Allowed

State Bank of India v. Shri Deepjyoti Nath

DRT19 Aug 2024OA/209/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Guwahati allowed an application by State Bank of India under Section 19 of the RDBFI Act, 1993, to issue a recovery certificate for approximately Rs. 24.49 lakhs due from the defendant. The debt, arising from term, GECL, FITL, and WCTL loans, became NPA in February 2022. The Tribunal found the documents unchallenged and the claim established on oath.

What did the court decide?

The defendant is liable to pay Rs. 24,49,043.65 with interest; the recovery certificate is issued against hypothecated assets; the bank may proceed against secured and personal assets for recovery.

State Bank of India versus Shri Deepjyoti Nath — Contract and Commercial Disputes | DRT (2024)

¶1

¶2

OA 209t2023rDRT€wah.tr

¶3

IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

¶4

(North Eastern Region)

¶5

(Tribunal ofAssam, Nagaland, Meghalaya, Manip!r, Mizoram, Arunachal Pradesh & Tripura)

¶6

Before Shri Shiv Sharan Dubev. Pr€idinq Officar

¶7

O.A. No. 20912023

¶8

ln tho mrtbr of -

¶9

STATE BANK OF INDIA Stressed Assets R€covery Branch (SARB), Bamunimaidam, Guwahati-78'l 021, Assam

¶10

..Applicant

¶11

Vs,

¶12

SHRI DEEPJYOTI NATH S/o Sri Dipak Ran an Nath, Madhuban, Kathaltali, NearAgartala Raitway Station, Agartala, Tripura West, Pin-7991 30.

¶13

Defendant

¶14

Pres€nce of the Counsel^:

¶15

For the Applicant Mr Debabrat Talukdar, Advocate For the Defendant : None (Ex-parte)

¶16

Dated :19/08/2024

¶17

JUDGMENT

¶18

This is an application^{under seclion 19 of the Recoveryof Debis Due to} Banks and Financial^{lnstitutionsAct, 1993 filed by the STATE BANK OF lNDlA,} Stressed Assets^{RecoveryBranch (SARB),Bamunimaidam,Guwahati-78102'1,} Assam. with a^prayer to^{issue Recovery Certificata for the sum of Rs'} 24,49,043.65^{(Rupo.. nvsnty-FourLacsForty-NinoThougand Forty'Threeand} P.is. Sixty-Five) only a8^{on 3'1.05.2023 againstthe defendantwithpendentelite and} [email protected]€rcontractualratetillrealizalionalongwithcost and other relief.

¶19

A few facts^{givingriseto the present applicationare as under'}

¶20

The deiendant is a^{businessman by pofessionand is the borowerto the loans}

¶21

The detendant^{had approachedthe applicantbank and appliedfor linancial}

¶22

assistance for^{setting up a plasticcup, plateetc.manufacturing unitvide loan appli€tion}

¶23

s[.i/darc"Arl"l0 DRT. Guwehati ",*",",*5lB[4

¶24

O.A 2092023/DRT-GMahatr

¶25

dated 09.10.2018 and Ule applicant bank afrer due consideration^{vide letter of} anangement dated 13.06.2019 had sanclioned a term^{loanof Rs. 18,19,000.00to the} dofondant with interest @'12.051o^p€r annum^{with monthlyrest.The defendanbhad} signed and executed the said letter of anangement and thereby^{agreed to the terms and} conditions laiJ down therein.

¶26

ln connedion wfi lhe sanclion of the abov+ mentioned loan facility sanctoned^by the applicant bank, the defendant had signed and executed one^{Agreementof Loan cum} Hypothecation dated 13.06.2019 and thereby hypothecated the stocks, assets, machineries etc. of the defendants unit^(described in Scheduls.A of the original application) with the applicant bank and had also agreed to abide by lhe terms and conditions laid down therein.

¶27

Thereafrer as the defeMant became eligible for GECL (Guaranteed Emergency Crcdit Line) loan facility and the sarne was accepted by the defendant, the applicant bank had sanctioned a GECL loan of Rs. 3,86,000.00 to the defendant by Letter of Anangement dated 18,06.2020 to the defendant. Th6 dofendant had accepted the loan by signing and executing the said letter of anangement and thereby had also agreed to the terms and conditions laid down therein.

¶28

As seoJrity the deferdant had signed and executed one Supplemental Agreement of Loan cum Hypothecation dated 18.06.2020 and thereby hypothecated the stocks, assets, machineries etc. of the defendant's unit (described in Schedule A of the original application) with the applicant bank and had also agrs€d to abide by the terms and conditions laid down therein.

¶29

Thereafrer the dofendant had issued one letter dated 14.06.202'l to the applicant bank thereby requested the applicant bank to restructure the term loan accounl of Rs. '18.19 lacs and the applicant bank had also issued one Ofisr cum Acceptance letter to the defendant and the same was signed by the defendant. Further the applicant bank besides restrucluring the above noted term loan ac@unt had also continued the GECL loan account of R. 3.86 lacs and had also sanciioned one WCTL (Working Capital Term Loan) loan of Rs. 2.00 lacs and one FITL (Funded lr{er$t Tsrm Loan) loan of Rs.2.00 lacs to the defendant, vide Letter of Anangement, dated 26.07.2021. The defendant had

¶30

s0.irJ9&u". pl,,st Presrding C{t&[ t DRT. Guwahati

¶31

O.A. 2092023uORT€u*ahati

¶32

signed and executed the^{sauLetter of Anangementand therebyagreed to the terms and} conditions laid down^therein.

¶33

As secuity for repayment^{of theabove noted loan facilities sanctioned by the} applicani bank and^{received by the defendant, the defendanthad signed andexecuted} one Supplemental Agreement^{of Loancum Hypothecationdated 26.07.2021and thereby} hypolh€cated the stocks,^{assets, machineries etc.of the defendantsunit (describedin} Schedule A of the original^{application) withthe applicantbank and had also agreedto} abide by the terms and^{conditionslaiddowntherein.}

¶34

As the defendant had^{failedto repay the outstanding amountsin the loan account,} the applicant bank^{had issued DemandNoticesdated [email protected] 06 08 2022 to the} defendant. The^{applicant bank had also issued legal notice dated 31 08 2022 to the} defendant through their^{advocate. However as the defendanthadfailed to respondto it,} the applicant bank^{had issued notice u/s 13(2) of the SARFAESI Ad dated 09j22022} and^posse$ion notice dated^{09.03.2023to the defendant.}

¶35

The applicant bank stated that on^{10.03 2023 the Empaneled Valuer of the} applicant bank had submitted^{Valuation Reportof thehypothecated properties owned} and^possessed by the defendants^{firm (desctibed in ScheduleAof theoriginal} application) and as^per ths ampaneled^{Valuer the total value of thepropertiesis Rs'} 9,30,000.00.

¶36

The statements of account^{maintainedby theapplicantbank in the usual and} ordinary course of busin$s sho,tts^{that there is an outstandingbalance of Rs.} 18,54,526.50 in the Term Loan Account^{(A/c. No.38715223527)as on 28.02.2022. fhe} ac@unt was declaed N.P.A on^{28.02.2022and the interest (accruedbut not aPplial)} from 01.03.2022 to 31.05.2023 comes to Rs. 2,71,884.13^{andthe total outstanding in the} Term Loan Account co.n€s to Rs. 18,54,526.50^{+ Rs. 2,71,88413 (interest acquedbut} not applied) - Rs. 5,00,000.00^{(amount recovered)} =^{Rs 16,26,410.63 and similariythe} statemenB of account maintained by the applicant bank^{in the usual and ordinarycourse} of business shows that there is an oubtanding balance^{of Rs. 3,43,215.55in the GECL} Loan Account (A,/C No.3C{13992373) as on 28.02.2022.^{The account wasdeclared} N.P.A on 28.02.21022 and the interest^(accrued but^not applied)^{from01 03.2022to}

¶37

*,-#.#4,^?

¶38

O.A. 20920231/DRT€urahatr

¶39

31.05.2023 comes to Rs.40,628.74 and the^{total oubtandingin the GECLLoan Account} comes to Rs.3,43.215.55^{+ Rs.40,628.74(interestaccrued but not applied)} =Rs.3,83.844.29^{and again the statements of account maintained by the applicant bank} in the usual and ordinary course of business^{shows that there is an outstanding balance} ot Rs. 2,03,115.00 in the FITL Loan^{Account(NC No.40325372043\ as on 29.02.2022.} The account was daclared N.P,A on^{28.02.2022and the interest (accruedbut not} applkld) from 01.03.20221o 31.05.2023^{@rnesto Rs. 27,694.94 and the total outstanding} in the FITL Loan Account comes to^{Rs.2,03,115.00 + Rs.27,694.94(interestaccrued but} not applied) - Rs. 33,214.09^{(amount recovered)} =^{Rs.1.97.595.85 and againthe} siatements of account maintained^{by the applicant bank in the usual and ordinarycourse} of business shows that $ere^{is an outstanding balance of Rs. 2,08,787 00 in the WCTL} Loan Account^(A,/C No.4032523872) as^{on 28.02.2022.fhe account was declaredN.P.A} on 28.02.2022 and the^{interest (accrued but not applied)from 01 .03.2022 to 3l .05.2023} comes to Rs. 32,405.88 and the tolal oubtanding^{in the WCTL Loan Account comes to} Rs.2,08,787.00⁺ Rs.32,405.E8^{(interest accrued but not applied)} =^{Rs.2,41,19288 and} hence lhe totalouBtanding in all0te^{four loan ac@unts comesto Rs 16.26 410.63} CfL)⁺ Rs. 3,83,844.29^(GECL)+ Rs. 1,97,595.85^{(FITL) + Rs. 2,41,192.88 (WCTL)} =^Rs. 24,49.043.65 and the defendant is legally^{boundand liableto repay the said amounl to} the applicant bank with interest till^{realization.lt may be statadthat capitalization of penal} interest have not been done in the^loan accounb.

¶40

The applicant bank thus became^{constrained to file the plesentOriginal} Application for the recovery of^{R3. 24,49,043.65(Rupeo. Twonty-FourLaca Forty'} Nino Thou3and Forty-Thrre .nd^{Paise Slxty-Fivs)only as on 31.05.2023along with} interest and cost of the application.

¶41

After filing of thc OA the^{Tribunal issuednotice upon the defendantthrough} registered^post and the applicant^{bank filed servicereport on 29.08 2023and brought} on record the^{postal receipt along with trackconsignment report which shows that the} notice has not been served upon^{the sole detendant by name. Thereafter the Tribunal} ordered^{paperpublication} of^{noticeupon the sole defsndantand theapplicant} bank issued notice lo the^{d6fendantthrough Paper Publicationin two newspapers}

¶42

*",M9? DRT, Guwehati

¶43

O.A 209/48/DRT€u*.nit

¶44

¶45

namely 'Ihe Tdpun Obsever^" and "S@ndan Patika" bolh dated 05.09.2023. 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 ths person and hence the defendant was set ex-parle on 07.11.2023 and the matter was posted tor ex-parte hearing on behalf of the applicant bank.

¶46

Supporting ths claim of the applicant bank Smt Sampriti Bordoloi, Chief Manager of the Applicant Bank has filed evidence on affidavit coupled with the security documenb marked as Exhibit AW-'l/1 to AW-1/18, supporting the claim of the applicant bank.

¶47

Heard the lsarned 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 aftirmed 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.

¶48

Considering the facts and circumstances of the case, I am of lhe considered view thal the documenis filed by the applicant bank are supporting the claim of the applicant bank and establishing the liability of the defendant. lt is proved that the defendant is liable to pay to the applicant bank the claim made in the Original Application. The loans were obtained and documents have been executed on 13.06.20'19 & 26.07 .2021. The accounts became NpA on 28.02.2022 and the OA has been liled on 12.062023. Hence, the OA is filed welt within the period of limitation and this Tribunal having a^jurisdiction to adjudicate the OriginalApplication.

¶49

Considering the unchallengod/ unrebutted version of Smt Sampriti Bordoloi, the applicant's witness and all the documents marked as exhibits, including duly certified copy of the siatement of account along with interest calculation sheet maintained by the applicant Bank in it's regular @urse of business, I hold that the applicant is ontitled to get the Recovery Cartificate as prayed for.

¶50

ln the result, the present Original Apptication No. 209 of 2023 is allowed with

¶51

cost as under :-

¶52

sl^ilck-r^n f/,+ Q ".""'*tt98l'i DRT. Guwaheti

¶53

O A 209/2023lDRT'GN.h.l

¶54

i) The sole defendant is liable to pay to the applicant bank a sum of R8. 2/t,49,04:1.65 (Rupoo3 Tweng-Four Laca Forty-Nine Thousand FortyThroe .nd P.ls. Sixty+ivs) only with pendentelite and future inlerest @'12.05o/o^{per annumwith monthly rests from 01.00.2023till thedate of full} paymenurealization and also cost of the application.

¶55

ii) The charge of the ceriificated amount be kept alive on hypothecated properti$, as descdbed in Schedule-A of the OA till the amount is realized in full.

¶56

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

¶57

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

¶58

v) The applicant bank is entitled io the cosb of the O.A. which includes the advocate fees of lhe applicant bank. Applicant is directed to tile the cost memo within 2 !v€6ks from today.

¶59

vi) lssue Recovery C6rtificate accordingly for a sum Ra. 24,49,043.65 (Rupoo3 Twenty+our L.c. Forty-Nlne Thou3and Forty-Throe and pai3a SixtyFivo) only in favour of he applicant bank against the sote defendant.

¶60

vio Communicate copy of this order to the concemed parties.

¶61

This order is dic'tatod and conecled by the undersigned.

¶62

Judgment datsd 19ri August 2024, signed and pronounced in the Tribunal today under my signature.

¶63

Copy of the JudgmanuFinal Order be uploaded in the Tribunal,s Website and file be consigned to Record Room.

¶64

Presiding Offic€r DRT, cuwahati

State Bank of India v. Shri Deepjyoti Nath

Case brief

What is this about?

What did the court decide?

State Bank of India v. Shri Deepjyoti Nath

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

Coram

Case details

Similar cases

Punjab National Bank versus Messers Goyary Oil Service

Hdfc Bank versus M/s Nopha Varities Store

Idbi Bank versus Shri Jayanta Sharma

Punjab National Bank versus Messers Sahina Begum Laskar

Punjab National Bank versus Sri Alok Kumar Ghosh

Union Bank of India versus Mrs Rani Devi