Allowed

State Bank of India v. Mr Pura Bareh

DRT22 Jun 2023OA/290/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by the State Bank of India to issue a Recovery Certificate for approximately Rs. 46.37 lakhs. The court found the defendant liable after considering unchallenged documentary evidence and notice of deficiency.

What did the court decide?

Issued Recovery Certificate for Rs. 46,36,982.58 with interest; charged hypothecated vehicles; permitted recovery from personal assets.

State Bank of India versus Mr Pura Bareh — Execution and Attachment | DRT (2023)

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O A 2go/2o2zDRl-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, [/lizoram, Arunachal Pradesh E Tripura)

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Before Shri Shiv Sharan Dubev. Presidino Oflicer

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O.A. No.29Ol2O22

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ln tho matter of -

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State Bank of lndia Stressed Assets Recovery Branch, Bamunimaidam, M.R.D.Road, Guwahati-21 District- Kamrup (M), Assam

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..Applicant

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Vs.

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Pura Bareh Son of Late Loin Chyrmang Dkhiah East, P.O. Khliehriat, Oistrict- East Jaintia Hills, Meghalaya-793200

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Defendant

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Presence of the Counsel :

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For the Applicant : MrK K Nandi, Ms Rochoita Das, Advocates For the Defendant : None (Ex-parte)

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Dated 22.06.2023

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JUDGMENT

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This is an application under section 19 of the Recovery of Debts Oue to Banks and Financial lnstitutions Act, 1993 filed by the State Bank of lndia, Slressed Assets Recovery Branch, Bamunimaidam, M.R.D.Road, Guwahati-21, District- Kamrup (M), Assam, with a prayer to issue Recovery Certificate for lhe sum of Rs. 46,36,982.58 (Rupees Forty Six Laca Thirty Six Thousand Nine Hundred Eighty Tr,yo And Paisa Fifiy Eight) only as on 17.07 .2022 against the sole defendant with pendentelite and future interest @10.40% per annum with monthly rests 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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The sole defendant carries on business of transport operator. The sole defendant approached and applied to the applicant bank for financial assistance for purchase of

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Jl',1 -g/"zrrar, b",e.r ,."r,"noHJ% {8,I DRT, Guwahati

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O A 29012022roRT-Guwahali

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vehicle (Truck) by submitting a loan application dated 25.04.2019. The applicant bank on consideralion ofthe said loan application dated 25.04.2019 sanctioned Term Loan of Rs.22,45,000.00 to the defendant vide Letter of Arrangemenl dated 30.04.2019. The terms and conditions of the letter of arrangement dated 30.04.2019 was duly accepted by the defendant and as a token of acceplance of lhe same the defendant have signed in the letter of arrangement of having accepted the terms and conditions. lt was also the lerms and conditions of the letter of arrangement that the effective rate of interest will be 3.15% above Base Rate with a minimum of 11.65%^per annum rising or falling on daily products with monthly rests. The defendant have also agreed to repay the term loan in 60 monthly installments, 59 monthly installments of Rs.49,543/- each and last installments of Rs. 14,392/-.

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The defendant availed of lhe term loan from the applicant bank and have executed the following documents duly filled-up in favour of the applicant bank such as :- (a) Agreement of loan-cum-hypothecation dated 30.04.2019; (b) Consent Clause dated 30.04.2019;

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The defendant approached the applicant bank for renewal of existing term loan and for grant of fresh term loan. The applicant bank on consideration of prayer so made renewed ths existing Term loan of Rs. 22,45,OOO1- and have sanctioned Term Loan (GECL) of Rs.4,03,000/- thus totaling to Rs. 26,48,000/- to the defendant vide Letter of Arrangement dated 15.06.2020. The terms and conditions of the letler of arrangement dated 15.06.2020 was duly accepted by the defendant and as a token of acceptance of lhe same the defendant have signed in the letter of arrangement of having accepted the terms and conditions. lt was also the terms and conditions of the letter of arrangement that the effective rate of lnterest is 7.800/0^per annum rising or falling on daily^products with monthly resls. The defendant have also agreed to repay the term loan in 36 monthly lnstallments.

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The defendant availed of the term loan from the applicant bank and have executed the following documents duly filled-up in favour of the applicant bank such as :-(a) Supplemental Agreement of Loan cum Hypothecation dated^'15.06.2020.

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The defendant approached and applied to the applicant bank for^purchase of

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Sl".r, Pr$ading Otf ORT

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O A 290/2022lDRT-Guwahali

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vehicle (Truck) by submitting an application dated 04.03.2021. The applicant bank on consideration of the said loan application dated 04.03.2021 sanctioned Term Loan of Rs.29,00,000.004 to the defendant vide Letter of Arrangement dated 18.03.202'1. The terms and conditions of lhe letter of arrangement dated 18.03.2021 was duly accepted by the defendant and as a token of acceptance of the same the defendant have signed in the letter of arrangement of having accepted the terms and cond,tions. lt was also the terms and conditions of the letter of arrangement that the effective rate of interest will be 3.75% above Base Rate with a minimum ot 10.40o/o per annum rising or falling on daily products with monthly rests. That the defendant have also agreed to repay the term loan in 56 monthly installmenls, of Rs.66,073/- each and last installment of Rs. 49,426l-.

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The defendant availed of lhe term loan from the applicant bank and have executed the following documents duly filled-up in favour of the applicant bank such as:(a) Agreement of loan-cum-hypothecation dated 18.03.2021i (b) The valuation of the hypothecated vehicle as described in Schedule B of the OA.

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The Defendant had availed of the said lerm loans facilities from the Applicant Bank, but have nol paid the loan amounts as per the terms and conditions as agreed upon with the Applicant Bank, inspite of repeated demands and requests by the Applicant Bank. As the defendanl failed to repay the loan amounls, the said accounts became NPA on 16.09.2021. After the accounts became NpA the applicant bank issued notices for repayment of the due amount, but the defendant has neither chosen for repayment of the remaining installment in the term loan accounts nor approached to the applicant bank for settling the loan accounts.

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The applicant bank thus became constrained to flle the present Original Application for the recovery of Rs. 46,36,982.58 (Rupe$ Forty Six Lacs Thirty Six Thousand Nine Hundred Eighty Two And paisa Fifty Eight) onty as on 17.O7.2022 along with interest and cost ofthe application.

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After filing of the OA the Tribunal issued notice upon the sole defendant through registered post and the applicant bank filed service report on 16.09.2022 and brought on record the postal receipt along with track consignment report. lt is observed that the summon has been served upon the sole defendant. Even after

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O A 290/2022loRT-Guwahati

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proper service of notice upon the sole defendant there was no representation on behalf of the sole defendant either^by the^counsel or the^{person and hencethe} sole defendant was set ex-parte on 0'1.022022^{and his right to file writtenstatement} cum evidence on afridavit was closed and the matter was^{posled for hearing on behalf} of the applicant bank.

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Supporting the claim of the applicant bank Sri^{Bijou Uddin Ahmed, Chief} Manager of the Applicant Bank has filed evidence on^{affdavitcoupledwith the} security documents marked as Exhibit^A-1 lo^{A-22 supportingthe claimof the applicant} bank.

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Heard the learned counsel for the applicant^{bank whoprayed,or issuance of} Recovery Certificate against^{the defendant as per pleadings madein the Application,} supported by evidence on^{affidavit of their witnesswho affirmedon oath the execution} of the security and other^{documenlsby the defendant 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^{theapplicantbank are supportingtheclaimof the} applicant bank and establishing^{theliability of the defendant.lt is proved that the} defendant is liable to^{pay to theapplicantbank the claim made in the Original} Application. The^loan was^{obtainedand documents have been executedon} 30.04.20'19, 15.06.2020 &^{18.03.202'1.The accounl became NPA on 16.09.2021} and the OA has been^{filed on 28.o7.2022. Hence, the OAis liledwell within the period} of limitation and this^{Tribunal havinga jurisdictionto adjudicaletheOriginal} Application.

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Considering the unchallenged/unrebutted^{versionof Sri Bijou Uddin Ahmed,} the applicant's^{witness and all the documents markedas exhibits,includingduly} certified copy of the^{statementof accountalongwith intetestcalculationsheet} maintained by the applicant^{Bankin it's regular courseof business,I holdthat the} applicant is eniitled^{to get the Recovery Certificate as prayed for.}

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ln the result, the^{present Original ApplicationNo. 290 of 2022 is allowed with} cost as under:-

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$fhlk-^b^t**""nk'}I{ lT^J DRT, Guwahati

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OA 2902022/DRT-Gwahan

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i) The sole defendant is liable to pay to the applicant bank a sum of Rs. 46,36,982.58 (Rupee3 Forty Six Lacs Thirty Six Thousand Nine Hundred Eighty Two And Paisa Fifty Eight) only wilh pendentelite and future interest @'l0.4oo/o^{p.a. withmonthly rests from 18.07.2022 titt} the date of fu paymenurealization and also cost of the application.

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ii) The charge of the certilicated amount be kept alive on hypothecated vehicle i.e. A TATA LPT 4825 BS lV Truck, (coods Carrier) bearing Regiskation No. ML1118572, Chassis No. MATB20003L t p1.1473, Engine No. 8678A250D03021, Type of Body Cowl, as described in Schedule-A of the OA till the amount is realized in full.

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iii) The charge of the certificated amount be kept alive on hypothecated vehicle i.e. A TATA LPT 3518 BS tV Truck, (coods Carier) bearing Registration No. ML1113972, Chassis No. MAT4664B2KSOO7274, Engine No. 91C8489379, Type of Body Cowl, as described in Schedule-B of the OA till the amount is realized in full.

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iv) The appricant bank is entifled to proceed against the secured items towards recovery of the debts.

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v) The applicant bank is also entifled to proceed against the personal assets and properties of the defendant towards recovery of the dues.

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

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vii) lssue Recovery Certiricate accordingty for a sum Rs. 46,30,982.58 (Rupaeg Forty Six Laca Thirty'Six Thousand Nine Hundred Eighty Two And paisa Fifty Eight) only in favour of the applicant bank against the sole defendant.

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viii) Communicate copy of this orderto the concerned parties.

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This order is dictated and corrected by the undersigned.

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Judgment dated 22.d June 2023, signed and prcnounced in the Tribunal today

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under my signalure.

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SAil*{.o,r2"}-u,, ".*DRT Guwahati , *ot''Jrol3-4

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o.A. 2!02022lDRT-cu$.hiri

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal's Website and

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file be consigned to Record Room.

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sr'4s'Wl[P*'t (Shiv Sharan Dt.eyH 'J Presiding Oflicer DRT, Guwahatl.

State Bank of India v. Mr Pura Bareh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Mr Pura Bareh

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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