DRT Guwahati allowed Canara Bank's application under Section 19 RDBFI Act, 1993 for recovery of approx. Rs. 23.82 lakhs outstanding from respondents, issuing a recovery certificate with interest.
Issuance of Recovery Certificate for Rs. 23,82,033.01 with interest and future interest at 11.40% p.a. from 09.11.2022.
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/r702022/DRTcuEhtti
I
IN THE DEBTSRECOVERYTRIBUNAL, GUWAHATI
(North Eastern Region) (Tribunat of Assam,Nagaland,[4;ghalaya,Manipur,Mizoram' Arunachal Pradesh& Tripura)
Before ShriShiv Sharan Dubev.PresidinqOfficer
O.A. No. 470,2022
ln the matterof -
CanaB Bank Rangia Branch N T Road. Rangia,
District-Kamrup,Assam, Pin-781354'
APPlicant
Vs.
Defendants
Presenceol the Coungel:
Mr. M K. Bora,Advocate
For theDefendants
None(Ex-Parte)
Dated:31/08/2023
JUDGiIENT
This is anapplicationunder section 19 of the Recoveryof Debts Dueto Banks and FinanciallnstitutionsAct, 1993filed by theCanaraBank'RangiaBranch' N T Road. Rangia,District-Kamrup,Assam'Pin-781354'with a prayer to issue Recovery certificatefortheSumofR3.23,82,033.01(RupessTwentyThrooLakhsEiohty Two ThousandThirtyThree and PaiseOne) only as on 08j12022 against the defendantsjointly and severally with pendentelite and future interestihereonat the contractualrate till realizationalongwith cost and other relief'
el",r!.t,o-u-A"lr,-1. 3l.ag 23 I PresidingOffcer DRT, Guwahati
O.A a7Ol2O22lDRT'Gu*.heli
A few factsgiving riseto the present applicationare as under.
The defendant No.lis proprietorship ,irm doing businessof retail of garment shop and defendantNo.2is the proprietorof the firm. ThedefendantNo 2 on behalf of the defendantNo.1 had approachedthe applicantBank applied for tinancial assistanceto run its existing business by LoanApplicaiion dated01-10- 2015 and after considering,the applicant Bank had sanclioned a Cash Credit Limit of Rs.5,O0,OOO.OOon O3-10-2015. The Loan account numberis 4559285000002'
ln connectionwith thesanctionof the Cash Creditfacilityof Rs 5,00,000 00 sanctioned bythe applicant Bank and availed by the defendantNo lPronote of RS.5,OO,OOO.OOand Cash Credit Agreement both dated04-10-2015 hasbeen signed andexecuted by the defendant in favour of the applicantBankas security for repaymentof the loan facility thereby agreeing to all the terms and conditions laid downin the said documenisand hypothecated stocks purchasedout of the Bank financedin favour ot the applicant Bank'
Said CashCredit Limit of Rs 5 OO Lacrenewed on 25-01-2018and 27 -O3-2O20.Thedefendant No.2 on behalfof the defendantNo 1 hasexecuted Letter of Renewalon the said dates'
On requestol the defendant No 1, existing Cash Credit limii of Rs 5 00 Lac has been enhancedup to Rs 5.1O Lac on 24-06-202lDefendantNo-2 on behalf of the defendantNo.1 had signedand executedthe Pronote of Rs 510 Lac' SupplementalAgreement,Link Letterall daled 24-06-2021' Thedefendant No 2 is the ownerof a plot of Landmeasuring 1 Kathacovered by K P Patta No 86' Dag No.765,ofVillage-Balisatra,Mouza-PashimBarigog'PS-Kayan'Revenue Circle-Rangia under P S and SubRegistrar Office -Rangia' DistriclKamrup' Assam whichis described in ScheduleA of the OA Thedefendant No 2 had signed andexecutedthe LetterEvidencing Depositof Title Deedsdated 24-06-2L21anddepositedthe Original Registered Sale Deed being No'872-691 dated2l-og.2ooTalongwithothersdocumentstocreatetheequitablemortgageof thepropertyas described in Schedule A ofthisO A with intentionto createsecurity
etu U,a"a-Ag1', 3l og'tt 11 PresidingOffcdr DRT. Guwahati
o A/t7o2o2zoRT-Guwahali
for the repaymentof the loan facility availed by the defendantNo lThough defendant No.2deposilednumbersof documentssuch as iamabandi' NEC' Trace Map etc but forsake of brevityonly sale deed is annexedherewithAs per Valuation Reportdated 2g-og-2022 The value of mortgaged propertvis Rs 17 00 Lac.
On 04-03-2018and 27-09-2020 lhedefendant hadexecuted Acknowledgementof Debts and Security and hereby admit thecorrectness confirm and acknowledgethat a sum of as mentioned in the respective AODS is due and outstanding andalsoadmit, confirmand acknowledgethat all the relative documents, agreements,securities and obligation shall remain in force and effect until repaymentof the amountdue in the CashCredit Loan accountbeing No.4559285000002.
The defendantNo.2 againapproached the applicant Bankappliedtor financialassistancetopurchasevehicle(BoleroPowerPlussLE)byLoan applicationdated16-08-20'17and after considering'the applicant Bankhad sanctioned aTerm Loan facility of Rs 5,OO'OOOOO on 16-08-2017 The Loan accountnumberis 4559603000046 ThedefendantNo 2 has to repaythe loan amountwith interestin 60 EMls of Rs10,367 00 each'
ln connectionwith the sanction of the Term Loan of Rs 5'00'00000 sanctionedby the applicant Bank and availed by the defendantNo 2' Pronoteof Rs.s.ooLacdated16-08-20lTandDeedofHypothecationRE:Vehicledated 16-08-2017hasbeen signed and executed by the defendantNo 2 in favour of the applicantBank as securityfor repayment of theloan facility thereby agreeingto all the termsand conditionslaid downin the said documents and hypothecated vehiclepurchasedoutoftheBankfinancedinfavouroftheapplicantBank.
dated 20-08-2017and The defendantNo 2 executed Particulars of Vehicle stated thathe had received the vehiclein good condition'
9;rNAniAW'* (J Pre6iding Offider oRT GLrwahat
O A 4702022lDRf-Guwahali
On 24-07 -2O2O the defendant No.2 had executed Acknowledgement of Debts and Security and hereby admit the correctness, conlirm and acknowledge that a sum of as mentioned in the respective AOOS is due and outstanding and also admit, confirm and acknowledge that all the relalive documents, agreements, securities and obligation shall remain in force and effect until repayment of the amount due in the Term Loan account being No.4559603000046.
The defendant No.2 again approached the applicant Bank and applied for financial assistance to purchase vehicle (TATA Starbus) by Loan apptication dated 04-09-2017 and after considering the said application the applicant Bank had sanctioned a Term Loan facility of Rs.1O,OO,OOO.OO on 04-09-2017. The Loan account number is 4559769000024 and is covered under CGTMSE. The defendant has to rcpay the loan amount with interest in 84 EMIS of Rs.16,7g3.00 each.
ln connection with the sanction of the Term Loan of RS.1O,OO,OOO.OO sanctioned by the appricant Bank and avaired by the defendant, oeed of Hypothecation RE: Vehicte dated 04_09_20,17 has been signed and executed by the defendant No.2 in favour of the applicanl Bank as security for repayment of the loan facility thereby agreeing to all the terms and conditions laid down in the said documents and hypothecated vehicle purchased out of the Bank ,inanced in favour of the applicant Bank.
The defendant executed particulars of Vehicle (Tata Starbus ) dated 06-09-20'17 and stated that he had received the vehicle in good condition.
On 24-07-2020 the defendant had executed Acknowledgement of Debts and Security and hereby admit the correctness, confirm and acknowledge that a sum of as mentioned in the respective AODS is due and outstanding and also admil, confirm and acknowledge that all the relative documents, agreements, securilies and obligation shall remain in force and effect until repayment of the amount ctue in the Term Loan account being No.455976gOOOO24.
gl;t*^"-.1 3l.o 8-23 I Pr$iding Officer A ORT, Guwahari
o a
5
'70/2022lDRTc*.hali
The defendantNo.2again approached the applicant Bank and applied for financial assislanceto purchase vehicle (Swift Dezire)by Loan application dated 27-11-2019 andafterconsideringthe said application,ihe applicant Bank had sanctioned aTerm Loanfacility of Rs.3,50,000.00on 27-11- 2019The Loan account numberis 4559768000054 and is covered under CGFMUThe defendant has to repay theloan amountwith interestin 60 EMISof Rs 7,34900 each'
ln connection withthe sanction of the Term Loan of Rs 3'50'00000 sanctioned bythe applicant Bank and availed by the defendantNo 2' Pronoteof Rs.3.5O Lacdaled 27-11-2019 and AgreementRE: Collateral Security:Vehicle dated 27-11-2019has beensigned and executed by the defendantNo 2 in favour of the applicantBank as securityfor repayment of the loan facility thereby agreeing to all the termsand conditionslaid down in thesaiddocuments and hypothecated vehiclepurchased out of the Bank financedin favourof the applicant Bank'
The defendantNo.2 executed Particutars of Vehicle (SwiftDezire ) dated 28-11-2019and statedthat he had received the vehicle in good condiiion'
The DefendantNo.1 also availedGuaranteed EmergencyCredit Line (GECL) to ease theblow of Covid'19 Pendamicof Rs"l'oo'00000 on 12'06-2020' The AccountNumber is 4559755000033|n this connection defendantNo 2 on behalf ofthe defendantNo 1 firm executed the Pronote of Rs l'00'00000 dated '12-06-2020. ThedefendantNol alsoavailedCFITL loan of Rs37'87900 The Loan accountnumberis 4559710000049'
The defendantshad availedthe said loan faciliiies from the applicant bankbut have notpaidthe outstandingloan amount as per terms and conditionsas agreed upon withthe applicant bank, in spite of repeateddemands and request by the applicantbank.As the defendants failed to repaythe outstanding amounlin theloan accounts. thesaid loan accounts became NPAon followingmanner' (1) Cash credit AccountNo.4559285000002date of NPA30-12-2021' (2) Term Loan Account No' 4559603000046date of NPA31-o3-2o21i(3) TermLoan AccountNo. 4559768000024 date of NPA31-03-2021;(4) Term LoanAccount No'
flk,*ffiBtr DRT. Guwahati
O.A. 47012022IORT€ryah.ti
4559768000054 date of NPA 31-03-2021,(5) Term Loan GECL AccountNo. 4559755000033 date of NPA 30-12-2021:(6) Term Loan CFITL Account No. 4559710000049 date of NPA 30j12-2021. After the accounts became NPA the applicanl bank issued nolices for repayment of the due amount, but the defendants have neither chosen for repayment of the remaining installments in the loan accounts nor approached to the applicant bank for settling the loan accounts,
The applicant bank thus became constrained to tile thepresent Original Application for the recovery of Rs. 23,82,033.01(RupeesTwenty Three Lakhs Eighty Two Thousand Thirty Three and Paise Ons) only as on08.'11..2022along with inlerest and cosl of the application.
After filing of the OA the Tribunal issuednotice upon thedefendantsthrough registeredpost and the applicant bankfiled servicereporton 20.01.2023and brought on record thepostal receiptalong with track consignmentreport whichshowsthat notice has been served upon thedetendantNo.land notice has notbeenserved upon the defendant No.2. Thereafterthe Tribunal ordered paper publication of notice upon the defendant No.2 and the applicantbank issued notice to the defendantNo.2 on 02.02.2023 throughPQerPublicationin two newspapers namely 'Da,hik Assam' and "Times of lndia'i Evenafter proper serviceof notice upon the defendant No. 'l and issuance of notice upon thedefendant No. 2 through paper publication also there was no representation on behalf ofthe defendants No. 1 & 2 eitherby the counselor the person and hence the defendants No. 1 & 2 were set ex-parteon 04.05.2023 and their right to file written statementcum evidence on affidavit was closed and the matter wasposted for hearingon behalf of the applicant bank.
Supporting ihe claimof the applicant bank Sri Mahitosh Sinha, Manager of the Applic€nt Bank has tiled evidence onafiidavilcoupled wfi the security documents marked as ExhibitA-1 to A-43 supporting the claimof the applicant bank.
Heard the learnedcounsel ,or the applicant bank who prayed for issuance of Recovery Certificateagainst the defendants as per pleadingsmade in lhe Application, suppo(edby evidenceon affidavitof their witnesswho atfirmed on oath sli,$ara^A"Ir', p, DRT, Guw8hati"ongod&l'68'2J al
O A 4702022/DRT-Gu*ahati
lhe 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 the document filed 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 to pay to the applicant bank the claim made in the Original Application. The loans were obtained and documents have been executed on 04.10.2015, 16.08.2017,04.09.2017,25.01.2018,27.11.2019, 27.03.2020 & 24.06.2021. On 04-03-2018, 27-03-2020 and 24-07-2020 the defendant had executed Acknowledgement of Debts and Security and hereby admit the correctness confirm and acknowledge that a sum of as mentioned in the respective AODs is due and outstanding. ('l) Cash credit Account No.4559285000002 became NPA 30-12-2O21i (2) Term Loan Account No. 4559603000046 became NPA 31-03-2021: (3) Term Loan Account No. 4559768000024 became NPA 31-03-2021, (4) Term Loan Account No. 4559768000054 became NPA 31-03-2021i (5) Term Loan GECL Account No. 4559755000033 became NPA 30-12-2021, (6) Term Loan CFITL Account No. 4559710000049 became NPA 30-12-2021. The OA has been filed on 21 .'11.2022. Hence, the OA is filed well within the period of limitation and this Tribunal having a jurisdiction to adjudicate the Original Application.
Considering the unchallenged/unrebutted version of Sri Sri Mahitosh Sinha, 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 entitled toget the Recovery Certificate asprayed for.
ln the result, thepresent Original Application No. 470 ot 2022 is allowed with cost as under:-
:k",w&7 DRT, Guwahati
O A. a7ol2o22,rDRT€uw.hali
Copy of the JudgmenvFinalOrder be uploaded in the Tribunal's Websiteand file be consigned toRecordRoom.
Slust-r,^t^A.J'-Y ?1.hd.23 n (Shiv Sharan Dubsy) U Presiding Officer ORT, Guwahati.
2 issues framed by the court
Whether the Recovery Tribunal has jurisdiction to adjudicate the Original Application under Section 19 of RDBFI Act, 1993 within the limitation period.
Whether the established liability of the respondents warrants the issuance of a Recovery Certificate for the outstanding dues.
1 provisions across 1 enactments
Canara Bank Rangia Branch
M/s P B Enterprises
S Haren Kalita
Shiv Sharan Dube
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
