Allowed

State Bank of India v. Mr H Samuela

DRT21 Dec 2023OA/354/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for a recovery certificate regarding a home loan default. The court found the mortgage valid and the application within the limitation period, holding defendants jointly and severally liable along with a provision regarding inherited property value.

What did the court decide?

Issued a Recovery Certificate for Rs. 34,30,758.89 with future interest at 8.05% p.a. against all respondents, directing recovery from secured property and personal assets.

State Bank of India versus Mr H Samuela — Banking and Recovery | DRT (2023)

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O A. 354/2022lORT-Guwahali

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal ofAssam, Nagatand, Meghalaya, [4anipur, Mizoram, Arunachal Pradesh & Tripura)

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Before Shri Shiv Sharan Oubev. Presidinq Officer

O.A. No.354/2022

ln the matter of -

U CO BANK

Aizawl Branch,

Oawrpui, Aizawl., Mizoram, P.O. Aizawl, Districl Aizawl,

Pin- 796001, Assam

Applicant

1. MRS LALNUNDIKI,

Wife of Lale Lakindika

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Legal Heir of Lalrindika (since deceased) and Co-borrower Loan Account,

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R/o H.No. D-13, Venglai, Hlimen, S-Section,

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Near Presbeterian Church, Hlimen, Falkawn,

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Kulikawn, Aibawk, Aizawl.

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2. BETSY LALNUNPUII,

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Daughter of Late Lalrindika

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Represented by her mother and natural guardian Ms. Lalnundiki

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Resident of House No. D-13, Venglai, Hlimen, S-Sector, Near Presbeterian Church, Hlimen, Falkawn,

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Kulikawn, Aibawk, Aizawl, Mizoram-796005.

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3. JOHNY LALREMPUIA,

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Son of Late Lalrindika

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Represented by her mother and natural guardian Ms. Lalnundiki Resident of House No. D-13, Venglai, Hlimen, S-Sector,

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Near Presbeterian Church, Hlimen, Falkawn,

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Kulikawn, Aibawk, Aizawl, Mizoram-796005.

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4. CHRISTINA VL CHHANDAMI,

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Daughter of Late Lalrindika

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Represented by her mother and natural^guardian Ms. Lalnundiki Resident of House No. O-13, Venglai, Hlimen, S-Sector,

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Near Presbeterian Church, Hlimen, Falkawn, Kulikawn, Aibawk, Aizawl, Mizoram-796005.

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5. ESTHER LALHRUAITLUANGI,

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Daughter of Late Lalrindika Represented by her mother and natural^guardian Ms- Lalnundiki Resident of House No. D-13, Venglai, Hlimen, S-Sector, Near Presbeterian Church, Hlimen, Falkawn, Kulikawn, Aibawk, Aizawl, Mizoram-796005.

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Defendants

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-q[rPlou"&"Ltp',,go#.tP P ( DRT. Guwahali

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O A 354/202ZORr GRahati

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Presenceot the Counsel:
FortheApplicant	Mr. Sandip Bhattacharjee, Mr.Jogabrata Bhattacharjee, Advocates
FortheDefendants	None
	(Right to file WS cumEAclosed)

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Oated :2111212023

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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 U Co Bank, Aizawl Branch, Dawrpui, Aizawl., Mizoram, P.O. Aizawl, District- Aizawl, Pin- 796001, Assam, with a prayer to issue Recovery Certificate for the sum of Rs.34,30,758.89 (Rupg€ Thirty-Four Lakhs Thirly Thousand Seven Hundrod Fifty-Eight and Paiss Eighty-Nine) onty as on^'15.07 .2022 against the defendants with future interest thereon at the rate of existing MCLR at that time at monthly rests lill 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 Lairindika (since deceased) and defendant no. 1^jointly applied for home loan for construction of house on the plot of land owned by Lalrindika (since deceased) and the applicant bank after considering all aspects sanctioned under UCO Home Loan Scheme a term loan of Rs. 31,00,000/- (Rupees Thirty-One Lakhs) to Lalrindika (since deceased) and defendant no.^'l as co-applicant on 04.01.2020 for construction of house on the land belongs to Lalrindika (since deceased).

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The applicant bank, Aizawl Branch, after considering the borrower's Lalrindika (since deceased) and co-borrower's Mrs. Lainundiki wife of Late Lairindika application and all other aspects sanctioned on 04.01.2020 Term Loan of Rs. 31,00,000/- (Rupees Thirty-One Lakhs) for construction of House on the Borrower's^plot of land described in the Schedule below at Hlimen, Aizawl as^per Sl,r^rS{o4'-,& -.&"2 Presidinq Offide.'^/ fl DRT, Guwahat

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o.A. 354t2022/DRT€uw.h.ti

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LSC no. 323(Cad) of 2013 and the borrower and co-borrower duly accepted the terms and conditions mentioned in the sanction letter dated 04.01.2020 and also accepted to pay equated monthly instalment of Rs. 26,439^ (Rupees Twenty-Six Thousand Four Hundred Thirty-Nine) in 231 equated monthly instalments.

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The borrower Lalrindika (since deceased) and co-borrower Mrs. Lalnundiki availed off said home loan of Rs. 31,00,000/- as per Bank's sanction from Aizawl Branch of the applicant Bank and in the loan agreement it is stipulated interalla that the loan will be repayable in 231 consecutive EMI of Rs. 26,439/- (Rupees TwentySix Thousand Four Hundred Thirty-Nine) along with other stipulations. The borrower and co-borrower executed the following documents in favour of the applicant Bank also executed the following documents in favour of Bank:-

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(i) Loan Application dated 03.11.2019; (ii) Sanction Letter dated 04.01.20201 (iii) Demand promissory note A-1 dated 06.01.2020: (iv) Letter of waiver A-47 dated 06.01.2020; (v) Loan Agreement (AHL-6) dated 06.01.2020;

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(vi) AHL-7 dated 06.01.2020; (vii) AHL-8 (Revival Letter) dated 06.01.2020

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The borrower Lalrindika (since deceased) created mortgage of his land measuring 108.36 sq.m, Survey no. 325 and building thereon under LSC no. 323(CAD) of 2003 situaled at D-13, Hlimen near Presbeterian Church & Taxi Stand, Aizawl, Mizoram and the^property is bounded by:- East:- Vanlallawm Sangzuali; West:- Steps and Hlimen-Lunglen Roadi North:- R. Lalhmachhuana; South:- Chhunthuami

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The borrower Lalrindika (since deceased) created mortgage of his above mentioned immovable property specifically described in the Schedule of lhe OA and borrower Lalrindika^(since deceased) deposited the following documents with the applicant bank for crealion of mortgage of his^property:-

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(D Certificate of Land settlement no. L.S.C. no. 323(CAD) of 2013; (iD No Objection Certificate dated 04.04.2013:

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(iiD Non encumbrance certif icate dated 04.04.2013:

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(iv) Certificate of land valuation dated 04.04.2013 issued by the Assistant Settlement officer, Aizawl;

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(v) Land Revenue^payment receipt dated 13.06.2019;

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(vi) Challan for^payment of^property tax dated 22.'10.2019i

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Slr^rs-t"n*^t-i", o 2l'l>D Presiding Offcer DRT. Guwahati

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O.A. 35412022,oRT_GMahali

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(vii) Site Plan;

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iuiiil^{guiroingpermissiongranted by Alzawi Municipal corporationdated} 17.O9.2O19i

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(ix) Oratt entry to be^{madein the equitable mortgage registrar dated} 06.01.2020:

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(x) Leqal Scrutiny Report dated 25^{1O 2019i}

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i"il^{Vaiuation Certificatedated 13.11.2019}

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The borrower^{Lafrindika (since deceased)also signed a letterconfirming} mortgage and^{recital evidencing creation of mortgageof his property'}

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Suddenly the^{borrower Lalrindika (since deceased)died on 16 06 2021 as} per death certificate^{and Lalnundiki wife of Late Lairindikais the co-borrower ot the} loan and also^{the legal heir of Lalrindika(sincedeceased)}

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Thedefendantshadavailedthesaidloanfacilityfromtheapplicantbankbut have not^paid the^{outstanding loan amount as per termsand conditionsas} agreed upon^{withthe applicant bank,in spite of repeateddemands and requestby the} applicant bank.^{As the defendantsfailed to repay the loan amount' the said loan} accounts became^{NPAon 28 02.2022After the accounts became NPAthe applicant} bank issued^{noticesfor repaymentof the due amount,but thedefendants failed to} repay the Loan^amount.

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The applicant^{bank thus became constrained to file the present Original} Application^{for therecoveryof Rs' 34,30,758'89 (RuPeesThirty-Four Lakhs Thirty} Thousand seven^{Hundred Fifty-Eight and Paise Eighty'Nine)only as on} 15.07.2022^{alongwrthinterest and cost of the application'}

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After flling^{of the OA the Tribunal issued notice upon the defendant No 1 through} registered^{post and the applicant bank flled servicereport on 10'11'2022 and brought} on record the^{postal receipt alongwith trackconsignment report which shows that the} notice has^{not been served uponthe defendantNo1- Hence servicewas not} completed^{uponthe defendantNo lThereafter learned counsel for the applicant} bankhasfiledanapplicationbearinglA.No.33/2023withaprayerforimpleading(1) Betsy Lalnunpuii^{(daughter) (ii) Johny Lalrempuia (son)(iii) Christina VL Chhandami} (daughter) and^{(iv) Esther Lalhruaitluangi(daughteoall are representedby their} mother and^{naturalguardian Mrs Lalnundiki as defendant No 2'3'4 & 5 respectively} sll'r"r tl^cun- *+.. "r""""0 DRT. Guwahati^{*3r' ''2) d}

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OA. 354t2022DRTcryahati

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in the Original Application and allow the applicant to amend the original application. Accordingly, the said lA. No. 33/2023 was a[owed on 02.02.2029 and the learned counsel for the applicant was permitted to make necessary amendment in the Original Application. After amending the OA the learned counsel for the applicant bank issued personal notices upon the defendant No.2,3,4 & 5 through registered post and the applicant bank filed service rcpot1 on 21.04.2023 and brought on record the postal receipts along with track consignment report which shows that the notices have been served upon the defendant No.2,3,4 & 5. lt is observed from lhe record that learned counsel has appeared for the defendants on 02.06.2023 without filing Vakalatnama and sought time. Thereafter, the case was listed on several occasion, but the Vakalatnama, written statement cum evidence on affidavit has not been filed by the defendants. Hence, their right to file written statement cum evidence on affidavit was closed on 10.08.2023 and the matter was rixed for hearing.

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Supporting the claim of the applicant bank, Santosh Kumar, Chief Manager ofthe Applicant Bank has filed evidence on affidavit coupled with the security documents marked as Exhibit A1 to A24 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 aftirmed on oath the execution of the security and other documents by the defendants and also execulion 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 liability 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 documents have been executed on 06.01.2020. Moreover, after^perusing the documents on recod and taking into consideration of the facts and circumstances ofthe case, I find that the mortgage has been created by the bonower Lalrindika (since deceased) where the limitation available is

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-.li' d'o.la-Q"4'/+ ","",urn DRT, Guwahati^{#tr,l! 2) 0}

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o.A. 3s412o2zoRT€uwahari

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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 pedod of limitation. The account became NPA on 28.O2.2O22 and lhe OA has been filed on 03.09.2022. Hence, the OA is filed well within the period of limitation and this Tribunal having a jurisdiction to adjudicate the Original Application.

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Considering the unchallenged/unrebutted version of Santosh Kumar, the applicant's witness and allthe documents marked as exhibits, including duly certilied 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 Certificate as prayed for.

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ln the result, the^present Original Application No. 354 ot 2022 is allowed with cost as under: -

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i) The defendants No. 1, 2,3,4 & 5 are^jointly and severally liable to pay to the applicant bank a sum of Rs.34,30,758.89 (Rupees Thirty-Four Lakhs Thirty Thousand Seven Hundred Fifty-Eight and Paise Eighty-Nine) only with pendentelite and future interest @8.05% p.a. with monthly rests from 16.07.2022 till the date of full paymenUrealization and also cosl of lhe application.

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The liability of the defendants No. 2,3,4 & 5 will be to the extent of value of their shares inherited in the mortgaged^property as legal heirs of the borrower Lalrindika^(since deceased) and co-borrower Mrs. Lalnundiki (defendant No.1) but their liability will not exceed the certificated amount.

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ii) The charge of the certificated amount be kept alive on mortgaged property i.e. Land measuring 108.36 sq. m., Survey No.325 and building thereon under LSC No. 323 (CAD) of 2003 situated at D-13, Hlimen near Presbeterian Church & Taxi Stand, Aizawl, Mizoram and the^property is bounded by: East: Vanlallawm Sangzuali; West: Steps and Hlimen-Lunglen Road; North: R. Lalhmachhuana; South: Chhunthuami, as described in Schedule of the OA till the amount is realized in full.

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t -q"4#*Mleorirting Ohcdr - ORT, Guwahali

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oa 354/2022./oRTcuw.har

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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 to proceed against the personal assels and properlies of the defendant towards recovery of the dues.

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(v) The applicant bank is entitled lo 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. 34,30,758.89 (Rupoes Thirty-Fou, Lakhs Thirty Thousand Seven Hundled Fifty-Eight and^pabo Eighty-Nine) only in favour of the applicant bank against the defendants No. 1, 2,3,4 & 5.

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(vii) 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 2'l.r December 2023, signed and pronounced in the Tribunal

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today under my signature.

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

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\li^r^{st"o,ia", 0u,t-u} r 21. \2, )) I (Shiv Sharan Dubsy)^U Pr€aiding Officar DRT, Guwahati.

State Bank of India v. Mr H Samuela

Case brief

What is this about?

What did the court decide?

State Bank of India v. Mr H Samuela

Case brief

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What did the court decide?

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