Allowed

Indian Overseas Bank v. Mr Hmingtha Ntluanga

DRT26 Sept 2023OA/380/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Indian Overseas Bank seeking issuance of a Recovery Certificate against a borrower who had failed to repay a term loan secured by a back hoe loader. The Tribunal found the debtor liable and directed recovery from secured and unsecured assets.

What did the court decide?

Issuance of Recovery Certificate for Rs. 24,52,736/- with interest and costs; execution against secured vehicle and personal assets.

Indian Overseas Bank versus Mr Hmingtha Ntluanga — Execution and Attachment | DRT (2023)

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O.A 3EOr2O22lDRI€u*'hali

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IN THE^{DEBTS RECOVERYTRIBUNAL, GUWAHATI}

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(North Eastern^Region) (Tribunal of Assam,^{Nag"r"no, i'l];gh"i"y"'Minrpur' Mizoram Arunachal PradeshE Tripura)} Before Shri^{Shiv SharanDubev' Presidinoofficer}

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O'A' No'^380/2022

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ln the matter^of -

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lndian Overseas^Bank Juoitara Palace.^{A B CBusStoP} G.S. Road,^{Guwahati- 781005}

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Applicant

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Vs.

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'1. Sri Hmingtha^{Ntluanga, aged aboutyears} S/o Hranqzawna, n"siaent-of House^{No.34, Section-V} Vanzau,^{Near High School- 796320} dt,arpt^{ai, Mizoram, lndia, (Borrower)}

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Defendant

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Presence^{of the Counsel:}

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: Mr. Ariieet^GangulY, For the^APP|icant Mr. Adirsh^{Ohanuka, Advocates} : None (Ex-parte) For the^Defendant Dated:26/0912023

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JUDGMENT

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This is an^{applicationunder section19 of the RecoveryoJ Debts Dueto Banks} andFinanciallnstitutionsAct,lgg3filedbythelndianoverseasBank,Jupitara Palace,^{A. B. C Bus Stop,G'S Road'Guwahati- 781005' with a prayer to issue} RecoveryCertificateforthesumofRs.24,52,736l.(Rupe€TwentyFourLakhs Fifty Two^{ThousandSevenHundredThirty Six) only as on 31 07 '2022 againstthe} defendant^{with pendenteliteand future interest at the ":lle ol 1295o/o per annum with} monthly^{rests till realization with cost along withother relief}

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A few tacts^{givingriseto the present applicaiionare as under'}

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The defendant^{made an applicationfor grant of} financial assistance^on '14t1212018 by^{way of Term Loan for businesspurpose'} After due^{consideration,} (SRTO) to Purchase for - the competent^{authorityof the bank sanctionedTerm Loan}

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't:v":k#it+il DRT,^Guwahati

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OA 38OzO2ZDRT€umhati

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MANITOU^{TLB 8445 4WD7Nl centerMount' O 30 cumEX BKTof Rs 20 00 lakhs} with interest MCLR^{one year plus + 1 600/0 ielO 35% io the defendantvide its} sanction letter^{dated 27.12.2018,which was communicatedto thedefendant- The} loan was secured^{by hypothecationof new vehicleMANITOUTLB 8445 4WO 7N1} center Mount,^{O.3O cum EX BKTThe loan was to be repaid in 80 EMI of Rs'} 34,713/-, 1!r^{installment starting from 27 03'20'19'}

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Pursuant to^{the sanctionof the abovelimit' the Oefendants had accepted the} terms and^{conditions of sanction given by the Applicant Bank and acknowledged} on 27 .12.20'18^{regardingthe executionof loaning and security documents and also} executed a^{letter of undertakingon the same date The defendaniexecuted} necessary loan^{documents on 27 ''12 2018, such as TermLoanAgreement'Letter} of Hypothecation^{(for securing machineries/vehicles/goods/books-debts)' Deed of} Hypothecation,^{Revised Demand Promissory Note and Consent Cum Authorization} Letter, all dated^27.12.2018.

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The defendant^{availed of the term loan disbursedby theapplicantbank' and} purchased a vehicle being^{a Back Hoe Loader of make TerexTLB 8445 4WD from} M/s Ngente Enterprise,^{Aizawl' Miroram,and used it in his business activitiesBut} very soon, term^{loan account no 302803707000028 of the defendantbecame} irregular due^{to non-payment of installments and interest due in the accountsAs} the defendant^{failed to repaytheoutstanding amountin the loan account' thesaid} account became^{NPAon 31.05 2021.From timeto timethe defendanihas confirmed} the correclness^{of the liabilityof the balance outstanding in respectof the loan} account and^{in this connection the applicant bankrelies upon the Revival Letter dated} 25.11.2020, which^{is an acknowledgementfor the purpose of Section 18 of the} LimitationAct.l963.AflertheaccountbecameNPAtheapplicantbankissuednotices for repayment of the^{due amount, but the defendant has neither chosenfor repayment} of the remaining^{installments in the loan account nor approached to the applicant bank} for settling the^{loan account.}

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sUust-ry,fl;h) Pr*iding officel DRT, Guwahati

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04 38M2o2z/DRT_Guwrhali

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The applicant^{bank thus became constrained to file the presentOriginal} Application^{for the recoveryof Rs. 24,52,736'-(RupeesTwenty Four Lakhs FlftyTwo} Thousand Soven^{HundredThirtySix) only as on 91 07 2022alongwithinterest and} cost of the application.

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After liling of the^{OA the Tribunal issuednotice upon the defendant lhrough} registered^{post and the applicant bank filed serviceteport on 17 '1'l '2022and brought} on record the^{postal receipt alongwith track consignment reportwhich shows that} notice has not^{been seNeduponthe sole defendantThereafterihe Tribunal ordered} paper publication of notice^{upon the sole defendantand the applicantbank issued} noticetothedefendantonl'l.o3.2o23throughPaperPublicationintwonewspapers namely^{"Highlandef'and "Vangtaini"' Even after issuance of notice throughpaper} publication also there was^{no representationon behalf of the sole defendant either by} the counsel or^{thepersonand hencethe defendant was set ex-parteon 18 05 2023} and his righl to^{file written statement cum evidenceon affidavitwas closed and the} matter was^{posted for hearing on behalf of the applicantbank'}

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Supporting the claim^{of the applicant bankSri NeerajKumar'ManagerLaw of the} Applicant Bank^{has filedevidenceon affidavit coupledwith the securitydocuments} marked as Exhibit^{1 to} I^{supportingthe claim of the applicantbank'}

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Heard the learned^{counselfor the applicant bank who prayed for issuance of} Recovery Certificate^{against the defendant as per pleadingsmade in the Application'} supported by^{evidence on affidavitof their witness who affirmedon oaththe} execution of^{the security and other documents by the defendant and also execution} of their own documents^{relied upon, which have been markedexhibits'}

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Considering^{the facts and circumstancesof the case, I am of theconsidered} view that the document^{filed by theapplicant bankare supporting the claim of the} applicant bank^{and establishingtheliability of the defendant lt is proved that the} defendant is^{liable to pay to the applicant bank the claim madein the Original} Application. The^{loanwasoblainedand documents have beenexecutedon} 27.12.2018. From time^{to time the defendant has confirmedthe correctnessofJhe} '-.i"""0'6*&12.Rt,in{l^ata,.,

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.J1

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ORT, Guwahati

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otra 3€o/2ozDer'6*hto

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liability of the balance^{outstanding in respectof the loan accountand in this} connection the^{applicant bank relies uponthe Revival Leiter dated2511'2020fhe} account became^{NPA on 3'1.052021 and the OA has beenfiled on 20092022'} 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/unrebuttedversion of Sri Neerai Kumar'the} applicant,switnessandallthedocumentsmarkedasexhibits'includingdulycertilied copy of the^{statement of account alongwith interest calculation sheet maintainedby} the applicant^{Bankin it's regularcourse of business, I hold that the applicant is} entitled to^{get the RecoveryCertilicate as prayed for'}

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ln the result, the^{present OriginalApplication No380 of 2022is allowedwith} cost as under:^-

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i) The sole defendant^{is liable to pay to the applicantbank a sumof} Rs. 24,52,736/-^{(Rupe63Twenty Four LakhsFifty Two Thousand Sev6n} Hundred Thirty Six)^{only with pendentelite and future interest @12 35%p a'} with monthly rests^{from 01.08.2022 till the date of full paymenurealization and} also cost of the^aPPlication.

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ii) The charge of the^{certificated amount be keptalive on hypothecated vehicle'} i.e. Vehicle No.^{MZ01 H 6689 back hoe loader, as described in Scheduleof} the OA till the amount^{is realizedin full.}

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iiD The applicant bank^{is entitled to proceed againstthe secured items tor"ards} recovery of the debts

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

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v) The applicant bank^{is entitled to the costs of the O A which includes the} advocale fees^{of the applicant bank. Applicantis directed to file the cost} memo within 2 weeks^{from today.}

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vi) lssue Recovery^{Certificateaccodingly for a sum Rs.24'52'736'-(Rupees} Twenty-Four Lakhs Fifty'Two^{Thousand Seven HundredThirty-six) only} in favour of the applicant^{bank asainst the sole defendant.} ,l:::lffi,t8,tl

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oRT. Guwahatr

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oA 38o/2o2zoRT_Gwahati

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vii) Communicate^{copyof this order to the concernedparties'}

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This order is dictaled^{and correctedby the undersigned'}

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Judgment dated^{26th September2023, signed and pronouncedin 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 Websiteand} file be consigned to Record^Room.

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Q[i,rS '26 ]^a^,4'''f "b logl2e t (lt.1 (shiv sharan Dubei) Presiding Oflicer DRT, Guwahati.

Indian Overseas Bank v. Mr Hmingtha Ntluanga

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Mr Hmingtha Ntluanga

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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