Allowed

State Bank of India v. Sri Monte Ranglong

DRT22 Oct 2024OA/434/2023

Case brief

AI extract

What is this about?

In an ex-parte application under Section 19 of the RDBI Act, 1993, the Debts Recovery Tribunal allowed relief in favor of the State Bank of India against a sole defaulting borrower. The tribunal certified the liability of Rs. 47,18,120.30 and directed the issuance of a Recovery Certificate against hypothecated vehicles and the borrower's personal assets.

What did the court decide?

Issuance of Recovery Certificate for Rs. 47,18,120.30 with interest and costs.

State Bank of India versus Sri Monte Ranglong — Contract and Commercial Disputes | DRT (2024)

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O A 43.1/2023/ORT-G!wahati

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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, Manrpur, Mizoram, Arunachal Pradesh &^Tripura)

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Before Shri Shiv Sharan Dubav. Presidinq Officsr

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O.A. No. 434/2023

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ln tho matter of -

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STATE BANK OF INDIA Stressed Assets Recovery Branch^(SARB), M.R.D. Road, Bamunimaidam,

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cuwahati-78 1021, Assam.

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Vs.

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SRI MONTE RANGLONG Son of Sri Sapneilal Ranglong Resident of Mawkhong Village P.O. Puriang, East Khasi Hills Shillong-793021, Meghalaya.

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Defendant

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Prssgnce of tho Counael :

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For the Applicant : Mr. Shafjqul Haque, Advocate For the Defendant : None (Ex-parte)

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Dated 2211012024

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JUDGMENT

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This is an application under section 19 of the Recovery of Debts Due to Banks and Financial lnstitutions Act, 1993 liled by the STATE BANK OF lNDlA, Stressed Assets Recovery Branch (SARB), M.R.D. Road, Bamunimaidam, Guwahati781021, Assam, with a prayer to issue Recovery Certificate for the sum of Rs. 47,14,120.30 (Rupees Forty-Seven Laca Eight on ThoGand One Hundred Twsnty and Paisa Thirty) only as on 14.'12.2023 against the defendant with pendentelite and future interest @14.15% (TL-l), @14.15% (TL-ll) and @9.25% (GECL) per annum as per with 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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o a 43al2o23/oRTGuwahali

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The Defendant is the sole borrower who had availed SRTO^{Loan facilitiesto} purchase TATA Trucks for transportation of Goods and the Defendant is small road transport operator^(SRTO) and^{had approachedthe ApplicantBank for financial} assistance for^purchase of the two^{TATA Trucks.}

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The Defendant had approached the Applicant^{Bank and appliedfor a loan for} purchase of a TATA HCV Truck by submitting a Loan Application dated 06.03.2018 and afler considering the said application,^{the Applicant Bankvide Letter of Anangement} dated 15.03.2018 sanclioned a^{Term Loan facilityfor Rs. 28.0'l Lacs withinterestat} 3.40olo above MCLR^(MCLR =^{8.15% p.a.)witha minimumof 11.55%perannumrisingor} hlling there with, on^{daily productwithmonthly rests. The effeclive rateat the time of} sandion stood at 11.55%^{per annum. The Term Loan was repayable in 81 monthly} installments of Rs. 50,365i-^{each and the last installment of Rs13,114/-withfirst} installment mmmencing on^11.05.2018 and^{the last lnstallment fallingdue on} 11.02.2025. The Defendant had signed^{and execuledthesaid Letter of Arangement} thereby accepting all the terms^{and conditionsof the sanclion.}

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As security for repayment of the^{aforesaid loan facility, the Defendant had signed} and executed an Agreement of^Loan cum^{Hypothecation dated15.03.2018,thereby nol} only hypothecating the^{,/ehicle(more specificallydescribedin schedule A of the oA) but} also agreeing to all the terms and conditions^{contained therein. ln this conneciion, the} detendant had also submitted a^photocopy of the Certificate^{of Registrationof the Vehicle} with the Applicant Bank.

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The Defendant had again approached lhe Applicant Bank and applied^for a^loan for purchase of a TATA HCV Truck by submitting a^{Loan Applicationdabd 12.12.2018} and after considering the said application,^{the Applicant Bank vide Letter of Anangement} dated^'19.02.2019 sanctioned a Term Loan facility^{for Rs. 27.69 Lacs withinterest at} 4.95o/o above MCLR^(MCLR = 8.55o/o^p.a.) with a minimum of 13.500/0^per annum^rising or falling there with, on dally^product with monthly rests. The effective rate at the time of sandion stood at 13.50o/o^per annum. The Term^Loan was^repayable in 79 monthly installmenb of Rs. 53,932- each with first installment commencing on 05.05.2019. The term loan sanclioned earlier has been continued. The Defendant had signed and

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s{.ndo/a-?-,t r- ,.'?r'o13,''{ d ORT. Guwahati

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O.A 434/2023/DRT-Guwahatr

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executed the said Letter of Anangement thereby accepting all the terms and conditions of the sanclion.

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As security for repayment ofthe aforesaid loan facilities, the Defendant had signed and executed an Agreement of Loan cum Hypothecation dated 19.02.2019, thereby not only hypothecafng the vehicle (more specilically described ln schedule B of the OA) but also agreeing to all the terms and mnditions contained therein. ln this connec{ion, the defendant had also submitted Sale Certificate daled 21.02.2019 of the Vehicle with the Applicant Bank.

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The applicant had offered for Guaranteed Emergency Credit Line (GECL) facility vide Offer letter dated 30.05.2020 and the defendant accepted the said ofier of the applicant bank and accordingly, the Applicant bank vide Letter of Arangement dated 01.09.2020 had sanc{ioned a WCTUGECL limit of Rs. 9.80 Lacs to the Defendant with lnterest charged at 0.75% above EBLR (EBLR = 7.05%) and the efieclive rate at the time of sanclion stood at 7.80%^per annum to meet operational liabilities to restart the business affected due to Covid-1g and the said WCTL facil y was repayable in 36 monthly installments of Rs. 27,3001 including a moratorium ctJicd ol '12 months. The appli{:ant continued the Term Loans previously sanclioned Rs. 28,01,000/- on 15.03.2018 and Rs. 27,69,000/-on 19.02.2019. The Defendant had signed on the said Letter of Anangement thereby agreeing to all the terms and conditions contiained therein.

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As security for repayment of the aforesaid GECL WCTL) facility for Rs. 9.80 Lacs sanclioned by the Applicant Bank and the existing TL-1 of Rs. 28.01 Lacs and TL-ll of Rs. 27,69 Lacs, the Defendant had signed and executed an Supplemental Agreement of Loan cum Hypotheca0on dated 01.09.2020, thereby not only hypothecating the vehicles (more specifically described in schedules A and B of lhe OA) but also agreeing to all the terms and conditions contained therein.

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The Defendant had signed and executed Revival Letters dated 10.02.2021 and 'l7.02.2022lheteby confirming the execution of the security documents in connec.tion with the loan facilities availed by the Oefendant.

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As the Dgiendant had failed to repay the outstanding amount in the loan accounts,

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sl;,,"qap,a,hl'"y Presiding Officer' I U DRT, Guwahati

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O A 43/2023/DRT-G!wahati

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the Applicant Bank vide Demand Letters daled^{2112.2022,18.03.2023,17.o4.2o23,} 17 .M.2023, 22.05.2023 and 22.05.2023 had demanded^{and requestedthe Oefendantsto} regularize the loan accounts by^paying the outstanding amount^{in theloanaccounts} including the accrued interest thereon but the Defendants^{failed to respond to the same.}

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The Statements of Account maintained by the^{Applicant Bank in the usualand} ordinary course of business shows that^there is an^{outstanding balance of Rs.} 15,85,691.16 in the TL-l Loan Account^{(A/c No.375942148940)as on 28.02.2023. The} account became N.P.A. on^{10.03.2023 and the interest (accruedbut not applied) from} 01.03.2023 to 14.12.2023 comes^{to Rs. 1,87,450.42 (calculation sheet enclosed) andthe} total outstanding in the TL-l Loan^{Acrountcomesto Rs. 15,85,691.16 + Rs 1,87,450.42} (interest accrued but not applied)⁺ Rs. 5,064^(Debit) =^{p5. 17,78,205.58 and an} oubtanding balance of Rs. 20,17,219.96^{in the TL-llAccount (A/c No.38278184251)as} on 28.02.2023. The computer system^{of the Applicant Bank had capitalizedthe penal} interest in the said loan account and the^{ApplicantBankhad calculatedthe said} capitalized^penal lnterest separately^{and an amountof Rs.48.13 had sincebeen adjusted} / waived with the balance outstanding amount^{in the TL ll Loan Account (A/cNo.} 382781U251) and after the said^{waver/adiustment, the total outstanding balance comes} to Rs.20,17,171.83^{(Rs.20,17,219.96- Rs.48.13). The account became NPA(Non-} Performing Asset) on 10.03.2023. The^{interest (accruedbut not applied) from 01.03.2023} lo 14.12.2023 comes to Rs. 2,39,429.90^{(lnterest Calculation Sheet enclos€d) and the} total outstanding in the TL-ll Loan Account^{comesto Rs. 20,17,171.63 + Rs. 2,39,429.90} (interest accrued but not applied) - Rs. 20,490.00^{(Recovery) +} Rs. 35,541.63^(Debit) = Rs. 22,71,653.36 and an outstanding balance of Rs. 6,25,749.9'l^{in the} GECL^(WCTL) Account (A/c No.39618759005) as on 28.02.2023. The account became^{NPA (Non-} Performing Asset) on 10.03.2023 the interest^(accrued but not applied) from 01.03.2023 lo 14j22023 crfnes to Rs. 47,024.45^(lnterest Calculation Sheet enclosed) and the total outstanding in the GECL^(VVCTL) Loan Account comes to Rs. 6,25,749.91⁺ Rs. 47,024,45 (interest accrued but not applied) - Rs.4,5'13.00^(Remvery) = Rs. 6,68,261.36 and the total outstanding in the 3 Cfhree) Loan accounts comes to Rs.^47,18,120.30 and the D€fendant is legally liable to repay the said amount to the Applicant Bank with interest

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22.10. Presidrng Oftcea DRT, Guwahati

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O.A. 43/202UoRT-Guwaheli

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till realization together^{with cost andcharges. lt is further certifiedthat no capitalized penal} interest has been charged^{in theloan accountswhile calculatingthe totaloutstandang} claim amount and^{a relevant Certmcates in conneclion thereof have been enclosed with} the Application.

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The applicant^{bank thus becameconstrainedto file the present Original} Application for the^{recovery of R3.47,18,120'30 (Rupoes FortysevenLaca Eightosn} Thou3and One^{Hundrsd Twonty and Paisa Thirty)only as on '14 12 2023 along with} interest and cost ofthe^application.

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After filing of the OA^{theTribunal issuednotice upon the defendantthrough} registered^post and^{the applicant bank filed servi@ reporton15 02 2024and brought} on record lhe^{postal receipt along withtrack consignment report which shows that the} notice has not been served^{upon the sole defendant by nameThereafter the Tribunal} ordered^{paper publication of notice uponthe sole defendantand the applicant} bank issued notice^{to the defendantthrough Paper Publicationin two newspapers} namely^{"MeghalayaLrnes"} and^{"lJpeitngof' both dated M 04.2024'Even after} issuing notice through^{paperpublication upon the defendantthere has been no} representation on behalf of^{the sole defendanteither by the@unsel or the person} and hence the defendant^{wasset ex-parte on 07.06.2024 and the matterwasposted} for ex-parte hearing on behalf^{of the applicant bank}

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Supporting the claim of the applicant^{bank Shri Nijananda Badir,Chief Manager} of the Applicant Bank has fled^{eviden@ on affidavitcoupled with the security} documents marked as Exhibit^{B, AW-1 lo AW-22,supportingthe claim of the applicant} bank.

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Heard the learned counsel^for the^{applicant bankwho prayed for issuance of} Recovery Certiticate against the defendant^{as per pleadings madein the Application,} supported by evidance on affidavit^{of their witness who affirmed on oath the execution} of the security and other document by the defendant and also^{execution of theirown} 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

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sLrddar"0"A"' 'r."r."no?3'ls'l-i ,'1 ORr. Guwahati U

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O.A 43:l/2023/ORT-Guweh.n

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applicant bank and establishing the^{liability of the defendant.lt is proved} that the defendant is liable to^{pay to the applicant bank the claimmade in the Original} Application. The loans were^{obtained and documentshave been executedon} 15.03.2018, 19.02.20'19 & 01.09.2020.^{Revival Lettersare dated 10.02.2021 and} 17.02.2022. The accounts became^{NPA on 10.03.2023and the OA has been filed on} 22.12.2023. Hence,^{the OA is filed well withinthe periodof limitation and this Tribunal} having a^jurisdiction to adjudicate^{the Original Application}

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Considering the unchallenged/^{unrebuttedversion of Shri Nijananda Badir,the} applicant's witness^{and all the documents markedas exhibits,includingduly certified} copy of the stalement^{of accounlalongwith interest calculation sheet maintained by} the applicant Bank in it's regular @urse^{of business,I hold that the applicantis entitled} to get the Recovery Certificate^{as prayed for.}

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ln the result, the^present Original Application^{No.434 of 2023is allowed with} cost as under :-

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l) The sole defendant is liable to^pay to the^{applicant bank} a^{sum of} Rs. 47,18,120.30^(Rupees Forty-Seven L.ca^{EightsenThousandOne} Hundr.d Trr,enty and Paba Thlrty) only^{with pendentelite and future interest} @14.15Yo^(TL-l), @14.15%^{(TLll) and} @9.25olo^{(GECL)per annum with} monthly rests lrcm 15.12.2023 till the^{date of full paymenurealizationand} also cost of the application.

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ii) The charge of the certificated amount be kept alive^{on hypothecated vehicle,} i.e. Make/Model- TATA LPT 3118 CR,^Engine No.^{81A84449898, Chassis} No. MAT466457J5803577, Registration No.^{ML-05-R-3325, Registeredin the} name of the defendant, as described in Schadule-A of the OA till the amount is realized in full.

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iii) The charge of the certificated amount^{be kept alive on hypothecatedvehicle,} i.e. Make/Model- TATA LPT 3118 CR, Engine No. 81K84832003, Chassis No. MAT466,457J5K27687, Registration No. ML-05-S-8725,^{Registeredin the} name of the defendant, as described in Schedule-B of the OA till the amount

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is realized in full.

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Presdrng Offcer ' V 't,u",1g3,?*r DRT. Guwahati

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o'A

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'34l2023l/oRT.Gwahali

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iv) The^{applicantbank is antitled to proceed against thesecured items towards}

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recovery of the^debts.

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v) The applicant^{bank is also entitledto proceed againstthe personal assets and} properties of the defendant^{towards recoveryof the dues'}

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vi) The^{applicant bankis entitled to the costs of the O'A whichincludes the} advocale fees^{of the applicant bankApplicant is directed to file the cost} memo within 2^{weeks from today}

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viD lssue^{Recovery certilicateaccordingly for a sum R3' 47,{8'120'30 (Rupeo'} Fortysevon^{Lacs Eighteon Thousand One Hundrod Twonty} 'nd^P'ba

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Thirty) only in^{favourof the applicant bank against the sole defendant'}

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viil) Communicate^{copyof this order to the concerned parties'}

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This order^{is dictated and correctedby the undersigned}

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Judgment daled^{22rd Odober 2024, signed and pronouncedin ihe Tribunal}

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today under^{mY signature.}

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Copy of the^{JudgmenUFinalOrder be uploaded in the Tribunal's Websiteand}

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file be consigned^{to RecordRoom.}

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d^i^{ryb?,$.tql (Shiv Sharan Duiey)^' I Presiding Officer DRT, Guwahati.

State Bank of India v. Sri Monte Ranglong

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri Monte Ranglong

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

Coram

Case details

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