Allowed

Bank of Baroda v. Jon Moni Rice Mill

DRT27 Jul 2023OA/279/2022

Case brief

AI extract

What is this about?

This Debts Recovery Tribunal allowed an application under Section 19 of the RBI Act seeking issuance of a Recovery Certificate. The court held the defendants jointly and severally liable for an outstanding loan of Rs. 23,30,413 along with interest and costs based on unchallenged documents and acknowledgment of dues.

What did the court decide?

Issuance of Recovery Certificate for Rs. 23,30,413 with pendentelite interest; direct appeal against mortgaged property and personal assets.

Bank of Baroda versus Jon Moni Rice Mill — Contract and Commercial Disputes | DRT (2023)

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o.A.279l2022t)RT-Guwahati

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal of Assam, Nagaland, Meghalaya, Manipur, Mizoram, Arunachal Pradesh & Tripura)

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Before Shri Shiv Sh3ran Dubev. Presidinq Officer

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O.A. No.27912022

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In the matter of -

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Bank of Baroda Kharupetia Branch, Kharupetia Darrang, Assam-7841 15.

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.Applicant

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Vs.

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Jonmoni Rice Mill, Prop. Hazrat Ali S/o Ahamad Ali,

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R/O- Khetaswar, Kharupetia, District : Darrang Assam, Pin-784115.

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Kulshan Begum, Wo Hazrat Ali,

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R/O Khetaswar, Kharupetia, District: Darrang, Assam Pin-7 8411 5, (Guarantor).

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Atabar Mandal,

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S/O Shahjamal Mandal,

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R/O- Khetaswar Kharupetia,

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District: Darrang, Assam Pin: 784115 (Guarantor).

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Defendants

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Presence of the Gounsel :

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For the Applicant : Sri Ujwal Saikia, Sri Mrinmoy Sharmah, Sri B.C.Chamchang, Advocates

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For the Defendants : None (Ex-parte)

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Dated :27107t2023

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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 Bank of Baroda, Kharupetia Branch, Kharupetia, Darrang, Assam-784115, with a prayer to issue Recovery Certificate for the sum of Rs. 23,30,413.00 (Rupees Twenty Three Lacs Thirty Thousand Four Hundred Thirteen) only as on 06.07.2022 against the defendants joinfly and severally with cost, pendentelite and future interest @11.25o/o & @7.85o/o per annum . respectively in totaltwo loan accounts till realization, along with other relief. , U^{g)^rr**&r,L,} e1e;1oip oqc?,)[*lrf I DRT, Guwahati

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O. A. 27 912022/DRT-Guwahati

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A few facts^{giving rise to the present applicationare as under.}

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HazrafAli, Proprietor^{of defendant No. 1 is the borrower and defendants No. 2} & 3 are the^{guarantors of the loan taken by the defendant No.1}

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The defendants No.^{1 approached and requestedthe applicant bank to} sanction a working^{capital loan of Rs.20,00,000.00for working capitalrequirementof} the business.^{The applicant bank in course of its banking business sanctionedin} favour of the defendants,^{a Loan of Rs.20,00,000.00vide Sanctionletter dated} 22.02.201g inter^{alia at an interest} @1^{1.25o/oper annum with monthly rest.The} defendant no.¹ accepted^{the terms and conditions as set forth by the applicant bank} upon which the aforesaid^{sanctionwas accorded and in pursuance of the acceptance} of the aforesaid^{sanction. The defendants had executedthe documents towards} creation of repayment^{of the said loan and also detiveredthe said documents to the} applicant bank^{on 07.03.201g.HazratAli, Proprietor of defendantNo. 1 also created} equitabte mortgage^{to the applicant bank in respect of the schedule property. Hazrat} Ali,^proprietor of^{defendantNo. 1 executed a Memorandum of depositing Title Deed} on 07.03.201g^{in favour of the applicantbank. The said memorandum contentthe} documents deposited^{beforethe applicant bank with intent to createequitable} mortgage. The^{defendant No.1 deposited the title deeds along with memorandum of} depositing the title^{deed. The defendant no. 1 executed the necessaryloan} documents^{on 07.03.2018.}

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The defendant^{again approached and requestedthe applicant bankto sanction} limit of Rs.4,00,000.00^{as Additional Working Capital Term Loan (AWCTL).The} applicant bank^{in courseof its banking businesssanctioned in favor of the defendants,} a secured limit^{of Rs. 4,00,000.00 vide sanction Letter cum Loan cum Hypothecation} Agreement dated^{24.12.2020inter alia at an interest @ 7.85o/o p$ annum'The} defendant no.^{1 accepted the terms and conditionsas set forth by the applicant bank} upon which the^{aforesaid sanctionwas accorded and in pursuance of the acceptance} of the aforesaid^{sanction,the defendants had executed the documents such as} Declaration^{in the Matter of Mortgage by depositingtitle deeds dated 20'05'2020and} Demand^{promissoryNote date d 24.12.2020 towardscreation of repaymentof the said}

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Sl-rtb"-yq presidins#.};1>P DRT, Guwahati

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O. A. 27 I^I 2O22lD^{RT-G uwahati}

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loan and also delivered^{the said documentsto the appticantbank. ln considerationof} the applicant bnak having^{agreedto grantthe limits and having agreedto makea} disbursement to the^{defendant no. 1, the defendantno. 2 executed Unconditionaland} lrrevocable Guarantee^{on 24.12.2020vide letter of Guarantee in favor of the applicant} bank, guaranteeing^{the repaymentof the dues under the loan agreement.}

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The defendants had^{availedthe said Loan Facilitiesfrom the applicant bank but} have not^paid the^{outstandingamount as per terms and condition made with the} applicant bank in spite^{of repeated demands and request by the applicant bank, hence} both the accounts became^NPA on^{25.01.2022.However, the defendants have} acknowledged their liability^{by confirming balance amount of dues to be repaid to the} plaintiff bank vide letter of Acknowledge of liability as on^{06.01.2021. Afterthe} accounts became NPA the applicant bank^{issued notices for repaymentof the due} amount, but the defendant failed to^{repay the loan amount or renew the loan} accounts.

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The applicant bank thus became constrained to file the^present OriginalApplication for the recovery of Rs. 23,30,413.00 (Rupees Twenty Three Lacs Thirty Thousand Four Hundred Thirteen) only as on 06.07.2022 along with interest and cost of the application.

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After filing of the OA the Tribunal issued notice upon the defendants through registered post and the applicant bank filed service report on 17.02.2023^and brought on record that the^posta! receipt along with track consignment^{report which} shows that the notices have been served^upon the^{defendants. Even after issuance} of notices there was no representation on^{behalf of the defendantseither by the} counsel orthe^person and hence the defendants^{were set ex-parteon 10.04.2023} and the matter was^{posted for} ex-parte^{hearing on behalfof the applicantbank.}

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Supporting the claim of the applicant^{bank Ms Deboshree Das, Branch Manager} of the Applicant Bank has^{filed evidenceon affidavit coupled with the security} documents marked as^{Exhibit AW-1 to AW-22, supporting the claimof the applicant} bank. SMI

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SMI g^b" v)(

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O. A. 27 I 12022/DRT-G^{uwa hati}

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Heard the learned counsel^{for the applicant bank who prayed for issuance of} Recovery Certificate^{against the defendants as per pleadingsmade in the} Application, supported^{by evidence on affidavit of their witness who affirmed on oath} the execution of the^{securityand other documents by the defendants and also} execution of their own^{documents relied upon, which have been marked exhibits.}

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Considering the facts^{and circumstances of the case, I am of the considered} view that the documents^{filed by the applicant bank are supporting the claim of the} applicant bank and^{establishing the liability of the defendants.lt is proved that the} defendants are liable^{to pay to the applicantbank the claim made in the Original} Application. The^{loans were obtainedand documentshave beenexecutedon} Ol.OZ.2O1B & 24.12.2020.^{The defendantshave acknowledged their liabilityby} confirming balance amount^{of duesto be repaid to the plaintiff bankvide letter of} Acknowledge of liability as^{on 06.01 .2021. The accounts became NPA on} 25.01.2022 and the OA^{has been filed on 18.07.2022. Hence, the OA is filed well} within the period of limitation^and this^{Tribunal having a jurisdictionto adjudicate the} Origina! Application.

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Considering the unchallenged/ unrebutted version of Ms Deboshree Das,^the applicant's witness and all the documents^marked as exhibits,^{including duly certified} copy of the statement of account along with interest calculation sheet maintained by the applicant Bank in it's regular course of business, !^{hold that the applicant is} entitled to get the Recovery Certificate as^{prayed for.}

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ln the result, the^present Original Application No. 279 of 2022 is^{allowed with} cost as under :-

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i) The defendants are^jointly and severally liable to^{pay to the applicant bank a} sum Rs. 23,30,413.00^(Rupees Twenty Three^{Lacs Thirty Thousand Four} Hundred Thirteen) only with^{pendentelite and future interest} @11.25o/o^p.a. with monthly rests from 07.07.2022^{til! the date of full paymenUrealizationand} also cost of the aPPlication.

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ii) The charge of the certificated^{amount be kept alive on mortgagedproperty}

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i.e. EMDT of land measuring^{2Kalhabearing Dag No. 466 & Patta No. 150,}

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\0.ir 9"o.,w4&^}o ( Presiding DRT, Guwahati"#J [4'l

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O. A. 27 I I 2022/D RT-G uwa^hati

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situated at Village Khetechar,^{Mouza Panchim Sialmari,DistrictDarrang,} Assam, as described^{in Scheduleof the OA titl the amount is realizedin full.}

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

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iv) The applicant bank is^{also entitledto proceed againstthe personal assetsand} properties of the defendants towards recovery of the^dues.

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v) The appticant bank is entitled to^{the costsof the O.A. which includesthe} advocate fees of the applicant^{bank. Applicantis directed to file the cost} memo within 2 weeks from todaY.

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vi) lssue Recovery Certificate accordingly for a sum^{Rs. 23,30,413.00(Rupees} Twenty Three Lacs Thirty Thousand^{Four Hundred Thirteen) only in} favour of the applicant bank against the defendants No.¹ 2,^{& 3.}

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vii) Communicate copy of this order to the concerned^parties.

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This order is dictated and corrected by the^undersigned.

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Judgment dated 27th July' 2023, signed and^{pronounced in the Tribunal 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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St*,^sl..e4g,g (Shiv Sharan DuUe!; Presiding Officer DRT, Guwahati.

Bank of Baroda v. Jon Moni Rice Mill

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Jon Moni Rice Mill

Case brief

What is this about?

What did the court decide?

What the court decided

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