Allowed

State Bank of India v. Jay Jit Goshwami

DRT28 Jul 2023OA/363/2022

Case brief

AI extract

What is this about?

In an ex-parte application filed under Section 19 of the RDBFI Act, 1993, the Debts Recovery Tribunal allowed the bank's claim for recovery of Rs. 30,14,877.34 along with interest, costs, and issuance of a Recovery Certificate against the defendant who failed to repay term loans. The Tribunal held that the documents established liability and the application was within the limitation period.

What did the court decide?

Issuance of Recovery Certificate for Rs. 30.14 lakhs plus pendentelite and future interest at 10.25% p.a. from 31.08.2022 along with costs.

State Bank of India versus Jay Jit Goshwami — Banking and Recovery | DRT (2023)

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O.A. 363/2022loRT-c0ahari

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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, lvlanipur, Mizoram, Arunachal pradesh & Tripura)

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Before Shri Shiv Sharan Dubev. Presidinq Officar

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O.A. No. 363/2022

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ln the mattEr of -

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State Bank of lndia Small and Medium Enterprise City Credit Cenke ABC, G.S.Road, Swagota Square, sri Floor. Guwahati- 05.

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..Applicant

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Vs.

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l. Jay Jit Goshwami, House No. 117, Rajbari Path, Kacharibasti, Guwahati- 781 005.

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Oefendant

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Presence of the Counsel

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For the Applicant^: Mr. K. K. Nandi, Ms. Rochoita Das, Advocates

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For the Defendant None (Ex-parte)

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Daled .2a10712O23

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JUDGMENT

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This is an^{applicationunder section '19 of the Recoveryof Debts Dueto Banks} and Financial^{lnstitutions Act, 1993filed by the State Bankof lndia'Smalland} Medium Enterprise,^{City Credit centre,ABC,G S Road' Swagota Square'5rh Floor'} Guwahati-^{05, with a prayer to issue Recovery Certificatefor the sum of Rs'} 30,14,877.3/t^{(RuPeesThirtyLakhs FourteenThousandEight Hundred Seventv} Seven and^{Paisa ThirtyFour)only as on 30 08 2022 against the defendantwith} pendentelite and future^{interest at therate of '10 25o/o perannumat monthly rest till} realization,^{along with cost and otherrelief'}

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

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The sote^{defendantfor the purpose of his business of cold storage} approached^{the applicantbankfor tinancial assistanceby submitting an application}

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*i-ffi^'bq

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0r.363/2022 ,Rr€ur6h.ri

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daled 17.11.2022. The applicant bank upon consideration of the said application dated 17 .11.2020 sanctioned Term Loan of RS.2O,OO,OOO.OO to the defendant vide letter of arrangemenl dated 2i.1,1.2020. The terms and conditions of the letter of arrangement dated 21.1 1.2020 was duly accepted by the defendant and as a token of acceptance of the same the defendant has signed in letter of arrangement of having accepted the terms and conditions. By the said letter of arrangement the defendant agreed to repay the loan in 59 monthly installments. tt was also the terms and conditions of the retter of arrangement that the effective rate of interest of the terms loan will be 3.6% above MCLR the effective rate being 10.2S% per annum calcurated on the daily balance with monthry rests. The defendant availed of the term loan from the applicant bank and has executed Agreement of Loan_Cum_ Hypothecation dated 21.1 1.2020.

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The defendant again approached the applicant bank for grant of a fresh term loan by submitting an application dated 19.04.202j. The appticant bank upon consideration of the said application dated 19-04.2021 sanctioned term loan of Rs. 7,00,000.00 in favour of the defendant vide letter of arrangement da]G}d 26.04.2021. The existing term loan was reviewed at the then outstanding limit of Rs 20.02 lakh vide letter of arangement dated 26.04.2021.The terms and conditions of the letter of arrangement dated 26.O4.2021 was duly accepted by the defendant and as a token of acceptance of the same the defendant has signed in letter of anangement of having accepted the tems and conditions. By the said letter of arrangement the defendant agreed to repay the term roan in 57 monthry instaflments. rt was arso the tems and conditions of the retter of arrangement that the effective rate of the term roan wifl 3.6% above MCLR the effective rate being 10.25% pq annum with monthly rests. The defendant availed of the term loan from the applicant bank and has executed Agreement of Loan-Cum-Hypothecation dated 26.04.2021.

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The defendant had availed the loan facilities from the applicant bank but has not paid the outstanding amount as per terms and condition made with the applicant bank in spite of repeated demands and request by the applicant bank. As the loan

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O A. 36r2022/DR-f Guwahatr

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accounts being the term loan account of defendant w€re running exlremely irregular and due to non-payment of principal amount and interest, the said accounts were classified as a NPA on 14.06.2022. After the accounts became NPA the applicant bank issued notices for repayment of the due amount, but lhe defendant has neither chosen for repayment of the remaining installments 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 file the present Original Application for the recovery of Rs. 30,14,877.34 (Rup6es Thirty Lakhs Fourteen Thousand Eight Hundred Soventy Soven and^paisa Thirty Four)only as on 30.08.2022 along with interesl and cost ofthe application.

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After filing of the OA the Tribunat issued notice upon the defendanl through registered post and the applicant bank filed service report on^,14.1,1.2022 and brought on record the postal receipt along with track consignment report which shows that notice has not been served upon the defendant. Thereafter the Tribunal ordered paper publication of notice upon the defendant and the applicant bank issued notice to the defendant on 09.12.2022 lhtough paper publication in two newspapers namely .Iimes of lndia" and "Dainik Assam". Even after issuance of notice through paper publication also there was no representation on behalf of the defendant either by the counsel or the^person and hence the defendanl was set ex_parte on .l0.04.2023 and his right to file written statement cum evidence on affidavit was crosed and the matter was posted for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Sri Shom Sonkar Roy, Chief Manager of the Applicant Bank has ,iled evidence on afiidavit coupled with the securw documents marked as Exhibit A-1 to Exhibit A_16, supporting the ctaim 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 arso execution of their own documents relied upon, which have been marked exhibits.

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.q[,.",9oaa., PrcsidingOtrc€rrl' DRT. cuwahati^I w

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OA 363r202zoRT4wahati

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Considering the facts and circumslances of the case, I am^{of the considered} view that the documents filed by the applicant bank^{are supporting the claim 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 madein the Original} Application. The loan was obtained^{and documents have been executed on} 2'1.11.2020 &26.04.2021. the accounts became^{NPA on 14.06.2022 and the OA has} been filed on 13.09.2022.^{Hence,the OA is filed well withintheperiod of limitation} and this Tribunal having^{a.iurisdiction to adjudicatethe Original Application.}

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Considering the unchallenged/^{unrebuttedversion of Sri Shom Sonkar Roy'the} appticant's witness^{and atlthe documents marked as exhibits, includingduly certified} copy of the statement^{of account alongwithinterestcalculation sheet maintained by} the applicant Bank^{in it's regularcourse 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 OriginalApplication No. 363 of 2022is allowed with} cost as under :-

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i) The sole defendant^{is liable to pay to the applicant bank asum of Rs'} 30,11,877.34^{(RuPees Thirty Lakhs FourleenThousand Eight Hundred} Seventy Seven^{and Paisa ThirtyFour)only with pendenteliteand future} interest @10.25%^{p.a. with monthlyrestsfrom31.08 2022 till the date of full} paymenurealization and also^{cost of the application.}

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ii) The charge of the^{certificatedamountbe kept aliveon hypothecated} properties, as described in^{Schedule-A of the oA till the amount is realizedin} full.

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iii) The applicant bank^{is entitledto proceedagainst the securedilems towards} recovery of the^debts.

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iv) The applicant^{bank is also entitled to proceed againstthe personal assets and} properties of the defendant^{towards recovery of the dues'}

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v) The applicant^{bankis entitledto the costs of the OAwhichincludesthe} advocate fees^{of the applicant bankApplicantis directed to file the cosi} memo within 2^{weeks from today.} sr"r slqHiS#7

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sr"r slqHiS#7 Presidng Offcer \ f V DRT. Guwahali

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O.A. 363/2022/DRT6wahati

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vi) lssue Recovery Certificate accordingly for a sum Rs. 30,'t4,877.34(Rupees Thirty Lakhs Fourteen Thousand Eight Hundred Seventy Seven and Paisa Thifi Four)only in favour of the applicant bank against the sole defendant.

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vii) Communicate copy ofthis orderto the concemed^parties.

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This order is dictated and corrected by the undersigned.

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Judgment dated 2SsJuly 2023, signed and^pronounced in the Tribunal today

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under my signature.

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

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sil],

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DRT, Guwahati.

State Bank of India v. Jay Jit Goshwami

Case brief

What is this about?

What did the court decide?

State Bank of India v. Jay Jit Goshwami

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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