Allowed

Central Bank of India v. Messers Panorama International

DRT25 Oct 2024OA/438/2023

Case brief

AI extract

What is this about?

In an application under Section 19 of the RDBFI Act, the bank sought a recovery certificate for an overdraft and term loan defaulting at approximately Rs. 95 lakhs. The tribunal found the defendants jointly and severally liable based on unchallenged evidence and executed security documents.

What did the court decide?

Issued a recovery certificate for Rs. 94,94,661.88 with future interest. Directed that the charge be kept alive on hypothecated properties and personal assets.

Central Bank of India versus Messers Panorama International — Banking and Recovery | DRT (2024)

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oA 430/2023/ORT-Guwahatl

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(T bunal ol Assam, Nagaland, Meghalaya Manrp!r Mizoram, Arunacha Pradesh & Tnpura)

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Before Shri Shiv Sharan Dubev. Presidino officer

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O.A. No.438/2023

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ln the matter of -

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CENTRAL BANK OF INDIA Hospital Road Branch, Silchar. Assam-788004.

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Ap plica nt

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I. M/S PANORAMA INTERNATIONAL A Proprietorship Firm Proprietor :- Mr. Prasun Choudhury Ambicapatty, Durga Sankar Lane, Near Shiv lVlandir, Silchar, Assam-788004.

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Vs.

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MR PRASUN CHOUOHURY

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Son of Late Pranoy Choudhury Ambicapatty, Durga Sankar Lane, Near Shiv Mandir, Silchar, Assam-788004.

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Defendants

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Presence of the counsel :

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For the Applicant : Mr. Mukesh Sharma, Ms Ellora Bharali. Advocates

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For the Defendants : Mr. Manoj Chakraborty, Advocate (Right to file WS cum EA closed)

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Daled :2511012024

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JUDGMENT

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This is an application under section 19 of the Recovery of Oebts Due to Banks and Financial lnstitutions Act, 1993 filed by the CENTML BANK OF lNDlA, Hospital Road Branch, Silchar, Assam-788004, with a^prayer to issue Recovery Certificate for the sum of Rs. 94,94,66'1.88^(Rupeo3 Ninety-Four Lacs Ninsty-Four Thousand Six Hundrod Sixty-Ono And Paisa Eighty-Eight) only as on 03.11.2023 against the defendants with^pendentelite and future interest at contractual rates with monthly rests till realization, along with cost and other relief.

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S$/J4a!q,.tvl', 23 10, L41 0 Presiding Oftcer DRT. Guwahati

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O A 438i/2023/ORT-Gqahai

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A few facts giving rise to the^present application are as under.

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The defendant No.1 is the Proprietorship firm and lhe defendant. No. 2 is the Propriotor of the defendant No.l ,irm of the said loan facility availed by defendant No. 1 Firm.

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The Oefendant No. 2 as the Proprietor of the defendant No.1 firm had approached the Applicant Bank and applied for financial assistance^videLoan Application dated 15.03.2017 for^purpose of business^{growth (working} capital) and after considering the said application, the^{ApplicantBankvide Sanction letter dated} 24.03.2017 had sanclioned an Overdraft Facility of^{Rs.45,00,000/- to thaDefendant} No. 1 with rate of interest @11.8o/o 9.a.^(floating rate) with^{monthly rests. The} Defendants had agraed and signed on the said Sanction^{letter, thereby agreeing to} allthe terms and conditions laid down therein.

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ln connection with the Eanction of Overdraft^facility of Rs.^45,00,0001 sanctioned by the Applicant Bank and^availed of^{by theDefendantNo.'1, the} Delendant No. 2 as^{proprietorof defendant no.1 have duly executedan Overdrafl} Agreement, a Supplamentary Agreement,^{Letter of Continuity, Letter of Waiver and} Letter of lnterest Variation all daled 27.03.2017^{in favour of the ApplicantBank,as} security for repayment of^{the loan,thereby agreeingto all the terms and conditions} laid down therein.

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ln order to furthor secure the repayment^{of tho saidloan with lnterest,the} Defendant No. 2 had also^{signed and executed a Demand PromissoryNote on} 27.03.2017, thereby undertaking^{to pay a sum of Rs.45,00,0001with interest due} thereon to thereon to the Applicant^{bank on demand}

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The Delendant No. 2 as^{the Proprietorof the defendantNo.1 firm had again} approached the applicant^{Bank for renewalof existing loan by submittinga loan} application dated^{'t0.11.2019 and afterconsideringthe saidapplication,the} Applicant Bank vide Sanction^{Letter dated NIL had sanctioned a Cash CreditLoanof} RS.63,OO,OOO^ with^{rate of interesl 9.25% perannum with monthlyrests' ln the event} of default in^payment or^{any irregularity in accountthe bank reservedthe right} to charge additional^{interest. The Cash Crsdit loanwas repayableon demand' The}

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S.',ry'4", DRT, Guwah3li

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O A 438/202YDRT-Guwahal

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Defendant No.2 as^{proprietorof defendantno.lhad signedon the said Sanction} Letter thereby agreed to all the^{terms and condition mentioned therein.}

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ln connection with the sanction of^{Cash Credit Facility of Rs.63'00,000/-} sanctioned by the^{Applicant Bank and availed of by the Defendant No 2 as} proprietor of defendant no.1 have duly executed, a^{SupplementaryAgreement,} Article of Agreement and^{Letter of Continuity all dated 11.122019 in favour of the} Applicant Bank, as security^{for repayment of the loan, thereby agreeing to all the} terms and conditions^{laid down therein.}

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ln order to further secure^{the repayment of the saidloan with lnterest,the} Defondant No. 2 had also^{signed and executeda Demand PromissoryNote on} 1'1.12.2019, thereby undertaking to^{pay a sum of Cash CreditFacilityof Rs} 63,OO,OOO/- with^{lnterest dua thereon to thereonto the Applicant bank on demand.}

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ln order to further secure the^{repayment of the saidloan with lnterest,the} Defendant No. 2 had also^{signed and executed a General Letterof Hypothecationon} 1'1.12.2020, thereby undertaking to^{pay a sum of Cash Credit Facility of Rs} 63,00,000/- agreeing thereby^{that the securityshall be a continuing securityat all} times for the said^{facility or anyotherfacility obtained and payableto theapplicant} bank.

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The Oefendanl No. 2 as the^{Proprietor of the defendant No.1firm had} approached the Applicant^{Bank and applied for financial assistance for purpose of} business^{growth (working capital)and afterconsideringthe said application,the} Applicant Bank vide Sanction^{letter dated 30.04.2020 had sanctioned a TermLoan} of Rs. 6,30,000/- to the Defendant^{No.1 with rateof interest} @^{7.700/0p a (floating} rate) wilh monthly rests. The^{Defendantshad agreedand signed on the said} Sanction letter, thereby agreeing^{to all the terms and conditions laid down therein.}

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ln connection with the sanction of^{Term Loan of Rs 6,30,000/- sanctionedby} the Applicant Bank and availed^{of by the DefendantNo2 as proprietorof defendant} no.1 have duly executed, a^{Term Loan Agreementdated NlL,Supplementary} Agreement, Articles of Agreement,^{Letter of Waiverand Letterof Letter of lnterest} Variation all dated 30.04.2020 in^favour of^{the Applicant Bank,as security for}

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S["cl^o,la,Al[."/ r""','&I9''{^A DRT. Guwahali

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O.A 438/2023r/ORl€u,.hati

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repayment of the loan, thereby agreeing to all the terms and conditions laid down

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therein

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ln order to further secure the repayment of the said loan with lnterest. the Defendant No.2 had also signed and executed a Demand promissory Note on 30.04.2020, thereby undertaking to pay a sum of Rs. 6,30,OOO/_ as Term Loan with interest due thereon to thereon to the Applicant bank on demand.

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ln order to further secure the repayment of the said loan with lnterest, the Oefendant No. 2 had also signed and execuled a General Letter of Hypothecation, thereby undertaking to pay a sum of Term Loan of Rs. 6,30,OOO/_ agreeing thereby that the security sha be a continuing security at all times for the said facility or any other facility obtained and payable to the applicant bank.

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The Defendant No. 2 as the proprietor of the defendant No..l firm had again approached the applicant Bank for financial assistance by submitting a loan application and afler considering the said application, the Appticant Bank vide Sanclion Letter daled 05.07.202i had sanctioned a Term Loan of Rs.1,26,073^. ln the event of default in payment or any irregularity ln account the bank reserved the right to charge additional lnterest. The Cash Credit loan was repayable on demand. The Defendant No.2 as proprietor of defendant no.1 had signed on the said Sanction Letter thereby agreed to all the terms and condition menlioned therein.

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ln connection with the sanction of Term Loan of Rs. .1,26,073/_ sanctioned by the Applicant Bank and availed of by the Defandant No. 2 as proprietor of defendant no.l have duly executed, a Term Loan Agreement and Letter of Waiver both dated 05.07.2021 in favour of the Applicant Bank, as security for repayment of the toan. thereby agreeing to all the tarms and conditions laid down therein.

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The Defandant No. 2 as the proprietor of the defendant No..l ,irm had again approached the applicant Bank for financial assistance by submitting a loan application and afler considering the said application, the Applicant Bank vide Sanction Letter dated 29.07.202,1 had sanctioned a Term Loan of RS.6,3O,OOO/_. ln the avent of default in payment or any irregularity in account the bank reserved the right to charge additional lnterest. The Term loan was repayable on demand. The

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Sli^)Pll,^o^A&"r ,."",nffiJP'ua⁽ ORT, Guwahati

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O A. 434I2023/DRT.Guwahaii

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Defendant No.2 as proprielor of defendant no.1 had signed on the said Sanction Letter thereby agreed to all the terms and condition mentioned therein.

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As the Defendants have failed to repay the outstanding amount in the loan account, the Applicant Bank had demanded and requested the Oefendants to regularize the loan account by paying the outstanding amount in the loan account lncluding the accrued interast thereon. But the Defendants failad to make any payment thereof. Thereafter the Applicant bank has sent a Loan Recall Notice dated 30.06.2023 whereby it was demanded and requested the Defendants under Loan Account Nos. 5 1 I 87 7 7 499, 51247 24438, 5 1'l 87 5A7 7 2, 334350827 4, 5 1 68074500 a d 3824560432 to repay the outstanding amount in the loan account along with interest charges (as per Loan Agreement) within 7 (Seven) days from the date but the defendants failed to comply with the same. of the notice,

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Thereaftsr, the Applicant through its Counsel has sent a Pleader's Notice dated 10.08.2023 whereby lt was demanded and requested the Defendants to repay the total outstanding amount in the loan account along with interest charges (as per Loan Agreement) within^'15 (Fifteen) days from the date of the notice, but the defendants failed to comply with the same.

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The statements of account maintained by the Applicant in the usual and ordinary course of business shows that there is an outstanding balance of Rs. 94,98,397.88 as on 03.11.2023. The Loan Accounts became NPA on 29.06.2023 in accordance with the directives and guidelines of Reserve Bank of lndia. As such defendants No. 1 to 2 are legally bound,^jointly and severally liable to repay the said amount to the applicant bank along with further interest and monthly rests to till realization of the entire debts due to the applicant.

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The applicant bank thus became constained to fle the presenl Original Application for the recovery of Rs. 94,94,661.88 (Rups6r Ninety-Four Laca Ninety-Four Thousand Six Hundred Sixty-One And Paisa Eighty-Eight) only as on 03.11.2023 along with interest and cost of the application.

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After filing ol the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank filed service report on 16.02.2024 and brought

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S}31,7O",,1a-trt ",.",o,^n?fn)P DRT, Gurahali^A0

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O a 438,2023/ORT-GeahalL

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on record the^postal receipts along with track consignment^{report. Learned prory} counsel for the defendants has appeared^{on 09.04.2024 by filing scanned copyof} Vakalatnama and sought time for filing original^{copy of Vakalatnamaand written} statement cum evidence on affidavit^{which was duly permitted.Thereafter the matter} was listed on several times, but the original copy of^{Vakalatnamaand written} statement cum evidence on afiidavit has not^{beenIiled by the defendants.Hence,} their right of the file written statement^{cum evidence on affidavit was closedon} 18.6.2024. Thereafter the matler was^posted for^{hearingon behalf of theapplicant} bank.

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Supporting the claim of the applicant bank Kumar^{Prasun,Chief Manager of the} Applicant Bank has filed evidence on affidavit coupled^{with the securitydocuments} marked as Document-P, Exhibit-Aw-1/l to AW-1/34,^supporting the^claim of^the applicant bank.

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Heard the learned counsel for the applicant^{bank who prayed for issuance of} Recovery Certificate against the defendants as^{per pleadingsmade in the Application,} suppo.tgd by evidence on affidavit of their witness^{who affirmedon oath the execution} of the security and other documents by the defendants^{and also executionof their own} documents relied upon, which have been^{marked exhibits.}

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Considsring the facts and circumstances of^{the case, I am of the considered} view that the documents filed by the applicant bank^{are supporting theclaimof the} applicant bank and establishing the^{liabily of the defendants.lt is proved that the} defendants are^jointly and severally liable to^pay to^{the applicant bank the claim made} in the Original Application. The loans were obtained^{and documentshave been} executed on 27.03.20'17, 1'1.12.2019,30.04.2020,^{05.07.2021. The accounts became} NPA on 29.06.2023 and the OA has been^{filed on 02.12.2023. Hence, the OA is filed} well within the^period of limitation and this^{Tribunal having a jurisdictionto adjudicate} the Original Application.

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Considering the unchallenged/^{unrebutted version of KumarPrasun, the} applicant's witness and all the documents^{markedas exhibits,includingduly c€rtified} copy of lhe statement of account along^{with interest calculation sheet maintainedby}

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st &rT#/ Presiding Offcer U DRT, Guwahati

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O A 43€u2o2yDRT-Gusahati

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thaapplicantBankinit'sregularcourseofbusiness,lholdthattheapplicantisentitled to get the Recovery^{Cartificate as prayed for.}

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ln the result, the^{present Original ApplicationNo 43Eof 2023 is allowed with} cost as under i

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The defendants No.^{1 & 2 arejointly and severally liable to pay to the applicant} bank a sum of^{Rs. 94,94,661.88(Rups$ Ninoty'Four LacaNinoty-Four} Thousand Six^{Hundrsd Sixtyone And Paisa Eighty-Eight)only with} pendentelite and future interest @1^{1.80% per annumwith monthly resis from} 04.'11.2023 till the^{date of futl paymenUrealizationand also cost of the} application.

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ii) The charge of the certilicated^{amount be kept aliveon hypothecated prop€rties,} as described in Schedule-A^{of the OA till the amount is realizedin full'}

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iii) The applicant bank^{is entitledto proceed againstthe secured items towards} recovery of the debts.

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iv) The applicant bank^{is also entitledto proceed againstthe personalassets and} properties of the defendanls towards recovery^{of the dues.}

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vi)

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The applicant bank is entitled^{to the costsof the O.A which includes the} advocate fees of the^{applicant bank.Applicant is directed to tile the cost memo} within 2 weeks from todaY.

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lssue Recovery Certificate^{accordingly lor a sum R3. 94,94'661.EE(Rupoe3} Ninoty-Four Laca Ninety-Four^{ThousandSix HundrodSixty-OneAnd} Paisa Eighty-Eight) only in^{favour of the applicantbank againstthe} defendants No. 1&2.

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vii)

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Communicate copy of this^{order to the concerned parlies.}

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This order is dictated and corrected^{by the undersigned.}

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Judgment dated 25th October^{2024, signed and pronouncedin the Tribunal}

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today under my signature.

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Copy of the JudgmenuFinal^{Order be uploadedin the Tribunal's Websiteand ,ile}

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be consigned to Record^Room

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.JY",ffi Presiding Officer DRT, Guwahati.

Central Bank of India v. Messers Panorama International

Case brief

What is this about?

What did the court decide?

Central Bank of India v. Messers Panorama International

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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