The Debts Recovery Tribunal allowed the bank's application to issue a Recovery Certificate for Rs. 39,70,588.71, confirming the borrowers' liability based on executed security documents and NPA status.
Recovery Certificate issued for Rs. 39,70,588.71 with interest; damages kept alive on hypothecated properties.
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.
O A 332023/DRT'Guwahslr
IN THE DEBTSRECOVERYTRIBUNAL,GUWAHATI
(North Eastern Region)
(Tribunal of Assam, Nagaland,Meghalaya,Manipur l'izoram, Arunachal Pradesh& Tripura) Before Shri ShivSharan Dubev.PresidinqOfficer
O.A. No' 34312023
ln the matter of - UCO BANK Nalbari Branch Hussain Market,N.T.Road, Nalbari-781335, Assam.
Applicant
V3.
Defendantg
Presence of theCounsel:
For the Applicant : Mr. Pramode Ch. Goswami,Advocate For the Defendants : None (Ex-parte)
Dated .2910812024
JUDGMENT
This is an applicationundersection 19 of the Recoveryof Oebts Due to Banks and Financial lnstitutionsAct,1993liled by theUCO BANK, Nalbari Branch' Hussain Market, N.T.Road,Nalbari-781335,Assam, with aprayer to issue Recovery Certificatefor the sum of Rs. 39,70,5887'l {Rupees Thlrty-Nino Laca Soventy Thou3andFivs Hundrod Eighty-Eight end Peisa Ssveniy'One)only as on 1'1.072023against the defendantswith pendenteliteand future interest @11.95% againstcash creditlimitand @8.90% against the WCTL as per contractual rates till realizationalong with cost and other relief
A few factsgiving rise to the present applicationare as under'
The defendant No.2 is theproprietor of defendant No land is/was a
customer of the applicantBankdoing business of buildingmaterials The defendant
A^UAatoNt a{d8 I u.{ U Presidrnq Offi&rI oRT Guwahali
O A 343/2023/DRl'Guwahatr
no.2 asproprietor of defendant no.1 o1010712020 approached and applied before the applicant branch for a Cash-Creditlimit ofRs.32.00lakh under UCO Vayper Scheme against hypothecationof stockand the applicant Bank on 10/07/2020 on the same day after due scrutinyhas sanctioneda Term LoanLimit of Rs.30 00 lakhs which carried interest McLR+1.5o/oi.e. 9.45o/owith monthly rest subjectto revision to be made by theBank from time to timeagainstthe hypothecationof building materials & otherpainting materials, stored or to be stored in various sites/godowns/anyother placostime to time repayableon demandfor a periodof1 (one) year from the datoof sanction/renewal and will be covered underCGTMSE guarantee scheme, besides otherterms and conditions
The defendantNo. 1 agreed with the terms and condition of the sanction daled 1OlO7l2Oand on thesame day the defendantno 2 as proprietorof defendant I executed thefollowing (security) documentsin favourof the plaintiff bank
Afterexecutionoftheaforesaiddocumentsbythedefendants,theapplicant bank disbursedthe loanof Rs. 1O.OO lakhs on 10/07/2020in favour of one Sanatan Medhi againstthe cheque issued by the defendants
The defendantswas/were initially regularlytransacted in theloan accountand duringcovid-lgtransactionofloanaccountbecomgirregularandgraduallywent towards NPAand to savethe accountfromNPAthe defendantsapplied for an additional WorkingCapitalTerm Loan (WTCL) of Rs 8 30 lakhs and the applicant bank on 2311212012to regularizethetoan accountsanctionsd an additional working capital termloan (WCTL) of Rs. 8.30 lakhs @UCOFloat Rate + 0 60 ie7 5% interest variesas and when rapo ratechanges besides other terms and conditions'
The defendantsagreed with the terms and conditions of thesanctions and on the same dayexecuted the following documenlsin favour of the applicant bank-
3
o.a. 3432023,/DRT€0ahati
Though the defendants transacted in the loan account it is/was not sufficient to cover the interest accrued in the loan account and last cash transaction was made on 18l04l2o23lot Rs.'19,000/- and the account classified as NPA w. e.l. 01lO5l2O23 and the applicant Bank on 02/05/2023 issued a recall notice to the defendants to pay the outstanding balance of Rs.38,65,458.30p. within 7 days of receipt of the notice, but inspite of receipt the said recall notice, the defendants have notpaid any heed to repay the demand amount.
From the statement of Account maintained by theplaintiff bank in their day to day business it appaars that as on 30/04/23 there is an outslandingbalanceof Rs. 30,35,458.30p. with interest calculated uptoApriu2023 againstthe CashCredit and notional/uncharged interest w.e.f. 0110512023 lo'1110712023comesto Rs. 71,036.99 p. charging interest @11.95% p.a, i.e. the Prevailing rate of interest andRs. 8,3O,OOOI with interestuplo3010412023 againstthe WCTLand notional intBrest w.e.t. 01/05/23 lo 111O7t23 comesto Rs.34093.a2p. @8.90"/"interest p.a. and total outstanding comssto (Rs. 30,35,458.30p.+ Rs. Rs.7'1,036 99p. + Rs 8,30,000/- Rs. 34093.42p.) =Rs. 39,70'58871p. withintarest calculat€duplo 1110712023 stands against theloanaccountof defendants and the defendants arelegally bound/liable to repaythe aforesaid outstanding amountto the applicant bank The applicant bankhas not charged penal interestor capitalizadthe penal interestThe applicant bankhas chargedthe interest as per contractual rate and in terms of RBI notification andcentraloffice circular and the defendantsare legally bound to repay the aforesaidamount with upto date interest cost and charges thereon'
The apPlicantbank thus b€came constrainedto file the present Original Application forrhe recovery of R3. 39,70,588'7'l (Rupoo3Thirty-Nlne Leca ssventy Thou3and FivoHundredEighty-Eightand Paisa Seveng-Ono)only as on 1 1.07.2023 alongwith interost and costof the application'
Afrer filingof the OA the Tribunal issued notice upon thedefendants through registeredpost and the applicant bank filed service reporton 10 112023 and brought on record thepostalreceiptsalong with track consignment reportwhich shows thatthenoticeshavenotbeenserveduponthedefendantsbyname.Thereafferthe
S[r,Od"a4a-a'f'* 2gl0ff r{, U Pros'drns Oficeil I ' DRT, Guwaheli
4 o.A. 343r2o2aoRT€umh.ti
Tribunal ordered tot"dasti" service ofnotice upon the defendants and the applicant bankissuednotic€sto the defendantsthrough "dasti" servica and filed "dastl" service report alongwith Affldavitwherein it has been stated that tho summons have been served uponthe defendants.Even afterissuing notice through"dasfi" service upon thedefendantsthere has been no representationon behatf of the defendants eitherby thecounsel or the personand hencethe defBndants wEre set ex-parte on18-01.2024and thematter waspostedfor ex-parte hearing on behalfof the applicant bank.
Supporting the claim oftheapplicantbankSri Santosh Kumar Shukla,Senior Manager of the ApplicantBank has filed evidenceon affidavitcoupl€dwith the s€curity documentsmarkedas Exhibit-M-1 to M'14, supporting the claim of the applicsnt bank.
Heard the learnedcounsel for the applicant bankwho prayedfor issuance of Recovery Certilicateagainstthe defendants as per pleadingsmade in the Application, supported by evidenceon affidavitof their witnesswho afiirmsdon oath the execution of the security andother documentsby the defendants and also executionoftheirown documents reliedupon, which have been marked exhibits.
Consideting the factsand circumstancesof the case, I am of the considered view that the documentfiled by the applicant bankare supportingthe claimof the applicant bankand establishingthe liability of the d€rsndants'lt is provedthat the defendants are liable topay to the applicantbank the claim made in the Original Application. Theloansw€roobtained and documentshave been executedon 10.07.2O2O &23.12.2021. Thaaccountsbecame NPA on 0'1.05.2023and the OA has been filed on 13.09.2023. Hence, theOA is filed well withinthe period of limitation and this Tribunal havinga jurisdiction to adjudicate the Original Application.
Considering the unchallenged/unrebuttedversion of Sri Santosh Kumar Shukla, the applicant's witnessand all the documents markedas exhibits,including duly certified copy of the statement ofaccountalong with interest calculationsheet maintiained by the applicantBank in it's regular courseof business,I holdthat the appticant is entitled toget the Recoverycedmcateas prayed fot S[rd,A/a4
S[rd,A/a40,^l,g ,."".n&fl,€lr..lI DRT. Guwahati
5
oA 34312o2rDRT€uwihsri
rn the resurt, the present originar Apprication No. 343 0f 2023 is aflowed with cost as under :-
Sl ^rad{&aar. 8"1--,. (shiv sharan o'rX[orfh t
Presiding Officer DRT. Guwahati.
2 issues framed by the court
Whether the Tribunal has jurisdiction to adjudicate the Original Application filed by the bank?
Whether the bank is entitled to issue a Recovery Certificate for the outstanding dues against the defendants?
1 provisions across 1 enactments
UCO BANK Nalbari Branch
M/s Puspanjali Art & Enterprise Prop. Mr. Munindra Rajbonshi
Mr. Munindra Rajbonshi
Shiv Sharan Dub
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
