Allowed

State Bank of India v. Abhijit Borah

DRT23 Oct 2024OA/385/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application under Section 19 of the RDBFI Act, 1993, to issue a Recovery Certificate. The court held the defendant liable for a loan of Rs. 75,04,674.39 based on unchallenged evidence and classified the account as an NPA.

What did the court decide?

Issued Recovery Certificate for Rs. 75,04,674.39 with interest and directed keeping of charge on hypothecated vehicles.

State Bank of India versus Abhijit Borah — Contract and Commercial Disputes | DRT (2024)

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O A 385/2023/DRT-Guw.halr

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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, Meghalaya, Manipur, Mizoram, Arunachal Pradesh & Tripura)

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Before Shri Shiv Sharan Dubev. Presidino Officor

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O.A. No. 385/2023

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ln the matter of -

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STATE BANK OF INDIA Stressed Assets Recovery Branch Signature Square, MRD Road, Bamunimaidam, Guwahati-78 1 02'1, Kamrup^(M), Assam.

..Applicant

Vs.

,I. ABHIJIT BORAH

Son of Jiten Borah Flat No. C-08, Kalicharan Enclave,

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Kharguli, Guwahati, Kamrup (M), Assam.

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Defendant

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Presence of the Counsel

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For the Applicant : NIr. K K Nandi, Ms Ankita Saha. Ms Susmita Dey, Advocates

For the Defendant

None (Ex-parte)

Oaled .2311012024

JUDGMENT

This is an application under section 19 of the Recovery of Debts Oue to Banks and Financial lnstitutions Act, 1993 filed by the STATE BANK OF tNDtA, Stressed Assets Recovery Branch Signature Square, MRD Road, Bamunimaidam, Guwahati-781021, Kamrup (M), Assam, with a prayer to issue Recovery Certificate for the sum of R3. 75,04,674.39 (Rupeos Sevonty-Fivs Laca Four Thousand Six Hundrod Soventy-Four and Paise Thirty-Nine) only as on 15.'10.2023 against the defendant with pendentelite and future interest @'10.90% per annum with monthly rcsts 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 defendant approached the applicant bank for financial assistance for the

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**-:p.w sl^r,id'al'^1&^{ly Proeding Offcer ORT, Guwahali

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O A 385/2023/DRT-cuwahati

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purpose of purchasing two Bharat Benz Buses by submitting an application dated 13.12.2021. The applicant bank upon consideration of the said application sanctioned term loan of Rs. 77,00,000.00 to the defendant under Uberization Scheme vide letter of anangement dated 3'l.'12.2021. The tetms and conditions of the arrangement letter dated 31.12.2021 was duly accepted by the defendant and as a token of acceptance of the same the defendant has signed in the arrangement letter of having accepted the terms and conditions. lt was the terms and conditions of the arrangement letter that the effeclive rate of interest in the term loan account being 10.90% per annum calculated on daily balance of the loan amount at monthly rests. lt was also the terms and conditions of the arrangement letter that the loan amount shall be repaid in 60 equated monthly lnstallments from the date of disbursement and the interest has to be serviced as and when applied after the commencement of repayment. The rate of interest is subject to revision from time to time in accordance with the guidelines of the applicant bank and/or Reserve Bank of lndia. The applicant bank is entifled to charge at its discretion enhanced interest rate on accounts either on the entire outstanding or on any portion thereof for any irregularity lncluding non-observance or non-compliance of terms and conditions of advance for such period as the bank deems it nec€ssary.

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The sole defendant availed the above term loan from the applicant bank and the

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defendant has executed the duly filled-up document in favour ofthe applicant bank: _

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(a) Agreement of loan-cum-hypothecation dated 31.12.2021.

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(b) Consent Clause.

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(c) The valuation of the hypothecated vehicles is done by the approved valuer of the bank, Ramen Dutta who has given his reports dated 09.09.2023.

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The defendant availed the term loan from the applicant bank and the defendant in his individual capacity stood as guarantor of the term loan availed by him from the applicant bank and have executed Guarantee Agreement on 3j12.2121 by which he have agreed to the crntents recited therein and have made himself joinfly and severally liable for the entire outstanding in the loan account with lnterest to the applicant bank.

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The defendant have executed Consent clause as guarantor by which he gave consent to the applicant bank for disclosure by the applicant bank of all lnformation and data relating to him, regarding credit facitity granted by the bank and guaranteed by him

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O A 385/2023/ORT Guwahal

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and default, if any, committed by him. He further declared that the information and data fumished by him to the applicant bank are true and correc{.

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The defendant availed the Term loan from the applicant bank but in violation of all terms and conditions of the letter of arrangement and lhe agr€€ment, the defendant failed and neglecled to abide by the terms and conditions of the letter of anangement and agr€ement as well as the defendant failed and neglected to repay the loan amounl with interest.

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The applicant bank by its personal contacts through ib officers on various occasions urged the defendant to deposit the outstanding dues and to regularize the loan account. The defendant did not pay any heed to the personal contacl of the applicant bank and did not care to make repayment of the ouEtanding dues in the loan ac@unt. lnspite of the requests and demands made by the applicant bank the defendant have failed to regularize the loan accounts and have also failed to pay the outslanding dues in the loan account. As the defendant have failed to pay the outstanding dues in the loan ac@unt, the applicant bank have sent notice dated 07.07.2023 upon the defendant requesting to regularize the loan account but the defendant failed to do so. Thereafrer the applicant bank sent notice dated 07.10.2023 upon the defendant recalling the entire oubtanding dues in the loan ac@unt and in his failure, to deliver possession of the vehicles together with all switch keys and dther accessories, registration certiricate, insurance policy to the recovery agent of the applicant bank. That as the defendant have failed to regularize the term loan account, the term loan account of the defendant was classified as NPA on 23.08.2023. The loan account of the defendant became NPA more so due to the negative attitude of the defendant as stated above.

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As the loan account being the Term loan account of the defendant was running exlremely irregular, and due to non-payment of installments, the said account was classified as a non-performing asset on 23.08.2023. The applicant bank stopped applying interest on the outstanding amount with effec{ from 01.08.2023. The amount due to the applicant bank with interest applied upto 31.07.2023 is Rs. 72,U,'124.20 in its account no. 40765733U7 being the Term loan account of the defendant as maintained by the applicant bank in its ordinary regular and usual course of business. The closing balance

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in the term loan ac@unt as on 16j.0.2023 is Rs. 72,03,53'1.20. The applicant bank has applied interest on the outstanding amount of the defendant at difiarent rates as per guidelines / prescribed rate of the applicant bank / Reserve Bank of lndia fxed from time to time.

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The interest accrued but not applied ftom 01.08.2023 to^'15.10.2023 at different rates from time to time as per rate fixed by the applicant bank is Rs. 2,05,154.19. The applicant bank has charged the interest after taking into consideration the related transaclion of the said period. Thus, the total amount due to the applicant bank inclusive of interest upto 15.'10.2023 is Rs. 75,04,674.39. The defendant is liable for the amount claimed by the applicant bank with cost and Mure interest at the contraclual rate being 10.90% per annum calculated on the daily balance with monthly resb from the date of filing of this application.

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The applicant bank thus became constrained to file the present Original Application for the recovery of Rs. 75,04,674.39 (Rupe€ Sevonty-Five Laca Four Thousand Six Hundred Seventy-Four and Paisa Thirty-Nino) only as on 15.10.2023 along with interesl and cost of the application.

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After liling of the OA the Tribunal issued notice upon the defendant through registered post and the applicant bank liled service report on 19.12.2023 and brought on record the postal receipt along with track consignment report which shows that the 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 through Paper Publication in two newspapers namely "Ihe Timos of lNia" and 'Dainik Assam'bdh dated 10.01.2024. Even afrer 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 30.05.2024 and the matter was posted for ex-parte hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Sri Bi.iou Uddin Ahmed, Chief Manager ofthe Applicant Bank has filed evidence on affidavit coupled with the

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o.a 3o5a2o23/oRT-Guwrh.ti

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secrrrity documenls marked as Exhibit A-l to A-'13, supporting the claim of th3 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 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 Bxecution of their own documents relied upon, which have been marked exhibits.

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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 the liability of the defendant. lt is proved that the defendani is liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 31j22021. The account became NPA on 23.08.2023 and the OA has been filed on 30j02023. Hence, the OA is tiled well within the period of limitation and this Tribunal having a^jurisdiction to adjudicate the Original Application.

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Considering the unchallenged/ unrebutted version of Sri Bijou Uddin Ahmed, the applicant's witness and all the documents marked as exhibits, including duly certitied copy of lhe 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. 385 of 2023 is allowed with cost as under:-

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i) The sole defendant is liable to pay to the applicant bank a sum of Rs. 75,04,674.39 (Rupo8 Seventy-Five Laca Four Thou3and Six Hundred Seventy-Four and Paba Thirty-Nine) only with pendentelite and future interest @10.90yo per annum with monthly rests from^j6.10.2023 tilt the 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 vehicle, i.e. A vehicle being BHAMT BENZ Bus Make 1624 BSVI bearing Registration No.ASo1PCl l45, Chassis No. MEC3g7EECLPOS39.t6, Engrne

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,"m'^*, DRT Guw6hali

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o.A. 38t2o23/oRT_Guwahati

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No. 40095800095339, as described^{in Schedule-Aof the OAtill the amount} is realized in full.

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lll) The charge of the certificated^{amountbe kept alive on hypothecated vehicle,} i.e. A vehicle being BHAMT^BENZ Bus^{Make 1624 BSVIbearing} Registration No.ASolPCl 146, Chassis No. MEC397EEFLP094025,^Engine No. 40095800095345, as described in Schedule-B^{of the OAtill tha amount} is realized in full.

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iv) The applicant bank is entitled^{to proceed against the secured items towards} recovery of ths debts.

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

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yl) The applicant bank is entitled to the costs of the O.A. which includes the advocate fees of the applicant bank. Applicant^{is directed to file the cost} memo within 2 weeks from today.

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vii) lssue Recovery Certificaie accordingly for^{a sum Rs. 75,0'1,674.39 (RuPeos} Ssventy-Fivo Laca Four Thousand Six Hundrgd^{Seventy-Four and Paisa} Thirty-Ning) only in favour of the applicant bank against lhe sole defendant.

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vlll) Communicate copy of this ord6r to the concerned^parties.

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This order is dictated and corrected by the undersigned.

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Judgment dated 23d October 2024, signed and^pronounc€d in the Tribunal

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today under my signature.

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal's Website and

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file be consigned to Record Room.

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Presiding Officer ORT, Guwahati.

State Bank of India v. Abhijit Borah

Case brief

What is this about?

What did the court decide?

State Bank of India v. Abhijit Borah

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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Case details

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