Application under Section 19 of RDBFIA for issuance of Recovery Certificate. Tribunal observed that facts were unchallenged and documents established liability. Allowed application despite ex-parte absence.
Issued Recovery Certificate for Rs. 31,88,179.34 with future interest and costs; registered charge on hypothecated vehicle.
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.
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IN THE OEBTS RECOVERY TRIBUNAL, GUWAHATI
(North Eastern Region)
(Tribunal ofAssam, Nagaland, Meghalaya, Manipur, I\rizoram, Arunachal pradesh & Tripura) Before Shri Shiv Sharan Dubev. Presidino Officer
O.A. No. 14712023
ln the matter of -
STATE BANK OF INDIA Nazira Town Branch, Assam Represented by the Manager, State Bank of lndia, Stressed Assets Recovery Branch, Ground Floor, RBO Building, Na-Ali, MG Road, Jorhat- 78500'l ( Assam ).
..Appticant
V3.
I. KALYAN JYOTI SHAR A
Son of Dilip Kumar Sharma
R:/o Hulangkatoni Village, PO Ligiri Phukhuri, PS and Sub Div Nazira, Dist : Sivasagar, Pin Code : 785685.
Defendant
Presenca of the Counsel :
For the Applicant : Mr. A. K. Sahewalla, Mr. Wishes Sharma, Advocates
For the Defendant : None (Ex-parte)
Daled .2311012024
JUDGMENT
This is an application under section 19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act, 1993 filed by the STATE BANK OF lNDlA, Stressed Assets Recovery Branch (SARB), Ground Floor, RBO Building, Na-Ali, MG Road, Jorha! 785001( Assam ), with aprayer to issue Recovery Certificate for the sum of Rs. 31,88,179.34 (Rupe€ Thirty-One Lacs Eighty-Eight Thou3and Ons Hundred Sevanty-Nino and Paisa Thirty-Four) only as on 31.03.2023 against the detendant withpendentelite and future interest @120loper annum till realization along with cost and other relief.
A few facts giving rise to the present application are as under.
The defendant applied for an term loan forpurchase of a vehicle being from the
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State Bank of lndia, Nazira town Branch vide loan application dated 30-01-2021. Thereafter a Term Loan for an amount of Ra 33,98,000 was sanclioned and accordingly the Defendant came foMard before the SBl. Nazira town Branch and executed an Anangement Letter (SMEI) and Agreement of loan cum Hypothecation (SME-2) both datd 231O3f2O21.
Afrer disbursement of the loan amount, the defendantpurchasd a vehicle being Bharat Benz Model No 1624(more fully described in the schedule of the OA) and the lnvoice and Sale Certificate were issued to him.
Thereafter, the vehicle was registered and a registration certificate was issued by the DTo, Kamrup (M) being registration no AS0'l NC il07 and chassis no MEC397EEGLP094820 and Engine no. 40095800096175.
Thereafter the loan account became highly irregular and accordingly the applicant bank issued various notices daled '11-05-2022, 16-06-2022, 06-07-2022, 10-08-2022, '12-08-2022, 20-11-2022, 12-12-2022, 05-0't-2023, 20-02-2023 stating that the loan accounts became irregular and asked to regularize the loan.
The applicant bank stated that Mr A. Gayan, a Registered Valuer, Govt of lndia, valued the hypothecated property and accordingly asper the valuation report dated 14-03-2023 the present value ofthe hypothecated property is Rs 41,00,000/-.
lnspite of receipt ofvarious reminders and notices, the defendant did not repay the principal oubtanding. interest and other moneys due. Moreover, the defendant diil not make the timely repayment of theprincipal due asper the Agreement for Loans cum Hypothecation and Arrangement Letter dated 23-03-2021 as agreed by the defendant, and also failed to make timely repayment of the interest and other money which became due andpayable to the applicanl in time, and also mmmilted other default in complying with the terms and conditions of the loan agreement.
The statements of account maintained by the applicant bank in the usual and ordinary course of business shows that there is an total oubtanding balance of Rs. 31,88179.34 in loan account no 4092058932. The account was declared as NPA on 09-12-2022 and the defendant is legally bound and liable to repay the said amount to the
applicant bank with interest till realization.
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The applicant bank thus became constrained to fle the present Original Application for the recovery of Rs. 3.f,88,179.34 (Rupees Thirty-One Lacs Eighty_ Eight Thousand One Hundred Seventy-Nins and paisa Thlrty-Four) only as on 31.03.2023 along with interest and cost ofthe application.
After filing of the OA the Tribunal issued notice upon the defendant through regislered post and the applicant bank filed service report on 22.06.2023 and brought on racord the postal receipt along with track consignment report which shows that lhe notice has not been served upon the sole defendant by name. Thereafter the Tribunal ordered paper publication of notice upon the sole defendant and the applicant bank issued notice to the defendant throughpaper publication in two newspapers namely "Dainik Axom " and "Times of tndia" both dated OZ.O7.2OZ3. Even after issuing notice through paper publication upon the defendant there has been no representation on behalf of the sole defendant either by the counsel or the person and hence the defendant was set ex-parte on 22.09.2029 and the matter was posted for ex-parte hearing on behalf of the applicant bank.
Supporling the claim of the applicant bank Miss Tsukjemchila Jamir, Manager of the Applicant Bank has filed evidence on affdavit coupled with the security documents marked as Exhibit A-1 to A-9, supporting the claim of the applicant bank.
Heard the learned counsel for the applicant bank who prayed for issuance of Recovery Certificate against the defendant 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 document by the defendant 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 documents filed by the applicant bank are supporting the claim of the applicant bank and establishing ihe liability of the defendant. lt is proved that the defendant is liable to pay to the applicant bank the claim made in the Originat Application. The loan was obtained and documents have been executed on 23.03.2021. The account became NPA on 09.12.2022 and the OA has been tiled on
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28.04.2023. Hence. the OA is filedwell withinthe periodof limitation and this Tribunal having ajurisdiction toadjudicatethe Original Application.
Considering the unchallenged/unrebuttedversion of MissTsukjemchila Jamir, the applicant's witnessand all the documents marked as exhibits,includingduly cedmed copy of the statementof accountalong with interest calculationsheet maintained by the applicant Bankin it's regular courseof business,I holdlhatthe applicant is entitledto get the Recovery Certilicate as prayed for'
ln the result, thepresent OriginalApplication No. 147 of 2023is allowed with cost as under :-
*hdaM ty\tY Prssiding Orfrc€d DRT Guwahati
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vii) Communicate copy of thjs order to the concerned parties.
This order is dictated and corrected by the undersigned.
Judgment dated 23d Oclobet 2024, signed and pronounced in the Tribunal
today under my signature.
Copy of the JudgmenuFinal Order be uploaded in the Tribunal,s Website and
file be consigned to Record Room.
sfufu_*^Arl-, (shiv sharan oirilAil, d presiding Officer DRT, cuwahati.
2 issues framed by the court
Whether the Recovery Certificate should be issued to the bank for the outstanding loan amount.
Whether the bank delivered the loan against the security of the vehicle hypothecated in favour of the bank.
1 provisions across 1 enactments
State Bank of India
I. Kalyan Jyoti Sharma
Shiv Sharan Dubey
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
