Allowed

Canara Bank v. Babu Teron

DRT22 Sept 2023OA/306/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Canara Bank for issuance of a Recovery Certificate against a defaulting loan applicant. The Court found the bank established liability and the application was within limitation. It directed the bank to obtain a certificate for the outstanding amount secured against a hypothecated vehicle.

What did the court decide?

Recovery Certificate issued for Rs. 23,08,540.80 with interest at 9.20% p.a.; retention of charge on hypothecated vehicle.

Canara Bank versus Babu Teron — Contract and Commercial Disputes | DRT (2023)

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o.A. 306/2022lDRT-Guwahaii

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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, l\4eghalaya, Manipur, Mizoram, Arunachal Pradesh & Tripura)

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Before Shri Shiv Sharan Dubev. Presidinq Officer

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O.A. No.306/2022

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ln the matter of -

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Canara Bank llT Guwahati Branch llT Guwahati Campus, North Guwahati, Kamrup, Assam-781039.

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.Applicant

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Sri Babu Teron Son of Sri Manik Teron Lungchung Chamgaon, Garchuk, Guwhati, P.S. Garchuk, District Kamrup Metropolitan, Assam, Pin- 781019.

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Defendants

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Presence of the Counsel:

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For the Applicant : Mr. M K. Bora, Advocate For the Defendant : None (Ex-parte)

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Oated :2210912023

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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 fited by the Canara Bank, llT Guwahati Branch, llT Guwahati Campus, North Guwahati, Kamrup, Assam-791039, with a prayer to issue Recovery Certiflcate for the sum of Rs. 23,0E,S4O.8O (Rupeos Twenty Thres Lakhs Eight Thousand Five Hundred Forty .nd paise Eighty) only as on 08.05.2022 against the defendant with pendentelite and future interest thereon at the contractual rate 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 defendant had approached the appticant bank and apptied for financial assistance for purchase of Vehicle Mahindra Scorpio SIO by loan

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.slLi I .e{.q'rggQ"'^J ",' Presiding oftced " tl'-> ,) DRT. Guwahati

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O A 306/2022lDRT-Guwahati

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application dated 07.12.2018 and after considering the said application, the applicant bank on 07.12.2018 had sanctioned a credit facility of Rs.14,00,000.00 only to the defendant with interest charged 9.20% per annum. The credit facility was to be repaid in 84 monthly installments of Rs.22,668.00 each. The Loan account number is 8652603000388.

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ln connection with the sanction of the term loan of Rs.'14,00,000.00 sanctioned by the applicant bank and availed by the defendant, Canara Mobile Loan Agreement daled 07.12.20'18 has been signed and executed by the defendant in favour of the applicant bank as security for repayment of the loan facility thereby agreeing to all the terms and conditions laid down in the said Canara Mobile Loan Agreement and hypothecated the vehicle purchased out of the Bank flnanced more specifically described in schedule- A of the original application in favour of the applicant bank. The defendant submitted copy of lnvoice dated 08.12.2018 of the vehicle purchased from the loan given by the applicant bank.

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The defendant had again approached the applicant bank and applied for financial assistance for personal needs by loan application dated 03.01.2019 and after considering the said application, the applicant bank by sanction memorandum dated 03.01.2019 had sanctioned a credit facitity of Rs.5,00,000.00 only to the defendant with interest charged 13.00% per annum. The credit facility was to be repaid in 60 monthly installments of Rs. 1 1,377.00 each. The Loan account number is 8652626001234.

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ln connection with the sanction of the term loan of Rs.S,OO,OOO.OO sanctioned by the applicant bank and availed by the defendanl, Letter of Undertaking dated 03.01.2019 has been signed and executed by the defendant in favour of the applicant bank as security for repayment of the loan facility thereby agreeing to all the terms and conditions laid down in the said Letter of Undertaking.

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The defendant had availed the said loan facility from the applicant bank but has not paid the outstanding loan amount as per terms and conditions as agreed upon with the applicant bank, in spite of repeated demands and request bylhe applicant -.

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Slr^,r t{^a'a-+'-,*' e.""iaing oHl^{4l )3} DRT. Guwahali

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O A 306/2022lDRT-G!wahati

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bank. As the defendant failed to repay the outstanding amount in the loan account, the said accounl became NPA on 22jO2O2O. The defendant deposited installments of Rs. 25,450.00/- in cash on 31.03.2020 in loan account No. 8652603000388 and installments of Rs. 11,800.00/- in cash on 20.03.2020 in loan account No 8652626001234. Moreover as per order daled 10.01.2022 passed by the Hon'ble Supreme Court in Misc. Application No. 21 of 2022 in SMW(C) No. 3 of 2020, the instant suit is filed within period of limitation. The Hon'ble Supreme Court in the said order directed that the period from^'15.03.2020 till 28.02.2022 shall stand excluded for the purpose of limitation as may be prescribed under any general or special laws in respect of alljudicial or quasi-judicial proceedings. After lhe account became NpA the applicant bank issued notices for repayment of the due amount, but the defendanl has neither chosen for repaymenl of the remaining installments in the loan account nor approached to the applicant bank for settling the loan account.

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The applicant bank thus became constrained to file the present Original Application for the recovery of Rs. 23,08,540.80 (Rupees Twenty-Threo Lakhs Eight Thousand Five Hundred Forty and^paise Eighty) only as on OB.OS.2O22 along with interest and cost ofthe application.

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After filing of the OA the Tribunal issued notice upon the defendant through registered post and the applicant bank ,iled service repon on 05.11.2022 and brought on record the postal receipt along with track consignment report which shows that notice has not been served upon the sole defendant. Thereafter the Tribunal ordered paper publication of nolice upon the sole defendant and the applicant bank issued notice to the defendant on 12.1'l.2022 through paper publication in two newspapers namely 'The Times of lndia" and "Dainik Asam". Even after issuance of notice through paper publication also there was no representation on behalf of th6 sole defendant either by the counsel or the person and hence the defendant was set ex-parte on 07.02.2023 and his right to file written statement cum evidence on affidavit was closed and lhe matter was posted for hearing on behatf of the applicant bank.

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sliu r[a.u,n Q'J", 2)toct \29 I Presid'ng Olfif.er \ V DRT, Guwahali

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o_A. 3oo1zozzlDRT€uratrsri

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Supporting the ctaim of the applicant bank Sri Ra.iesh Dey, Manager of the Applicant Bank has fled evidence on affidavit coupled with the security dooments marked as Exhibit AW-.U.! to AW-1/,13 supporting the claim of the applicant bank.

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Heard the learned counsel for the applicant bank who prayed for issuance of Recovery Certificate against the defendant as per pleadings made in the Application, supported by evidence on affidavit of their witness who affirmed on oath the execution of the security and other documents by 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, r am of the considered view that the documenl filed by the applicant bank are supporting the ctaim of the applicant bank and establishing the liability of the defendant. lt is proved that the defendant is liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 07.12.20'18 & 03,0i.2019. The defendant deposited instaltments of Rs. 2S,4SO.OO/_ in cash on 31.03.2020 in toan account No. 8652603000388 and insta[ments of Rs. 11,800.00/- in cash on 20.03.2020 in loan account No 8 6526260012U. Moreover as per order dated 10.01.2022 passed by the Hon,ble Supreme Court in Misc. Application No. 2'l ol 2022 in SMW(C) No. 3 of 2020, the instant suit is ,iled within period of limitation. The Hon,ble Supreme Court in the said order directed that the period from 15.03.2020 ti 28.02.2022 sha stand excluded for the purpose of limitation as may be prescribed under any general or special laws in respec{ of all iudicial^{or quasi-judicial} proceedings. The account became NpA on 22.10.2020 and the OA has been fited on 27 .07.2022. Hence, the OA is filed wel within the period of limitation and this Tribunal having a jurisdiction to adiudicate the OriginatApplication.

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Considering lhe unchallenged/unrebufted version of Sri Raiesh Dey, the applicant's witness 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 entitled to get the Recovery Ce ficate as prayed for.

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ShcL"na-D'l"l ,_",o,"nljJrll4⁰ DRT. cL,wahrrj

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O A 30612022./DRT€u*.h.ti

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ln the result, the present Original Application No 306 of 2022 is allowed with

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cost as under: -

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The sole defendant is liable to pay to the applicant bank a sum of Rs. 23,08,540.80 (Rupees Twenty-Three Lakhs Eight Thousand Five Hundred Forty and Paise Eighty) only with pendentelite and future interest @9.20%^p.a. with monthty rests from 09.05.2022 ti the date of full paymenurealization and also cost of the application.

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ii) The charge of the certificated amount be kept alive on hypothecated vehicle i.e. Brand Name of the vehicle: Mahindra Scorpio S.lO, Makers NameMahindra & Mahindra, Chassis No. MA1WA2ES1 K2C3S168, Engine No. ESI<Z,F2O1824, Owner Name- SRt BABU TERON, as described in ScheduteA of the OA till the amount is realized in full.

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

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

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v) The applicant bank is entifled 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.

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vi) lssue Recovery Certificate accordingly for a sum Rs. 23,O8,S4O.8O (Rupees Twenty-Threo Lakhs Eight Thousand Five Hundred Forty and paise Eighty) only in favour of the applicant bank against the sole defendant.

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vii) Communicate copy of this order to the concemed parties. This order is dictated and corrected by the undersigned.

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Judgment dated 22nd September 2023, signed and pronounced in the Tribunal

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today under my signature.

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal,s Website and file be consigned to Record Room.

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S\ir, e[ala,"q"Lq 2)la9l)3 /l (Shiv Sharan dubJf[-^v Presiding Officer DRT, Guwahati.

Canara Bank v. Babu Teron

Case brief

What is this about?

What did the court decide?

Canara Bank v. Babu Teron

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

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Case details

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