Allowed

Uco Bank v. Sri Neiphrelie Mechulho

DRT18 Jul 2023OA/223/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for a Recovery Certificate against co-borrowers who defaulted on home loan. The court confirmed liability, validated the mortgage, and ruled the application to be within limitation.

What did the court decide?

Recovery Certificate issued for Rs. 59,70,161.58 with interest; charge kept on mortgaged property (plot at Dimapur); defendants held jointly and severally liable.

Uco Bank versus Sri Neiphrelie Mechulho — Banking and Recovery | DRT (2023)

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O A 223,2022lDRT-Guwahati

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IN THE DEBTS RECOVERY^{TRIBUNAL,GUWAHATI}

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(North Eastern Region)

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(Tribunal ofAssam, Nagaland, Meghalaya, Manipur,^{Mizoram,Arunachal Pradesh& Tripura)}

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Before Shri Shiv Sharan^{Dubev.PresidinoOfficer}

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O.A. No.22312022

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ln the matter of - U Co Bank Kohima Branch. Ser's Eazar Kohima, Distric! Kohima, Nagaland-797001.

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..Applicant

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Vs.

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Sri Neiphrelie Mechulho, Son of Zakisesielie Mechulho, P Khel, Kohima Village, Kohima, P.O. & P.S.- Kohima, Pin- 797001, Distric! Kohima, Nagaland.

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Smti Kelhouse U Mechulho, Wife of Sri Neiphrelie Mechulho, P Khel, Kohima Village, Kohima, P.O. & P.S.- Kohima, Pin- 79700'1, Distric! Kohima, Nagaland.

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Defendants

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Presence of the counssl :

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For the Applicant : Sri Manoj Kumar Roy, Advocate For the Defendants : None (Ex-parte)

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Dal€d : 18loll2o23

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JUDGMENT

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This is an application under section 19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act, 1993 filed by the U Co Bank, Kohima Branch, Ser's Bazar Kohima, Distric! Kohima, Nagaland-797001, with a prayer to issue Recovery Certificate for the sum of Rs. 59,70,161.58 (RupE€ Fifty Nino Lacs Seveniy Thousand One Hundred Sixty One and Paisa Fifty Eight) only as on 31.05.2022 against the defendants with pendentelite and future inlerest at contractual rate with monthly rest till realization along with cost and other relief.

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

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St.;sl.au- D"J,P..sidins #6J'^{) I ) l} DRT, Guwahali

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O.A. 2292022loRl€u,Naha1i

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The defendant nos.^{1 and 2 as co-borrowers/ co- applicants had approached} the applicant bank^{and appliedfor financial assistanceunder UCO HomeLoan} scheme for construction^{of house by submitting a loan application dated} 29.05.2017 and after^{consideringthe said application,the ApplicantBankvide} Sanction letter dated^{12.06.2017had sanctioneda TermLoanof Rs 40 00 Lakhs} (Rupees Forty Lakhs) only^{to the defendantswith inierest charged at 8'70o/o per} annum with^{monthly rests. The Termloan was repayable in '180Equated Monthly} lnstallments of Rs.39,860.00^{(Rupees ThirtyNine ThousandEightHundred and} Sixty) only^per month^{as installment with a moratorium periodof 6 (six) months'} The said sanction^{Letter was dulysigned by theOefendantNo 1 thereby agreeing} to all the terms and^{conditions stipulatedin the sanctionletter'}

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ln connection^{with the sanctionof Term Loan facility of Rs 40 00 Lacs} sanctioned by the^{applicant bank and availed of by the defendantnos'l and 2' a} Loan Agreement^{dated12.06.2017 has been signed and executed by the} defendant^{nos. I and 2 therebyagreeingto all the terms and conditions laid down} in the said agreement.^{The defendants had also signed and executed a Demand} Promissory Note^{(A-2), Document A-47, OocumentAHL-7and Revival Letter (AHL-} 8) all dated 12.06.2017,^{thereby promising to pay the Applicant Bank the entire} loan amount^{on demand.}

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ln compliance^{with the terms and conditionsof the sanction letter andin} order to assure^{repaymentof the saidloan with interest,the Defendant No l had} created equitable^{mortgage by depositof title deeds and other land documentsand} delivered to the^{ApplicantBank'sat its kohima Branch, all the title deedsin respect} of the immovable^{property (more specificallydescribed in Schedule A of theOA)'} Further, the defendant^{no. Ihad also confirmedthe creationof the equitable} mortgage vide^{confirmation letter dated 12 06 2017 thereby confirmingthe cleation} of the equitable^{mortgage as security to the loanfacility availedby the defendants'} TheoefendantshadavailedofthesaidloanfacilityfromtheApplicantBank, but have not^{paid the loan amountin the Term Loan accountas Per the termsand} conditions as^{agreed upon with the ApplicantBank' inspiteof repeated demands}

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and requests by the Applicant^{Bank. However, the detendantNo. t has signed and} executed a Balance^{Confirmation Letter dated 20.07.2019therebyconfirming the} amount outstanding^{in the loan account as on date and also confitming the execution} of the security documents^{in connection with the availing of the financial facilitiesAs} the defendants failed to^{repay the outstanding amountin theloan account, the said} account became NPA on^{31-'12-2019.Afrer theaccountbecame NPA theapplicant} bank issued notices for repayment^{of the due amount, but the defendants have neither} chosen for repayment of the^{remaining installmentsin the termloan account nor} approached to the applicant bank for settling^{lhe term loan account.}

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The applicant bank thus became constrained to file the^{presentOriginal} Application for the recovery of Rs. 59,70,161.58^(Rupees Fifty Nine Laca Seventy Thousand One Hundred Sixty One and Paisa Fifty Eight) only as on 31.05.2022 along with interest and cost ofthe application.

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After filing of the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank tiled service report on 23.08.2022 and brought on record the postal receipts along with track consignment report. lt is observed that the summons have not been served upon the defendants. Thereafter the Tribunal ordered paper publicalion of notice upon the defendants and the applicant bank issued notices to the defendants on 09.09.2022 lhrough paper publication in two newspapers namely "Nagaland posf and "Easlem Minof. Even afier issuance of notices upon the defendants through paper publication also there was no rcpresentation on behalf of the defendants either by the counsel or the person and hence the defendants were made set ex-parte on 02j1.2022 and their right to rile written statemenl cum evidence on affidavit was crosed and the matter was posted for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Sri Khrielie pienyu, Chief Manager of the Applicant Bank has liled evidence on affidavit coupled with the security documents marked as Exhibit AW-1 to ExhibitAW- 24 supporting the claim of the applicant bank.

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Heard the learned counsel for the applicant bank who prayed for issuance of

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Recovery Certificate^{againstthe defendantsas per pleadings madein the Application'} supported^{by evidenceon aftidavit of their witnesswho affirmed on oath the execution} of the security^{and other documentsby the defendants and also execution of their own} documents^{relied upon, which have been marked exhibits'}

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Considering^{the lacts and circumstances of the case' I am of theconsidered} view that the documents^{tiled by theapplicant bankare supportingtheclaimof the} applicant bank^{and establishing the liability of the defendants lt is proved lhatthe} defendants are liable^{to pay to the applicant bankthe claim madein the Original} Application. The^{loan was obtainedand documentshave besn executedon} 12.06.2017. The defendant^No. t^{has signed and executeda BalanceConlirmation} Letter dated 20.07.2019 thereby^{conllrmingthe amount outstanding in lheloan} account as on date and also confirming the execution of the security documents in connection with the availing of the linancial facilities. Moreover after perusing the documents on record and taking into consideration of the facts and circumstances of the case, I find that the mongage has been created by lhe defendant No.1 where the limitation available is for 12 years and as such taking into account of lhe creation of the mortgage the application appears to have been fired welr within the period of limitation. The account became NpA on 91.12.20,19 and the OA has been filed on 23.06.2022. Hence, the OA is filed well within the period of limitation and this Tribunat having a iurisdiction to adjudicate the Original Application.

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Considering the unchallenged/unrebutted version of Sri Khrielie pienyu, the applicant,s wilness and all the documents marked as exhibits, including duly certiried copy of the statement of account along with interest calculation sheet maintained by the applicant Bank in it,s regular course of business, I hold that the applicant is entiued to get the Recovery Cerlificate as prayed for.

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tn lhe resutt, the presenl Original Apptication No. 2Zg of 2OZ2is a owed with cost as under ;-

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i) Tne defendants No. 1 & 2 are joinfly and severally liable to pay fo the appricant bank a sum of Rs. 59,70,r61.58 (Rupeos Fifty Nins Lacs sevBnty

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Sl.,i, sl-^4- D"f, ",.r.rl€J DRI, Gtuahati^olB

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04 2232022lDRT'Gusahati

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Thousand One^{HundredSixty One and PaisaFifty Eight) only with} pendentelite and future interest @8^{7oyo p awith monthlyrests from} 01.06.2022, till ths^{date of full paymenurealizationand also cost of the} application.

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ii) The charge of^{thecertificated amountbe keptalive on mortgagedproperty'} i.e. a^plot of^{landarea measuring 2 katha10 lessa purchasedvide Sale Oeed} No. 640/15 dated^{28.05.2015 under Dag No1030covered by PattaNo 840} situated at^{BankColony, Block-3 Dimapur underMouza No'lll'Dimapurin the} name of Sri Neiphrelie^{Mechulho i.e. defendant No l and boundedby Notth:} MES^(Army Camp)i^{South: Supply Godown;East: Mrs AtoliSema;west: Mr'} lanu Longchar,^{as described in Schedule-A of the OA till the amountis} realized in full.

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iii) The applicant^{bank is entitled to proceed against thesecured items towards} recovery of the^debts.

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iv) The applicant^{bankis also entitledto proceed againstthe personal assets and} properties of the defendants^{towards recovery of the dues'}

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v) The applicant^{bank is entitledto the costsof the O'A which includes the} advocate fees^{of the applicant bank. Applicant is directed to file the cost} memo within 2^{weeksfrom today.}

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vi) lssue Recovery^{Certilicaleaccordinglyfor a sum Rs' 59,70,161'58(Rupess} Fifty Nins^{Laca Seventy Thousand One HundredSixty One and Paisa} Fifty Eight) only^{in favourof the applicant bankagainst the defendants No l} &2.

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vii) Communicate^{copyof this order to the concernedparties'} This order is dictated^{and correctedby the undersigned'}

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Judgment dated^{18h July 2023, signed and pronouncedin the Tlibunal today}

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under my signature.

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Copy of the^{JudgmenuFinal Order be uploaded in the Tribunal's Websiteand}

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file be consigned^{to Record Room}

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S[^'vd*-u-^E.J..r rRlo)l)1 I (Shiv Sharan Dfubey) ') Presiding Officer DRT, Guwahati.

Uco Bank v. Sri Neiphrelie Mechulho

Case brief

What is this about?

What did the court decide?

Uco Bank v. Sri Neiphrelie Mechulho

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

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