Allowed

Uco Bank v. Jaarohi Lalhruaizela

DRT11 Dec 2023OA/353/2022

Case brief

AI extract

What is this about?

This is an Original Application filed by UCO Bank Aizawl Branch under Section 19 of the RDBFI Act, 1993. The Tribunal allowed the application, holding the defendants jointly and severally liable for a loan of Rs. 41 Lakhs and noting the mortgage limitation period. A recovery certificate for Rs. 53,39,558.84 was issued with future interest.

What did the court decide?

Recovery Certificate issued for Rs. 53,39,558.84 with future interest and cost; charge to remain alive on mortgaged properties.

Uco Bank versus Jaarohi Lalhruaizela — Execution and Attachment | DRT (2023)

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O.A. 3532022oRr-curaharr

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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, Meghataya, Manip!r, Mizoram, Arunachal pradesh & Tripura)

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BeforE Shri Shiv Sharan Dubev.^presidino Officer

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O.A. No. 353/2022

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ln the matter of -

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U CO BANK Aizawl Branch, Oawrpui, Aizawl, Mizoram, P.O. Aizawl, Dishic! Aizawl, PtN-796001.

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Appticant

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Vs.

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MR JAAROHI LALHRUAIZELA
Son of R. Zohmingliana
Rl/o KC Zemabawk, (Falkland),
Near Hyundai Servicing Center.
Aizawl-79601 7, Mizoram, lndia

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MR. R. VANLALLIANA
Son of Thanhlira R
R/o V-13, Bethlehem Veng,
Aizawl-79600'1, Mizoram. lndia.

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TBC LALTHANCHHUNGI
Wife of Vanlalduata (L)
Rl/o 411 B/1 , Section A1 1,
Chaltlang (Salem Veng),
Aizawl-7960 1 2, Mizoram, lndia

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Defendants

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Presence of the Coungel:

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For the Applicant : Mr. Sandip Bhatacharjee,
Mr. Jogabrata Bhattacharjee, Advocates
For the Defendants : None (Ex-parte)

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Dated :1111212023

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JUDGIIIENT

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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, Aizawl Branch, Dawrpui, Aizawl, Mizoram, P.O. Aizawl, District- Aizawl,^ptN-79600.t, with a prayer to issue

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sl-u slau.,,Q",[^r.r \l l)r4 I Presiding Oftcer DRT, Guwahsli

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O.A 353/2022oRT-Guwahatr

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Recovery Certificate for^{the sum of Rs.53,39,558.84(Rupoes Fifty'Three Lakhs} Thirty-Nine Thousand^{FiveHundredFifty'Eightand PaiseEighty-Four)only as on} 15.07.2022 against the^{defendants with fulureinterestat the existing MCLR at that} time at monthly rests till realization^{along with cost and other relief.}

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

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The defendant no. 1 as applicant^{and defendant no. 2 as co- applicantjointly} applied for home^loan for^{construction of houseon the plot of land owned by} defendant no. 1^{(Jaarohi Lalhruaizela) specificallydescribed in the scheduleof the OA} and the applicant^{bank afterconsideringall aspects sanctionedunder UCO Home} Loan Scheme a term^loan oI^{Rs. 41,00,000/- (Rupees Forty-One Lakhs) to the} defendant no.^'l and defendant^{no. 2 on 17.10.2017for constructionof house on the} said land.

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The applicant bank, Aizawl Branch,^{after consideringthe borrowers application} and all other aspects sanctioned on^{17.10.2017Tem Loan of Rs. 41,00,0001} (Rupees Forty-One Lakhs) for construction of House on the^plots of land specifically described in the Schedule below at^{Maubawk,Aizawl under (1)} LSC^no. 104906/01/'136 of 1999⁽¹⁾ LSc no. 104903/01/140 of 1999 0 LSC no. 104903/0'l/11 of^'1998 and the defendant no. 1 and defendant no. 2 duly accepted all the tems and conditions mentioned in the said sanction letter dated 17.10.2017 and also agreed to pay equated monthly instalment of Rs. 33,348.001 (Rupees Thirty-Three Thousand Three Hundred and Forty-Eight) in 294 equated monlhly lnstalments and also agreed to pay interest^presently 8.55o/o per annum with monthly rests and is subject to change that may be made by the Bank from time to time at its sole discretion also agreed to pay panel interest in case of delay in payment of EMI by 'l month or more which is also specifically stated in the loan agreement executed by the defendant no. 1 and 2.

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That it is pertinent to mention herein that the loan was processed and sanctioned and disbursed by the UCO Bank, Aizawl Branch and the borrowers could not regularize the account after repeated requests and demand made by the applicant Bank and lhe loan account was classified as NPA on 31.21.2019.

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il,.t SLa,ta-fe.L"y lt.tr'23 0 Pr€siding Officer ORT, Guvrthati

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o.A. 353/2o2rrDRT€uwahat

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The defendant no. 1 and co_borrower defendant no. 2 availed off said home loan of Rs. 4i,OO,OOO/_ as per Bank,s sanction from Aizawl Branch of the applicant Bank and in the loan agreement it is stipulated interalia that the loan will be repayable in consecutive EMI of Rs 33,348.00/- (Rupees Thirty_Three Thousand Three Hundred and Forty-Eight) along with other stipulations. The defendanl no. 1 and defendant no. 2 executed the following documents in favour of the applicant Bank: -

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(i) Loan Application dated^.16.09.20 j7: (iD Sanction Letter dated,l7.,lO.2012. (iiD Pemand^{promissorynoteA-1 dated17.1O.20,17:} (iv) uemand promissory note A_ j dated 17.10.2017 . (v) Loan Agreement (AHL-6) dated 17..10.2017 executed by both defendant no.^'l and 2:

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(vi) AHL-7 dated 17.10.2017: (vii) AH L-8 (Revival Lete f) dated 17 .1o .2017 i (viii) Uonsent _Clause Annexure_1 executed by the defendant No. 1 dated 17.10.2017.,

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(ix) c,onsent.Clause Annexure-l executed by the defendant no. 2 dated 17 .'t0 .2017 i

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(x) C_onsenl .Clause Annexure-ll executed by the defendant no. 3 dated 17.10.2017.

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The defendant no. 3 stood as guarantor of the said loan availed by the defendanl no.1 and 2 and the defendant no. 3 also executed lefter of guarantee (AHL_ 13) on 17.1O.2O17.

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The defendant no. 3 also signed an agreement to stand as guaEntor on 18.07.2017 wherein she agreed to and authorized the appticant bank to effect ra@very of the amount due from the loanee from her salary and allowances every month at the rate to be speciried by the applicant bank in due course on the event of the loanee's failure to repay the lnstalments as per Bank,s tems and conditions and the defendant no. 3 also wrote to his employer on 18.09.20i7 stating that she agreed to authorize her employer to realize from her salary and allowances every month a sum of Rs. 40 lakhs as and when demanded by UCO Bank, Alzawi Branch lowards recovery of loan account of the bonower for whom she stood as guarantor.

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The defendant no.'l created mongage of his :

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(1) An area of land measuring 1121.i0 sq.m under LSC no. iO49O6/01/136 of 1999, in the name of Jaarohi Lalhruaizela the said land is bounded by: East: Pro Step; West L.G. Hnamte & Kawrte; North: Lalchungnunga South: Ramchhia;

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s, o^l rl'caa-o"'l'a |.11!3 tl Presidino Offcer DRT, Guwahati

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o.A. 353rzo2?JoRT€uMhati

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(21 An area of land measurino gO4.90 sq.m under LSC no. i M9O3/01/140 of .1999, wesr: in rhe L G. Hnamte; North: name of Jaarohi Lithruaizeta' lans noaa-Jea the .;id qili: ffi ;b;;"1 joiit,],Ll-rir"rri"n",by: East: Step;

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(3) An area of land measurinq g42.SO sq m under LSC no. 1O49O3/O .I1 of 1998 in the name of Jaarohi iathruaizgla tt " ""ij L"-o'iJ u",r-Jed by: Easr: R. Ttawng Road ; West: Latbiaktiana; Nortn: La-rctruffinJrlilr"tf,, zom,rr"

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The defendant no. 1 created mortgage of his above mentioned immovable property specilically described in the Schedule of the OA and the defendant no.1 deposited the following documents with the applicant bank for creation of mortgage of his property: -

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(i) Ceniticate of Land setflement no. LS.C. no 104906/Oi/136 of 1999. (iii^No obiection Cedmcate no. 7908 of 2orz o"LJos.oo.ioiz."^" (iiil^Non encumbrance certificate no. 79OB of2Oi7 dateJ OSib.iOtz. (v) Site Ptan. (iy) Certificate of tand vatuation dated 09.08.20f i t""i," ""zgoii'' ("il^Certificate of Land setflement no. LS.C. no.^{,t04903/01/140} of 1999. (vii) No Objection certificate no. zgog otzorT daiednr.&.rb1Z ' '" (viii) Non encumbrance ce(ificate no.79os of zor iJaieJos.dilot z. (ir) Certificate of tand vatuarion dated Og.Oe ZOf Z (dr" ,;i9b5.^' (x) Site Plan. (xi) Certificate of Land set ement no. LS.C. no. 1M903/Otl1.1 of 1998. (xii) No Objection Certificate no. 7g,to ot 2O1Z dated OS.OS.ZO1i.^-- (xiii) Non encumbrance certiricate no.tglT or 20,t7 daiii OSlg.rOrZ.' (xiv) certiricate of tand vatuation dared 09.08.2017(;;;;; ;61-d. (xv) Site Plan. (xvi) Tax Clearance Certificate dated 22.08.2017. (xvii) No objection Ce(iticate by the Chairman Local Coun cil daled 12.0a.2017. (xvu t urErng-^permrssion by Aizawl Municipal Corporation dated 04.09.2017. (xrx) 3 nos of Legal Scrutiny Report dated 19.08.2017.

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The defendant no. 1 executed Mortgage Oeed vide Reg. No. MZ(Azl) 1973Azl,2017-2018 ot 26.09.2012 in favour of applicant bank in respec_t of his (i) area of land measuring 1121.10 sq.m under LSC no 104906/Ojl136 of .1999, (ii)An area of land measuring 904.90 sq.m under LSC no. 104903/O.ti14O of^.tggg, (iii)An area of land measuring 942.50 sq.m under LSC no. i04903/01/1.1 of 1gg8, specmcally described in the Schedule of the original application.

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The defendant no.^'l also gave undertaking to Aizawl Municipal Corporation stating the compliance of the Requirements of Regulation i3 of lhe AMC Building

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SL.,)Sla,a*Afu, \t-t2.U / Pll.i,ing Omoar DRT, Guwaheli

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o.a. 353/2022./DRT€ur.h.ri

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regulation and also under to not to resorl lo manual scavenging sanitiation worker for clearing septic tanks.

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The defendant no. 1 also acknowledged the demand notice dated 15.05.2018 and also acknowledged the recall notice stating the outstanding balance therein dated 'to.o1.2020

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The defendants had availed the said loan facilities from the applicant bank but have 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 by the applicant bank. As the defendants failed to repay the loan amount, the said loan accounts became NPA on 31.12.2019. After the account became NPA the applicant bank issued notices for repayment of the due amount, but the defendants failed to repay the loan amount.

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The applicant bank thus became constrained to rile the^present Original Application for the recovery of Rs. 53,39,558.84^{(RupeesFifty-Thrse} Lakhs ThirtyNine Thousand Five Hundred Fifty-Eight and Paise Eighty-Four) only as on 15.07.2022 alongwith interest and cost ofthe application.

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Afler filing of the OA the Tribunal issued notices upon the defendanb through registered^post and the applicant bank tiled service report on 10.11.2022 and^brought on record the^postal receipts along with track consignment^{report which shows that} notices have not been served upon the defendants.^{ThereaftertheTribunalordered} paper publication of noiice upon the defendants and the applicant bank issued notice to the defendants on 23.'l2.2022lhrcugh^{Paper Publicationin two newspapers namely} "Vanglainf and'Newslink'. Even after issuance of notice through paper publicalion also there was no represenlation on behalf of the^{defendants eitherby the counselor} the^peBon and hence the defendants were set^{ex-parte on '15-02-2023 and their right} to file written statement cum evidence on affidavit^{was closed and the matterwas} listed for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Sri Santosh^Kumar, Chief^Manager of ^ Sl" t 'l^fl'a 11.12 'a")'1" 22, 7I Presiding Oficor^' DRT, Guwehati

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o,A. 3syzo2zoRT_cuwshati

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the Applicant Bank has filed evidence on affidavit coupled with the security documents

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marked as Exhibit A-l to A{0 supporting the claim of the appticant 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 of the security and 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 document filed by the applicant bank are supporting the claim of the applicant bank and establishing the liabitity of the defendants. lt is proved that the defendants are jointly and severally liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documenls have been execuled on 17 .10.2017 . Moreover, after perusing the documents on recod and taking into mnsideration ofthe fac{s and circumstances ofthe case, I find that the mortgage has been created by the defendant No.1 where the limitation available is for 12 years and as such taking into account of the creation of the mortgage the application appears to have been filed well within the period of limitation. The account became NpA on 91.,12.2019 and the OA has been filed on 03.09.2022. Hence, the OA is fited wellwithin the period of limitation and this Tribunal having a jurisdiction to adjudicate the Originat Application.

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Considering the unchallenged/unrebutted version of Sri Santosh Kumar, the applicant's witness and all the documents marked as exhibits, including duly ce(ified copy of the slatement of accounl 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 Certificate as prayed for.

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ln the result, the present Original Apptication No. 353 of 2022 is allowed with

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cost as under: -

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-(Lioelol^,0,,t^, \l lL. )\ I Presiding Oficsr ORT, Guwahati

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Oe. 3532022/DRT4Mhali

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The defendants No. 1, 2 & 3 are joinfly and severally liable to pay to the applicant bank a sum of Rs. 53,39,558.84 (Rupees Fifty.Three Lakhs Thirty-Nine Thousand Fivs Hundrod Fifty-Eight and paiso Eighty-Four) only with pendentelite and future interest @B.S5Zo p.a. with monthly rests frcm 16.07 .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 alive on mortgaged properties, i.e. (l) An area of land measuring 1121.10 sq. m under LSC no. 1M906/01/136- of 1999, in the name of Jaarohi Lalhruaizela the said tand is bounded by: East: Pro Step; West: L.G. Hnamte & Kawrte Lalchungnunga: North: South: Ramchhia;

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(2) An area of land measuring 904.90 sq.m under LSC no. 104903/01/140 of 1999, in the name of Jaarohi Lalhruaizela the said land is bounded by: East: Step; West: L.G. Hnamte; North: Tlang Road- Jeep Road; South: Lalbiakliana,

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(3) An area of land measuring 942.50 sq.m under LSC no. 104903/O.t/11 of 1998, in the name of Jaarohi Lalhruaizela the said land is bounded by: East: R. Tlawng Road; West Lalbiakliana: North: Lalchungnunga; South: Zokhuma, as described in Schedule of the OA till the amount is realized in full.

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

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iv) The applicant bank is also entitled lo proceed against the personal assets and properties of the defendants towards recovery of the dues.

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v) The applicant bank is entitled 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.53,39,558.84 (Rupses Fifty-Throe Lakhs Thirty-Nine Thousand Five Hundred Fifty-Eight and Paise Eighty-Four) only in favour of the applicant bank against the defendants No. 1,2 & 3.

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-SLil^{Sfatr, 0.,i*l} ll lr'"5 U Presiding Officer DRT. Guwahati

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o.A.353/2oz2 rRl€uwlhrtj

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vii) Communicate copy ofthis order to the concemed parties.

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This order is diclated and corecled by the undersigned.

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Judgment dated 1lh December 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 lile be consigned to Record Room.

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.lf^, , .-l-n^{1c1'' It} '.,1^' 1 r^I \l''2't) (Shiv Sharan Dubeyf^/ Presiding Officer DRT, Guwahati.

Uco Bank v. Jaarohi Lalhruaizela

Case brief

What is this about?

What did the court decide?

Uco Bank v. Jaarohi Lalhruaizela

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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