This is an ex-parte order in an original application for a recovery certificate of Rs.75,33,365/- granted to Central Bank of India against borrowers and legal heirs who failed to repay agricultural and term loans despite notices.
Recovery Certificate issued for Rs.75,33,365/- with interest @10% p.a. simple from filing date; heirs liable up to inherited estate.
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.
BEFORE THE DEBTS RECOVERY TRIBUNAL, CUTTACK
PRESENT: - SRI JITENDRA PRASAD SINGH, PRESIDING OFFICER.
O.A. No.175 OF 2022
DATE OF DELIVERY OF ORDER: 24.03.2025
Central Bank of India, Khordha Branch, At- Plot No. 2405, Ganapat Mansion, Court Road, Po/Ps/Dist- Khordha-752055, represented through its Branch Manager Sri Ambuj Kumar Nayak
… Applicant V e r s u s
Ps/Dist-Khordha-752055
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… Defendants Counsel for the Applicant Bank: - Sri M.K.Mishra
For the Defendants No.1 to 10 None. (Ex-parte on 07.03.2025)
JUDGEMENT
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heirs were added as Defendant No.2 to 10 in this above case, the defendant No.1 having experience in Poultry business and wanted to enlarge her business and to meet the contingency the defendant No.1 approached the applicant bank for Agricultural credit and the defendant No.1 submitted Loan application dtd.01.07.2014 for Rs.42.45 Lakhs with other documents for consideration. After considering of the loan application and taking into consideration, the authorities of the applicant bank on 12.07.2014 was pleased to Sanction CC of Rs.18 lakhs for working capital and TL of Rs.24,45,000/- in Total Rs.42,45,000/- in favour of the defendant No.1 for Poultry business with interest @ 11.25% p.a. with personal guarantee of Madan Mohan Kamla, with security of EM Land in the name of the defendant No.1 in MouzaKumbhila in the Dist of Khordha and with certain terms and conditions, which was accept by the defendant No.1 as a token of acceptance.
To obtain the above TL and CC Loan facility the defendants being present before the applicant bank and executed necessary banking documents to obtain Housing of Rs.42.45 Lakhs the defendant No.1 along with Madan Mohan Kamla executed necessary banking documents for availment of sanction loan facility. After due execution of banking documents by the defendants, the applicant bank Sanctioned the Housing Loan in favour of the defendants and disbursed full limit according to terms and conditions of sanction, as evidence from the statements of accounts. After execution of loan documents in favour of the applicant bank, the defendants transact with the loan account for a sketchy period and there after fail to deposit the sales proceeds and instalments as per terms and condition of sanction, for which the loan account of the defendant No.1 turned to NPA for which the applicant bank issued Notices U/s. 13(2) on 27.06.2019 in the name of the defendant No.1 for regularize the loan account.
There is no reply by the defendant No.1 to the notice U/s.13(2) and the defendant No.1 did not pay any heed for regularization of her two loan accounts, for which the applicant bank issued legal notice on 20.01.2022 in the name of the defendants for regularization of her loan
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account. After repeated personal contact the defendant did not turn up to the applicant bank to regularize the loan accounts of the defendant No.1, due to such irregularities in the part of the defendants for repayment of the loan dues can be ascertained better from the statement of account maintained in due course of banking business by the applicant bank. The statement of account of the loan account of Defendants relates to CC loan account No.3331219196 comes to Rs.30,93,799/- as on 04.02.2022 interest calculated @ 12.20%, Term Loan account No.3361121762 comes to Rs.44,39,566/as on 04.02.2022 interest calculated @9.70%. Total outstanding comes to Rs.75,33,365/-. In total Rs.75,33,365/- are due in the Two Loan accounts, to which the defendant/defendants are jointly and severally liable to pay the said sum with further interest, cost and expenses etc. till full and final payment of the loan outstanding dues as per the agreed rate of interest. As the defendants failed to pay the amount due to the applicant inspite of repeated demands and issuance of demand notice, the applicant bank having no other way to recover the dues of the bank, has filed this Original Application against the defendants for realization of Rs.75,33,365/- with future interest at contractual rate from 04.02.2022 till the date of realization with costs and for other relief’s as prayed for in the application and for the issuance of Recovery Certificate against the defendants.
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Documents i.e. Valuation report annexed to the 3-A (Exhibit-1), Authorization Letter is filed (Exhibit-2), Loan application dtd. 01.07.2014 along with other documents (Exhibit-3 Series), Sanction letter dtd. 12.07.2014 (Exhibit-4), Loan cum Hypothecation Agreement (animals, lives tocks, crops, plants equipment’s, and Machineries) dtd. 12.07.2014 for Rs.42.45 Lakhs executed by the defendant No.1 in favour of the Applicant Bank (Exhibit-5), Demand Promissory note of Rs.18 Lakhs on 12.07.2014 (Exhibit-6), Letter of continuity for Rs.18 Lakhs dtd.12.07.2014 executed by defendant No.1 (Exhibit-7), Letter of
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interest variation dtd. 12.07.2014 (Exhibit-8), Letter of waiver for Rs.18 lakhs dtd. 12.07.2014 executed by the defendant No.1 (Exhibit-9), Form of guarantee dtd. 12.07.2014 (Exhibit-10), Creation of charge along with property documents (Exhibit-11), The Notices U/s. 13(2) on 27.06.2019 (Exhibit-12), Legal Notice dtd. 20.01.2022 (Exhibit-13), Statement of account (Exhibit-14 Series), filed by the applicant bank along with the original application which were executed by the defendants in favour of the applicant bank in respect of the cash credit and term loan sanctioned to the defendants by the applicant bank, it clearly proves the fact that the defendants after availing the said facilities sanctioned by the applicant bank, have failed to pay the amount due to the applicant bank in spite of repeated demands. Hence the applicant bank having no other way has filed this application against the defendant for realization of Rs.75,33,365/- (Rupees Seventy Five Lakhs Thirty Three Thousand Three Hundred Sixty Five) with future interest at contractual rate with monthly rests from 05.02.2022 till the date of realization with costs and for other reliefs as prayed for in the application.
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Therefore, this Tribunal feels that it is just and reasonable and the interest of justice will be best served if pendentilite and future interest @10% simple per annum is awarded. Accordingly, this point is answered.
O R D E R
In the result, the original application is allowed for Rs.75,33,365/(Rupees Seventy Five Lakhs Thirty Three Thousand Three Hundred Sixty Five) only ex-parte with ex-parte cost against the defendants No.1 to 10 with interest @10% per annum simple from the date of filing of the application i.e. 03.03.2022 till the date of realization. The applicant bank is entitled to recover the said amount from the defendants No.1 to 10 after the sale of the hypothecated/mortgaged assets given as security which is morefully described in the schedule of the original application which shall form part of this judgment. If the sale proceeds are insufficient to satisfy the certificate, then from other properties of the defendant No.1 which are uncharged. Defendants No.2 to 10 are not personally liable to pay the dues of the Bank. They are only liable to pay the dues of the Bank to the extent they have inherited the estate of the deceased Madan Mohan Kamala.
Interim order, if any, is made absolute and the defendant is are restrained from depleting, transferring, encumbering or in any way dealing with their assets without first paying the claim of the applicant bank.
Registry is directed to drawn up Recovery Certificate forthwith in the forms as prescribed and put up for signatures in terms of provisions
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contained in Section 19(22) of the Act to be issued on the basis of the order of this Tribunal to the Recovery Officer along with a copy of the OA for further action as per law. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the law from the defendants No.1 to 10.
The parties are directed to appear before the Recovery Officer on 15.05.2025 for further action in accordance to law in the event the entire amount is not paid by the said date.
This order is dictated and corrected by me and pronounced in the open Court under my signature, this the 24th day of March, 2025.
(Jitendra Prasad Singh) Presiding Officer
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DEBTS RECOVERY TRIBUNAL, CUTTACK ORDER SHEET
OA No.175 of 2022
| Sl. No |
Date of order. |
Order with the signature. | Action (if any) taken on the order. |
|---|---|---|---|
| 24.03.25 | Learned Counsel for the applicant bank present. None for the defendants. Orders pronounced in the open Court (vide separate order. In the result, the original application is allowed for Rs.75,33,365/- (Rupees Seventy Five Lakhs Thirty Three Thousand Three Hundred Sixty Five) only ex- parte with ex-parte cost against the defendants No.1 to 10 with interest @10% per annum simple from the date of filing of the application i.e. 03.03.2022 till the date of realization. The applicant bank is entitled to recover the said amount from the defendants No.1 to 10 after the sale of the hypothecated/mortgaged assets given as security which is morefully described in the schedule of the original application which shall form part of this judgment. If the sale proceeds are insufficient to satisfy the certificate, then from other properties of the defendant No.1 which are uncharged. Defendants No.2 to 10 are not personally liable to pay the dues of the Bank. They are only liable to pay the dues of the Bank to the extent they have inherited the estate of the deceased Madan Mohan Kamala. Interim order, if any, is made absolute and the defendant is are restrained from depleting, transferring, encumbering or in any way dealing with their assets without first paying the claim of the applicant bank. Registry is directed to drawn up Recovery Certificate |
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| forthwith in the forms as prescribed and put up for |
|---|
| signatures in terms of provisions contained in Section 19(22) of the Act to be issued on the basis of the order |
| of this Tribunal to the Recovery Officer along with a |
| copy of the OA for further action as per law. The |
| Recovery Officer shall realize the amount as per the |
| certificate in the manner and mode prescribed under the |
| law from the defendants No.1 to 10. |
| The parties are directed to appear before the |
| Recovery Officer on 15**.**05.2025 for further action in accordance to law in the event the entire amount is not paid by the said date. This order is dictated and corrected by me and |
| pronounced in the open Court under my signature, this the 24thday of March, 2025. |
| (Jitendra Prasad Singh) Presiding Officer |
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2 issues framed by the court
Whether the applicant bank is entitled to recover the claim amount from the defendants as prayed for in the application.
Whether the Tribunal has discretion to award pendente lite and future interest in the absence of a contract.
3 provisions across 2 enactments
Central Bank of India, Khordha Branch
Mrs. Sasmita Kamala
Sri Rama Chandra Kamala
Sri Krushna Chandra Kamala
Shantilata Kamala
Jitendra Prasad Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
