The Tribunal allowed the bank's application for a recovery certificate against three defendants who admitted liability for a working capital loan. The court found the accounts were regularized within the limitation period via an acknowledgement letter.
Issued recovery certificate for Rs. 89,65,541.84 with interest @11.35% p.a. from 11.11.2023 and costs.
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.
I
o.A. 423uzoz3roRr6uwahei
IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI
(North Eastern Region)
(Tribunal ofAssam, Nagaland, Meghalaya, Manipur, Mizoram, Arunachal pradesh & Tripura)
Before Shri Shiv Sharan Dubev.presidino Officer
O.A. No. 42312023
ln lhe matfr of -
BANK OF BARODA (EBrwhite Vij.ya Benk) Khatla Branch,
Aizwal, Mizoram-796009.
..Appllcant
Vs.
Prop.- Andrew Lalremruata,
E$, Zonuam, Near Zonuam Police Outsost,
Aizwal, Mizoram-796009.
Prop. of M/s Three Amigos,
R/o- E6, Zonuam, Near Zonuam Police OuFost, Aizwal, Mizoram-796009.
R. THASIAIA
s,/o Tlanglawma,
Fyo- E-6, Zonuam, Near Zonuam Police Outpost, Aizwal, Mizoram-786009.
Defendants
Prosgnce of tho Counssl
: For the Applicant Mr. Ujwal Saikia, Mr. Manash Rabha. Advocates
For the Defendants None (Ex-parte)
Dated 2511012024
JUDGMENT
This is an application under section 19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act, 1993 filed by the BANK OF BAROOA (Erstwhile Vijaya Bank), Khatla Branch, Aizwal, Mizoram-796009, with a prayer to issue Recovery Certiticate for the sum of Rs. 89,65,541.84 (Rupees Eighty-Nino Laca Sixty-Five Thou3and Fivo Hundred Forty-One and Paba Eighty-Four) only as on 'l.0.1'l.2023 against the defendants with pendentelite and future interest @1 L35% per annum till realization, along with cost and other relief.
A faw facts siving rise to the present appricarion are as under.
*k+t DRT Guwahalr
2
gA 423l2023/DRr-cBah.t,
The defendanls appoached and requested the applicant bank to sanclion a Working Capital Loan of RS.SO,@,OOO/- to meet operative working capitat requirements. The applicant bank in course of its banking business sanctoned in favor of the defendants, a Loan of Rs.S0,00,000.00! vide Sanction tetter dated 25.09.20.17 inter alia at an interest @11.350/0 per annum with monthly rests.
The defendants dury accepted and admitted the terms and conditions as set forth by the Applicant bank upon which the aforesaid sanclion was accorded and in pucuance of lhe acceptance of the aforesaid sanction, the defendants had executed the under mentionod documenb towards repayment of the sail loan and also delivered the said documents to the applicant bank.
a. Loan Agreement. Cum Hypothecation Oeed, dated 25.09.2017
The defendants accepted the terms and conditions as set forth by the applicant bank upon which the aforesaid sanclion was accorded and in pursuance ot the acceptance of the aforcsaid sanclion, the defendanb had executed the under mentioned doqjments lowards creation of security of the said loan and also delivered the said doqrments to the applicant bank.
b. Letter of Guarantee, Dated. 25.09.2017,
c. Guarantor Undertaking Letter, Dated. 25.09.2017
The defendants availed the said loan vide Account No. 605306041000020 (Now 83040400000006) (aner migrating to Bank of Baroda From Vtjaya Bank) of the applicant bank, Khatla Branch. The said account maintained in the Books of Account of the applicant bank in its regular, usual and ordinary course of business. All the amount paid to the defendanb and all repayment / deposit made in the said Secured Loan Account ftom lime to time along with a[ interest accrued in the said account ftom time to time were duly enteEd / recorded therein in the regular, usual and ordinary cours€ of the business of the applicant bank in ib books of account (Ledger).
The said account of the defendants reflects that the defendants become highly irregular in operating the said accounts in breach of the covenants made in the security
documents executed by the defendants.
rj.udo^a-q,** 25. 10, A, ll U Presirng Omcar'I ORT, Guwehali
3
o a 423l2023lDRT-Gwahati
As the loan account b€ing Working Capitat Loan Account No. 83040400000006, of the defendants as running extremely inegular and due to non-payment of principal amount and interest, the said account was classmed as Non-performing Asset (NpA) on 12.09.2020.
The outstanding amount due with unapplied interest eic. in the accounts of the defendant calculated up to '10.1'1.2023 for loan Account No. 605306041000020 (Now 83040400000006) comes at Rs.50,06,136.00 (Outsranding Batance) + Rs.25,17,37g.84 (Unapplied lntereso + Rs.'14,42,027.00 (Unserviced lnteresg = Total Rs.89,6S,04.1.&4, as per mpy of the statement of account duly maintained by the applicant and cenified under the lnformation Technology (Amendment) Act, 2002. The defendant is liable to pay the said amounl to the applicant bank. Neitherpanel interest charged nor capitalized.
The applicant bank stated that the defendants have acknowledged their liabitity by confirming balance amount of dues to be repaid to the plaintiff bank vide letter of Acknowledgement of liabitity dated 07.05.2022.
Since the said account of the defendants had been running inegularly for quite some time and the defendants did not take steps to regularize/adjust the account, the Bank had issued recall notice. lnspite of said Legal Notice and Recall Notices and other and further repeated request and demand made orally and in writing by and on behalf of the applicant bank and assurances given by the defendants from time to time, the defendants failed to revive and regularize the said loan accounts.
The applicant bank thus bec€me conslrained to file the present Original Application for the recovery of fu. 89,65,541.84 (Rupeo3 Eighty-Nino Laca Sirty_ Five Thousand Five Hundred Forty-One and paisa Eighty-Four) only as on 10.11.2023 along with interest and cost of the application.
After filing of the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank filed servic€ report on 05.02.2024 and brought on record the postal receipts along with track consignment report which shows that notices have not been served upon the defendants. Thereafter the Tribunal ordered paper publication of notice upon the defendants and the applicant bank issued notice to the defendants through Paper Publication in two newspapers namely "The Times of
$i"t do/a^A"Ltl- 2s 10, u a Presrding Oftcer DRT, Guwahali
4
oA 42y2023/DRr€wah.ti
ldia" and "Axomiya Khobof borh dated 21.09.2024. Even after issuance of notice through paper publicalion also there was no representation on behalf of the defendants either by the counser or the person and hence the defendants were set ex-parte on 29-05-2024 and their right to file written statement cum evidence on affidavit was closed and the matter was posted for hearing on behaf of the applicant bank.
Supporting the claim of the applicant bank Sri Bijan Acharjee, Chief Manager of the Applicant Bank has filed evidence on afiidavit coupled with the security documents ma*ed as Exhibit 1 to 12, supporting the claim of the applicant bank.
Heard the learned counsel for the applicant bank who prayed for issuance of Recovery Certificate against the defendants as per pleadings made in the Application, supported by evidence on affidavit of their witness who af{irmed on oath the execution of the security and other documents by the defendants and arso execution of their own documents relied upon, which have been marked exhibils.
considering the facts and circumsrances of the case, r am of the considered view that the documents filed by the applicant bank are supporting the claim of the applicant bank and estabtishing the liability of the defendants. lt is proved that the defendants are liable to pay to the appticant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 25.09.2017. Moreover, afrer perusing the documents on record and taking inlo consideration of the facls and circumstances of the case, Lind that the mortgage has been created by the defendanb where the limitation available is for 12 years and as such taking into account of the creation of the mortgage the applicaiion appears to have been filed well within the period of timitiation. Letter of Acknowledgement is dated 07.05.2022. The account became NpA on 12.09.2020 and the OA has been filed on 10.11.2023. Hence, the OA is filed well within the period of limitation and this Tribunat having a jurisdiction to adjudicate the Original Application.
Considering the unchallenged/ unrebutted version of Sri Bijan Achaqee, 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 *ww
ORT. Guwahaii
5
oa 423l2o234rRT€uwrhrtr
ihe applicant Bank in it's regular course of business, I hold that the appticant is eotifled to get the Recovery Certificate as prayed for.
ln the result, the present Original Application No. 423 of 2023 is allowed wilh cost as under :-
(Shlv {Juilorr Sharai-Dubsy) 2.<-. 10, ^aa2A, ' / vI Prosiding Otticer 0RT, Guwahati
3 issues framed by the court
Whether the Debt Recovery Tribunal has jurisdiction to adjudicate the original application for recovery of dues.
Whether the limitation period for filing the application was exceeded.
Whether the applicant bank is entitled to the recovery certificate against the defendants.
1 provisions across 1 enactments
BANK OF BARODA (Erstwhile Vijaya Bank), Khatla Branch, Aizwal, Mizoram
Andrew Lalremruata, Prop. of M/s Three Amigos
Thasiala
R. Thasiala
Shiv Sharan Dubey
Presiding Officer
As recorded by the court registry
2 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
