Allowed

State Bank of India v. Zakir Alom Shah

DRT25 Feb 2025OA/232/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the State Bank of India's application for a recovery certificate under Section 19 RDBFI Act, 1993. The Tribunal found the defendant liable for a term loan of Rs. 28.74 lakhs with accrued interest, as the account was non-performing. The applicant bank was directed to proceed against the hypothecated vehicle and personal assets.

What did the court decide?

Recovery certificate issued for Rs. 28,74,699.59 against the defendant and orders to proceed against the hypothecated vehicle and personal assets.

State Bank of India versus Zakir Alom Shah — Banking and Recovery | DRT (2025)

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o a 232t2o24toRr -crwan.t)

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IN THE DEBTS RECOVERY TRIBUNAL, GUWAHATI

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(North Eastern Region)

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(Tribunal ofAssem. Nagaland. Meghalaya, Manipur, tvtizoram, Afl.tnachal pradesh E Tripura)

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Bofore Shri Shiv Sharan Dubev.^pre3idinq Officer

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O.A. No. 23212024

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ln the matter of -

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STATE BANK OF INDIA Stressed Assets Recovery Branch (SARB) M.R.D. Road, Bamunimaidam, Guwahati-78102'1, Assam.

. ... .Appticant

Vs.

I. ZAKIR ALO I SHAH

Son of Abdul Salam Shah

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Resident of Village-Boro Baghjhapa Khopati Part-lll, P.O. Hazirhat,

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South Salmara Mankachar, Assam-783 128.

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Defendant

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Pro3enca of ths Counsel :

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For the Applicant

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: Mr. Shafiqul Haque,

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Mr. Sarfaraz Ul Haque, Advocates

For the Defendant

None (Ex-parte)

Daled :2510212025

JUDGMENT

This is an application under section 19 of the Recovery of Debts Oue to Banks and Financial lnstitutions Act, 1993 filed by the STATE BANK OF lNOlA, Stressed Assets Recovery Branch^(SARB), M.R.D. Road, Bamunimaidam, Guwahati-78'1021, Assam, with a^prayer to issue Recovery Certificate for the sum of tu. 28,74,699.59^(Rupoo3 Twonty-Eight Laca Sevsnty-Four Thou3end Six Hundr€d Ninety-Nins And Paba Flfty-Nine) only as on 13.05.2024 against the defendant with^pendentelite and future^interest @13%^{per annumwith monthlyresttill} 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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SWAo*,*A"L'4 aS o z.X- I Pr€siding Offc€r DRT, Guwaheli

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oa z3zo24loRT-Gu*ahari

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The Defendant is the sole bonower who had availed a Term Loan lacility to purchase Ashok Leyland Bus for plying and had approached the Applicant Bank for fnancial assistance for purchase of the Bus.

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The Defendant had approached the Applicant Bank and applied for a loan for purchase of a Ashok Leyland Bus under CGTMSE scheme by submitting a Loan Application dated 05.08.2021 and after considering the said application, the Applicant Bank vide Letter of Anangement datd 17.08.2021 sanclioned a Term Loan facility for Rs. 36.70 Lacs with interest at 3.85% above MCLR (MCLR = 6.65% p.a.) with a minimum of 10.S0% per annum rising or falling there with, on daily producl with monthly resb. The effective rate at the time of sanclion stood at 10.50% per annum. The Term Loan was repayable in 53 monhly lnsiallmenb of Rs. 89,903/- each and the last lnstallment of Rs.49,759 with first installment commencing on 10.02.2022 and the last installment fafling due on 10.07 .2026. The oefendant had signed and executed the said Letter of Arrangement thereby accepting allthe terms and conditions ofthe sanclion.

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As security for repayment of the aforesaid loan facility, the Defendant had signed and executed an Agreemenl of Loan cum Hypothecation daled '17.08.2021, thereby not only hypothecating the vehicle (more specifically described in schedule A of the OA) b(Jt also agreeing to all the terms and mnditions contained therein. ln this conneclion, the defendant had also submitted a photocopy of the Certificate of Registration and copy of lnsurance ofthe Vehicle with lhe Applicant Bank.

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As the Defendant had failed to repay the outstanding amount in the loan accounts, the Applicant Eank vide Oemand Letters da|ed 22.7.2022, 24.08.2022, 6.'10.2022, 10.05.2023, 22.06.2023, 11.07.2023, r 1.08.2023,^{'t't.09.2023,} 11.10.2023, 13.11.2023, 13.12.2023, 16.0'1.2024 and 09.02.2024 had demanded and requested the Oefendanb to regularize the loan accounts by^paying the outstanding amount in the loan accounb including the accrued interest thereon but the Defendant failed to respond to the same. lt is pertinent to mention herein that applicant bank had repossessed the hypothecated vehicle (more specifically describ€d in schedule-A ofthe OA).

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The Statement of Account maintained by the Applicant Bank in the usual and ordinary course of business shows that there is an oubtanding balance of^{Rs. 27,21,625.35}

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Sk4c)"o^a,-^A"l4- >S.a>.zl- I Presr0rng umc€r DRT. Guwahati

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o.A. 232l2024lDRT€u$h.1i

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in the TL Account^{(NcNo.4037815102'l} )^{as on 31 01.2024. The account becameN PA} on 08.02.2024 and the interest^{(accruedbut not applied)lrcm01.022024 to 13 05'2024} comes to Rs. 1.01 ,OA7 .24^{and the total outstandingin the TermLoan Ac@unt comesto} Rs. 27,21,625.35^{+ Rs. 't,01,087.24 (interestaccrued but not applied) + Rs 51,98700} (debit) = Rs. 28,74,699.59 and the^{Defendant is legally liableto repay the saidamountto} the Applicant Bank^{with interest till reatization together with cost andcharges}

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It is further certified that^{no capitialized penal lnterest has been chargedin the loan} accounb whil€ calculating^{the total outstanding claimamount and a relevant certificatesin} @nneclion thereof^{have been enclosed with the ApplicationThe Applicant Bank submits} that the coming^{intoeffeciof the Debts RecoveryTribunal Procedure (Amendment) Rules,} 2016, the fuplicant^{Bankhasto give detailsof the Valuationof the Hypothecatedand} mortgage^{properties as mandated under clause 34 of the amended rules andlhereforein} order to establish^{the valuationof the hypothecated properties,the Applicant Bank had} enctosed Valuation^{Report dated 07.032024 andthe said documents have b€en enclosed} as Annexurc A-20.

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The applicant bank thus became^{constrainedto file the present Original Application} for the recovery of^{R3. 28,74,699.59(Rupees Twenty-Eight Laca Sevonty-Four} Thousand Six Hundred^{Ninety'NinoAndPaBa Fifty-Nine) only as on 13 05 2024} along with interest and cost^{of the application.}

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After liling of the OA the^{Tribunal issued notice uponthedefendantthrough} registered^post and the^{applicant bank filad service reporton 25.07 2024and brought} on record the^postal receipt^{alongwith track consignment reportwhich shows that} nolice has been served upon^{the defendant. Even after serviceof notice also upon the} defendant there was^{no representation on behalfof the defendant either through any} counsel ff in^{person.Hence,the defendantwas set ex- parte on 28.10.2024andhis} right to file Wriften Statement^{cum Evidence on Affidavitwas closedThereafter the} matter was^posted for hearing on behalf^{of the applicant bank.}

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Supporting the claim of the applicant^{bankSri Bijou Uddin Ahmed, Chief Manager} of the Applicant Bank has^{filedevidence on afildavit coupledwith the security}

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S*ad"aao^a"4 )l- 02.]-l- n Presiding Offcar ( , DRT. Gulv.hati

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O A 2322024lDRl€uwahat

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documents marked as Exhibit^- B, AW-1 to AW-20, supporting^{the claim of the applicant} bank.

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Heard the learned counsel for the applicant bank^{who prayedfor issuance of} Recovery Certiticate against the defendant as^{per pleadings madein the Application,} supported by evidence on afridavit of their witness^who affirmed^{on oath the execution} of the securig and other documents by the dsfendant^{and also execution of their own} documents ralied upon, which have been marked exhibits.

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Considering the facts and circumstances^{of the case, I am of theconsidered} view that the documents filed by the applicant^{bank are supporting theclaimof the} applicant bank and establishing the^{liabilityof tha defendant. lt is provedthat the} defendant is liable to^pay to the applicant^{bankthe claim made in the Original} Application. The loan was obtained and^{documentshava been executedon} 17.08.2021.fhe k,an account became NPA on^{08.02.2024 and theoAhas been filed} on 29.05.2024. Hence, the OA^{is filed well within the period of limitationand this} Tribunal having a^jurisdiction to adjudicate^{the Original Application.}

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Considering the unchallenged / unrebutted^{versionof Sri BijouUddin Ahmed'} the applicant's witness and^{all the documents markedas exhibits,including duly} certified copy ol the statement of^{accountalong with interest calculationsheet} maintiained by $e applicant Bank^{in it's regular courseof business,I hold thal the} applicant is entitled to^get the^{Recovery Certitlcate as prayed for.}

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ln the result, the^present Original Application^{No. 232 of 2024is allowed $/ith} cost as under :-

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i) The sole defendant is liable to^pay to^{the applicantbank asum of Rs.} 28,74,699.59^(RuPoes Twenty-Elght^{Lacs Sevsnty-Four ThousandSix} Hundrsd Ninety-l{lne And Peba^{Fifty'Nine} only withpendentelite and future} interest @13.00%^per annum^{with monthly rests from14.05.2024tillthe dateof} full paymenurealization and also cost of^{the application.}

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ii) The charge of the certificated amount^{be kept aliveon hypothecatedvehicle i.e} Make/Model-Ashok Leyland / TF20'12.0T6R;^{Engine No.MHE2409862;} Chassis No. MBI PREHD9MEHG3I96I^{RegistrationNo. AS 01 34 C 0488;}

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SLadu.,a"U1, u'-.oz' lf /f Presiding Offc€r DRT, Guwahali

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oA 23l2o2luoRT_Guwth'ti

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Registered^{in thenameof the Oefendant' as describedin Schedule-Aof the}

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OA till the^{amounlis realizedin full}

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iii) The^{applicantbank is entitledto proceed againstthe secured items towalds} recovery of^{the debts.}

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iv) The^{applicant bankis also entitled to proceed againstthe personal assets and} properties of the defendant^{towards recoveryof the dues}

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The applicant^{bank is entitled to the costsof the O A which includes the}

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v) advocate^{fees of the applicantbankApplicant is direcled to tile the cost memo} within 2 weeks^{from today.}

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vi)lssueRecoverycertilicateaccordinglyforasumRs'28,74,699.59(Rupees Twsnty-Eight^{Lacs Sevsnty'Four Thousand Slx Hundred Ninoty-Nine And} Paisa^{Fifty'Nine) only in favour of the applicant bank against the sole} defendant.

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vii) Communicate^{copy of this order to the concemed parties'}

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This order^{is dictated and conecledby the undersigned'}

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Judgment^{dated 25rh February 2025, signedand pronouncedin theTribunal}

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today under^{mY signature.}

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Copy ot the^{JudgmenuFinal Orderbe uploadedin the Tribunal's Websiteand file}

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be consigned^{to Record Room}

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ss;rtrygS\ (Shiv Sharan DubeY) " Presiding Officet DRT, Guwahati.

State Bank of India v. Zakir Alom Shah

Case brief

What is this about?

What did the court decide?

State Bank of India v. Zakir Alom Shah

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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