The Tribunal allowed the applicant bank's application for a recovery certificate against two defendants for an outstanding loan with interest, finding the claim substantiated by unchallenged documents and within the limitation period.
Recovery Certificate issued for Rs. 30,80,970.84 plus interest at 8.55% p.a. against defendants jointly and severally.
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 472n 022lDRT.cua?n.ti
IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI
(North Eastern Region)
{TribunalofAssam, Nagaland, Meghataya, Manipur, Mizoram, Arunachal pradesh & Tripura)
O.A. No. 472t2022
ln the matter of -
STATE BANK OF INDIA Retail Assets Centralprocessing Centre, Swagota Square, 4h Floor, G. S. Road, Guwahati-05, Distric! Kamrup (M), Assam.
Applicant
vs.
District- Kamrup (M), Assam.
District- Kamrup (M), Assam.
......................... Defendants
Presence of the Counsel:
For the Applicant : MrK K Nandi, Ms. Rochoita Das, Ms Susmita Dey, Advocates
For the Defendants I Mr. Nageswar Das, Advocate (Right to file WS cum EA ctosed)
Dated :20111t2023
JUOGIUIENT
This is an application under section 19 of the Recovery of Debts Due to Banks and Financiat tnstitulions Act, i993 filed by the State Bank of lndia, Retail Assets central Processing centre, swagota Square, 4rh Froor, G. s. Road, cuwahati-os. District- Kamrup (M), Assam, with a prayer to issue Recovery certificate for the sum of Rs. 30,80,970.84 (Rupees Thirty Lakhs Eighty Thousand Nine Hundred seventy and Paise Eighty-Four) onry a s on 31.'1o.2022 against the defendants with
d,ir9trq^a- B.{ORI Guvrahati ",'"r,*olljt'JI
2
o.a. 472ro2zloRTcuv.ahrri
pendentelite and future inlerest thereon @8.55o/o per annum with monthly rests till realization along with cost and other relief.
A few facts giving ise to the present application are as under.
The defendant no I is a pensioner and the defendant no 2 is a business man by occupation. The defendant nos 1 and 2 approached and applied to the applicant bank for financial assistance for construction of house by submitting a loan application dated'16.06.2017. The applicant bank on consideration ofthe said loan application dated 16.06.20'17 sanctioned Term Loan of Rs.29,'l9,000.00 and Rs 1,06,000.00 as insurance cover to the term loan to the defendants vide Letter of Arrangement daled 03.07.20'17. The terms and conditions of the letter of arrangement dated 03.07.2017 was duly accepted by the defendants and as a token of acceptance of the same the defendants 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 effective rate of lnterest with a minimum of 8.55%per annum rising or falling on daily products with monthly rests. The defendants have also agreed to repay the term loan in monthly installments of Rs.26880/- each. 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 suchperiod as the bank deems it necessary.
The defendants availed of the term loan from the applicant bank and have executed the following documenls duly filled-up in favour of the applicant bank :-
(a) Memorandum of loan agreement daled O5.O7 .2017.
(b) Deed of undertaking dated O5.O7.2017.
(c) Affidavit by the defendants dated 05.07 .2017.
(d) Consent Clause dated 05.07.2017.
The defendants availed the term loan facility from the applicant bank and as a security for repayment of the said lerm loan, defendant no. I has created equitable mortgage of land by deposit of title deeds wilh the applicant bank on
c.;.eh,@^,Q^L P*.id,'soa€'ll )) I ORT, Guwaheti
O A 472l2o22,DRT-Gwahati
05.07.2017. The defendant no.1 depositedwith the applicant bank,title deeds such as sale deed no 3981 of1982, Nonencumbrancecertificaiedated 06.04.2017, Affidavit dated 06.04.2017, Certificate byMouzadar,Certificate by Circle officer daled 11.04.2017, Tracemap ofdag, Jamabandiof patta no 90 village Bargaon, Mouza madartala.The defendantno. thasdeposited title deeds with the applicant bank with the intention to createan equitable mortgage.The defendant no'l executed confirmationletter dated06.07.2017by which he confirmed and admitted his intention to create equitablemortgage of theschedule A land in favour of the applicant bank. Thepropertymortgaged/ createdcharge by the defendant no. 1 with the applicant bank as a securityfor repaymentof loan is more specifically described in Schedule Aof theOA.
The valuation of the mortgagedproperty as described in schedule A of the OA was done by registered valuer of the applicantbank S.S Dewan who has submitted his report dated 20.07.2022.
The defendant no 2 have executed standing instruction daled07 .O7.2017 by which he has authorized the applicant bank to deductRs 28066.00 andRs 800.00 from his SB Account No 30775874871 and credit thesame in his loan Account no 36992586065.
The defendant no 2 have madepayment in theterm loan accountno 36992586065 by debit from his savings accountno 30775874871 on 07.O4-2O17, 07.07.2017, 01.08.2017, 01.09.2017, 01.10.2017,01.11.2017, 01.01.2018, 01.03.2018, 01.04.2018, 01.05.2018,01.06.2018, 01.07.2018, 01.09.2018, 15.10.2018, 15.11.2018, 15.02.20',I9, 15.03.2019,13.07.2019,20.09.2019, 15.1'1.2019, 23.0'1.2020, 13.03.2020 and have confirmedand admitted his liability in respect of the ierm loan account with the applicantbank on thesaid dates.The defendant no t have madepayment in the termloanaccount no 36992586065 by debit from his savings account no32833105964on 26.08.2020,16.12.2020, 3'1.05.2021, 03.01-2022, 13.O5.2022and haveconfirmed and admitted his liability in respect of the term loan accounlwith the applicantbank on the said dates,
sLrg{zka.0"fu, 1o l1.2\ ll Presiding Officer DRT, GrrwEh3ti
O A 472l2022loRT-cuwahati
The defendants had availed the said loan facilities from the applicant bank but have not paid the outstanding loan amount as per terms and condilions as agreed upon with the applicant bank, in spite of repeated demands and request by the applicant bank. As the defendants failed to repay the loan amount, the said loan accounts became NPA on 02.07.2022. After the accounts became NpA the applicant bank issued notices for repayment of the due amount, but the defendants failed to repay lhe loan amount.
The applicant bank thus became constrained to fle the present Original Application for the recovery of Rs. 30,80,970.E4 (Rupees Thirty Lakhs Eighty Thousand Nine Hundred Soventy and paise Eighty-Four) only as on 31.10.2022 along with interest and cost ofthe application.
After filing of the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank filed service report on 13.02.2023 and brought on record the postal receipts along with track consignment report. The learned counsel for defendants had appeared on 20.01.2023 and sought time for firing written statement cum evidence on affidavit. Thereafter, the case was listed on several occasion, but the written statement cum evidence on aflidavit have not been filed by the defendants. Hence, their right of the file written statement cum evidence on affidavit was closed on 08.05.2023 and the matter was fixed for hearing.
Supporting the ctaim of the appticant bank Sri Kapil Muni yadav, Chief Manager of the Applicant Bank has fired evidence on affidavit coupred with the security documents marked as Exhibit A-l to A-25 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 arso execution of their own documents relied upon, which have been marked exhibits.
qJ,vchra..QrlL, >".|.i\ ,I Prosidng Officer - (/ ORT, Guwahali
O A,17212022./DRT-G@ahati
Consideringthe factsand circumstancesof the case,I am of the considered view that the documentfiled by the applicantbank are supportingthe claimof the applicant bankand establishingtheliabilityof the defendants lt is proved that the defendanls arejointly and severally liable to pay to the applicant bankthe claim made in the OriginalApplication.Theloanswereobtainedand documents have b€en executed on 05.07.20'17.The defendant No. 2 has made paymentin the term loan account No.36992586065on 07 04.20'17,07'07 '2017, 01082017 '01 092017' 01.10.2017. 01.11.2017,01.01.2018,01.03.2018,0',1.04.2018,01.05.2018,01 06'2018' 01.07.201 8, 01.09.2018, 15.1 0.2018,15.',11.2018'15 02.2019,1 5 03 2019,1 3 07 2019' 2o.o9.2o19,,15.11.2o1g,2g.o1.2o2o,13.o3.2o2oandconfirmedandadmitiedhisliability in respecl of theterm loan withthe applicant bank on the said dates The defendant no t has madepaymentin the term loan accountno 36992586065on 26 08 2020' 16]122020,g'l.O5.2O21, O3.O1.2O22"lg.O5 2022and have confirmed and admitted his liabilityin respect of the termloan accountwith the applicant bank on thesaid dates. Moreover, afterperusing the documents on re@rd andtakinginto considerationof the facts andcircumstancesof the case,I find thatthe mortgage has beencrealed by the defendant No.1wherethelimitation availableis for 12 yearsand as such taking into account of thecreationof lhe mortgage the application appearsto have been filed v{ell within iheperiod of limitation.The accountbecame NPA on 02 07 2022 and the OA has beenfiledon23.11'2022'Hence,theoAisfiledwe|lwithintheperiodoflimitationand this Tribunalhavinga jurisdictionto adjudicate the OriginalApplication'
Consideringthe unchallenged/unrebutted version of Sri KapilMuniYadav' the applicant'switness and allthe documents marked as exhibits'including duly certified copy of thestatement of account alongwith interest calculation sheet maintained by the applicantBankin it's regularcourse of business, I hold that the applicantis entitled toget the RecoveryCertilicate as prayed for'
ln the result,the present OriginalApplication No 472 ol 2022 is allowed with cost as under:-
i) The defendantsNo. 1 & 2 are iointlyand severallyliable to pay to the
SL,rfona".0J'r, ,>6. |.)\ Pr$iding Otrcer ORT, Guydhati
O.A. 472O2ZDRf€usahati
applicantbanka sum of Rs' 30,80,970'84(Rupees ThirtyLakhs Eighty Thousand NineHundred seventyand PaiseEighty-Four) onlywith pendentelite and futureinterest @8.55%p a' with monthly rests from 01]112022 till thedate of full paymenurealizationand also cost of the aPPlication.
Judgment dated 20th November2023, signed and pronounced in the Tribunal today under my signature.
Copy of the JudgmenuFinalOrder be uploaded in the Tribunal's Websiteand llle be consigned to RecordRoom.
ll..'!'i*r,a., ' &.I.,r 'f^,.1t )\ I (Shiv Sharan Dubty) ( Pr6iding Officer DRT, Guwahati.
2 issues framed by the court
Whether the applicants are entitled to a recovery certificate for the outstanding loan amount.
Whether the application was filed within the limitation period.
1 provisions across 1 enactments
STATE BANK OF INDIA Retail Assets Central Processing Centre, Swagota Square, 4th Floor, G. S. Road, Guwahati-05
1. DHAIRJYA RAI, I DEKA
2. SRI ASHOK DEKA
Shiv Sharan Dubty
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
