Allowed

Yes Bank v. Rahul Boro

DRT25 Sept 2023OA/482/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Yes Bank Limited seeking a recovery certificate against two borrowers for a non-performing agricultural loan. The Court held the documents established liability, the account was timed correctly, and ordered issuance of the certificate.

What did the court decide?

Recovery Certificate issued for Rs. 26,85,519.31 along with pending and future interest; charge kept alive on hypothecated vehicle; recovery from personal assets authorized.

Yes Bank versus Rahul Boro — Banking and Recovery | DRT (2023)

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OA 442zo?ZoRl€uwahali

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal of Assam, Nagaland, Meghalaya, Manipur, Mizoram, Arunachal pradesh g Tripura)

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Before Shri Shiv Sharan Dubev. Presidino Officer

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O.A. No.4A2l2O22

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ln the matter of -

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Yes Bank Limited Guwahati Branch Ground Floor, Asian Complex, G.S.Road, Ulubari, Guwahati-781 007, DistricG Kamrup (Metro), Assam.

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..Applicant

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Vs.

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Mr Rahul Boro Son of Prafulla Boro Resadent of Bhogapur, Sonapur Kamrup, Metro Assam, Sonapur-782402, Assam.

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Mrs Champa Boro Wife of Mr Prafulla Boro Resident of Bhogapur, Sonapur Kamrup, Metro Assam, Sonapur-782402, Assam

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Defe n da nts

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Presence of the Counsel :

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For the Applicant : Sri [Iukesh Sharma, Ms Ellora Bharali. Advocates For the Defendants : None (Ex-parte)

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Dated :2SlO9l2O23

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JUDGMENT

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Th,s is an application under section^.19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act, 1993 filed by the yes Bank Limited, Guwahati Branch, Ground Floor, Asian Complex, G.S.Road, Ulubari, Guwahati_781007, Dishict_ Kamrup (Metro), Assam, with a prayer to issue Recovery Certificate for the sum of Rs. 26,85,519.31p (Rupees Twenty Six Lacs Eighty Five Thousand Five Hundred Nineteen and Paise Thirty One) only as on 10.10.2022 against the defendants wilh pendentelite and future interest at contraclual rates with monthly rests till realization along with cost and other relief.

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

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The Defendant No.'l as borrower and Defendant No. 2 as co_borrower had approached the Applicant Bank and applied for financial assistance for purchasing commercial vehicle by submitting a Loan Applications dated 17.03.202j and after considering the said Application, the Applicant Bank on 20.03.202.1 had sanctioned a Term Loan of Rs.23,84,512.00 to the Defendants for purchasing the commercial vehicle more fully described in schedule below with inlerest charged al ,11.3o/o p.a. calculaled on daily product at monthly rests and in case of default, the bank shall be entitled to charge an additional interest @ 2% per month or such rate as may be specified by the bank from time to time. The Construction Equipment Loan was to be repaid in 48 Monthly instatlments of RS.62,7OB.OO each with the first instaltment commencing lrom 22.04.2021 and the tast installment falling due on 22.02.2025. ln connection with the sanction of the aforesaid Term Loan of Rs. 23,g4,512.00 sanctioned by the Applicant Bank and availed of by the Oefendants, A Vehicle Loan Agreement, Demand Promissory Note, Letter of Continuity for Demand promissory Note all dated 20.03.2021 have been signed and executed by the Defendant Nos. 1 and 2 in favour of the Applicant Bank as security for repayment of the loan facility, thereby agreeing to all the terms and conditions laid down in the said Agreements and also hypothecated the Equipment(more specifically described in Schedule_A of the OA) in favour of the Applicant Bank.

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ln conneclion with the sanction of the said Commercial Loan of Rs. 23,84,5'12.00 sanctioned by the Appticant Bank, the Defendant Nos. land 2 had signed and executed an lrrevocable^power of Attorney d aled 20.0g.2021.

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ln tems of the Government of lndia ',Emergency Credit Line Guarantee Scheme ("ECLGS", the Appticant vide Sanctioned Letter dated 27.12.2021 had sanctioned Guarantee Emergency Credit Line (GECL) by way of working capital Construction Equipment Loan of Rs.7,15,350/- to the Defendants with the rate of interest @9.25% per annum. The aforesaid Construction Equipment Loan was repayable in 60 Months (including 24 months moratorium principal Repayment). ln

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order to secure the said GECL facility, the Defendants had executed a Supplementary Agreement daled 27.12.2021, in favour of the Applicanl Bank. The aforesaid GECL loan was disbursed through the GECL Account No. CEL04810'1032392 standing in the name of Defendants.

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The defendants had availed of the said loan facitity from the Applicant Bank, but have not paid the loan amount as per the terms and conditions as agreed upon with the Applicant Bank, inspite of repeated demands and requests by the Applicant Bank. As the defendants failed to repay the loan amount or furlher renew the Cash Credit account, the said account became NpA on 21.07.2022. Aftet lhe 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 installments in the loan account nor approached to lhe applicant bank for setfling the loan account.

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The applicant bank thus became constrained to llle the present Original Application for the recovery of Rs. 26,85,519.31p (Rupees Twenty Six Lacs Eighty Five Thousand Fivo Hundred Nineteen and paise Thirty One) only as on 10.10.2022 along with interest and cost of the application.

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Afrer filing of the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank filed service report on 25.01.2023 and brought on record the postal receipts along with track consignment repori which shows that the notices have not been served upon the defendants, hence the service was not completed upon the defendants. Thereafter the Tribunal ordered paper publication of notice upon the defendants and the applicant bank issued notice to the defendants through Paper Publication in two newspapers n amely "The Times d lndia " and "Dainik Asom" both dated 16.02.2023. Even after issuing notice through paper publication upon the defendants there has been no representation on behalf of tha defendants either by the counsel or the person and hence the defendants were sel expane on 22.05.2023 and the matter was posted for ex-parte hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Sreetama Manna, Manager of the Applicant Bank has filed evidence on affidavit coupled with the security documents marked as Exhibit -P, Exhibit AW-1/'l to AW-1/11, supporting the claim 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 defendanls as per pleadings made in the Application, supporled 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.

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Considering the facts and circumslances of the case, I am of the considered view that the documents tiled by the applicant bank are supporting the claim of the applicant bank and establishing the liability of the defendants. tt is proved that the defendants are liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 20.03.2021 & 27.12.202'l . The account became NPA on 21.07.2022 and lhe OA has been filed on 06.12.2022. HencF-, the OA is filed 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 version of Sreetama Manna, the appiicant's witness and all the documents marked as exhibits, including duly certified copy of the statement of account along with interesl 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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ln the result, the present Original Application No.482 o12022 is allowed with cost as under :

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i) The defendants No.1 & 2 are^jointly and severally liabte to pay to the applicant bank a sum of Rs. 26,85,519.31p (Rupee3 Twenty Six Laca Eighty Fivo Thousand Fivs Hundred Nineteen and Paise Thirty One) only with pendentelite and future interest @11.3% per annum with monthly rests from 11.10.2022 till the date of full paymenvrealization and also cost of the apprication. Slii dg4.a-

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Slii dg4.a-^q.J" 2sIo4 l?4. /I Presid'ng officerl^tf' U ORT. Guwahat'

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ii) The charge of the certificated amount be kept alive on hypolhecated vehicle i.e. Hypothecation of Tata Motor Model- Tata Signa 1923 K BSVI, 10.5 Box Engine No.- 12863857832, Chassis No.MAT778003MA801576, Registration No. AS01NO4769, as described in Schedule-A of the OA iill the amount is realized in full.

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iii) The applicant bank is entitled to proceed against the secured items towards recovery of the debts.

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iv) The applicant bank is also entitled to proceed against the personal assets and properties of the defendants towards recovery of the dues.

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v) The applicant bank is entitled to the costs of the O.A. which includes the advocate fees of the applicant bank. Applicant is directed to file the cost memo within 2 weeks from today.

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vi) lssue Recovery Certificate accordingly for a sum Rs. 26,85,519.31p (Rupeeg Twenty Six Laca Eighty Five Thousand Five Hundred NinEteen and Paise Thirty Onel only in favour of the applicant bank against the defendants No. 1 &2.

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vii) Communicate copy of this order to the concemed partiesThis order is dictated and corrected by the undersigned.

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Judgment dated 2$h September 2023, signed and pronounced in the Tribunal

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today under my signature.

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal's Website and

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file be consigned to Record Room.

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s}J.,le 0o,.a- ArL"+ 2floql2a. 4 (Shiv Sharan Dutleyr l - { Presiding Officdr DRT, Guwahati.

Yes Bank v. Rahul Boro

Case brief

What is this about?

What did the court decide?

Yes Bank v. Rahul Boro

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

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Case details

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