Indian Bank versus Edris Dewn

O A 70,2022,DRT€(mn.tr

IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

(North Eastern Region)

( r nounar orAssam. . Nagarand. Megharaya, Manipur, MLor#, Arunachar pradesh & Tripura) Before Shri Shiv Sharan Dubev. presidinq Officer

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O.A. No,10t2022

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ln tho matter of-

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lndian Bank (EBtwhito Allahabad Bank) Barpeta Eranch, BKK Road, Barpeta Town. Barpeta-78,130j.

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... ... ... .Appricant

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Vs.

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'1. Mr. Edrish Dewan, S/o Lt Aynal Haque Dewan. Ryo Vilt- Bhogdia, p.O. & p.S. Bhogdia, Dist: Barpeta-78.1 305. Assam.

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Defendant

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Presence of the Counsel :

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For the Applicant : Smt Sanghita Chakrabo(y, Advocate For the Defendant : None (Ex-parte)

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Dated :10t08t2023

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JUDGii|ENT

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This is an apprication under section 19 of the Recovery of Debts Due to Banks and Financial lnstilutions Act, 1993 fited by the lndian Bank (Erstwhite Allahabad Bank), Barpeta Branch, BKK Road, Barpeta Town, Barpeta-781301, with a prayer to issue Recovery Certificate for the sum of Rs. 2,1,47,392.00 (Rupee3 Twenty One Lakhs Forty Seven Thousand Three Hundred Ninety Two, only as on 01.12.2021 against the defendant with pendentelite interest @11.05% (CC) and @9.80%^{(TL) per} annum with monthly rest till realization, along with cosl and other reliel

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

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The defendant is a Contractor and as such running business at Barpeta. On 15.03.2017 the defendant approached the applicant bank for sanction of loan amounting of Rs.9,98,000/- onty by submitting application dated .t5.03.2017. On consideration of the said appljcation, the applicant bank vide its Letter of

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SILelau,^&,r'+ lnll?l Da Presiding Otr&r I DRT, ouwahati

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O A 7o/2o2zDRT€uwahatr

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Arrangement dated 15.03.2017 has sanctioned on'15.03.2017 MSME cash credit^of Rs. 9,98,000/- only to the defendant with interest charged at^{'l1.O5o/o p.a.} Accordingly the defendant executed the^{HypothecationAgreement, Demand} Promissory Note and Acknowledgement^{Letter all} dated^{15.03.20'17.Theloan was} repayable on demand as mentioned in DP Note dated^{'15.03.2017 as and when} required by applicant bank. The defendant availed^{the cash credit facilitiesfrom} applicant bank but violated all^{terms and conditionsof the Letter of Arrangemenl} and the defendant failed and neglected^{to abide by the terms and conditions of the} Letter of Agreement as well as the^{defendantsfailed and neglected to repay the} loan amount with interest. Thereafter^{the defendant acknowledgedlo repayloan} amount on 02.03.2020⁽ loan account^{No. 50274400572).}

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On 06.01.2016 the defendant^{approachedthe applicant bank for sanction of} loan amount of Rs.5,20,000/-^{only by submitting application dated06 01.2016.On} consideration of the^{said application, the applicant bank vide its Sanction Letter} dated 1'1.01.2016^{hassanctioned on 11.01.2016Term Loan of Rs. 5,20,000/- only} to the defendant with interest^{charged at '11.20o/op.a. Accordinglythe defendant} executed the Loan Agreement,^{GuaranteeAgreement, Demand PromissoryNote} and Letter of Acknowledgement^{atl dated 11.0'1.2016 Theterm loan was repayable} in 60 monthly installments^{for EMI of Rs.12,000/-} @11.20o/o^{rateof interestfor the} purpose of purchasing a commercial vehicle.^{The defendant availedthesaid lerm} loan facility from^{applicantbankbut violated all lerms and conditions of the} Sanclion Letter. As^{the defendanthas failed to repay the outstanding amountin the} loan account lhen the appticant^{bank had demandedand requested the defendants} through Demand^{Noticesdated07.08.2021,20.07.202'1,16.092021 to regularize} the loan account^{and paythe installmentsin the account includingthe accrued} interest thereon.^{But ihe defendantfailed to make any paymentthereof Thereafter} the defendant^{acknowledged to repay loan amounton 0'1 01 2020 The applicant} bank afso sent^{advocate's notice dated28.01.2022'}

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The defendant^{had availedthe loan facilities from the applicant bankbut hasnot} paid the outstanding amount^{as perterms and condition made withthe applicant bank}

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SLi, s-1.414,, )ra,1.L+ ",""""e#JPRlz'u/DRT. Guwahali

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O A 7o/2o2zoRT-Guwahatr

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in spite of repeated demands and request by the applicant bank.^{As the loan accounts} were running extremely irregular and due to non-payment^{of principal amountand} interest, lhe said loan accounts were classified as^NPA on^{28.12.2018. After the} account became NPA the applicant^{bank issued notices for repaymentof the due} amount, but the defendant^{had neitherchosen} for^{repaymentof the remaining} installments in the term loan account^{nor approachedto the applicant bank for settling} the term loan account nor renewed^{the cash credit account.}

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The applicant bank thus became constrained to file lhe^{presentOriginal} Application for the recovery of^{Rs. 21,/f,392.00(RuPeesTwentyono LakhsForq} Seven Thousand Thres^{Hundred Ninety Two)onlyas on 01 12 2021 alongwith} interest and cost ofthe application.

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After filing of the OA^{theTribunal issuednotice upon the defendantthrough} registered^post and the^{applicant bank filed service reporton '18.05.2022and brought} on record the^{postal receipt alongwith track consignment reportwhich shows that} notice has not been served^{upon the defendant. Thereafterthe Tribunal orderedpaper} publication of notice upon the defendant and the^{applicant bank issued noticeto the} defendants on 03.6.2022^{through PapeIPublicationin two newspapers namely "7he} Times of lndia" and^{"DainikAssam'. Evenafterissuance of notice throughpaper} publication atso there was no representation^{on behalfof the defendant eitherby the} counsel or the^person and^{hence the defendantwas set ex-parte on 04 0A2O22} and his right to file^{written statement cum evidenceon affidavitwas closed and the} matter was^{posted for hearing on behalf of the applicant bank.}

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Supporting the claim^{of the applicant bankSri JyotiKumarSinha, Chief Manager} of the Applicant^{Bank has filedevidenceon afiidavitcoupled with the security} documents marked as Exhibit^{A-1 to A-17, supportingthe claimof the applicantbank'}

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Heard the learned^{counsel for the applicant bank who prayedfor issuance of} Recovery Certificate^{against the defendant as perpleadings 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 defendant and also execution} of rheir own documents^{retied upon, which have been markedexhibits.} jk, kfrf}#

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DRT. Guwahati

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OA 7o/2o2zoRT€u*ahalr

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Considering the facts and circumstances^{of the case, I am of the considercd} view that the documents 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} defendant is liable to^pay to the^{applicant bank the claim madein the Original} Application. The loan was^{obtained and documentshave been executed on} 1'1.01.2016 &^'15.03.2017. The^{defendant acknowledgedto repay the loanamount} on 01.01.2020 & 02.03.2020.^{The accountbecame NPA on 28.122018 and the OA} has been filed on 25.02.2022.^{Hence, the oA is filed well within the period of} limitation and this Tribunal^{havinga jurisdiction to adjudicatethe Odginal Application.}

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Considering ihe unchallenged/unrebutted^{version of Sri Jyoti Kumar Sinha, the} applicant's witness and^{allthe documents marked as exhibils,including duly certified} copy of the statement^{of account alongwith interest calculation sheet maintained by} the applicant Bank in^{it's regular course of business, I hold that the applicantis} entitled to^get the Recovery^{Certificate as prayed for.}

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ln the result, the^{presentOriginalApplication No. 70 ot 2022 is allowed with} cost as under^:-

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i) The sole defendant^{is liable to pay to the applicantbank asum of Rs'} 21,17,3g2.OO^{(Rupess Twenty One Lakh3 Forty SevenThousandThrae} Hundrcd Ningty Two)^{only with pendentelite and futureinterest} @11.05%(CC)^{and @9.80o/o[rL) p.a. with monthly restsftom 02122021 till} the date offull^{paymenurealization and also costof the application'}

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ii) The charge of the^{certilicated amount be kept alive on hypothecated} properties as described in Schedule-A^{of the OAtill the amountis realized in} full.

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iii) The charge of^{the certificated amountbe kept alive on hypothecatedvehicle as} described in Schedule-B^{of the OA till the amount is realizedin full'}

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

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v) The applicant^{bank is also entitledto procsed against the personal assets and} properties ofthe defendant^{towards recoveryof the dues} SL^l *[ra^a- D"]r.i-

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SL^l *[ra^a- D"]r.ie'"ro "s omJS I^oe\z-at Y-l

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OA 70/2022lDRT-G!wahali

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vi) The applicant bank is entitled to the costs of the O.A. which^{includes the} advocate fees of the applicant bank. Applicant is directed lo^{file lhecost} memo within 2 weeks from today.

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vii) lssue Recovery Certificate accotdingly^{for a sum Rs.21,47,392.00 (Rupee3} Twenty Ons Lakh3 Forty Sev.n Thousend^{Three HundredNinoty Two)} only in favour of the applicant^{bank against the sole defendant.}

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viii) Communicate copy^{of this orderto the concerned parties.}

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This order is dictated and^{correctedby the undersigned.}

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Judgment dated 10h^{August'2023, signed and pronouncedin theTribunal}

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today under my signature.

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Copy of the JudgmenuFinal^{Order be uploaded in the Tribunal'swebsiteand} file be consigned to Record^Room.

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S 0..i0 sla^4.^ t.1!'\o tshiv^{Sharan birbifl} Presiding Ofricer DRT, Guwahati.^w

Indian Bank v. Edris Dewn

Case brief

What is this about?

What did the court decide?

Indian Bank v. Edris Dewn

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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