents were held jointly and severally liable for the loan defaults, and a charge was directed to remain on the mortgaged land until realization.

What did the court decide?

Issued Recovery Certificate for Rs. 62,63,854 with future interest; charged mortgaged land until realization; entitled to proceed against secured and personal assets.

Canara Bank versus Sri Deepanjal Bora — Banking and Recovery | DRT (2023)

¶1

OA l442O2ZORT.GNahali

¶2

IN THE DEBTS RECOVERY^{TRIBUNAL,GUWAHATI}

¶3

(North Eastern Region)

¶4

(Tribunal of Assam, Nagaland,^{Meghalaya,Manip!r, Mizoram,Arunachal Pradesh& Tripura)} Before Shri Shiv Sharan^{Dubev.Presidinoofticer}

O.A.No.11412022

ln ihe matter of -

CANARA BANK

Jorhat Branch Post Box^{No. 61,1171118' Garali Jorhat- 785001,} District- Jorhat,^{Assam,Pin-785001}

¶9

Applicant

¶10

Sri Deepanial^Bora' S/O Rudra^Bora' i-o^'t Bamuni^{Gaon.P O -Chengeli Gaon'} Distric! Jorhat,^{Pin-78501 0' Assam'}

¶11

Sri Dhirai^Saikia,

¶12

S/o- DiD Chandra^Saikia

¶13

io- ifiamuni^{caon, P o'- cheneli Gaon'}

¶14

oistricf Jorhat'^{Pin-785010' Assam'}

¶15

Sri^KanakBora' -

¶16

s/o- Late Khogeswar^tsora' io-r^{gimrn caon, P o - cheneli Gaon} District-^{Jorhat, Pin-785010' Assam} Defendants

¶17

Presence^{of the Counsel:}

¶18

Sri Akhtar^Parvez, For the^APPlicant Sri Sanjit^Singha' Sri Dipanka^Gogor' Sri Bidul^{RoY, Advocates'}

For the^Defendants

: None^(ex-Parte)

Dated .281o712023

JUDGMENT

This is^{an applicationunder section '19 of the Recoveryof OebtsDueto Banks} and^{Financial lnstitutionsAct' 1993 filed by the CANARA BANK' Jorhat Branch' Post} Box^{No. 61, '117l118, Garali Jorhat785001'Distric! Jorhat'Assam' Pin-785001' with} a^{prayer to issue Recovery Certificate for the sum of Rs' 62'63'854'00(Rupees} Sixty^{TwoLacs Sixty ThreoThousandEight Hundred Fifty Four) only as on}

¶24

sljcl'a{"S^1"'i v Prssrding^{Olfcel</sup> DRT. Guwahali}

¶25

O A¹ 44zo2zDRT-Guwahati

¶26

09.04.2022 only against the defendant with^pendentelite and future interest at the contractual rate till realizalion, along with cost and other relief.

¶27

A few facts giving rise to the present application are as under.

¶28

The defendant no. I Sri Deepanial Bora had applied for a housing loan before the applicant bank. Considering ihe loan application, vide Sanction Memorandum daled 26.12.2016 the competent authority of the applicant bank had sanctioned loan of Rs 14.00 Lacs only to the defendant no. l. As^per the Sanction Memorandum dated 26.12.2016 the applicable rate of^{interest for} the^{sanction loan was fixed} @9.35ok^p.a. with monthly rests. The defendant^No. t^{had accepted all the terms and conditionsof} sanction by^putting his signatures on the^{foot of the Sanction Memorandumdated} 26]122016.|n order to avail the^{sanctioned loan,the defendantNo. 1 on 29.12.2016} had executed Housing Loan^Agreement. By^{executing lrrevocable Mandate for} Deduction of Loan lnstallments^{dated29.'12.2016the defendant No. 2 furtherhad} authorized the applicant^bank to^{deductthe EMI towards his loan from his SB} Account. ln order to secure^{theloan availed by the defendantNo l, the defendant} No.2 had extended^{his guarantee by executing GuaranteeAgreementand Guarantee} Covering Letter both^{dated 29.12.2016.}

¶29

Based upon loan^{application made by the defendant No.1,the competent} authority of the applicant^{bank had sanctioned SOD limitof Rs 30.00 Lacs only to the} defendant no. 1 vide^{Sanction Letter daled21.09.2017.As per SanctionLetter dated} 21.09.2017 the applicable^{rate of interest for the sanctioned limitwaslixed@9 05 p a'} with monthly rest.^{The defendantNo. 1 being borrowerand defendantNo 3 being} guarantor of the loan had accepted^{all the terms and conditions of sanction by putting} their signatures on^{the foot of lhe sanction dated2'1.09.2017.}

¶30

ln order to avail the^{sanctioned SODlimit,the defendantno 1 on 27 '09'2017} had executed^{Pronotefor Rs 3O.OOLacs and Undertaking Letterfor MCLR Linkage'} ln order to secure^{the loan, the defendant no. 'l and defendant no 3 jointly had} executed Guarantee^{Agreement daled 27.09.2017'The defendantNo 3 further} executed Guarantee^{Covering letter dated27 'o9 2017'}

¶31

sli/-dora+ Q"fq o)l>.: y' ","oo.no"?"Ff DRT, Guwahsti

¶32

¶33

O_f t a4no2zDRT-Guwaheti

¶34

Vide Sanction Memorandum dated 29.'l1.2019 the applicant bank had renewed the SOD loan account of the defendant. As per Sanction Memorandum dated 29.11.2019 the applicabte rate of interest for the loan was ,ixed @ 9.30% p.a. with monthly rests. The defendani no.^.l & 3 had accepted the terms and conditions of Sanction Memorandum dated 29..11.2017 by putting their signatures on the foot of the Sanction Memorandum. The defendant no. 1 further had executed Letter of Renewal and ENCLOSURE tV borh dated 29.11.2019. The defendant no. i & 3 joinfly had executed ENCLOSURE llt being Link Letter on 29..11.2019. Further the defendant no. 3 being guarantor of the loan had executed Guarantee Contd. Letter dated 29.11.2019.

¶35

Vide loan apptication dated 27.08.2020 the defendant no. t had applied for MSME loan from the applicant bank. The compelent authority of lhe appticant bank, considering the loan application, had sanctioned GECL loan of Rs 6 Lacs to the defendants by creating lhe same in the SOD account No. ,11542560.10335 and debiting the same in GECL Account No. 1,1547 SSOOOO71. As per Sanction Memorandum dated 28.0g.2020 the applicable rate of interest for the sanclioned loan was fixed @ l.Soo/o p.a. with monthly rests. The defendant no. .l had accepted all the terms and conditions of Sanction by putting his signature on the foot of the Sanction Memorandum.

¶36

ln order to avail the sanctioned loan, the defendant No. 1 on 28.09.2020 itself had executed pronote for Rs. 6.00 lacs only, Agreement Cum Deed of Hypothecation, Link Letter and Letter of Undertaking (NF 72.1).

¶37

ln order to support the defendants from the effect of COVID-1g pandemic, as per policy of the bank, the applicant bank had sanctioned a sum of Rs. 14,O4,OOO/onty to the defendants on 13.05.2020 and the defendants had availed this limit by opening and operating CFITL Account No. .l1547S3OOOO1S with the appticant bank.

¶38

ln order to secure the loan, the defendant no. 3 has created equitable mo(gage over his plot of land measuring I Bigha 2 Kathas 8 Lechs covered by Dag No. 1776, 2656 of p patta No. B4l. tocated at No. 1 Bamungaon, Mouza-Charigaon, Districuorhat, Assam, fully described in Schedule of the OA in favour of the applicant

¶39

P."taing o?"5,1lj )ff*t ORT, Guwahari

¶40

¶41

o.A. 1/r4l2o2zoRT€ur.hati

¶42

bank by deposit of title deeds. ln order to create the mortgage the defendant No. 1 had executed Letter Evidencing Deposit of Title Deeds dated 27.09.2017 interalia depositing the original title deeds along with other relevant documents.

¶43

The defendants had availed the said Credit^{Facilitiesfrom the applicant bank but} have not^paid the^{outstanding amountas per terms and conditions made with the} applicant bank^{in spite of repeated demands and request by the applicantbank' hence} the said accounts^{became NPA on 30 03 2021 After the accounts became NPA the} applicant bank^{issued notices for repayment of the due amount' but the defendants} failed to^{repaythe loan amounts or renew the loan accounts'}

¶44

The apPlbant^{bankthus became constrained to file the present OriginalApplication} fortherecoveryofRs.62,63,854.00(Rupe€sixtyTwoLacasixtyThfoE Thousand^{EightHundrsdFifty Four) only as on 09 04 2022alongwith inlerest} and cost^{of the aPPlication'}

¶45

After^{filing of theOAthe Tribunal issued notices upon the defendants through} registered^{post and the applicant bank filed service reporton 06 06 2022 and brought} on recotd^{thepostal receiptsalongwith track consignment reports which shows that} the^{noticeshave not been served upon the defendantsThereafterthe Tribunal} ordered^{paper publication of notice upon the defendants and the applicantbank} issued^{noticeto the defendantso^ 1646-2022throughPaper Publicationin two} newspapers^{namely 'The Times oftndia " and 'Dainik Asom"' Even after issuanceof} notice^{through paper publication also there was no representationon behall of the} defendants^{either by the counseror the person and hencethe defendantswere} set ex-parte^{on 05 08 2022 and the matter was posted for hearingon behalf of the} applicant^bank'

¶46

Supporting^{thedaimof theapplicantbank Si RajeevPrasad' Manager ol the applicant} bank^{filedevidence on affidavitcoupled with the security documents marked as Exhibit AW-1/1} to AW-1/32^{and Exhibit-'A i'e GeneEl Po'''er of Attorney daled M 10 2016'supporting the} claim^{of theaPPlicantbank'} Heard^{the learned counsel lor the applicantbankwho prayed forissuance}

¶47

of^{Recovery Certilicate against the defendants as per pleadings made in the Application'} supported^{byevidenceon affidavitof their witness who affirmed on oathlhe execution}

¶48

PresidingOficet'''-⁷ ORT,^Guv'ahatl

¶49

5 o.A. t 44zoz2lDRT€urvrhati

¶50

of the security and other documents by the defendants and arso execulion of their own documents rclied upon, which have been marked exhibits.

¶51

Considering the facts and circumstances of the case, I am of the considered view that the documents tiled by the applicant bank are supporting the claim of the applicant bank and estabtishing the liabitity of the defendants. lt is proved that the defendants are joinfly and severally liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 29.12.2016,21.09.2017,2g.1,1.2019 &2B.OB.2O2O, lhe account became NPA on 30.03.2021 and the OA has been fited on 26.04.20 22. Hence,the OA is filed welt within the period of timitation and this Tribunal having a jurisdiction to adjudicate the Original Application.

¶52

considering the unchaflenged/ unrebutted version of sri Rajeev prasad, the applicant,s wilness and all the documents marked as exhibits, including duly ceniried copy of the statement of account a long with interest calculation sheet maintained by the applicant Bank in it,s regular cou I hold that the applicant is entitted ro get rhe Recovery a"n,,""," ""^{orj]r"l"or'siness'}

¶53

ln the result, the present Originat Apptication No. 144 of 2022 is allowed with cost as under :-

¶54

i) Ttre defendants No. .1,2 & 3 are ioinfly and severa y liable to pay to the appricant bank a sum of Rs. 62,63,854.00 (Rupees si(y Two Lacs sixty Threo Thousand Eight Eight Hr

¶55

Threo Thousand Eight Eight Hr Fifty Four) only with pendentelite and future interest @9.3un 0.". ,'no'", ,,,/ith monthty rests fr om 10.04.2022 li the date of full paymen,realization and also cost o, the application. ii) Ttre charge of the certificated amount be kept alive on mortgage property ie' rand measuring i Bigha 2 Ka thas 8 Lechs covered by Dag No. 1776, 2656 of P^patta No. 84,1, located at 1 Bamungaon, Mouza-charigaon, oistrictJorhat, Assam, which is bounr Jed as follows- North: Land of Mridul Kalita and Jitu Kalita, South: Land of Runa Bora, East: Land of late Liladhar Bora, West; No.^.l Bamun Gaon Kalita Chuk Road, as described in Schedule of the OA tifl the amount is realized in fult.

¶56

Q",taa"a^?,L. P,.sidi.s onZFF) /)3 I DRT, Gurarrati^, U

¶57

¶58

¶59

o.e. t 4rr2o2zDRT€Brhari

¶60

iii) The applicant bank is entitled to proceed against the secured items towards recovery of the debts.

¶61

iv) Tha applicant bank is entitled to proceed against the personal assets and propertios of the defendants lowards recovery of the debts.

¶62

v) The applicant bank is entitled to the costs of the O.A. which includes the advocate fees of the applicant bank. Applicant is directed to file the cost memo within 2 weeks from today.

¶63

vi) lssue Recovery Ceimcate accordingly for a sum R3. 62,63,054.00 (Rupees Sixty Two Laca Sirty Three Thousand Eight Hundred Fifty Four) only in favour of the applicant bank against the defendant no. 1, 2 & 3.

¶64

vii) Communicate copy of this order to the concemed partias.

¶65

This order is dictated and conected by the undersigned.

¶66

Judgment dated 28tn July 2029, signed and pronoun@d in the Tribunal today

¶67

under my signature.

¶68

Copy of the JudgmenuFinat Order be uptoaded in the Tribunat,s Website and

¶69

lile be consigned to Record Room.

¶70

.s0", E0g,ffi6-r,fi{"7 (Shiv Shamn Duday, '^- l: preslding Offics. DRT, cuwahati.

Canara Bank v. Sri Deepanjal Bora

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri Deepanjal Bora

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Ambica Metal and Alloy Pvt. Ltd.

Punjab National Bank versus M M Metals

Pegasus Assets Reconstruction Pvt. Ltd. versus M/s. Khodal Impex

State Bank of India versus Jay Jit Goshwami

State Bank of India versus Macrosom Metals and Energy Private Limited

State Bank of India versus Macrocosm Industries Pvt. Ltd.