Allowed

State Bank of India v. Jagriti Dubey

DRT15 Nov 2023OA/449/2022

Case brief

AI extract

What is this about?

The DRT held that the defendant is liable to repay the term loan amounts as per executed agreements. Considering unchallenged evidence and documents, the Tribunal allowed the application and ordered issuance of a Recovery Certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs. 30,47,560.01 with interest, allowing the bank to proceed against secured and personal assets, and award of costs.

State Bank of India versus Jagriti Dubey — Banking and Recovery | DRT (2023)

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o a 4a912022/DRT-Guwahati

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IN THE DEBTS RECOVERY^{TRIBUNAL, GUWAHATI}

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(North Eastern Region)

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(Tribunal ofAssam, Nagaland,^{MeghalayaManipur,Mizoram Arunachal Pradesh& Tripura)} Before Shri Shiv Sharan^{Dubev,PresidinqOfficer}

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o.A. No.449/2022

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ln the matter^of -

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STATE BANK OF^INOIA Stressed Assets RecoverY^Branch, Bamumimaidam,^{M. R.D. Road, Guwahati-21,} District- Kamrup^{(M), Assam.}

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Applicant

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Vs.

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JAGRITI^DUBEY, Daughter of GoPi^{Krishna Dubey,} Wife of Siraiul Haque, Oatsimpein, Ladrymbai,^{P O. Ladrymbai,}

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District- East Jaintia^{Hills, Meghalaya-7g3160.}

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Defendant

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Presence of the^counsel:

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For the Applicant : MrKKNandi, Ms. Rochoita Das, Ms Susmita Dey, Advocates For the Defendant : None (Ex-parte).

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Dated :l5rllr2023

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JUDGTSENT

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This is an application under section^{19 of the Recoveryof Debts Oue to Banks} and Financial lnstitutions^{Act,1993flled by the State Bank of lndia Stressed Assets} Recovery Branch, Bamumimaidam,^{M. R.D. Road, Guwahati-21, Distric! Kamrup(M),} Assam, with a^prayer to assue^{Recovery Certificate for the sum of Rs. 30,47,560.01} (Rupees Thirty Lakhs Forty-Seven Thousand Five Hundred Sixty and Paisa^One) only as on 28.10.2022 against the^{defendantwith pendenteliteand futureinterest} thereon at the rate of 11.00%^{per annumwith monthly reststill realization along with} cost and olher relief.

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as under. ---"--' s[wsi"ua-Mf e.""u,neo*J,ll'D^U DRT. Guwahati

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A few facts giving rise to the^present application are as under.

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o.A. t4gzo22DRr€urrahari

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The defendant is an individual and carries on business of transport operator. The sole defendant approached and applied to the applicant bank for financial assistance for purchase of vehicle (Traveler) by submifting a loan application dated 09.06.2018. The applicant bank on consideration of the said loan application dated 09.06.2018 sanctioned Term Loan of Rs. 10,00,000.00 to the defendant vide Letter of Arrangement dated 23.08.2018. The terms and conditions of the letter of arrangement dated 23.08.2018 was duly accepted by the defendant and as a token of acceptance of the same the defendant have signed in the letter of arrangement of having accepted the terms and conditions. lt was also the terms and conditions of the letter of arrangement that the etfective rate of lnterest will be 2.75olo above MCLR the effective rate being 11.00% per annum rising or falling on daily products with monthly rests. The defendant have also agreed to repay the term loan in 58 monthly installments of Rs. 223451 each and last installments of Rs. 23279/-. The applicant bank is entitled to charge at its discretion enhanced interest rate on accounts either on the entire outstanding or on any portion thereof for any irregularity including non-observance or non-compliance of terms and conditions of advance for such period as the bank deems it necessary. After the loan account is categorized as Non-Performing Assets and is migrated to SARB previously known as SARC, the statement of account in the usual and ordinary course of business is maintained by the SARB.

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The defendant availed of the term loan from the applicant bank and have executed the following documents duly filled-up in favour of the applicant bank:-

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(a) Agreement of loan-cum-hypothecation dated 23.08.2018.

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(b) The defendant executed revival letter on 01.06.2020^pertaining to the documents executed by her on 23.08.2018^{in respect of the term loan availed by} the defendant from the applicant^bank.

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The defendant approached^{the applicant bankfor review of existingterm} loan and for^grant of fresh^{term loan by submittingan application} dated 25.09.2019.^{The applicantbankon considerationof said application dated}

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d^rrstog$"17 Presiding ofd6rr!^? (J ORT. Guwahati

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o.A. 44gl2o2z,DRt€uwahati

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25.O9.20''19 reviewed the existing Term loan at Rs. 8,05,000/- and have sanctioned Term Loan of Rs.27,00,000.00- thus totaling to Rs. 35,05,OOO.OO to the defendant vide Letter of Arrangement daled 12.1'1.2019. The terms and conditions of the letter of arrangemenl daled 12.1'1.2019 was duly accepted by the defendant and as a token of acceptance of lhe same the defendant have signed in the letter of arrangement of having accepted the terms and conditions. lt was also the terms and conditions of the letter of arrangement that the rate of interest will be 3.6% above MCLR the effective rate of interest is 1'l.65% per annum rising or falling on daily products with monthly rests. The defendant have also agreed to repay the term loan in 58 monthly installments of Rs 59,654.00 each and the last instalment of Rs 61,675.00. The applicant bank is entitled to charge at its discretion enhanced interest rate on accounts either on the entire outstanding or on any portion thereof for any irregularity including non-obseryance or non-compliance of terms and conditions of advance for such period as the bank deems it necessary. After the loan account is categorized as Non-Performing Assets and is migrated to SARB previously known as SARC, the statement of account in the usual and ordinary course of business is maintained by the SARB.

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The defendant availed of the reviewed term loan facility as well as fresh term loan facility from the applicant bank and^{have executedthe followingdocuments} duly filled-up in favour of the applicant bank:-

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(a) Agreement of loan-cum-hypothecation dated 12.1'l..2019.

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The defendant approached the applicant bank for^{reviewof existingterm} loan and for^grant of fresh term^{loan (GECL). The applicant bank on consideration} of prayer so made reviewed the existing^{Term loan at R$ 27,00,000/-and have} sanctioned Term Loan^(GECL) of Rs.^{7,01,000.00- thus totaling to Rs.} 34,01,OOO.OO to the defendant^{vide Letter of Arrangement dated01.06.2020 The} terms and conditions of^{the letter ofarrangement dated 01.06.2020} was duly accepted by the^{defendant and as a token of acceptanceof the samethe}

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tl,," us{acar- Q"lfr v ",""'o,nnoJEill2) DRT, Guwahali

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O.A. 44912022loRT6wahan

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defendant have signed in the letter of arrangement of having accepted the terms and conditions.

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The defendanl availed ot the reviewed term loan as well as GECL facilily from the applicant bank and have executed the following documents duly filled-up in favour of the applicant bank: -

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(a) Agreement of loan-cum-hypothecation dated 01.06.2020.

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The defendant availed the term loans from the applicant bank but in violation of an terms and conditions of the letter of arrangement and the agreement, the defendant failed and neglected to abide by the terms and conditions of the letter of arrangement and agreemenl as well as the defendant failed and neglected to repay the loan amount with interest.

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The defendant had availed the said loan facilities from the appticant bank but have not paid the outslanding loan amount as per terms and conditions as agreed upon with the applicant bank, in spite of repeated demands and request by the applicant bank. As the defendant failed to repay lhe loan amounts, the said loan accounts became NPA on 30.11.2021. After the accounts became NpA the applicant bank issued notices for repaymenl of the due amount, but the defendant failed to repay lhe loan amounts.

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The applicant bank thus became constrained to file the present Original Application for the recovery of Rs. 30,47,560.01 (Rupee3 Thirty Lakhs Forty€even Thousand Five Hundred Sixty and Paisa One) only as on 28.'10.2022 along with interest and cost of the application.

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After tiling of the OA the Tribunal issued notice upon the defendant through registered post and the applicant bank filed service reporl on 01.02.2023 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 lhe defendant though Paper Publication in two newspapers namely "Mawhof dald

sk":k#lf,rt

DRT, Guw€hali

04, a/19/202zDRT{uuh.ti

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23.02.2023 and "Tha Shi ong Times" d'ded 22.02.2023. 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 defendant was set ex_parte on 02-05-2023 and her right to fire written statement cum evidence on afridavit was closed and the matter was listed for hearing on behalf of the applicant bank.

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Supporting the claim ofthe applicant bank Smt Sampriti Bordoloi, Chief Manager of the Applicant Bank has fired evidence on affidavit coupred with the seqJrity documents ma*ed as ExhibitA-1 to A-20 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 Applicalion, supported by evidence on affidavit of their witness who afrirmed on oath the execution of the security and other documenls by the defendant and also execution 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 supportjng 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 made in the Oiginal Application. The loan was obtained and documents have been executed on 23.08.2018, 12.11.2019, 01.06.2020, Revival Letter is dated 01.06.2020. The accounts became NPA on 30.'11.2021 and the OA has been filed on 11.11.2022. Hence, the OA is tiled 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 veBion of Smt Sampriti Bordoloi, the applicant's witness and all the documents marked as exhibits, including duly certified 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 entifled to^get the Recovery certificate as^prayed for.

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S[i, S{4.r_ erl4t \s 1t.23 u Presiding Ofrcer -/ DRT. GuwEhati

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O.A. 44g2O2ZDRT-Guwaiali

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ln the result, the present Original Application No. 449 ot 2022 is aflowed with cost as under: -

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The sole defendant is liable to pay to the applicant bank a sum of Rs. 30,47,560.0i (Rupees Thirty Lakhs Forty-Seven Thousand Five Hundred Sixty and Paisa One) only with pendentetite and future interest @1 1.OO% p.a. with monthly rests from 29..10.2022 till the date of full paymenvreatization and also cost of the application.

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ii) The appricant bank is entifled to proceed against the secured items towards recovery of the debts.

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iii) The applicant bank is also entifled to proceed against the personal assets and properties of the defendant towards recovery of the dues.

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iv) The applicant bank is entifled to the costs of the O.A. which includes the advocate fees of the applicant bank. Applicant is directed to ,ile the cost memo within 2 weeks from today.

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v) lssue Recovery Certificate accordingly for a sum Rs. 30,47,560.01 (Rupees Thirty Lakhs Forty-Seven Thousand Five Hundred Sixty and paisa One) only in favour of the applicant bank against the sole defendant.

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vi) Communicate copy of this order to the concerned parties.

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This order is dictated and corrected by the undersigned.

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Judgment dated^,lsrh November 2023, signed and pronounced in the Tribunal today under my signature.

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Copy of the JudgmenuFinat Order be uptoaded in the Tribunal,s Website and file be consigned to Record Room.

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-q[i,^{slave"'Q,.!'l} tsr'i,^srr...n ouLivl''4^d Presiding Ofticer DRT, cuwahati.

State Bank of India v. Jagriti Dubey

Case brief

What is this about?

What did the court decide?

State Bank of India v. Jagriti Dubey

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

Parties & counsel

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Case details

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