Allowed

Canara Bank v. Sri Pulin Saikia

DRT19 Jan 2024OA/66/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's Original Application under Section 19 of the RDBFI Act, 1993, to issue a Recovery Certificate for Rs. 32.42 lakhs plus interest against the defendant for defaulted term loans secured by vehicle hypothecation.

What did the court decide?

Recovery Certificate issued for Rs. 32,42,329.80 with interest; enforcement of charge on two hypothecated vehicles and against defendant's personal assets authorized; costs awarded.

Canara Bank versus Sri Pulin Saikia — Execution and Attachment | DRT (2024)

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OA 662o2zDR1€uwahati

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(rribunar or Assam. Nasr""o ,$ffilTturn Region) .n., .n,; ;;",;:T:LI;',L;:TH;:::esh & rr pura) ""'.."

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O.A. No. 66/2022

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ln the matter of _

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Canara Bank llT Guwahati Branch llT G_uwahati Campus, North Guwahati, ^amrup,^Assam-7g1O3g

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''' ......Applicant

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vs'

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,. sRr^pulrN sArKrA Son of Tarun Saikia Viflage- Dihrng Satra, p.O. North cuwahati, p S North cuwahati, District K;mrup, Assam,^pin- 792030

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Plesence of the Counsel:

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... . . . ... ... Defendant

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For the App,icant : Mr. M K. Bora, Advocale For the Defendant : None (Ex-parte)

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JUDGMENT

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Dated :1gto1t2024

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This is an application under section 19 of the Recovery of Debts Due to Banks and Financiar rnstitutions Act, 1993 fired by the canara Bank, ,T Guwahati Branch, Irr Guwahati Campus, North Guwahati, Kamrup, Assam_781039, with a prayer to issue Recovery Ceniricate for the sum of Rs. 32,42,329.g0 (Rupeos Thirty-Two Lakhs Forty-Two Thousand Three Hundred Twenty_Nine and paise Eighty) only as on 31.12.2021 against the defendant with pendenterite and future interest thereon at the contractual rate 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 had approached the applicant Bank and applied for financial assistance for purchase of Vehicle Mahindra Scorpio by loan application dated 09-06-2017 and after considering the said application, the applicant Bank by iffii,"W ORT. Guwahali

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o.a. o6TzozzDR1€uv.hati

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Sanction Letter dated 09-06-2017 had sanctioned a credit facility of Rs.10,00,000.00 only to the defendant with interest charged 8.900/0 per annum. The credit facility was to be repaid in 84 monthly installments of Rs. 16,039.00 each. The loan account number is 8652603000242.

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ln connection with the sanction of the term loan of Rs.10,00,000.00 sanctioned by the applicant Bank and availed by the defendant, Canmobile Agreement dated 09-06-2017 has been signed and executed by the defendant in favour of the applicant Bank as security for repayment of the loan facility thereby agreeing to all the terms and conditions laid down in the said Deed of hypothecation and hypothecated the vehicle^purchased out of the Bank financed (more specifically described in schedule-A of the OA) in favour of the applicant Bank.

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The defendant had again approached the applicant Bank and applied for financial assistance for^purchase of TEREX BACK HOE by loan application dated 26-03-20'18 and after considering the said application, the applicant Bank by Memorandum dated 29-03-2018 had sanctioned a credit facility of Rs.18,00,000.00 only to the defendant with interest charged 9.800/o^per annum. The credit facility was to be repaid in 84 monthly installments of Rs. 29,700.00 each. The credit facility has been covered by the CGTMSE Scheme. The loan account number is 8652768000068.

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ln connection with the sanction of the term loan of Rs.18,00,000.00 sanctioned by the applicant Bank and availed by the defendant, Deed of Hypothecation Re: Vehicle dated 29-03-2018^{has been signed and executedby the} defendant in favour of the applicant Bank as security^{for repayment} of the^loan facility thereby agreeing to all the terms and conditions^{laid down in the said Deed} of hypothecation and hypothecated^{the vehicle purchased out of the Banktinanced}

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$''^tdagffV'C"fl Presidina OffiaC{- '^{I I} V ORT, Guwahali

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oa 65/2022lDRr_Guwahati

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(more specifically described in schedule-B of the^{OA) in favour of the applicant} Bank.

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The defendant by^{executingParticularsof Vehicle Hypothecated dated 04-} 04-2018 had^{accepted that the machinery and vehicle which was financed by the} applicant Bank^{was receivedin good condition.}

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The defendant had availed of^{the saidloanfacilities fromthe applicantbank,} but have not^{paid the loan amount as perthe terms and conditions as agreedupon} with the applicant^{bank, inspite of repeated demandsand request by theapplicant} bank. As such both the^{loan accountsdeclared NPA on 01-1 1-2020 After the} accounts became NPA ihe^{applicantbank issued noticesfor repaymentof the due} amount, bul^{the defendanthasneither chosenfor repaymentof theremaining} installmentsintheloanaccounlsnorapproachedtotheapplicantbankforsettlingthe loan accounts.

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The applicant Bank^{statedthat as per order dated10-01-2022 passedby} Hon'ble Supreme Court in^{Miscellaneous Application No.21ol 2022 in SMW(C)} No.3 of 2020, the^{instantsuit is filed within period of limitationTheHon'ble} Supreme Court in the^{said order directed that the period from 15-03-2020 till} 28-02-2022 shall^{stand excluded for the purposeof limitation as may be prescribed} under any^general or^{special laws in respectof all judicialor quasi-Judicial} proceedings.

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The applicant bank thus^{becameconstrainedto file the present Original} Application for the^{recoveryof R3' 32,42,329'80(RupeesThirty-Two LakhsForty-} Two Thousand Thrse^{Hundred Twenty'Nineand Paise Eighty) only as on} 3'l .12.2021 along with interest^{and cost of the application.}

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After filing of the OA the Tribunal^{issuednotice uponthe defendantthrough} registered^post and the applicant^{bank filed service reporton 17.05.2022and brought} on record the^postal receipt along^{with track consignment reportwhich shows that} notic€ has not been served upon^{the sole defendant. Thereafter the Tribunal ordered}

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^ t ,t l+,0-1tu^ nt0t Pres'dingoffcpr' DRT, Guwahati^w

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o.A. 66/2ozoRr-Gwahali

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paper publication of notice upon the sore defendant and the appricant bank issued notice to the defendant on 29.05.2022 through paper publication in two newspapers namely "Ihe Times of lndia" and "Dainik Asam". Even after issuance of notice through paper publication also there was no representation on behalf of the sole defendant either by the counsel or the person and hence the defendant was set ex_parte on 04.08-2022 and his right to fire written statement cum evidence on aftidavit was crosed and the matter was posled for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Sri Ananya Kumar Bhuyan, Senior Manager of the Applicant Bank has filed evidence on afiidavit coupled with the security documents marked as Exhibit AW-l/l to AW-.1/14 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 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 documents by the defendant and also execution 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 document filed by the applicant bank are supporting the claim of the applicant bank and establishing the liabitity of the defendant. lt is proved that the defendant 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 09.06.2017 & 29.03.2018. Moreover, as per order dated 1,0.01 .2022 passed by the Hon'ble Supreme Court in Misc. Application No. 2'l of 2022 in SMW(C) No. 3 of 2020, the instant suit is filed within period of limitation. The Hon,ble Supreme Court in the said order directed that the period from 15.03.2020 til 28.02.2022 shall stand excluded for the purpose of limitation as may be prescribed under any general or special laws in respect of all^judicial or quasi-judicial proceedings. The account became NPA on 01.11.2020 and the OA has been tiled on 23.02.2022. Hence, the

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sk/ ;"#rx3ltrf^cta{Y1;w

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o.A 66/2022lDRl€umhali

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OA is filed 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 Ananya Kumar Bhuyan, 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 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. 66 of 2022 is a owed with cost as under: -

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i) The sole defendant is liable to pay to the applicant bank a sum of Rs. 32,42,329.80 (Rupees Thirty-Two Lakhs Forty-Two Thousand Three Hundred Twenty-Nina and Paise Eighty) only with pendentelite and future interest @8.90% p.a. with monthly rests from 01.O1.2O22 till the date of full paymenurealization and also cost of the application.

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ii) The charge of the certificated amount be kepi alive on hypothecated vehicle i.e. Brand Name of the vehicle: Mahindra Scorpio S10 BS 4, Makers NameMahindra & Mahindra, Chassis No. MMQQ2327|OF27123, Engine No. TEH1C53127, Owner Name- SRI PULIN SAlKlA, as described in Schedute-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 hypothecated vehicle i.e. Brand Name of the vehicle: BACK HOE LOADER TETZ BS lll, Makers Name- TEREX EQUIPMENT PVT LTD, Chassis No. THE11523LP1247105, Engine No.^{'121.'152110651215,} Owner Name- SRI PULIN SAlKlA, as described in Schedule-B of the OA till the amount is realized in full.

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

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v) The applicant bank is also entitled to^proceed against the^personal assets and properties of the defendant towards recovery of the dues. Shil d,". d,". -1,?lorl:{ 5"i"*^f

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Shil d,". d,". -1,?lorl:{ 5"i"*^f 0 Presiding OffroE^I ORT. Guwahali

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O.A. 66/2022loRT-cuwah6ti

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vi) The applicant bank is entitled to the costs of the O.A. which includes the advocate fees of the applicani bank. Applicant is directed to flle the cost memo within 2 weeks from today.

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vii) lssue Recovery Certificate accordingly for a sum Rs. 32,42,329.80 (Rupees Thirty-Two Lakhs Forty-Two Thousand Three Hundred Twenty-Nine and Paise Eighty) only in favour of the applicant bank against the sole defendant.

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vlii) Communicate copy of this order to the concerned parties.

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This order is dictated and corrected by the undersigned.

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Judgment dated 19rh January 2024, signed and pronounced 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 file be consigned to Record Room.

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Sl,,lcLar+',)t':1 (Shiv Sharan Dubby) J Presiding Omcer DRT, Guwahati.

Canara Bank v. Sri Pulin Saikia

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri Pulin Saikia

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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