Allowed

Bank of India v. Mr. Rajib Bhattacharjee

DRT27 Jun 2023OA/40/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Applicant Bank's application under Section 9 of the RDBFI Act. Holding that the defendant's liability was established by unchallenged documentary evidence and acknowledgments, the Tribunal issued a Recovery Certificate for the principal amount with interest and directed the bank to charge the amount on the hypothecated vehicle.

What did the court decide?

Recovery Certificate issued for Rs. 27,21,809.70 with interest at 13.75% p.a. on hypothecated and personal assets.

Bank of India versus Mr. Rajib Bhattacharjee — Contract and Commercial Disputes | DRT (2023)

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O A. 4ozo2zoRT-cuwahari

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal ofAssam, Nagaland, Meghalaya, lvlanipur, Mizoram, Arunachal Pradesh & Tripura)

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BEfore Shri Shiv Sharan Dubev. Presidino Officer

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O.A. No. 4012022

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ln tho matter of - Bank of lndia Guwahati Branch, Hem Barua Road, Kamarpatty, Guwahati-78100 1, Assam.

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..Applicant

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Vs-

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Mr Rajib Bhattachariee Son of Mukti Nath Bhattacharjee R/o House No.26, Ward No.55, Janapath, Khanapara, Dispur, Guwahati-781 022,

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Dislrict- Kamrup (Metro), Assam.

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Defendant

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Presence of the Counsel :

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For the Applicant Bank : Mr Vishal Kumar Dewan, Advocates

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For the Defendant : Mr. Arnab Biswas, Mr. Ritul Kalita, Ms. Shyamalima Ahom, Advocates (Right to file WS cum EA already ctosed)

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Dated .2710612023

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JUDGMENT

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This is an application under section J 9 of the Recovery of Oebts Due to Banks and Financial lnstitutions Act, 1993 fited by the Bank of lndia, Guwahati Branch, Hem Barua Road, Kamarpatty, Guwahati-7gioo1, Assam, \rvith a prayer to issue Recovery Certificate for the sum of Rs. 27,21,E09.70 (Rupeos Twonty Ssven Lacs Twenty One Thousand Eight Hundred Nine and paisa Soventy) only as on 10-12-2021 against the defendant with pendenterite and future interest at contractuar rale of 13.75o/o per annum at monthly rests till realization along with cost and other relief.

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A few facts giving rise to lhe present applicalion are as under.

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On 12.02.2013, the Defendant had approached and apptied to the Applicant

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Bank for linancial assistance to the tune of Rs 16,80,000/- by way of term loan for the purpose of purchasing one Backhoe Loader. The Oefendant had submittad his Loan Application giving all necessary detaits, Quotation of the vehicle to be purchased, details of business, etc to the Applicant Bank.

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On 18.02.2013, the Appticant Bank had considered the proposal given by the Defendant and sanctioned a Term Loan of Rs 16,80,000! to the Defendant for the purpose of purchasing one CAS 7702-WD LOADER, on the following terms and conditions:

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a) The rate of interest shall bs 13.75% per annum at monthly rests.

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b) The ierm loan shall have to bs repaid in equal monthly installments of Rs.38,874/- per month w.e.f. May 2013

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c) Th€. said term loan shalt be primarily secured by the hypothecation of the vehicle-

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d) The said lerm loan shall be collaterally secured under CGTMSE coverage. The said terms and conditions were accepted and acknowledged by the defendant.

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ln order lo avail the aforesaid Term Loan of Rs. 16,g0,000/-, the Defendant had execuied several documents in favour of the Applicant Bank on 16.02.2013 such as Promissory Note dated 1g.02.2013; Loan ,,Beared, Letter dated 18.02.2019; lnsta menl Letter dated 18.02.20,13: Letter of Undertaking dated 18.02.2013: Hypothecation cum Loan Agreement dated 18.02.2013; and No objection Declaration.

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ln pursuance of the execution of the loan documents and security documents by the Defendant, the disbursement of loan amount of Rs.16,80,000/_ was made by the Applicant Bank on 1g.02.2013. A Term Loan Account No: 500072310000200 was opened in the name of the Defendant and a the transactions relaling to the aforesaid Term Loan account are maintained in the ledger of the Applicant Bank in its ordinary and usual course of their banking business.

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The Defendant purchased the vehicle and submitted its particulars to the Applicant Bank in respect of vehicle purchased and acquired out of lhe loan and hypothecated to the Applicant Bank which was to be treated as part and parcel of the

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Hypothecation Agreement^{dated18.02.2013.But aftersometimeit was observed} that the Defendant started making defaults in the^{repaymentof the monthly} inslallments of loan and interest as stipulated and^{agreedby him. TheOefendant} failed to comply with the terms and conditions of the agreements/security documents. That the account was^getting irregular in- spite of several letters / reminders issued to the Defendant and telephonic and verbal conversations that Applicant had with the Defendant. The Defendant failed and/or neglected to operate the term loan account^properly as^per the lerms and conditions of sanction and agreement, followed by non deposit of outstanding^{dues and failed and/or neglected} to regularize the^position in the accounts^{inspite of repeated requests remindersof} the Applicant and also on^{personal approaches made by the ApplicantBank. As the} loan account of defendant was running extremely irregular and due to^{non-paymentof} principal amount and interesl, the said account was classified as a NPA on 30.06.2015. After the account became NPA the applicant bank issued notices for repayment of the due amount, but the defendant has neither chosen for repayment of the remaining installment in the term loan account nor approached to the applicant bank for settling the loan accounl. on 16.02.2016 and 12.02.2019 the Defendant had acknowledged the debt and security in his loan account which shall remain in full force and virtue alongwith all other documents, securities, agreements.

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The applicant bank thus became constrained to file the present Odginal Application for the recovery of Rs. 27, 21,809.70 (Rupee3 Twenty Seven Lacs Twenty One Thousand Eight Hundrod Nine and Paba Seventy) only as on 10-12-2021 along with interest and cost of the application.

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After filing of the OA the Tribunal issued notice upon the defendant through registered^post and the applicant bank filed service report on^'1O.O5.2O22 and brought on record the^postal receipt along with track consignment report. The learned counsel for defendant appeared on the same day i.e. on 1O.O5.2O22 by filing vakalatnama. Thereafter the case was listed on several occasions but defendant has not liled his written statement cum evidence and hence the right ofthe defendant to file the^written

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statement^{cum evidenceon aftidavit was closedon 18 07 '2022 Thercafter the matter} was^{posted for hearing on behalfof the applicantbank'}

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Supponing^{theclaimof the applicantbank Mr' Ring Tshaw DawOaulagupu'} oeputy Zonal^{Manager of the Applicaot Bank has filed evidenceon amdavitcoupled} withtheSecuritydocumentsmarkedasExhibitA.ltoA.ls,supportingtheclaimofthe applicant bank.

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Heardthelearnedcounselfortheapplicantbankwhoprayedforissuanceof Recovery Certificate^{against the defendant as per pleadings made in the Application'} supported by^{evidence on affidavitof their witness who afiirmedon oaththe} execution^{of the security and other documents by the defendant and also execution} of their own^{documents reliedupon,which have been markedexhibits'}

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None has appeared^{for the sole defendanton the dayof argument-}

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Considering^{the facts and circumstances of the case' I am of the considered} viewthatthedocumentsfiledbytheapplicantbankaresupportingtheclaimofthe applicani^{bank and establishingthe liabilityof the defendant lt is provedthat the} defendant is^{liable to pay to the applicant bank the claim made in the Original} Application. The^{loanswereobtained and documentshave been executedon} '18.02.20'13. On 16.02.2016^{and 12022019the defendanthad acknowledged the} debt and security^{in his loan accountThe account b€came NPA on 30 06'2015and} the OA has^{beenfiled on O8.O2'2O22Hence' the OA is liled well within the periodof} limitation and^{this Tribunal havinga jurisdiction to adjudicatethe originalApplication'} considering^{the unrebutted/unchallengedversion of Mr' Ring Tsha$' Daw} Daulagupu,^{the applicant'switness and all the documentsmarked as exhibits'} including duly^{certifiedcopy of thestatementof account along withinterest} calculation sheet^{maintained by the applicant Bank in ifs regular course of business'} I hold that^{the applicantis entitled to get the RecoveryCertificate as prayed for'} ln the result,^{thepresentOriginalApplicationNo40 of 2022 is allowed with}

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cost as under!

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.11*.r t l.al,"rn^D-t-.+ A 2+lM. l)1 Presiding Offtar-^I DRT, Guurahati

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The sole defendant^{is liable to pay to the applicant banka sum of Rs'} 27,21,809.70 {Rupees^{TwsntySeven Laca TwEntyOne Thousand Eight} Hundred Nine and^{Paisa Seventy)only with pendenteliteand future} [email protected]%^{p.a. with monthly rests from 11.122021 till the date of full} paymenurealization and also cost of the application.

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iD The charge of the certificated^{amount be keptalive on hypothecated vehicle,} i.e. Description: CASE^{770 2WD Loader Backhoe; ChassisNoT13A13367;} Engine No. 4H32O31222394,^{Registration No. NL-01-K-7693dated} 26.08.2013; Type of Body^{: Earth MovingMachine; Makers Name: Case New} Holland Construction^Equipment 0)^{Pvt Ltd., as described in Scheduleof the} OA till the amount^{is realizedin full.}

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iii) The applicant bank^{is entitled to proceed against lhe secured items towards} recovery of the debls.

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iv) The applicant bank is also^{entitledto proceed againstthe personal assets and} properties ofthe defendanl towards^{recrveryof the dues.}

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v) The applicant bank is^{entitledto the costsof the O.A. whichincludesihe} 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 Cerlificate^{accordinglyfor a sum Rs. 27,21,809.70 (Rupees} Twonty Seven^{Lacs Twenty One Thou3andEightHundred Nine and} Paisa Seventy) only in^{favour of the applicant bankagainst the sole} defendant.

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vii) Communicate copy^{of this order to the concemed parties.} This order is dictated^{and correctedby the undersigned.}

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Judgment dated^{27rh June, 2023, signed and pronouncedin the Tribunaltoday}

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under my signature.

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Copy of the JudgmenUFinal^{Order be uploadedin the Tribunal'swebsiteand} file be consigned to^{Record Room.}

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Sku,Cl^nta- D^Lrr1)l06 I )3 14 (Shiv Sharan lDubdy)^-' Presiding Officer DRT, Guwahati.

Bank of India v. Mr. Rajib Bhattacharjee

Case brief

What is this about?

What did the court decide?

Bank of India v. Mr. Rajib Bhattacharjee

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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