Allowed

Union Bank of India v. Messers Pure

DRT21 Jun 2024OA/231/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Guwahati, allowed an application for issuance of a Recovery Certificate against a defaulting borrower. Relying on bank statements and acknowledgments of debt, the tribunal confirmed liability and directed recovery of the outstanding principal, interest, and costs.

What did the court decide?

Issuance of Recovery Certificate for Rs. 22,03,553.28 with interest and costs; proceedings against hypothecated and personal assets.

Union Bank of India versus Messers Pure — Banking and Recovery | DRT (2024)

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o a 231/2o23roRT-cuwah.tr

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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, Meghataya, Manipur, Mazoram, Arunachat pradesh & Tripura)

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Beforo Shri Shiv Sharan Dubev.^presidino Ofticor

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O.A. No. 23.t/2023

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ln the matter of -

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UNION BANK OF INDIA Zoo Narengi Road Branch H No. 357 (A), Zoo- Narengi Tiniali, M.T. Road, Guwahati-781024, Kamrup (M), Assam

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..Applicant

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V3,

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l. M/S. Purs Prop. Smt Simpi Das C/o - Sri Chandrajit Gohain FVo- House No. 7, Near Sahab Tila, By-Lane No.4, M. T. Road,

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Guvrahati-78102'1, Dist- Kamrup (M), Assam.

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Defendant

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Presence of the Counsel :

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For the Applicant : lvlr. Mustafa Kamat Ati, Nils. Shalini Singhania, l.4s Juri Talukdar, Advocates

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For the Defendant : None (Ex-parte)

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Daled .21lldl2o24

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JUDGMENT

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This is an application under section 19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act,^'1993 filed by the UNION BANK OF lNDlA, Zoo Narengi Road Branch, H No. 357 (A), Zoo- Narengi Tiniali, M.T. Road, cuwahati781024, Kamrup (M), Assam, with a prayer to issue Recovery Certiticate for the sum of Rs. 22,03,553.28 (Rupees Twenty-Two Laca Thr6o Thousand Five Hundtod Fifty-Threa and Paisa Twenty-Eight) only as on 13.02.2023 against the defendant with pendentelite and future interesl at conlractual rate 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 Oefendant on O8/OB

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applied for a working capitar loan facirity of Rs. 10,oo,ooo/- and rerm ,o", .fo'n for expansion of business rerarios to retair and distriburior rrr"" r:::::'ooo/-

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The Appticant Bank aftr due verification accepted the proposal of the oefendant and after au" a"rrtir" on "'o"o''7 sanctioned a working capitar roan facirity of Rs..,0,00,000/- the orr'Y rate of interest (MCLR+1.50% p.A.) which is repayable on demand "n,^,"rr'""t'n -* the prevairins rate of interest (MCLR+1.80+0.25% p A.) ,hi"hr : ,l::^::: ls repayable on eguated monthly installments besides hypothecation ot sto"tsl machineries and other fixtures besides personal 9uarantee of the proprietor with other terms and conditions

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The Defendant agreed with the terms and conditions of the credit sanction letter dated 11t1gl2}1l and on same date executed the following documents in favour of the Applicant Bank:_

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(i) Demand^promissorv Note of Rs. t 5,OO,OOO/_ dat ed 11lOBl2O17 . (iD Composite Agreem;nt dated 1ilOB/2017

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After execution of the aforesaid documents, the Applicant Bank duly disbursed the loan through the loan account stands in the name of the Defendant and the Defendant availed the said loan and utilized in her business.

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The Defendant again on 03/03/2018 applied for renewal cum-enhancement of the working capital loan facility of Rs..l9,OO,0OO/- for expansion of her business. The Applicant Bank after due verification accepted the proposal of the Defendant and after due scrutiny on 06/03/2018 sanctioned a working capital loan facility of Rs.'19,00,000/- the prevailing rate of interest (MCLR+2.70% p.A.) which is repayable on demand besides hypothecation of stocks besides personal guarantee of the proprietor with other terms and conditions.

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The Defendant agreed with the terms and conditions of the credit sanction letter dated 06/03/2018 and on same date executed the following documents in favour of the Applicant Bank:-

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(i) Demand Promissory Note of Rs.19,00,000/- dated 06/03/2018. (ii) Composite Agreement dated 06/03/201 8.

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After execution of the aforesaid documents, the Applicant Bank duly disbursed the loan through th6 loan account stands in the name of the Defendant and the Defendant availed the said loan and utilized in her business.

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The Applicanl Bank again on 30/08/20'19 renewed the said loan vide sanctioned letter dated 30/08/2019 for the OCC Loan facility of Rs. 19,00,0001 ihe prevailing rate of lnterest (MCLR+3.200lo P.A.) which is repayable on demand besides hypothecation of stocks besides personal guarantee of the proprietor with other terms and conditions.

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The Oefendant agreed with the terms and conditions of the credit sanction letter dated 30/08/2019 and on 19/10/2019 exacuted the following documents in favour of tha Applicant Bank:-

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(i) Demand Promissory Note of Rs.19,00,000^ dated 19/10/2019. (iD Composite Agreement dated 1911012019.

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After execution of the aforesaid documents, ihe Applicant Bank duly disbursed the loan through lhe loan account stands in the nama of the Defendant and the Defendant availed the said loan and utilized in her business.

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The Defendants are very much irregular in transactions in the loan account and the Applicant Bank issued demand/recall notices dated^'1010312020 , 0610412020, 22104DO21 requested the defendant to regularize the loan^accounts but^the delendant did nol come forward to regularize the loan acmunts. As such, the^loan account has been classified as Non-Performing Assets on 3'll03l2i2'1.^{However, the} Defendant as^proprietor submitted lettars of^prayer dated^{10/09/2021& 2110912021} but did not regularize the loan accounts.^However, lho^{Defendanton 211091202'l} acknowledgad her lndobtedness towards the^applicant bank to^{the tuneof} Rs.18,99,943.74l- in case of OCC loan account and^{Rs.2,92,407.89/-in case of} Term loan account But afler acknowledging^{the debt also, theDefendantdid not take} any initiativa to regulariza the loan accounts. Tha applicant^{bank again requested the} defendant to regularize the loan accounts^{but the defendantdid not give any hid to}

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regularize the loan accounts. However, the Defendant on 1OtOZl2O22 acknowledged her indebtedness towards the appticant bank to the tune of Rs. j8,99,754.12l- in case of OCC loan account and Rs.2,86.601.90/- in case of Term loan account. The Applicant Bank again issued loan/recall notices on 16t0912022, 22|l2P\Z2 and requested the defendant to regularize the loan accounts but the defendant did not come forward to regularize the loan accounts. As such, the loan account has been classified as Non-Performing Assets on 1410112023. The Applicant Bank again issued demand notico dated 31t0112023 under Section i3(2) of the SARFAESI Act, 2002 Act demanding to pay Rs.19,44,325.021- lot the OCC Account and Rs.2,59,689.261 for the Term Loan Account with interest, but the defendants did not turn up to regularize the loan accounts.

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The Applicant Bank maintained OCC Account No.3O2O311OOOOOO52, Term Loan Account No.302030'100000274. As per Statements of Account maintained by the Applicant Bank in their day to day business it appears that an outstanding amount stands at Rs.19,39,585,02/- as on 1310212023 in the OCC Account No.302031100000052 and an outstanding amounl of Rs.2,63,968.26/_ as on 1411212022 in the Term Loan Account No.3O2O3O,l OOOOO274. As such, totat outstanding amount is Rs,22,03,S53.28^. The Appticant Bank has charged interest as per RBI instruction and circular issued time to time.

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The applicant bank thus became constrained to lile the present Original Application for the recovery of Rs. 22,03,553.28 (Rupee! Twenty-Two Laca Thrse Thou!.nd Fivo Hundred Fifty-Throe end p.isa Tw6nty_Eight) only as on 13.02.2023 along with interest and cost of the application.

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After filing of the OA the Tribunal issued notice upon the defendant through registerad post and the applicant bank filed service report on 05.09.2023 and brought on record the postal receipt along with track consignment report which shows that the notice has been served upon the sole defendant. Hence servi@ . is completed upon the sole defendant. Even after proper service of notice upon the sole defendant there has been no representation on behalf of the defendant aither by the counsel or the

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person and hence ihe defendant was set ex-parte on 12j0.2023 and the matter was posted for ex-parte hearing on behalf ofthe applicant bank.

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Supporting the claim of the applicant bank Sri Hemanta Khataniar, Senior Manager of lhe Applicant Bank has filed evidence on affidavit coupld with the secudty documents marked as Exhibit A-1 to A-30, 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 defendant as per pleadings made in the Applicatlon, supported by evidence on afiidavit of their witness who affirmed on oath the execution of the security and other documents by the defendant and also execution of their own documents relied upon, which have been marked exhibits.

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Considering the facls and circumstances of the case, I am of the considered vaew that the document filed by lhe 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 tha applicant bank the claim made in the Original Application. The loans were obtained and documents have baen executed on 11.08.2017,06.03.2018 & 19.10.2019. Simple Oebit Balance Confirmation Letters are dated 21.09.2021 & 10.02.2022. The accounts became NPA on 14.01.2023 and the OA has been filed on 23.06.2023. Hence, the OA is filed wall within the p€riod of limitation and this Tribunal having a^jurisdiction to adjudicate the Original Application.

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Considering the unchallenged/ unrebutted version of Sri Hemanta Khataniar, the applicant's witness and all the documents marked as exhibits, including duly certified 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. 231 of 2023 is allowed with

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cost as under :-

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i) The sole defendant is liable to^pay to the applicant bank a sum of

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Rs. 22,03,553.2E (Rupoes Twenty-Two Leca Thrso Thousand Five

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Hundred Fifty-Three and Pais. Twonty-Eight) only with^{pendenlelite and}

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doP{ara^0"t^, >|t6 v4 u Presiding Olicer DRT, Guwahati

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future interest @'13.00% per annum with monthly rests from^'14.02.2023 tillthe

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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,

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as described in Schedule of the OA till the amount is realized in full.

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iii) The applicant bank is entitled to proceed against the secured ilems 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 defendant 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 dirocted to file the cost memo within 2 weeks from today.

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vi) lssue Recovary Certificate accodingly for a sum Rs. 22,03,553.28 (Rupees Twenty-Two Laca Threg Thougand Five Hundred Flfty-Three and Peisa Twenty-Eight) only in favour of the applicant bank against the sote defendant.

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

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Judgment dated 21d June'2024, signed and pronounced in the Tribunal today

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under my signature.

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Copy of the JudgmenyFinal Order be uploaded in the Tribunat's Website and

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file be consigned to Record Room.

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S["asLr"qg-l'l r.n,".n.#'83i#⁰ Presiding Officer DRT, Guwahati.

Union Bank of India v. Messers Pure

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Messers Pure

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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