Application under Section 19 RDDBFI Act for issuance of Recovery Certificate for Rs. 52,39,802.06 plus interest. Tribunal allowed application finding defendants jointly and severally liable; mortgages within limitation.
Recovery Certificate issued for Rs. 52,39,802.06 with interest and costs; properties charged.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
O A 162/2022lDRT-Guwahati
IN THE DEBTS RECOVERYTRIBUNAL, GUWAHATI
(North Eastern Region)
(Tribunal of Assam, Nagaland,Meghalaya, Manipur, Mizoram,Arunachal Pradesh& Tripura)
Before Shri Shiv Sharan Dubev.PresidinoOfficer
O.A. No. 16212022
ln the matter of -
STATE BANK OF INDIA Stressed AssetsRecovery Branch (SARB), M.R.D. Road, Bamunimaidam, Guwahati-78102'1. Assam.
Applicant
(Proprietor of Tagmaxx) Son of Abdul Rashid Village and P.O.- Dhajanagar P.S. Bishalgarh, Sepahijala, Tripura-799102.
Defendants
Presence of the Counsel:
: Mr. Subrata Dutta, For the Applicant Mr. Sarfaraz Ul Haque, Ms Rimly Haloi, Advocates
For the Defendants None(Ex-parte)
Oaled :1211212023
JUDGMENT
This is an application under section 19 of the Recovery of Debts Due to Banks
and Financial lnstitutions Act, 1993 filed by the State Bank oflndia, Stressed Assets
Recovery Branch(SARB), M.R.D. Road, Bamunimaidam, Guwahati-781021, Assam,
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2
oA 162/2022loRrcuwahati
with a prayer to issue Recovery Certificate for the sum of Rs. 52,39,802.06 (Rupees Fifty-Two Lakhs Thirty-Nine Thousand Eight Hundred Two and paise Six) only as on 30.04.2022 against the defendants with pendentelite and future interest @14.79% (CC, @14.75o/o WCTL) and @7.40% (GECL) per annum with monthty rests tilt realization along with cost and other relief.
A few facts giving rise to the present application are as under.
The Defendant No.1 is a Proprietorship Firm and the Defendant No. 2 is the Proprietor of the Defendant No.1 Firm and is engaged in the business of manufacturing and marketing of Exercise Notebooks, Bounded Books, Registers, Letter Pads, Diaries and similar stationery items etc. The Oefendants No. 2 and 3 created security in the form of personal guarantees and also equitable mortgage in favour of the Applicant Bank
The Defendant No. 2 in his capacity as the proprietor of the Defendant No.1 Firm had approached the Applicant Bank and applied for a loan under PMEGP Scheme for his business of manufacturing and marketing of Exercise Notebooks, Bounded Books, Registers, Letter Pads, Diaries and similar stationery items etc. in the form of Composite Term Loan (CTL) vide Loan Application dated 01.01.201S and after considering the said application, the Applicant Bank vide Letter of Arrangement dated 20.03.2015 sanclioned a Composile Term Loan (CTL consisting of TL and CC) facility for Rs. 22.26 Lacs (Rupees Twenty-Two Lacs and Twenty-Six Thousand) only wiih interest at 3.15% above State Bank Base Rate (BR 100/o w.e.f. 01.08.2013) with a minimum of 13.15% per annum rising or falling there with, on dailyproduct with monthly rests. The effeclive rate at lhe time of sanction stood at 13.15% per annum. The Composite Term Loan was repayable in 72 monthly installments of Rs. 32,570/- per month. The Defendant No.2 in his capacity as the proprietor of the Defendant. No. 1 Firm and the Oefendants No. 3 and one Md. Jaju Miah as thepersonalguarantors had signed and executed the said Letter of Arrangement thereby accepting all the terms and conditions of the sanction.
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O.A. 16202ZORI'Guwahati
As security for repaymentof the aforesaid loan facility,the DefendantNo 2 in his capacity as theproprietorof the DefendantNo lFirm, had signed and executed an Agreementof Loan cum Hypothecation dated 20 03'2015'thereby not only hypothecatingthe stocks,receivables, currentassets present and future' raw material,plant andmachineries (more specifically describedin schedule A of the OA) but also agreeingto all the termsand conditions contained therein
ln connectionwith the sanctionof the saldCompositeTerm Loan (CTL) facility underPMEGP Scheme for Rs. 22.26 Lacs sanctionedby the Applicant Bank and availed of bythe DefendantsNo land 2, two separateGuarantee Agreementsdated 20.03.2015 were signed and executed by the DefendantNo 3 and one Md. JajuMiah as the personal guarantors to the saidloanfacility' in favour of the ApplicantBank as securityfor repaymentof the loan'
The Defendant No.2 in his capacityas the proprietor of theDefendantNo1 Firm had againapproached the ApplicantBank and appliedfor continuationof the Cash Creditportion of theCompositeTerm Loan (CTL)for his businessvide Loan Application andafterconsideringthe said application,the ApplicantBankvide Letter of Arrangementdated 02 01.2016 sanctionedtherenewal of the Cash Credit portion of the CompositeTerm Loan (CTL) facility at Rs 1800 Lacs(Rupees Eighteen Lacs) onlywith interestat 3 50% aboveState Bank Base Rate (BR=9.30% w.e.f.01.08.2015)with a minimum of '1230% per annum rising or falling therewith,on daily productwith monthly restsThe Cash Credit Loan was repayable onOemand.The effectiverateat the time of sanction stood at 12'80% per annum. The DefendantNo. 2 in his capacityas theproprietor of theDefendant No.'l Firm andOne Nani GoPalDebnathas the personal guarantor had signedand executedthesaidLetterofArrangementtherebyacceptingallthetermsand conditions ofthe sanction.
As security forrepayment of the aforesaidloan facility' the Defendant No. 2 in hiscapacityas the proprietorof the DefendantNo l Firm'had signedand sJl'^[email protected]*t7 v Prosiding Oilcer ORT, GuwBhati
O.A 1622022loRT-Guwah.ti
executed anAgreement of Loan cum Hypothecation dated 02 01 2016, thereby not only hypothecatingthe stocks,receivables,current assets present and future' raw material,plant andmachineries (more specifically describedin schedule A of the OA) but also agreeingto all the termsand conditions containedtherein'
ln connectionwith the sanction of the said CashCredit Limit of Rs 18 00 Lacs sanctionedby the Applicant Bank and availedof by theDefendantsNo1 and 2, a GuaranteeAgreementdated 02.01.2016 was signedand executedby One Nani Gopal Debnathas thepersonal guarantorto the said loan facility, in favourof the ApplicantBank as securityfor rcpayment of the loan'
The DefendantNo. 2 in his capacityas the proprietor of theDefendantNo1 Firm had againapproached the ApplicantBank and requestedfor enhancementof the cash creditlimit from the existinglimit of Rs. 18.00Lacs and alsofor fresh sanction of aTerm Loanvide Appticationdated 01.10.2016 and after considering the said application,the ApplicantBank in principlesanctioned an enhancedCash Credit Limit of Rs.44.OOLacswith interest at 3.75%above Base Ratewith efiective rate of lnterestat the time of sanctionstood at 12.95o/oper annum and a fresh Term Loan of Rs.12.35 Lacswith interest at 3.75% above Base Rate with effective rate of interestat the time of sanctionstood at 12.95%per annum lo the Defendant No. 1 firmvideLetter of Arrangementdated 30 11 2016. The enhanced Cash Credit loan wasrepayableon demand and the Term Loan is to be repaidin 72 monthly installmentsof Rs. 17,160/- per month.The saidLetter of Arrangement was duly signed and executedby lheOefendant No 2 in his capacity as the proprietor of the Defendant No. 1 Firm andalso by the Defendant No. 3 and Sri Nani Gopal Debnalh, Jaju Miahand Md. Abdul Rashid as personalguarantors, thereby accepting thesaid sanction and also the terms and conditionscontained lherein.
As security forrepaymentof the aforesaid loan facilities,the Defendant No. 2 in his capacityas the proprietorof the Oefendant No. 1 Firm,had signedand 
