STATE BANK OF INDIA vs SRI LALIT SARAF on 25 March 2025

1. 1. **Sri Lalit Saraf**, Son of Late Rajendra Prasad Saraf, carrying on business as proprietor under the name and style of M/s L.M. Fab from 29, Shibtala Street, Ground Floor, Kolkata – 700007; and residing at BD 203, Rabindra Pally,, Kestopur, Kolkata – 700101.

2. 2. **Sri Abir Kumar Majumdar**, Son of Late Alok Kumar Majumdar, residing at Bijoy Krishna Pally, P.O.- Narendrapur, Kolkata – 700103.

..... Defendants

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>: <i>Ex-Parte</i></td> </tr> </table>

**FINAL ORDER / JUDGMENT**

Delivered on 25.03.2025

Applicant (State Bank of India), erstwhile State Bank of Bikaner & Jaipur instituted the present Application being the Original Application No.273 of 2018 filed in DRT-3, Kolkata on 17.04.2018 against two Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of **Rs.12,49,709.00** (Rupees twelve lacs forty nine thousand seven hundred nine) as on 09.03.2018 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 19.10.2019 and the same has been renumbered as T.A./ 229 of 2019 vide Ld. Registrar's order dated 28.10.2019.

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

(i) The Defendant No.1 is the borrower of the loan account; and the 2^nd defendant is the guarantor. On 15.02.2014 the defendant No.1 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 cash credit facility for a sum of Rs.10,00,000/-, and upon consideration of Loan Application, applicant Bank was pleased to grant / sanction a cash credit facility to the limit of Rs.10,00,000/- (Rupees ten lacs) in favour of the defendant No.1 vide Letter of Arrangement dated 28.02.2014.

(ii) At the time of sanctioning of said loan facility, the effective rate of interest was @ 13% per annum with monthly rests. The primary security for the said advance was the hypothecation of stock and collateral security was the STDR of Rs.2,00,000/- and third party guarantee of Sri Abir Majumdar (hereinafter referred to as Defendant No.2). Copy of loan application form is annexed and marked with letter 'A' and Exhibit-1; copy of letter of arrangement dated 28.02.2014 is annexed and marked with letter 'B' and Exhibit-2.

(iii) In respect of the aforesaid cash credit facility of Rs.10.00 lakhs, the defendant No.1 executed and delivered the Agreement of loan cum hypothecation dated 28.02.20014 by way of security, acknowledgement of debt and promise to pay with certain terms and conditions. Copy of said document dated 28.02.2014 is annexed and marked with Letter 'C' and Exhibit-3.

(iv) To secure the aforesaid credit facility of Rs.10.00 lakhs granted to the defendant No.1 by the applicant bank, the defendant No.2, Sri Abir Kumar Majumdar guaranteed payment of all present and future indebtedness and liabilities to the applicant bank by executing a Guarantee Agreement dated 28.02.2014 for the sum of Rs.10.00 lakhs. Copy of said Guarantee Agreement dated 28.02.2014 is annexed and marked with Letter 'D' and Exhibit-4.

(v) The defendants thereafter had executed a revival letter dated 03.01.2017 for revival of the said loan Account; copy of said revival letter is annexed and marked with Letter 'E' and Exhibit-5.

3. The Defendants availed and enjoyed the said loan facilities by opening Account in erstwhile Bank's Jodhpur Park Branch and Accounts maintained in SMECCC, 1, Strand Road, Samriddhi Bhawan, Annex Bldg., 4^th Floor, Kolkata – 700001. 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 and overdue interests in loan Account. Inspite of repeated requests and personal contact made by the applicant Bank, the defendants failed to regularize the loan Account. Since the defendants did not pay any attention to regularize the Account, the Account became out of order and was classified as N.P.A. on 13.07.2015. Thereafter, the applicant Bank issued legal notice dated 10.03.2018 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 10.03.2018 is annexed and marked with letter 'G' and Exhibit-7. Certified copies of Statement of Account along with Certificate under Bankers' Books of Evidence Act, with Statement of Claim, have been filed to show and prove the dues (Letter 'F' and Exhibit-6), 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 16.06.2022. 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 27.03.2024. Written notes of arguments has been filed by the applicant Bank on 16.12.2024 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 25.02.2025.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Diptendu Kumar Rakshit, Deputy Manager of Bank's SMECCC, 1, Strand Road, Samriddhi Bhawan, Annex Bldg., 4^th Floor, Kolkata – 700001 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 Diptendu Kumar Rakshit, Deputy Manager of Bank's SMECCC, 1, Strand Road, Samriddhi Bhawan, Kolkata – 700001 on 17.09.2018, such has been recorded in Ld. Registrar-in-charge's order dated 17.09.2018. The documents produced by the applicant Bank are exhibited and annexed at A-1 to A-7.

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 cash credit facility to the limit of Rs.10.00 lakhs vide letter of arrangement dated 28.02.2014. Applicant Bank has proved the creation of hypothecated movable assets as primary security of the said loan, described in Schedule at page 13 and para 3A at page 3 of the original application.

8. On the point of limitation, Loan has been sanctioned on 28.02.2014; security documents have been executed on 28.02.2014 and original Application has been filed on 17.04.2018. Further, the defendants executed and delivered a revival letter dated 03.01.2017 in favour of applicant bank confirming the outstanding balance in loan Account. 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 Account (inclusive of accrued interests and other charges as calculated upto 09.03.2018) for an amount of **Rs.12,49,709.00** (Rupees twelve lacs forty nine thousand seven hundred nine) as on 09.03.2018, 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 28.02.2014 the rate of interest @ 13% per annum, with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 13% per annum, with quarterly rests, from 10.03.2018, 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./229 of 2019 (arising out of O.A./273 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./229 of 2019 (arising out of O.A./273 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.12,49,709.00** (Rupees twelve lacs forty nine thousand seven hundred nine) due and payable, inclusive of interest and other charges as calculated upto 09.03.2018; and interest for the period *pendente lite* and future rate @ 13% per annum, with quarterly rests, from 10.03.2018, 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 hypothecated movable assets; described in Schedule at page 13 and para 3A at page 3 of the original application, as under –

"Stocks lying at M/s L.M. Fab situated at 29, Shibtala Street, Ground Floor, Kolkata – 700007."

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.

5. T.A./229 of 2019 – DRT-2/Kol

(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./229 of 2019 (arising out of O.A./273 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 25^th day of March, 2025.

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

25-3-25 (Arbind Madhav) Presiding Officer DRT-2, Kolkata

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