Allowed

Uco Bank v. Messers Ishita Communication

DRT20 Jul 2023OA/346/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal Guwahati allowed an application under Section 19 RDBFI Act filed by UCO Bank for a recovery certificate against defendants for unpaid bank loans totaling over 54 lakhs, which turned NPA in 2022. The court found the claim established and ordered recovery from secured and personal assets.

What did the court decide?

Issuance of Recovery Certificate for Rs. 54,04,041.90 with interest against defendants jointly and severally liable, and charge on properties.

Uco Bank versus Messers Ishita Communication — Money Laundering | DRT (2023)

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o.A v6/2022loRT,Gu*ahari

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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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Beforo Shri Shiv Sharan Dubev. Pr€idinq Officer

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O.A. No. 346/2022

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ln the matter of -

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U Co Bank Nalbari Branch. Nalbari, Assam-781^335.

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Applicant

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Vs.

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M/s Bhita Communication

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Represented by^{its Proprietor Manisha Barman} Ward No.7, Santipur,^{Hajo Road,} Nalbari Town,^{Nalbari Assam-781335'}

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Ms Manbha^Barman Wife of Aneel^Baman

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Ward No.7,^{Santipur, Hajo Road,}

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Nalbari^{Town, NalbariAssam-781335}

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Defendants

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Presence^{of the Counsel:}

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For the Aoolicant : Mr Mukesh^Sharma Ms Ellora Bharali'^Advocates For the Defendants^: None (Ex-parte)

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oadd : 20.07.2023

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JUDGMENT

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This is^{an applicationunder section '19 of the Recoveryof Debts Dueto Banks} andFinanciallnstitutionsAct,lgg3filedbytheUcoBank'NalbariBranch'Nalbari, Assam-781 335'^{with a prayer toissue Recovery Certificate for lhe sum of} Rs. 54,04,041.90^{(RupeesFifty Four Laca FourThousand FortyOne and Paisa} Ninety)^{onlyas o^ 12'08 2022 against thedefendantswith pendentelite and future} interest^{at contractual rates till realization along with cost and other relief}

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A few facts^{giving riseto the present applicationareas under'}

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:t'.ril.{'rr.w-- Presding Officer }i[1I DRT. Guwahali

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o.^. 3'6/2ozlDRT6ur'ndi

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The Defendant^{No.1 is the ProprietorshipFirm and Defendant no 2 is the} Proprietor of^{Defendant No.1 and Borrowerto the Credit Facility availedby defendant} No.'1.

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The Defendant^{No. t had approached the Applicant Bank and appliedfor a Cash} Credit Facility^{by submitting a Loan Applicationdated 25 08 2020 for business purpose} and after^{consideringthe said Application' the Applicant Bank vide its Sanction Letter} dated 28.08.2020^{had sanctioneda Cash Credit of Rs 41'OO'OOO/-under UCOVyapar} SchemewithinterestbeingFloatRate+2.30o/oi'e'9.45o/op.a.withmonthlyrests,The Defendants^{had signed on the said SanctionLetter' therebyagreeingto lhe terms and} condition^{containedtherein'}

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ln connection^{with the sanctionof the CashCredit Facilityof Rs 41'00'000/-'} sanctioned^{by the Applicant Bank and availedof by the Oefendants' a Oemand} Promissory^{Note tor Rs 41'Oo'Ooo/dated Nil' a Letter of Waiver dated 28 08 2020 and} a Hypothecation^{of Goodsto secure a Demand Cash Creditdated 28'08 2020 have} been^{signedand executedby the Oefendantsin favour of the Applicant Bankas} security^{for repaymentof the roan, thereby promisingto pay the appricant bank the} entire^{loan amounton demand'}

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The defendant^{No' 2 as theproprietorof the de'endantNo'1 ,irm had again} approached^{theapplicantbank with an application for additional working capitalterm} loan^{underGECL and afterconsideringthe said requesi' the applicant bank had} renewed^{the WorkingCapitalTem Loanof Rs 12'OO'OOO/-only with interest @880o/o} per annum^{compounded monthlyThe Term Loan was repayable in 72 months from the} date^{of disbursement after the expiry of the moratorium period.ln order to securelhe} said^{GECLfacility' the defendantshad executeda Demand Promissory Notedated} 20.11.2021'Letter^{of Waiver dated20 11 2021' Agreement relating to TermLoan dated} Nil in favour^{of the applicant bankThe aforesaid GECLAccountNo 11080610015834} standing^{in the nameof the defendant No l}

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The^{Defendants had availedof the said loan facilitiesfrom the Applicad Bank'} but have^{not paid the loan amount as Per the terms and conditions as agreed upon with} the Applicant^{Bank' inspite of repeated demands and requests by the ApplicantBank'}

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si";d^oa1,p$1 PrGsidinS^Omt6r'-- l DRT,^Guwahati

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O A 346,2022lDRT-Guwahai

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As the defendants failed and/or neglected to remit the overdue amount, the said accounts became NPA on 17.07.2022. After the accounts became NPA the applicant bank issued notices for repayment of the due amount, bul the^{defendantshave neither} chosen for repayment of the remaining installmenis in the term loan account nor approached to the applicant bank for settling the lerm loan account nor renewed the cash credit loan account.

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The applicant bank thus became constrained to flle the present Original Application for the recovery of Rs. 54,04,041.90 (Rupe$ Fifty Four Lacs Four Thousand Forty One and Paisa Ninsty) only as on 12.08.2022 along with interest and cost of the application.

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After filing of the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank liled service report on 07..1.1.2022 and brought on record the postal receipts along with track consignment repod. lt is observed thal the summons have not been served upon the defendants. Thereafter the Tribunal ordered paper publication of notice upon the defendants and the applicant bank issued notices to the defendants on 21.1,1.2022 through paper publication in two newspapers namely 'Ihe Times of lndia" and "Dainik Asom". Even after issuance of notices upon the defendants through paper publication also there was no representation on behalf of the defendants either by the counsel or the person and hence the defendanls were made set ex-parte on 13.02.2023 and their right to file written statement cum evidence on affidavit was closed and the matter was posted for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Mr. Santosh Kumar Shukla, Senior Manager of the Applicant Bank has liled evidence on affidavit coupled with the securw documents marked as Exhibit -P, Exhibit AW-1/1 to AW-1112 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 defendants as per pleadings made in the Application, supported by evidence on affidavit of their witness who affirmed on oath the execution

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ShrLo,a-J"tr,,r P,*wl,o#;a)^D f oRT, Gurryahali

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o 3'6/2022lDRTcur'htti

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of the security^{and other documentsby the defendantsand also executionof their} own documents^{relied upon, which have been marked exhibits'}

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Considering the^{facts and circumstancesof the case, I am of theconsidered} view that the documents^{filedby theapplicani bankare supportingtheclaimof the} applicant bank^{and establishing theliabilityof the defendants lt is proved that the} defendants are liable^{to pay to the applicant bank the claim made in the Original} Application. The^{loanswereobtained and documentshave been execuled on} 28.08.2020 &20.1'L^{2O2l The accounts became NPA on'17 07 2022 and the OA has} been filed on^{3'l.O8.2O22 Hence, the OAis filed well within the period of limitation and} this Tribunal having^{a jurisdictionto adjudicatethe OriginalApplication'}

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Considering the^{unchallenged/unrebuttedversionof Mr' Santosh Kumar} Shukla, the^{applicant's witnessand all the documents markedas exhibits' including} duly certified copy^{of the statementof account alongwith interest calculation sheet} maintained^{by the applicantBank in it's regular cou6e of business'I holdthat the} applicant is^{entitled to get the Recovery Certificate as prayed for-}

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ln the result,^{the present Original ApplicationNo 346 of 2022 is allowed with} cosl as under^:-

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i) The defendants^{No. 1 & 2 are jointlyand severallyliable to pay to the} applicant bank s^{sum of Rs. 54,04,041'90(Rup€$FiftyFour Lacg Four} Thousand Forty^{One and Paisa Ninoty)only with pendenteliie and future} interest @9.45olo^{p a. with monthlyrestsfrom 13 08'2022 till the date of full} paymenurealization and^{also cost of the application'}

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ii) The charge^{of the certificated amount be kept aliveon hypothecated properties'} as desdibed^{in Schedule-Aof the OA till the amount is realizedin full'}

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iii) The applicant^{bank is entitledto proceed againstthe secured items towards} recovery of the^debts.

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iv) The applicant^{bank is also eniitled to proceedagainst the petsonalassets and} properties of the defendants^{towards recovery of the dues'}

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sru;st"g-,tz60r$7 Presidlng Omcar DRT. Guwahali

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o_a' 3462022/oRTGMhali

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v) The applicant bank^{is entitled to the costsof the OAwhichincludes the} 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^{Certilicate accordingly for a sum Rs' 54,04'0/tl'90(RuPees} Fifty Four Laca^{Four Thousand FortyOneand PaisaNinety) only in tavour} ofthe applicant^{bank against the defendantsNo 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^{20rh July 2023,signed and pronounced in the Tribunal loday}

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under my signature.

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Copy of the^{JudgmenUFinalOrder be uploadedin the Tribunal'swebsite and}

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file be consigned^{to Record Room.}

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(L,'slo-,a.-'J'-J' I I )r^,rl )^{2 5} (Shiv Sharan Dubey) " Presiding Officer DRT, Guwahati.

Uco Bank v. Messers Ishita Communication

Case brief

What is this about?

What did the court decide?

Uco Bank v. Messers Ishita Communication

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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