Allowed

Punjab National Bank v. Md Razawol Karim @ Abu Tahir MD Razawol Karim

DRT20 Nov 2023OA/491/2022

Case brief

AI extract

What is this about?

This application under Section 19 of the RDBFI Act sought a Recovery Certificate against two defendants for an outstanding loan of Rs. 39,58,849.04. The Tribunal, hearing the application ex-parte due to defendants' absence, accepted the bank's documentary evidence, confirmed the defendants' joint and several liability, and allowed the petition.

What did the court decide?

Issuance of Recovery Certificate for Rs. 39,58,849.04 with interest, keeping charges alive on mortgaged/hypothecated properties, and permission to recover from secured and personal assets.

Punjab National Bank versus Md Razawol Karim @ Abu Tahir MD Razawol Karim — DRT (2023) — LawSathi Research

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O.A. 4gl/ZozDRT€u/yehati

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Reoion)

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( I ribunarofAssam. Nagarand, Megharaya, Manipur, tvr-izora'm, nrunachar pradesh & Tripura) Before Shri Shiv Sharan Dubev. p.esidino Officer

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O,A. No. 491t2022

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ln the matter of-

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PUNJAB NATIONAL BANK Tarapur (Silchar) Branch, Station Road,^p.O. Tarapur, Silchar_788003, District-Cachar, Assam

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Apprcant vs.

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!9 $:"y:! X".im @ Abu Tahir Md. Rezawot Karim,
S/o Mohd. Abdul Aziz,
R/o Village- Sherpur part-j, New Nobipur. p.O. Barioram
P.S. Patherkandi, Dishict_ Karimganj, Assam_788725.

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Md Ahmed Humayun Rashid,
S/o Mohd. Abdul Aziz,
R/o Village- Sherpur (New Nobipuo, p.O. Baraigram,
P.S. Patherkandi, Distric! Karimganj, Assam-Zgt'gZZd.

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Defendants

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Presence of the Counsel:

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For the Applicant : Mr. Gitartha Das Mr. Nurul lslam, Advocates

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For the Defendants : None (Ex_parte).

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Dated :20t1112023

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JUDGMENT

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This is an apprication under section 19 of the Recovery of Debts Due to Banks and Financiat lnstitutions Act, 1993 filed by the PUNJAB NATIONAL BANK, Tarapur (Silchar) Branch, Station Road, p.O. Tarapur, Silchar-78g003, District_Cachar, Assam, with a payer to issue Recovery Certificate for the sum of Rs. 39,5g,849.04 (Rupoes Thirty-Nine Lakhs Fifty-Eight Thousand Eight Hundred Forty-Nine and paisa Four) only as on 31.10.2022 against the defendants with pendentelite and future interest thereon at the contractual till realization along with cost and other relief.

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A few facts giving rise to the present application are as under. s.l.;, '^g.targ," SJ" I Presiding Officer 'l,22^--- ,lI DRT, cuwahata

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O A 491/2o22loRl-Guwahati

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Pursuant to an application dated Nil by the defendant no.1 for financial accommodation, the applicant after considering his request sanction cash credit limit upto Rs 40.00 Lakhs vide sanction letter dated 26.05.17. As^per the said sanction letter the borrower is required to^pay interest @ 13.25^{o/o p.a.} monthly rest. The cash credit limit is repayable on applicant's demand. The defendants complied with the requirements of the sanction letter towards acceptance of the terms and conditions contained therein.

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ln order to avail the cash credit limit of Rs.40.00 Lakhs the defendants

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executed the following loan documents -

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(i) Demand Promissory Note dated 26.05.2017 . (iD Letter of Lien dated 23.05.2017 . (iiD Letter of Continuity dated 23.05.2017. (iv) Hypothecation agreementdated 26.05.2017. (v) Letter of Guarantee dated 26.05.'17. (vi) Affidavit dated 28.07.16.

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(vii) Consent cause from the borrower and guarantor.

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The defendant No.2 secure the cash credit limil of Rs.40.00 Lacs by creating equitable mortgage of land measuring 15 Kathas 02 Chataks 05 Gondas covered by Dag. No.^'18 under patta No. 19 (old) 21 (New) and Land measuring Ol katha 08 Chattak 10 gonda under Dag No. 19 under Patta No. 29(old) SB (new) l.e. total area 16.65 kathas situated at Village - Serpur (New Nabipuo Near Seragi ldgar Field, Mouza Serpur Hafania, Distric! Karimgani, Assam (Schedule B of lhe OA) by depositing with the bank the following ti e deeds on 26.05.17:-

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(i) Specimen of acknowledgement letter relating to deposit of tifle deeds by a deeds Guarantor (Form No. D17D) dated Nil executed by the defendant no.2.

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(iD Entry form when title deed is deposited by a cuarantor (Form No. D17E). (iii) Certified copy of Sate Deed No. 286 dated 01 .03.20'l 1. (iv) Certified copy of Sate Oeed No. 466 dared 08.06.2010.

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(v) Certified copy of Sate Deed No. 1664 dated 27.O5.2O09.

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(vi) Registration receipts in connection with the Sale Oeed Nos.296,446 and 1664.

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(vii) Possession Certificate issued by the Ofrice of the Asstt. Setflemenl Officer, Nilambazat daled 16.02.20'17.

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(viii) Non- Encumbrances Certificate dated 22.05.2017 .

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(ix) Search application no 267 of 2017 issued by the Sub-Registrar Ptharkandi.

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.<L',,tcLa.o.&.J,"--'i).],r,-,\0 I Presiding Oflic€r^- v DRT, Guwahali

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O-A' 491 2022lDRT4{Lhtti

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(x) Affidavit dated 07.06.17^{by defendant.} iril From Nos. 50 from Sheristadar^{Munsif, and civil Courts} (xii) Tiile Search Report dated^22.05.2017.

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The applicant has^{alsoprocuredthe Valuation Report dated 11 03 2017in} connection with^{the said property.}

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After executing the^{above loan/security documents the defendantsavailed} the cash credit limit of^{Rs 40.00lakhsby openingCash Credit AccountNo'} 0041250045535 with^{the Patharkandi Branch of the ApplicantBank.}

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The defendant had^{availedthe said loan facilityfrom the applicant bank but} have not^paid the outstanding^{loan amountas per terms and conditionsas agreed} upon with the applicant^{bank, in spite of repeateddemandsand requestby the} applicant bank. On 28.O2.2020^{the defendantno.1 confirmedtheoutstanding} balance in the cash^{creditaccount no. 0041250045535by executingbalance} confirmation lefter.^{As the defendantsfailedto repay the loan amount,the loan} account became NPA^{on 01.07.202'1.Aftertheaccount became NPAtheapplicant} bank issued notices for^{repaymentof the due amount,but thedefendants failedto} repay the loan amount.

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The applicant bank thus^{became conslrained to lile the present Original} Application for the recovery^{of Rs. 39,58,849.04(RupeesThirty-NineLakb Fifty-} Eight Thousand^{Eight Hundred Forty-Nine and Paba Four) only as on 31 10 2022} along with interest^{and costof the application.}

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After flling of the OA the^{Tribunal issued notices upon thedefendants through} registered^post and the applicant^{bank filed service reporl on 24 03.2023 and brought} on record the^{postal receipts along with track consignment reportwhich shows that} notices have not been^{served upon the defendants. Thereafterthe Tribunalordered} paper publication of notice upon the defendants^{and the applicant bank issued notice} to the defendants on^{05.04.2023through Paper Publicationin two newspapers namely} "Eastem Chronicle" and^{"Prantoiyoti".} Even after^{issuanceof notice throughpaper} -

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d"1eta,yakrlr,1 Pres'dino OtrEei^rt DRT, Guwahali

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O A 491/2022loRT-Guw.h.ti

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publication also there was no representation on behalf of the defendants either by the counsel or the person and hence the defendants were set ex-parle on 19-06-2023 and his right to file written statemeni cum evidence on affidavit was closed and the matter was listed for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Ms Anjana Das, Chief Manager of the Applicant Bank has filed evidence on affjdavit coupled with the security documenb marked as Exhibit AW-1/1 to AW-'126 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 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.

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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 supporting the claim of the applicant bank and establishing the liability of the defendants. tt is proved that the defendants are^jointly and severally liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 23.05.2017 & 26.05.2017. On 28.02.2020 lhe defendant no.,l contirmed lhe outstanding balance in the cash credit account no. OO412SOO4553S by executing balance confirmation letter. Moreover, afrer perusing the documents on record and taking into consideration of the facts and circumsiances of the case, I find that the mortgage has been created by the defendant No.2 where the limitation available is for 12 years and as such taking into account of the creation of the mortgage the application appears to have been filed wellwithin the period of limitation. The account became NpA on 0'1.O7.2021 and the OA has been filed on O6j22022. Hence, the OA is fited well within the period of limitation and this Tribunal having a jurisdiction to adjudicate the Original Application.

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Considering the unchallenged / unrebufted version of Ms Anjana Das, th€

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SWy|a/gr,fr,^[,fl presiding Ofroar'^, 2 U DRT, Guwahat

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O.A. 491/2022lDRT-Guwahau

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applicant's witness and all the documents marked as exhibits, including duly certifled 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 Certificate as^prayed for.

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ln the result, the^present Original Application No. 491 o12022 is allowed with cost as under: -

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The defendants No. 1 & 2 are^jointly and severally liable to^pay to the applicant bank a sum of Rs. 39,58,849.04^(Rupees Thirty-Nine Lakhs FiftyEight Thousand Eight Hundred Forty-Nine and Paisa Four) only with pendentelite and future interest @13.25% p.a. with monthly rests from 01j1.2022 till the date of full^{paymenurealization} and also cost of the application.

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ii) The charge of the certificated amount be kept alive on hypothecated properties, as described in Schedule-A of the OA till the amount is realized in full.

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(iiD The charge of the certificated amount be kept alive on mortgaged property i.e. Land measuring 15 Kathas 02 Chataks 05 Gondas covered by Dag No. 18 under Patta No. 1g(old) 21(new) and land measuring area 01 katha 08 chattak 10 gonda under Dag No. 19 under Patta No. 29(old) 58 (new) i.e. total area 16.65 kathas, village- Serpur (New Nabipuo near Seragi ldgar Field, MouzaSerpur Hafania, Distric! Karimganj, Assam and is bounded by: North: Land of Gulam Mahhamad Babari South: Others; East: NH44; West: Land of Abdul Aziz, as described in Schedule-B of the OA till the amount is realized in full.

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

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v) 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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sl,;,d"aaa-Ail.u4lc" I tt Presiding Oficel '1.,^{' I} DRT. Guwahati

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o'A" 4912022/DRlcutrhati

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vi) 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 file the cost memo within 2 weeks from today.

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vii) lssue Recovery Certificate accordingly for a sum R3. 39,58,849.04 (Rupee3

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Thirty-Nine Lakhs Fifty-Eight Thousand Eight Hundred Forty-Ntne and Pai3a Four) only in favour of the applicant bank against the defendants No. 1 & 2.

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viii) Communicate copy of this order to the concerned parties. This order is dictated and corrected by the undersigned.

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Judgment dated 20h November 2023, signed and pronounced in the Tribunal today under my signature.

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal's Website and lile be consigned to Record Room.

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S[*^{*1.r".,g:,.Fr^t:} I (Shiv Sharan Dubey/^,) Presiding Officer DRT, cuwahati.

Punjab National Bank v. Md Razawol Karim @ Abu Tahir MD Razawol Karim

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Md Razawol Karim @ Abu Tahir MD Razawol Karim

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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