STATE BANK OF INDIA vs SRI KANCHON DATTA on 24 March 2025

1. 1. **Sri Kanchon Datta**, Son of Sri Chanalal Datta, residing at Flat No.J-4, 3^rd Floor, 'Spandan Apartment', 380//1, Jessore Road, P.S.- Barasat now Madhyamgram, Kolkata – 700129.

2. 2. **Ms. Debaroti Datta**, Wife of Sri Kanchon Datta, residing at Flat No.15, 4^th Floor, 'Spandan Apartment', 380//1, Jessore Road, P.S.- Barasat now Madhyamgram, Kolkata – 700129.

.. ..... Defendant

Counsel for parties:

<table border="0"> <tr> <td>For the Applicant Bank</td> <td>: Mr. Anirban Pramanick, Ld. Advocate</td> </tr> <tr> <td>For the Defendant</td> <td>: Ex-Parte</td> </tr> </table>

**FINAL ORDER / JUDGMENT**

Delivered on 24.03.2025

Applicant (State Bank of India), erstwhile State Bank of Bikaner & Jaipur instituted the present Application being the Original Application No.684 of 2018 filed in DRT-3, Kolkata on 14.08.2018 against two Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of **Rs.38,55,684.00** (Rupees thirty eight lacs fifty five thousand six hundred eighty four) as on 07.06.2018 together with further interest @ 18% per annum, till realization of the entire dues. Subsequently, the instant case has been transferred to DRT-2, Kolkata vide the Hon'ble Chairperson DRAT, Kolkata's direction vide letter No.4/6/DRAT/KOL/2018(pt.) dated 16.09.2019, such has been recorded

vide Ld. Registrar, Kolkata DRT-3's Order dated 30.10.2019 and the same has been renumbered as T.A./ 318 of 2020 vide Ld. Registrar's order dated 11.06.2020.

2. The brief facts of the case as set out by the Applicant Bank in its Original Application, as under:

(i) The Defendants are the borrowers and guarantors of the loan account. On 15.09.2013 the defendants had applied and approached the State Bank of Bikaner & Jaipur (SBBJ), Jodhpur Park Branch, P.S.- Lake, Kolkata – 700068, which has been merged into State Bank of India as per Gazette of India Notification dated 22.02.2017, with effect from 01.04.2017 for house building loan to the limit of Rs.25,00,000/-, and upon consideration of Loan Application, applicant Bank was pleased to grant / sanction a Housing / Term Loan to the limit of Rs.25,00,000/- (Rupees twenty five lacs) in favour of the defendants vide Arrangement Letter dated 01.10.2013.

(ii) At the time of sanctioning of said term loan facility, the effective rate of interest was @ 10.35% per annum with monthly rests. The primary security for the said advance was the first and exclusive charge by way of equitable mortgage of one self-contained residential flat (described in Schedule at page 18 and para 3A at page 3 of the O.A.). The said Term Loan was to be repaid in 240 monthly instalments @ 24,541/- per month. Copy of loan application dated 15.09.2013 is annexed and marked with letter 'A' and Exhibit AW-1; copy of letter of arrangement dated 01.10.2013 is annexed and marked with letter 'B' and Exhibit AW-2.

(iii) In consideration of the aforesaid term loan facility of Rs.25.00 lakhs, the defendants executed the following security documents in favour of applicant Bank on dated 01.10.2013:

- (a) Memorandum of Term Loan Agreement for housing loan;

- (b) Letter of consent and agreement to mortgage;

- (c) Affidavit.

Copy of said documents dated 01.10.2013 is annexed and marked with Letter 'C', 'D' & 'E' and Exhibit – AW-3, AW-4 & AW-5 respectively.

(iv) On or about 10.10.2013, the defendants had again applied before State Bank of Bikaner & Jaipur (SBBJ), Jodhpur Park Branch, P.S.- Lake, Kolkata – 700068 for term loan of Rs.5,00,000/-; upon consideration of Loan Application, applicant Bank was pleased to grant / sanction a Term Loan of Rs.5,00,000/- (Rupees five lacs) in favour of the defendants vide Arrangement Letter dated 10.10.2013. The primary security for the said advance was the extension of mortgage of one self-contained residential flat (described in Schedule at page 18 and para 3A at page 3 of the O.A.). The rate of interest for the said term loan of Rs.5.00 lakhs was @ 14.75% per annum with monthly rests. The said Term Loan was to be repaid in 120 monthly instalments @ 7,991/- per month. Copy of loan application dated 10.10.2013 is annexed and marked with letter 'F' and Exhibit AW-6; copy of letter of arrangement dated 10.10.2013 is annexed and marked with letter 'G' and Exhibit AW-7.

(v) In consideration of the aforesaid term loan facility of Rs.5.00 lakhs, the defendants executed and delivered a Memorandum of Loan Agreement for personal loan dated 10.10.2013. Copy of said document dated 10.10.2013 is annexed and marked with Letter 'H' and Exhibit – AW-8.

(vi) The defendants had executed a revival letter dated 08.10.2016 for revival of the said loan Account; copy of said revival letter is annexed and marked with Letter 'I' and Exhibit – AW-9.

(vii) On or about 14.10.2014, the 2^nd defendant had again applied before State Bank of Bikaner & Jaipur (SBBJ), Vivekananda Road Branch, 206/1/F, Bidhan Sarani, P.S.- Girish Park, Kolkata – 700006 for another term loan to the tune of Rs.7,90,000/- for purchase of a vehicle; in pursuance of Loan Application, applicant Bank was pleased to grant / sanction the Term Loan of Rs.7,90,000/- (Rupees seven lacs ninety thousand) in favour of the defendants vide Arrangement Letter dated 15.10.2014. The primary security for the said advance was the hypothecation of the vehicle. The rate of interest for the said term loan of Rs.7.90 lakhs was @ 10.40% per annum with monthly rests. The said Term Loan was to be repaid in 84 monthly instalments @ 13,279/- per month. Copy of loan application dated 14.10.2014 is annexed and marked with letter 'J' and Exhibit AW-10; copy of arrangement letter dated 15.10.2014 is annexed and marked with letter 'K' and Exhibit AW-11.

(viii) In respect to the aforesaid term loan facility of Rs.7.90 lakhs, the defendants executed and delivered the following security documents dated 14.10.2014 in favour of applicant Bank:

1. (a) Loan cum Hypothecation Agreement;

2. (b) Consent Clause.

Copy of said documents dated 14.10.2014 is annexed and marked with Letter 'L' & 'M' and Exhibit – AW-12 & AW-13.

(ix) In consideration of granting and/or agreed for the said credit facility of Rs.7.90 lakhs, the defendant, Sri Kanchon Datta guaranteed payment of all present and future indebtedness and liabilities to the applicant bank by executing a Guarantee Agreement dated 14.10.2014 in favour of applicant bank. Copy of said guarantee agreement dated 14.10.2014 is annexed and marked with Letter 'N' and Exhibit – AW-14.

(x) The defendants thereafter had executed a revival letter dated 20.09.2016 for revival of the said loan Account; copy of said revival letter is annexed and marked with Letter 'O' and Exhibit – AW-15.

(xi) To secure the aforementioned loan facilities granted to the defendants by the applicant bank, the defendants created equitable mortgage in respect of their immovable property (residential flat), morefully described in Schedule at page 18 and para 3A at page 3 of the original application, by depositing original Title Deed with the applicant Bank. Copy of the letter confirming deposit of title deed dated 08.02.2014 is annexed and marked with Letter 'P' and Exhibit – AW-16. Copy of Deed of Conveyance being No.13131 for the year 2013 registered before the District Sub-Registrar – II, 24-Parganas (North) is annexed and marked with Letter

'Q' and Exhibit – AW-17. A copy of valuation report dated 29.09.2013 of the said property is annexed and marked with Letter 'R' and Exhibit – AW-18.

3. The Defendants availed and enjoyed the said loan facilities by opening Accounts in concerned Bank's branch and Accounts maintained in SARB, South Bengal, 1, Middleton Street, Kolkata – 700071. However, the defendants failed and neglected to abide by the terms and conditions of the facility. The Defendants did not repay the outstanding Bank's dues, agreed EMIs and overdue interests in loan Accounts. Inspite of repeated requests and personal contact made by the applicant Bank, the defendants failed to regularize the loan Accounts. Since the defendants did not pay any attention to regularize the Accounts, the Accounts became out of order and was classified as N.P.A. on 01.02.2017. Thereafter, the applicant Bank issued legal notice dated 09.07.2018 through its Advocate demanding to repay the outstanding Bank's dues, but the defendants did not comply the said notice; copy of Advocate's letter dated 09.07.2018 is annexed and marked with letter 'T' and Exhibit AW-20. Certified copies of Statement of Accounts along with Certificate under Bankers' Books of Evidence Act, with Statement of Claim, have been filed to show and prove the dues (Letter 'S' and Exhibit AW-19), and future interest @ 18% per annum together with costs etc. till realization, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

4. The notices / summons was sent to the Defendants No.1 & 2 by the Tribunal; service of Notices / summons upon the Defendants by postal service has been successfully effected, such has been recorded vide Ld. Registrar's order dated 03.11.2022. Despite service, the defendants did not appear nor filed the written statement; thus, both the defendants were ordered to be proceeded *ex-parte* vide order dated 11.01.2024. Written notes of arguments has been filed by the applicant Bank on 10.12.2024 wherein stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted arguments on 21.02.2025.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Abanindranath Haldar, City Case Officer of Bank's SARB, South Bengal, Jeevan Deep Bldg., 1, Middleton Street, Kolkata – 700071 along with the copies of original documents executed by the Defendants. Original documents have been produced by the applicant Bank; the same have been verified with copies of the documents annexed with O.A. and after verification the original documents have been returned to Shri Abhijeet Kumar, CCO of Bank's SARB, South Bengal, Jeevan Deep Bldg., 1, Middleton Street, Kolkata – 700071 on 03.11.2022, such has been recorded in Ld. Registrar's order dated 03.11.2022. The documents produced by the applicant Bank are exhibited and annexed at AW-1 to AW-20.

6. I have heard the Ld. Advocate of the applicant Bank and perused the records.

7. Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, un-rebutted and its veracity cannot be put to dispute. Applicant Bank has corroborated the averments made in the O.A. Applicant Bank has proved the sanction of Housing / Term loan-facilities to the limit of Rs.25.00 lakhs vide Arrangement Letter dated 01.10.2013, Term Loan of Rs.5,00,000/- vide

Arrangement Letter dated 10.10.2013 and another Term Loan of Rs.7,90,000/- vide Arrangement Letter dated 15.10.2014. Applicant Bank has proved the creation of equitable mortgage of immovable property, described in Schedule at page 18 and para 3A at page 3 of the original application.

8. On the point of limitation, Loan has been sanctioned on 01.10.2013, 10.10.2013 & 15.10.2014; security documents have been executed on 01.10.2013, 10.10.2013 & 14.10.2014 and original Application has been filed on 14.08.2018. Further, the defendants created equitable mortgage in respect of their immovable property (residential Flat) by depositing title deed with the Bank, and executed and delivered a Letter confirming deposit of title deed dated 08.02.2014 in favour of applicant Bank. As such, the original Application appears to have been filed well within the period of limitation. .

9. Applicant Bank has stated that the outstanding balance in Loan Accounts are –

HBL Account No.61203612103:

<table> <tbody> <tr>

<td></td> </tr> <tr> <td>(interest applied upto 01.02.2017)</td> <td>: Rs.23,72,316.00</td> </tr> <tr> <td>Accrued interest from 02.02.2017 to 07.06.2018</td> <td>Rs. 3,97,790.00</td> </tr> <tr>

</tr> <tr> <td></td> <td>Rs.27,77,547.00</td> </tr> </tbody> </table>

TL Account No.61204561755:

<table> <tbody> <tr> <td>Outstanding balance as on 07.06.2018</td> <td></td> </tr> <tr> <td>(interest applied upto 01.02.2017)</td> <td>: Rs. 3,61,916.37</td> </tr> <tr> <td>Accrued interest from 02.02.2017 to 07.06.2018</td> <td>Rs. 59,699.63</td> </tr> <tr>

</tr> <tr> <td></td> <td>Rs. 4,23,275.00</td> </tr> </tbody> </table>

TL Account No.61241363078:

<table> <tbody> <tr> <td>Outstanding balance as on 07.06.2018</td> <td></td> </tr> <tr> <td>(interest applied upto 01.02.2017)</td> <td>: Rs. 5,85,752.13</td> </tr> <tr> <td>Accrued interest from 02.02.2017 to 07.06.2018</td> <td>Rs. 67,232.87</td> </tr> <tr>

</tr> <tr> <td></td> <td><u>Rs. 6,54,862.00</u></td> </tr> </tbody> </table>

<table> <tbody> <tr> <td>Total :</td> <td><u><b>Rs.38,55,684.00</b></u></td> </tr> </tbody> </table>

(Rupees thirty eight lacs fifty five thousand six hundred eighty four) as on 07.06.2018, which is the amount claimed by the applicant Bank in the original Application, and the defendants No.1 & 2 are, jointly and/or severally, liable to repay the said amount to the applicant Bank with *pendente lite* and future interest, till realization in full. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest @ 18% per annum till the date of realization of entire dues, while in the letter of arrangement dated 01.10.2013 the rate of interest @ 10.35% per annum, letter of arrangement dated 10.10.2013 the rate of interest @ 14.75% per annum and arrangement letter dated 15.10.2014 the rate of interest @ 10.40% per annum, with monthly rests, have been mentioned. The defendants have taken the loan for house building; therefore, in my view, the *pendente lite* & future rate of interest @ 10.35% per annum, simple, from 08.06.2018, is allowed.

10. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved to claim made in the O.A./T.A. The T.A. being T.A./318 of 2020 (arising out of O.A./684 of 2018) deserves to be allowed; hence allowed.

11. In view of the above, I pass the following order :-

ORDER

(i) T.A./318 of 2020 (arising out of O.A./684 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the Defendants No.1 & 2. It is hereby ordered that the Defendants No.1 & 2 are hereby directed to pay, jointly and / or severally the total debt amount of **Rs.38,55,684.00** (Rupees thirty eight lacs fifty five thousand six hundred eighty four) due and payable, inclusive of interest and other charges as calculated upto 07.06.2018; and interest for the period *pendente lite* and future rate @ 10.35% per annum, simple, from 08.06.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan accounts or amount, if any, recovered by the applicant Bank after filing of the Original Application, the same may be taken into account while arriving at the exact amount of dues/debt payable by the Defendants No.1 & 2. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) The defendants No.1 & 2 are debarred from transferring, alienating, encumbering or disposing of the mortgage immovable property; described in Schedule at page 18 and para 3A at page 3 of the original application, as under –

"ALL THAT piece and parcel of one self-contained residential flat measuring about 1228 sq.ft. super built up area being Flat No.J-4, 3^rd Floor, 'Spandan Apartment', 380/1, Jessore Road, Kolkata – 700129, P.S.- Barasat now Madhyamgram, together with one car parking space being No.CS-5 on the ground floor containing a super built up area of 185 sq.ft. together with undivided proportionate impartible share or interest in the land or soil of the said premises under ward No.22 (formerly 20), within Madhyamgram Municipality, District – 24-Parganas (North)."

The Defendants No.1 & 2 are also debarred from transferring, alienating, encumbering or disposing any other property(s) either movable or immovable and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants.

(iv) The defendants No.1 & 2 are given a time of sixty days from the date of this Final Order / Judgment for repayment of the above mentioned dues, so intimated to them. In case the Defendants fail to pay the dues within the above mentioned time, the applicant Bank is entitled to recover its dues by sale of secured properties, as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendants No.1 & 2 both moveable and immovable and also proceed against the Defendants personally to recover the dues, in accordance with law.

(v) Let the Certificate of Recovery be drawn up by Ld. Registrar forthwith in terms of Final Order / Judgment for issuance of the same against the Defendants No.1 & 2 in favour of applicant Bank under Section 19(22) of the Recovery of Debts and Bankruptcy Act, 1993 (amended from time to time) and put up the same for signature for issuance.

(vi) Ld. Recovery Officer shall realize the amount as per the Recovery Certificate from the Defendants No.1 & 2, in accordance with law.

(vii) Ld. Registrar of this Tribunal is directed to place Recovery Certificate in terms of this Final Order / Judgment under section 19(22) of the Act of 1993.

**Accordingly, the Original Application, being T.A./318 of 2020 (arising out of O.A./684 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 24^th day of March, 2025.

Copy of the Final Order / Judgment be uploaded in the Tribunal's Website.

*Arbind Madhav*

24.3.25 (Arbind Madhav) Presiding Officer DRT-2, Kolkata

tb