Allowed

Canara Bank v. Guddu Pal Alias Guddu

DRT17 Sept 2024OA/405/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Canara Bank under Section 19 of the RDB Act to recover a debt of Rs. 31.03 lakhs. Hearing on an ex-parte basis due to the defendants' non-appearance, the Tribunal validated the bank's claim based on documentary evidence and issued a Recovery Certificate.

What did the court decide?

Recovery certificate issued directing payment of Rs. 31,03,593.36 plus interest and costs, allowing recovery from sale of mortgaged/other assets.

Canara Bank versus Guddu Pal Alias Guddu — Contract and Commercial Disputes | DRT (2024)

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DRT_ PATN A

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OA 405 of 2023 1 Jl

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Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 405 of 2023

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(:anara Bank. S.K. Nagar Patna

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. . . . . . .Applicant

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Vs.

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(;uddu PaI @ Guddu S/o Late Ramanand Prasad. At South Mandiri Road no. 27. Kathapul. P.O.-GPO. P.S.-Buddha Colony. Patna-800001. PAN no. AQDPP043 OE.

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Pushpa Kumari W/o Guddu Pal. D/o Shiv Pal @ Shiv Kumar. Address – South Mandiri Road no. 27. Kathapul. P.O.-GPO. P.S.-Buddha Colony. Patna-800001 PAN no. CLMPK404 IA

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Dinesh Kumar S/o Shaligram Prasad Chauasia Address 70 A Chandmari Road. Virkuwar Singh Path P.O. –GPO. P.S.-Buddha Colony, Patna. District-Patna-80000 1 PAN no. AYTPK0706G.

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri Abhay Kumar. Advocate For the Defendants : None

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Dated: 17.09.2024

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JUDGMENT

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1 . The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptcy Act. 1993 (here-in-after referred to as Act) on 21.8.2023 against the defendants to recover its debts from defendants of Rs.31,03,593.36 as on 31.5.2023 along with pendente-lite and future interest @9.20% in OCC, @13.20% in term loan. @8.80% in GECL. a)7.40% in Housing loan. @9.55% in term loan and @7.85% in GECL p.a. with monthly rests from 1.6.2023 with costs till realization.

¶19

The application has been fIled with the contention that the applicant bank. is a body corporate. corporate banking company under the provisions of the banking companies (Acquisition and Transfer for undertaking) Act 1970 having its Head Office at 1 12. JC Road. Bangalore 560002 and Branch Office at S.K. Nagar Patna

OA 405 of 2023 1.J 1

DRT, PA'TN A

Defendant no. 1 approached the bank for grant of OCC facility of Rs.10 lakh on 26.3.201 8. which was sanctioned by the bank on 26.3.2018. Defendant no. 1 further approached the bank for grant of term loan of Rs.5 lanl on 28.8.2019, which was sanctioned of Rs.3 lakh by the bank on 31.8.2019. Defendant no. I further approached the bank for grant of GECL loan of Rs. 1.50 lakh on 22.6.2020. which was sanctioned by the bank. Defendant no. 1 further approached the bank for grant of housing loan of Rs. 15 lakh on 21.9.2020. which was sanctioned by the bank on 23.9.2020. Defendant no. 1 further approached the bank for grant of term loan of Rs. 5 lakh on 26.2.2021. which was sanctioned by the bank on 26.2.2021. Defendants further approached the bank for grant of GECL loan of Rs. 6.50 lakh on 17.11.2021. which was sanctioned by the bank. Defendants executed the various loan documents in favour of the bank and defendant no. 1 also created equitable mortgage of the property details given at page 57 in schedule-A of OA.

¶24

After availing the sanctioned credit facilities defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank. in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 1 1.4.2023

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Since. the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank. hence this application has been filed by the bank.

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The total liability in the loan account is Rs.31.03.593.36 as on 31.5.2023 along with pendente-lite and future interest @ 9.20% in OCC. @13.20% in term loan, @8.80% in GECL. @7.40% in Housing loan, @ 9.55% in term loan and @ 7.85% in GECL p.a. with monthly rests from 1.6. 2023 till the realization.

¶27

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 4.9.2023. requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. But the defendants have not appeared, hence. the Registry of this Tribunal has ordered to publish the notice in newspaper and

OA 405 of 2023 IJ I

DRT, PATN A

subsequently. substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 12.10.2023 in "Dainik Bhashkar'- newspaper.

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Despite the registered summons/notices and publication of notice in newspaper. the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case. but they failed to appear and to file WS. hence. the Tribunal has passed an order to proceed ex-parte against the defendants on 30.1.2024

¶33

To prove its case. the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Sanjay Kumar Sudhanshu. Branch Manager of the applicant bank. The details of documents are as follows:

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SI.Na	1 Descripo Documents Photocopies	Execution	Amount	Signature of Executants	IEx./ Ann No
o	c		Rs. 10 lakh	e 1
a	e		Rs.10 lakh	a
aj	Composite hypothecation agreenrent	26.3.2018	Rs. 10 lakh	e 1
4	t agreement	26.3.2018	Rs, 10 lakh	e 9
5	)	28.8.2019	Rs.5lakh	e 1
6	Sanction letter	31.8.2019	Rs.3lakh	a
7	t		Rs.3 lakh	e 1
8	t agreement		Rs.3lanl	e aJ
9			Rs. 1.50 lakh	e 1
10	1		Rs.1.50lakh	B
11	r deed of hypothecation		Rs. 1.50 lakh	e 1
12	o		Rs. 15 lakh	Defendantno	12
1 3	a		Rs. 15 lakh	Bank	13
14	o agreenlent		Rs.15 lakh	e 1

y,$

OA 405 of 2023 1.Jl

DRT. PATN A

15	Copy of mortgage deed				15
16	Loan application	26 ?2021	Rs.5lakh	e 1
17	Sanction letter	26.2.2021	Rs.5lakh	a
18	r deed of hypothecation		Rs.5lakh	e 1
19	o		Rs.6.50 lakh	e 1
90	a		Rs.6.50lakh	Bank	20
21	r deed of hypothecation		Rs.6.50lakh	e 1
11	a account	131.5.2023	s	=

¶40

Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further. submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates. and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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It is further submitted by Id. Counsel of applicant bank that there is no stay granted by any Higher Court. in respect of the proceedings of the present OA and requested to issue recovery certificate. as claimed for. in OA.

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It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore. this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation. to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 11.4.2023. whereas the present application has been filed on 21.8.2023. Even. it is counted for the

\in

DRT. PATN A

OA 405 of 2023 IJ I

purpose of Limitation. then it is established that the applicant bank has filed the case within the limitation period. As such. it is established that the present application has been flled well within the period of limitation.

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Shri Sanjay Kumar Sudhanshu. Branch Manager of the applicant bank. has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

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Section 19(3) of the Recovery of Debts and Bankruptcy Act. 1993 provides that the application u/s S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

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The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules. 1993, provides that if the defendant denies his liability to pay the claim made by the applicant. the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affldavit in respect of the contents of the application and the documents as evidence.

¶53

The rule 12 (I1 ) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker's Books evidence that Act, 1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker's Books hrrnished along with application filed under sub section 1 of section 19 by the applicant.

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Section 4 of Banker’s Books evidence that Act, 1891 runs as under-

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S.4. Mode of proof of entries in bankers’ books.–Subjecl tt j the provisions qf this AcT. a cert Oed copy of- any e Irlr' in a h(Inker's hook shall in all legal proceedings be received as prima facie evidence of the existence Qf such entry. and shall be admitted as evidence of the matters, transactions and accounls therein recorded in every case where. and to the same extent as, Itre original entrY itself is now bv IcI\' admissible. but not further or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statement of account. more so since the entries in the statement of account have not been challenged.

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15 On perusal of the application. documents, affidavit and on consideration of the arguments. it is proved that the defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan

OA 405 of 2023 1.J I

DRT, PATN A

amount with interests etc.. the defendants have executed various loan documents. as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account

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While on perusal of the loan documents it appears that the applicant bank has initially sanctioned Rs.10 lakh and to secure the loan. the defendant no. 1 & 2 have executed various loan documents, including the guarantee documents. Thereafter the applicant bank has further sanctioned loan facility upto Rs.31akh and to secure the loan the defendant no. I & 3 have executed various loan documents including the guarantee documents.

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In view of the above. it is clear that the defendant no. 2 has given guarantee for the loan of Rs.10 lakh only and the defendant no. 3 has given guarantee for the loan of Rs. 3 lakh only. Therefore the defendant no. 2 is liable to pay the loan of Rs.10 lakh with interest only and defendant no. 3 is liable to pay the loan of Rs.3 lakh only with interest thereupon.

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The evidence discussed above goes to establish that the amount of loan as mentioned in the O.A.. was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 31.5.2023 has been proved to be Rs.31.03.593.36 only by way of statement of account. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and fInal realization of the claim.

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In my view. facts of the case stand proved by evidence of the applicant bank. Accordingly. the applicant bank is entitled to recover from defendants jointly and severally of Rs.31.03.593.36 along with pendente-lite and future interest @7.40 % p.a. with compounded monthly rests from 21.8.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly. to meet the ends of justice.

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ORDER

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In the result. the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are hereby jointly and severally. ordered to pay the applicant bank its debt amounting to

y.„

OA +05 of 2023 IJ I

DRT, PATN A

Rs.31.03.593.36 along with pendente-lite and future interest @7.40 % p.a. with compounded monthly rests from 21.8.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendants. be aeducted in the claim amount. if not deducted.

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It is made clear that the defendant no. 2 is liable to pay the loan of Rs.10 lakh with interest only and defendant no. 3 is liable to pay the loan of Rs.3 lakh only with interest thereupon.

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Defendants are debarred from transferring. alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. The applicant may submit the certifIed copy of this Judgment and the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued. on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants. by sale ofmortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants.

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Parties are directed to appear before the Recovery Officer. DRT. Patna on 04.1 1.2024. The order be communicated accordingly.

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Judgment signed. sealed. dated and pronounced in the open court on 17ti' day of September, 2024. Q–d* '

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Q–d* ' C/ / v/LP\DRM\ V\©' ~’ [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

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Dictated &corrected by me

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FORM NO. 9

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DEBTS RE(-o\’ ER\ TRI BU NAL PATN A

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[See Regulation 24( 1 )]

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2nd Floor, fA. B & F Wing) Karpuri Thakur Sudan. Kendriya Kammchari Paris;nr {GPC)A). Ashiuna Digha Road, Patna-800025.

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RE,(’O'ER\ ('ERTIFI C-A-rE U)PEIt SILC'TION 19(2) R!': AD \’11'H HbC''1-10N 19(b2) OF THE I{ECO-ERY QF I}EBTS & BANKRL’PTC'' AC’11 1993, AS A)I ENDED FROM T INI E TO -FI ME,

RC No. 197/2024

Case No: OA/405/2023

In the Nlattcr ot (CH- 1) CANARA BANK S.K. NAGAR PATNA ,BIHAR -0

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Applicant(s)

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(CD-. 1 ) GUDDU PAL ALIAS GUDDU

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S/o Late RaInanand Prasad At South Mandiri. Road NtJ. 27. Kathapul, P.O - G.P.O P.S.-Budha CoIon\ Putna .BIHAR -St)tltlt) I

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(CD- 2) PUSHPA KUMARI (GUARANTOR) AGED ABOUT- 35 YEARS (FEMALE) W/0- GUDDU PAL, D/O- SHIV PAL (Ic SHIV KUMAR. ADDRESSSOUTH MANDIRI. ROAD NO- 27, KATHAPUL, P.O.G.P.0- P.S. BUDDHA COLONY, PATNA DISTRICTPATNA STATE- BIHAR PIN - 80000 1

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Defendant( s )

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(CD- 3) DINESH KUMAR (GUARANTOR) A(JED ABOUT- 50 YEARS (MALE) S/0SHALIGRAM PRASAD CHAUAS IA, ADDRESS- 70 A. CHANDM ARI ROAD, VIRKUNWAR, SINGH PATH. P.0.- G.P.0. P.S.- BUDDHA COLONY PATNA

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DISTRICT- PATNA STATE - BIHAR PIN -80000 1

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Recovery Certificate for Rs 3103593.36 1 Rupees Thirty One I,akhs Three Thousand Five Hundred Ninety Three And Paise Thirty Six t )nIx i

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In terms of final order dated 1 7/09/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 3103593.36 along with cost, expenses and interest from the 21/08/2023 i_e. date of tIling / with effective date of the OA/405/2023 and future interest from order date till the date of realisation in full. jointly or severally from the Certificate Debtors, hereinafter refers'ed to as:-

¶100

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Inrmovable assets of the certificate debtors.

¶101

The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the anal order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 1 9(22) of Recovery of Debts and Bankruptcy Act 1 993

¶102

Parties are di rcctccl ttl appear hctlrrc ASlllSll KIT MAR . Rccc)\ cr)' (Jtliccr. DEB’I'S RFC'oVERY TRIBLTN AL PATN A on 04/ 1 1 /2024.

¶103

The Recovery OffIcer shall realize the amount as per this L-erTiHcatc in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act. 1993 (as amended from time to time) from the above named Certitlcate Debtors

¶104

This Cerlincate has been issued under my signature and seal of the Tribunal on this 1 7/09/2024

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(h D =hIII { ;}a lie:q : b U n 3 t Patna

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PREShd£ OFrlCER DEBTS RECOVERY TRIBUNAL PATNA

¶107

FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya Karamchari Parisar (GPC)A), Ashiana Digha Road. Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 197/2024

Case No: OA/405/2023

Applicant(s): CANARA BANK

¶116

Versus

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Defendant(s): GUDDU PAL ALIAS GUDDU

¶118

Item of Costs	IAmountinRs
Feeon the application	m4
r	[0
AdvocateFees	[0
Commissioner/Receiver/Valuation/Security Fee	ro
MiscelldneousCharges	[0
TotalCosts:Rs

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Place: PATNA

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Date: 17/09/2024

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PREShiTNG OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶122

Note: Strike out whichever is not applicable

Canara Bank v. Guddu Pal Alias Guddu

Case brief

What is this about?

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Canara Bank v. Guddu Pal Alias Guddu

Case brief

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