This Tribunal allowed an application under Section 19 of the RDBFI Act. It found the defendants jointly liable for an outstanding overdraft and ordered the issuance of a Recovery Certificate against them with future interest.
Recovery Certificate for Rs. 24,08,743.92 along with dependent and future interest and costs was issued in favor of the applicant bank.
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.
OJ{. 72023lDRT€Mhalr
IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI
(North Eastern Region)
(Tribunal of Assam, Nagaland, Ireghalaya, Manipur, Mizoram, Arunachal Pradesh & Trapura)
Before Shri Shiv Sharan Dubey. Presidino Officer
O.A- No- 7212023
ln the matter of -
PUNJAB NATIONAL BANK (Er3twhile Unit3d Bank of lndia) Lepetkata Branch, A. T. Road, P.O. Barbaruah in the District of Dibrugarh, Assam- 786007.
Applicant
V8.
I. MR SANU URANG
Son of Moniram Urang, Resident of Binoigutia Gaon, Mouza Larua, P.O. Lepetkata, P.S. Barbaruah in the District of Dibrugarh, Assam- 786007.
Son of Moniram Urang, Resident of Binoigutia Gaon, Mouza Larua, P.O. Lepetkata, P.S. Barbaruah in the District of Oibrugarh, Assam- 786007.
Detendants
Presenco ot the Counsel:
For the Applicant : Mr Shoubhik Chanda, Advocate
For the Defendants : None (Ex-parte)
Oated :1510712024
JUDGMENT
This is an application under section 19 of the Recovery of Debts Oue to Banks and Financial lnstitutions Act, 1993 filed by the PUNJAB NATIONAL BANK (Erstwhite United Bank of lndia), Lepetkata Branch, A.T. Road, P.O. Barbaruah, in the District of Dibrugarh, Assam- 786007, with a prayer to issue Recovery Certificate for the sum of Rs. 24,08,743.92 (Rupee3 Twenty-Four Lakhs Eight Thousand Seven Hundred Forty-Three and Paisa Ninety-Two) only as on 31.10.2022 against the defendants with pendentelite and future interest at the contractual rates with monthly rests till realization along with cost and other relief.
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A few factsgiving riseto the present applicationare as under'
The DefendantNo.1& 2 is the Applicaniand Co-Applicantherein The DefendantNo.2 is also the guarantor cum morlgagor for repayment of the credit facility availedbY them.
The DefendantNo.1& 2 as Applicant and Co-Applicantvide Application dated 08.10.2018,had approached beforethe Applicant Bank and requestodfor financial assistancelor theirBrick manufacturing unit and after consideringlhe said Application, theApplicantBank videSanction Letter dated08 102018 had sanctioned asum of RS.19,OO,OOO|as OverdraftLimit' with rate of intetest @10.95%(MCLR + 2.15%) per annum with monthly rest subiectto changes as per Bank's decision,The Over Draft limit was repayableon demand The Defendants had signed onthe said Sanction Letterthereby acceptingall the terms and conditions containedtherein.
ln consideration ofthe aforesaid Over Draft Limitof Rs'19'00'0001'the Oefendants dulyexecuted the following documents in terms of the sanclion'inter- alia giving dueeffectto the terms and condition of sanction'promising to repaythe loan and to securethe duesof Applicant Bank :-
| (i) iiir iiiil iirl ivi iuil |
Aoreement underMortgage Loan Scheme dated0810'20'18' DEmandPromissorvNote dated 08 10.2018' Letter of Continuity dated08'10.2018. LetterofLien dated 08.10.2018. HvpothecationAgreement dated0S.l020lE' nlieementtopliogeban dated08.10.2018.ofGoodstosecurea O;mandCash CrediuLoandated 08.10.2018 |
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The Defendant No.2 stoodas personal guarantorby executinga Letter of Guarantee dated08.10.2018thereby agreedto repay the loanon demandavailed by them.
Further, the aforesaidcredit facility was secured by creation of equitable mortgage by theDefendantNo.2 over his immovableproperty beingLand measuring 3Bigha IKatha gLecha covered by Oag No.884 of Patta No.279 situaied at Binoigutia Gaon underLaruah Mouza, Lepetka in the Districtof Dibrugarh, -
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O A. 72I2023/DRTGuwahatr
Assam togetherwith Building standingthereon, carefully described in Schedule-A of the OA.Accordingly,the Defendant No.2 depositedthe Title Deeds in favor of the Applicant Bank andconfirmedthe same by executing a specimenof acknowledgmoniletter relatingto depositof title deeds and memorandum of Deposit of Title Deeds.
On the requestof the Defendants,the Applicant Bank vide sanctionLetter dated 31.03.2020 hadrenewedthe existing over drafr limit Accordingly, the Defendant No.1 interms of the renewalhad executedan Agreementunder Mortgage Loan Scheme,a Demand Promissorynote and a Letter of continuity all dated 31.03.2020in favor of the Applicant thereby promisingto repay the loanon demand.
After availing theLoan,theDefendantsfailed and/or neglectedto repay the loan amount, assuch the Loan account became NPA on 31 03 2021as per the guidelines of Reserve Bank oflndia. Therefore, the ApplicantBank lssueda Demand Notice dated17.06.2021under section13(2)of the Securitizationand Reconstruction ofFinancialAssets and Enforcementof Security lnterestAct, 2002 thereby calledupon the Defendants to dischargetheir liabilities in full within 60 days from the date ofthis notice. But the Oefendants failedto discharge their liabilities within thestipulated period of time. As suchthe Applicant hastaken physical possession of the securedassets
The Statements ofAccount maintained by the Applicant Bank in the usual and ordinarycourse of business showsthat there is an outstanding Balance of Rs.24,08,743,92in the Overdraft Account No. 15382'10000213 as on 31 10 2022' The account becameN.P.A. on 31.03 2021 and as such, the defendantsare legally bound andjointly and severally liableto repay the saidamount to the Applicant Bank wilh interesttill realizationwith cost and charges.
The applicant bankthusbecameconstrain€dto file the present Original Application for therecovery of Rs. 24,08,743.92(Rupee3 Twenty'FoutLakhs Eight
1H"ffi ORT, Guwahati
4
O.A 7uo23lDRT-Guw.hari
Thousend S6yen Hundrod Forty-Three andpaisa Ninety-Two) only as on
31j02022 alongwith 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 service report on 1 1.04.2023 and brought on record the postal receipts along with track consignment report which shows that notices have been served upon the defendants. Hence service is completed upon the defendants. Even after proper service of notice upon the defendants there was no representation on behalf of the defendants either by the counsel or the person and hence the defendants were set ex-parte on 26-06-2023 and their right to file written statement cum evidence on affidavit was closed and the matter was listed for hearing on behalf of the applicant bank.
Supporting the claim of the applicant bank Smt Anjana Das, Chief Manager of the Applicant Bank has filed evidence on affidavit coupled with the security documents marked as Exhibit 1 to 25 supporting the claim of the applicant bank.
Heard the learned counsel for the applicant bank who prayed for issuan@ of Recovery Certiflcate against the defendants as per pleadings made in the Application, supported by evidence on affidavit of their witness who aflirmed on oath the execulion of the security and other documents by the defendants and also execution of their own documents relied upon, which have been marked exhibits.
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 liability of the defendants. lt is proved that the defendants arejointly and severally liable to pay to the applicant bank the claim made in the Original Application. The loans were obtained and documents have been executed on 08.10.2.0'18 & 3'1.10.2020. The account became NPA on 31.03.2021 and the OA has been filed on 21.02.2023. Hence, the OA is filed well within the period of limitation and this Tribunal having ajurisdiction to adjudicate the OriginalApplication.
sU/sl"ftb?#? Pr63idrE Ofical 0RT. Guwahati
O A. 72l2o23/DRT-Guwahali
Considering the unchallenged/unrebuttedversion of Smt Anjana Das, the applicant's witness and all the documentsmarked as exhibits, including duly certified copy of the statementof account alongwith interest calculationsheet maintainedby the applicant Bank in it'sregular course of business, I hold that the applicantis entitled toget the Recovery Certificateas prayed for.
ln the result, thepresent OriginalApplicationNo.72 ol 2023 is allowed with cost as under:-
(i) The defendants No. 1 & 2are jointly andseverally liable to pay to the applicant bank a sum ofRs.24,08,743.92(RuPeo3 Twonty-Four Lakhs Eight Thou3and SevsnHundredForty'Throe and Paisa Ninety-Two) only withpendentelite and futureinterest @10.95% P.a.with monthly rests from 01.11.2022 till the date of fullpaymenurealizationand also cost of the applicalion.
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OA 722023lDR1€uwahaii
Palsa Nlnety-Two) only in favourof the applicant bank againstthe defendants
No. 1&2.
This ordcr is dictated and correctedby the undersigned.
Judgment dated'lsh July 2024,signed and pronounced in the Tribunaltoday
under my signature.
Copy of the JudgmenuFinalOrder be uploadedin the Tribunal's Websiteand file be consigned io RecordRoom.
Sl,i,.,et"rufdilb"''t(Shiv Sharan bubeyl ' " Presiding Officer DRT, Guwahati.
2 issues framed by the court
Whether the Application filed under Section 19 of the RDBFI Act is maintainable for issuance of Recovery Certificate.
Whether the liability of the defendants to repay the outstanding loan amount is established.
1 provisions across 1 enactments
PUNJAB NATIONAL BANK (erstwhile United Bank of India), Lepetkata Branch
MR SANU URANG
MR ASHOK URANG
Shiv Sharan Dubey
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
