The Debts Recovery Tribunal allowed the applicant bank's original application. It held the defendants jointly and severally liable for the outstanding loan amount and directed the issuance of a recovery certificate with future interest.
Issued a Recovery Certificate for Rs. 31,68,423.64 with pendent lite and future interest at 9.6% p.a.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
o A. 401/2o2zoRl_Guwahati
IN THE DEBTS RECOVERYTRIBUNAL, GUWAHATI
(North Eastern Region)
(Tribunal of Assam, Nagaland, Meghalaya,Manipur, Mizoram,Arunachal Pradesh& Tripura)
Before Shri Shiv Sharan Dubev.PresidinoOfficer
O.A. No. 40112022
ln the matter of -
CANARA BANK Ohemaji Branch Usha Complex, Nalinipam,Opposite Lily CinemaHall, Dhemaji, Pin-787057,Assam
Applicant
Vs.
I. SHRI SANTOSH KUMARPRASAD Proprietor of M/s Santosh Enterprise S/o Hare Krishna Prasad
R/o Village Chaul Dhua Bali,
Mouza- Bordoloni, P.O. &P.S. Gogamukh,
District- Dhemaji, Assam-787034.
S/o Late Jitenram Prasad @Jiten Majhi RYo Village Chaul Dhua Bali, Mouza- Bordoloni, P.O. &P.S. Gogamukh,
District- Dhemali.,\ssam-787034.
Detendants
Presence of the Counsel:
For the Applicant
: Mr. Gitartha Das, Mr N. lslam, Ms Anamika Singha,
Ms P. Sarmah, Advocates
For the Defendants
: None (Ex-parte)
Dated .2211212023
JUDGMENT
This is an application under section 19of the Recoveryof Debts Due to Banks and Financial lnstitutions Act, 1993filed by the Canara Bank, Dhemaji Branch, Usha Complex, Nalinipam, OppositeLily Cinema Hall, Dhemaji,Pin-787057, Assam, witha prayer to issue Recovery Certificate for the sum of Rs. 31,68,423.64(Rupees ThirtyOne Lakhs Sixty-Eight ThousandFour Hundrod Twenty-ThrEe and Paise Sixty- Four) only as on 31.07.2022 against the defendantswith pendenleliteand future inlerest at lhe contractual rate till realization along with cost and other reli.*t;, SL^M^
, 2a 17't^ v PresdinqOfficer- ^.L-- ^ / ORT, Guwahaii
O A.,lol t2o2ZDRT€Mhati
A few facts giving rise to the present application are as under.
Pursuant to the request of the defendant no.1 to the applicant bank for OCC limit, the applicant after considering his request sanctioned OCC timit of Rs 22.00 Lakhs vide sanction letter dated Nil. As per the sald sanction letter the borrower is required to pay interest at the rate of 9.6% p.a. monthly wise. The OCC limit is for 12 months and repayable on applicant's demand. The defendants accepted the terms and conditions of the said sanction letter by signing and returning the duplicate copy of the said sanction letter.
ln order to avail the OCC Limit of Rs. 22.00 Lakhs the defendants executed the following loan documents-
The defendant no. 2 secured the OCC limit of Rs. 22.00 takhs by creating equitable mortgage of landed property measuring 1 katha 03 lechas, covered by Dag No.703, K.P. Patta no.398 of Revenue village- Chauldhowa Ball, MouzaBordoloni, in the District of Dhemajl, Assam (Schedule - B of the OA) by depositing with the applicant bank the following title deeds: -
(xi) Land possession Certificate dated 26.12.2018 lssued by Circte Officer, Gogamukh Revenue Circle. (xii) Land Valuation Certificated dated 16.02.2019.
(xiii) Jamabandi for K.P. Patta No 25, Dag No. 51 dated 19.12.2018.
gL"ril"o^e^Qtt+ 2) lI.)] I Pr€slding Officer DRT, Guwahati
3
o.A. 401/2o2zDRT6us.h.o
The applicant also procured the Valuation Report daled 31.01-2022 in connection with Schedule-Bproperty.
The defendants enjoyed the benefits of the OCC limit but were never sincere towards repayment of loan/limitprocured under therelevantloan and security documents executed by them. Even during theCOVID-19 pandemictheApplicant sanctioned and disbursed anamountof Rs 1,01,324.00 to the defendantNo.1 for thepurpose of meetingworking capital requirementsfor the purpose of servingof COVED-19 moratoriumgranted as per Reserve Bank of lndia guideline (FITL).
The defendants had availed the said crediifacilities (OCC Account No.4246261000052 andFTTL Account No. 42467'10000049)from the applicant bank but have notpaid the outstandingloanamountas perterms and conditions as agreed upon with the applicantbank,in spite of repeateddemands and requestby the applicant bank. As the defendantsfailed to repay the loanamount,the saidloan accounts became NPA on 22.12.2020.After the accounts becameNPA the applicant bank issued notices forrepaymentof the due amount,but the defendants failedto repay the loan amount.
The applicant bank thusbecame constrained to file the present Original Application for the recoveryof Rs. 31,68,423.64(RupeesThirtyonoLakhsSixty' Eight Thousand Four HundredTwenty-Threeand PaisoSixty-Four)only as on 3'1.07 .2022 alongwith interest andcostof the application.
After riling of the OA theTribunal issuednolices upon the defendantsthrough registered post and the applicant bankfiled servicereporton 06.12.2022and brought on record thepostal receipts alongwith track consignment report which shows that notices have been served upon the defendants.Evenafter proper serviceof notice upon the defendants therewas norepresenlation onbehalfof the defendants either by the counsel or theperson and hence the defendantswere setex-parte on 2O-O2-2O23 and their right to Iile written statement cum evidence on affidavitwas closed and the matter was listed for hearing on behalf of the "OO,'""n,O- .u"rofo- .u"rofo-
"OO,'""n,O- .u"rofo- .u"rofo- . S,:L_t tt lL.v3 I Presiding Offcer ORT, Guwahala
4
g.A. 4orlzo22loRl-GMahati
Supporting the claim of the applicant bank Sri Debananda Doley, Manager of the Applicant Bank has filed evidence on affidavit coupled with the security documents marked as Exhibit AW-'l/1 to AW-1123 supporting the claim of the applicant bank.
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.
Considering the facts and circumstances of the case, I am of the considered view that lhe document liled 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 arejointly and severally liable topay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 23.09.20'19. Moreover, after perusing the documents on record and taking into consideration ofthe facls and circumstances of the case, I find that the mortgage has been created by the defendant No. 2 where the limitation available is foll2 years and as such iaking into account of the creation of the mortgage the application appears to have been filed well within theperiod of limitation. The account became NPA on 22.12.2020 and the OA has been filed on 27.09.2022. Hence, the OA is filed wellwithin the period of limitation and this Tribunal having ajurisdiction to adjudicate the Original Application.
Considering the unchallenged/unrebutted version of Sri Debananda Doley, the applicant's \witness and all the 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 Certilicate as prayed for.
ln the result, the present Original Application No. 4O1 ot 2022 is allowed with cost as under: -
Stil d,.a4,.A.^l"r Presiding Offc€r DRT, Guwahali
O.A. 401t2o22/DRI€urhali
5
(0
The defendants No. 1 & 2 arejointly and severally liable to pay to the applicant bank a sum of Rs.31,68,423.64 (Rupses Thirty-One Lakhs SixtyEighi Thousand Four Hundrcd Twenty-Three and Pabe Sixty-Four) only withpendentelite and future interest @9.6%p.a. with monthly rests from O'1.o8.2O22 till the date of fullpaymenurealizationand also cost ofthe application.
viii) Communicate copy of this order to the concerned parties.
SlDd.ala,-l"A"r Presiding Officer DRT, Guwahati
O.A. 401t2o2rroRI,Gwah.ti
This order is dictated and corrected by the undersigned.
Judgment dated 22nd December 2023, signed and pronounced in the Tribunal
today under my signature.
Copy of the JudgmenuFinal Order be uploaded in the Tribunal's Website and
file be consigned to Record Room.
Ski, cr"ra- A"L.L (shi' sharanh;Lzyi23( Presiding Oflicer DRT, Guwahati.
2 issues framed by the court
Whether the Original Application filed under Section 19 of the RDBFI Act is maintainable against the defendants.
Whether the Tribunal is entitled to issue a Recovery Certificate for the outstanding debt.
1 provisions across 1 enactments
Canara Bank
Santosh Kumar Prasad
Hare Krishna Prasad
Shiv Sharan Dubev
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
