Allowed

Bank of Baroda v. Mr Dibyajyoti Bora

DRT21 Aug 2024OA/273/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Bank of Baroda for issuance of a Recovery Certificate against a defaulting borrower who had failed to repay a secured loan facility used for purchasing a vehicle.

What did the court decide?

Recovery Certificate issued for Rs. 21,97,092.25 with future interest, charges kept on hypothecated vehicle, personal assets made liable, and costs awarded.

Bank of Baroda versus Mr Dibyajyoti Bora — Banking and Recovery | DRT (2024)

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q.A. 273u2023/oRT-Guw.hati

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tnbunat ofAssam, . Nagatand, [,reghataya, tvtanipur, M;or;, Arunachal pradesh & Tnpura)

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O.A. No. ?73/2023

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ln ths matter of - BANK OF BARODA (Erstwhite Viiaya Bank) A.T. Road Branch, Oeepali Medical Complex, A.T.Road, Jorhat, Assam-7gsoo1

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..Applicant

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vs' 't. R orByAJyo, Bo*o S/o Mr. Montu Bora Namchania Gaon, Kamarbandha Ati Jorhat, Assam-785625.

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Defendant

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Prosence of the Counsol :

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For the Appticant

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For the Defandant

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: Mr. Hareesh Gupta, Mr Yasir Barbhuiya, Advocates : None (Ex-parte)

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oated :21t08t2024

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JUOGMENT

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This is an apprication under sec{ion 19 0f the Recovery of Debts Due to Banks and Financial lnstitutions Acl, j993 liled by the Bank of Baroda, A.T. Road Branch, Oeepali Medical Complex, A. T. Road, Jorhat, Assam_7gsool, with a prayer to issue Recovery Certificate for the sum of Rs. 2.t,97,092.25 (Rupoe3 Twenty_One Lacs Nlnety-Soven Thousand Ninoty-Two and palsa Twenty-Fivo) onty as on 06.06.2023 against the debndant with pendenterite and future interesl at the contractual rate of 8.50% per annum at monthly rests 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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Th€ Defendant No.j applied for fnancial a$istance on 12.01.2022 ol Rs.26,00,m0/- as Secured loan for purchase of Brand New Ashok Leytand NA 1920 T ripperforbusinesspuDose.

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*w+y ORT, GuwEhsti

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g.A. 273l2Q3lDRr€rd.hrri

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Upon an application submitted by the above named defendant he applicant bank sandioned vlle Sanctjon dated 12.01.2022 and granted secured loan of RS.26,OO,OOO/against H),pothecation ot Brand New Ashok Leyland l.lA 1 920 T Tipper. The loan Account Numb€r was TL-9S340600000699. The said loan facility was to be repaid in g4 EMls of Rs.30,95y- rate of interest 8.S0o/o p.a. floating and in dehult in payment of monthly lnteresuprincipal instalment repafnent, excess drawing in @2oh p.a. on the defauned amount shall be dlarged covering the pedod of default.

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The terms and @nditions set forlh in said sanction letters of the appticant bank were duly accepted by the defendanb and accordingly in consideration of the applicant bank sanclioned TL Loan of Rs. 26,00,000/_ on 12.01.2022 as ferm loan for purchase of Brand New Ashok Leyland l{A 1920 T Tipper and the defendant executed fo owing documanlsi/agreemenb to seculsd aforesaitJ loan and/or for avalling aforesaid loan facilities :-

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(a) lnstrument of Hypoftecation of Vahicle/lnevocable power of Attomey.

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(b) Declaration Cum Undertaking Cum Au,thorrty

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The detendant accepted the terms and conditions as set forth by the applicant bank upon whicfi the aforesaid sanction was accoded and in pursuance of the acceptance of the afurssaid sandion, the defendant had executed the under mentioned documenb towards creation security interest & repayment of the said loan and delivered th6 said documents to the applicant bank.

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(a) Demand^promissory Note.

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(b) Latter of lnstallment with Acceleratjon Ctause.

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191 lett?r^{gf A:th9r,ty to make paymentdirectyro rhe deater.} (d) Quotation/Proforma lnvoice.

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(e) Tax lnvoice.

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Aner confrming to the above and a[ other requisite formarities, the defendant avaihd the saii TL Loan beadng Account No. TL- 95340600000699 of the appticant Bank of Baroda, Timukia Branch. The said account mainlained in the books of account of the applicant bank in its usual and regular course of business. All the amount paid to the defendant and arr repaymenv deposit made in the said roan Account ftom time to time along with all interBst accrued in the said account from time to time were duly

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Sknil^yra^fuA"t,' ,,nd,,no f!'d9''4 / DRT. Guwaheii

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O A 2732023/DRT4uwahati

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entered/recorded therein in the regular, usual and odinary course of the business of the applicant bank in its books of account (Ledger).

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The said accounb of the defendant reflects that the defendant became highly inegular in oprating the said account in breach of lhe covenanb made in the documents executed by the defendant. The defendant was pursued for regularization and adjustrnent of the said account but they failed to regularize the account in spite of rep€atd request and demand made on behalf of the applicant bank and also repeated assuEnce to do so on behalf of the defendant As a result, as on 06.06.2023 there is an accrued total oubtanding liability of Rs.21,97,092.25 in the said account.

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As the loan account b€ing the TL Loan bearing Account No. TL- 95340600000699 of the defendant was running extremely inegular and due to non-payment of principal amount and interest, the said account was classified as Non-performing Asset on 01.05.2023.

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The outstanding amount due with interest elc. in the accounls of the defendant calculated up to 06.06.2023 for toan Accounl No. 95340600000699 comes at Rs.21,97,092.25 as per copy of the sbtement of account duly maintained by the appticant and cedifed under the lnformation Technology 146sn6ment) Acl, 2002. The defendants are liable lo pay the said amount to lhe applicant bank.

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Since the said account of the defendant had been running inegularly for quite some time and the dafendant did not take steps to regularize/adjust the account, the Bank had issued recall notice and demand. lnspite of said Recall Notice and further repeated request and demand made orally and in writing by and on behalf of the applicant bank and assurances givan by the defendant from time to time, tha defendant failed to revive and regularize the said loan account. Thereafrer, Demand Notice was also sent, but in vain.

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The applicant bank thus became constrained to file the present Original Application for the recovery of R3.21,97,092.25 (Rupeo3 Twonty-Ons Laca NinotySevsn Thousand Nincty-Two and Pai3a Twenty-Five) only as on 06.06.2023 along with interest and cost of the application.

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Afrer filing of the OA the Tribunal issued notice upon the defendant through

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sll^ttl*t'9^. - 4"G9-r4 I P16siding Offc€r oRT, Guwshali

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O A 273l2ozyDRT€uwahati

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registered post and the applicant bank filed service repod on 27.09.2023 and brought on record the postal receipt along with track consignment report which shows that notice has been served upon the defendant. Even after issuance of notice upon the defendant there was no representation on behalf of the defendant either by the counsel or the person and hence the defendant was set ex-parte on 09-11_2023 and his right to file written statoment cum evidence on aflidavit was closed and the matter was posted for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Mr. Aman Kumar, Chief Manager of the Applicant Bank has fled evidence on afiidavit coupled with the security documents marl(ed as Exhibit 1 to 13, supporting the claim of the applicant bank.

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H6ard the leamed counsel for the applicant bank who prayed for issuance of Recovery Certificate against the defendant as per pleadings made in the Applicalion, 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 their own documents relied upon, which have been mafted exhibits.

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Considering the facts and circumstances of the case, I am of the considered view thal the documents filed by the applicant bank are supporting the claim of the applicant bank and establishing the liabitity of the defendant. lt is proved that the defendant is liable to pay to the appticant bank the ctaim made in the Originat Application. The loan was obtained and documents have been executed on '12.01.2022. The account became NpA on 01.08.2023 and the OA has been fited on 24.07.2023. Hance, the OA is filed well within the period of limitation and this Tribunat having a^jurisdiction to adjudicate the Original Apptication.

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Considering the unchallenged/ unrebutted version of Mr. Aman Kumar, the applicant's witness and all the documenls marked as exhibits, including duly certilied copy of the stalement 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 entifled to get the Recovery Certiricate as prayed for.

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ln the result, the present Original Apptication No. 273 of 2023 is allowed with cost as under :- r.I \

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r.I \ e,".ioins #AP-9' DRT, Guwaheli

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O A 2732023loRT€ashali

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i) The sole defendant is liable to^pay to the applicant^bank a^{sum of Rt.} 21,97,092.25 (Rupe$ Twontyone Laca Ninoty-Seven^{ThousandNinety-} Two and Paba Twsnty-Flve) only with^{pendenteliteand future interest} @8.50%^{per annum with monthly rests from 07.06.2023till the dateof full} paymenurealization and also cost of the application.

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ii) The charge of the certmcated^{amount be kapt aliveon hypothecatedproperty} i.e. hypolhecation of Brand New Ashok^{Leyland NA 1920T Tipperbearing} Registration No. AS05-AC2219,^Engine No.^{MJPZ|06939' Chassis No.} MBl GSVHD8MPJM9'I44, as described^{in Schedule-l of the OAtill the amount} is realized in full.

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iiD The applicant bank^{is entiiled to proceed againstthe secured items towards} recovery of the debts.

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lv) The applicant bank^{is also entitled to proceedagainst the personal assets and} properties of the defendant towards recovery of lhe dues.

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v) The applicant bank is entitled^{to the costsof the OA. which includesthe} advocate fe€s ol the applicant^{bank.Applicant is directedto file the cost memo} within 2 weeks from today

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yi) lssue Recovery Certificats accordingly for a sum R3.^{21'97,092'25(Rupeos} Twonty-One Laca^{Ninoty€ovsnThousand Nlnety-Twoand P'i3aTwenty-} Five) only in lavour^{of the applicant bank againslthe sole defendant'}

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vii) Communicate copy^{of this order to the concerned parties} This order is diclated^{and cotrecledby the undersigned'} Judgment dated^{21d August'2024, signed and pronounced in the Tribunal}

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ioday under mY^signature.

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Copy of the JudgmenuFinal^{Order be uploadedin the Tribunal's Website and flle} be consigned to^{Record Room.}

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Sl.irSlo^4/,.^ArLr+ )-t,6P. Yt A (Shiv Sheran Duboy)^v Presiding ofticsr DRT, Guwahati.

Bank of Baroda v. Mr Dibyajyoti Bora

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Mr Dibyajyoti Bora

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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Case details

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