STATE BANK OF INDIA vs MS SARO PRODUCTION AND MARKETING CO on 8 July 2025

1. 1. **SARO Production & Marketing Co.**, a partnership firm of 238, Baker Road, Kolkata – 700027 and also of Vill.- Patharberia, P.O.- Ramchandranagar, 24-Parganas (South), Pin – 743503, West Bengal.

2. 2. **Mr. Raju Batabyal**, son of Late Satya Charan Batabyal, partner of SARO Production & Marketing Co. of Vill.- Patharberia, P.O.- Ramchandranagar, 24-Parganas (South), Pin – 743503, West Bengal.

3. 3. **Mr. Chandi Charan Batabyal**, son of Late Santosh Kumar Batabyal, partner of SARO Production & Marketing Co. of Vill.- Patharberia, P.O.- Ramchandranagar, 24-Parganas (South), Pin – 743503, West Bengal.

..... Defendants

Counsel for parties:

For the Applicant Bank : Md. Minhajuddin, Ms. Gunja Pachisia, Ms. Pinky Singh.

For the Defendants : *Ex-Parte***FINAL ORDER / JUDGMENT**

Delivered on 08.07.2025

Applicant, State Bank of India, instituted the present Application being the Original Application No.263 of 2018 filed in DRT-3, Kolkata on 05.06.2018 against three Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.10,84,192.00 (Rupees ten lacs eighty four thousand one hundred ninety two) as on 08.03.2018 with further interest on judgment @ 12.70% per annum, till realization in full. 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./273 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) That the Defendant No.1 is a partnership firm and the borrower and the defendants No.2 & 3 are the partners of the firm made an application with the applicant Bank for grant of loan facility. That the loan was originally sanctioned and disbursed from the Salt Lake City Branch at State Bank of Hyderabad, which has now merged into State Bank of India as per the Gazette of India notification dated 22.02.2017. Though the loan was sanctioned from State Bank of Hyderabad, Salt Lake City Branch but the loan documents and loan account is now maintained at State Bank of India, S.M.E.C. Kolkata at 'Samridhi Bhavan', 1, Strand Road, 4^th Floor, P.S.- Hare Street, Kolkata 700001. Upon consideration of loan application, applicant Bank was pleased to grant / sanction the overdraft facility to a sum of Rs.5,00,000/- (Rupees five lacs) in favour of the defendants vide letter of arrangement dated 14.11.2011. The defendants duly agreed and accepted the terms and conditions of the said sanction. Copy of letter of arrangement dated 14.11.2011 is annexed and marked as Annexure 'A-1'.

(ii) In consideration of aforesaid credit facility of Rs.5.00 lakhs, the defendants executed and delivered the following security document dated 14.11.2011:

- (a) Agreement of Loan-cum-Hypothecation of entire current assets, such as stocks, book debts etc, both present and future including inventory, receivables and other current assets of entire plant and machinery, present and future;

- (b) Guarantee Agreement wherein agreed to stand as personal guarantor.

Copy of said documents are annexed and marked Annexure 'A-2' & 'A-3' respectively.

(iii) To secure the aforesaid loan facility, the defendants created equitable mortgage in respect of immovable property, described in Schedule 'A' at page 18 and para III.A at page 4 & 5 of the O.A., by depositing original Title Deed Being No. I-1765 of 2002 in favour of applicant Bank, and the same is registered in the Office of Addl. District Sub-Registrar of Bishnupur. The said defendants also confirmed the creation of mortgage by executing a letter of confirmation of mortgage by deposit of title deed dated 14.11.2011. Copy of the Deed being No. I-1765 of 2002 is annexed and marked as Annexure 'A-4' and copy of letter of confirmation for creation of mortgage dated 14.11.2011 is annexed and marked as Annexure 'A-5'.

3. The Defendants availed and enjoyed the aforesaid overdraft facility of Rs.5.00 lacs by opening Account in Bank's Salt Lake City Branch, Sector – 1, Kolkata – 700064. 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 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 26.02.2012. Thereafter, applicant Bank finding no other alternative issued a legal notice dated 25.01.2018 through its Advocate demanding to pay the outstanding loan amount, but the defendants did not comply the said notice; copy of Advocate's letter dated 25.01.2018 is annexed and marked as Annexure 'A-6' along with speed post tracking Report as obtained from the India Post website evidencing due service of notice is annexed and marked as Annexure 'A-7'. Certified copies of Statement of Account along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, have been filed to show and prove the dues (Annexure 'A-7'), and future interest on judgment @ 12.70% per annum on and from 09.03.2018, till realization in full, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

4. The notice / summons was sent to the Defendants No.1 to 3 by the Tribunal; service of Notice / summons upon the Defendants by postal service were successfully completed, such has been recorded vide Ld. Registrar's order dated 31.03.2022; and the defendants No.1 & 2 appeared through Advocate on 31.03.2022. Ld. Advocate of the applicant Bank has filed the English translation copy of Bengali title deed being No. I-1765 of 2002 by way of a Supplementary Affidavit dated 11.09.2023. After 31.03.2022, the defendants did not appear nor filed the written statement; thus, all the defendants were ordered to be proceeded *ex-parte* vide order dated 25.01.2024. Written notes of arguments has been filed on behalf of applicant Bank on 24.06.2024 wherein stated the brief facts of this case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted arguments on 16.12.2024.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Diptendu Kumar Rakshit, Deputy Manager of Bank's SMEC.Kolkata, 1, Strand Road, Samriddhi Bhawan, Annexe Building, Kolkata – 700001 along with the copy of original documents executed by the Defendant. 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 Sri Goutam Kumar Kundu, Manager of Bank's SMEC Kolkata, 1, Strand Road, Samriddhi Bhawan, Kolkata – 700001 on 31.03.2022, such has been recorded in Ld. Registrar's order dated 31.03.2022. The documents produced by applicant Bank are exhibited and annexed at 'A-1' to 'A-5'.

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, unrebutted 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 overdraft facility of Rs.5.00 lakhs vide letter of Arrangement dated 14.11.2011. Applicant Bank has proved the creation of mortgage in respect of immovable property, described in Schedule 'A' at page 18 and para III.A at page 4 & 5 of the original application.

8. On the point of limitation, Loan has been sanctioned on 14.11.2011, security documents have been executed on 14.11.2011; and original Application has been filed on 12.04.2018. Further, the defendants created equitable mortgage in respect of immovable property by depositing Title Deed with the applicant Bank, and the defendants has confirmed the mortgage by executing letter of confirmation for creation of mortgage by deposit of title deed(s) dated 14.11.2011. As per law 12 years period from the date of mortgage is available to the applicant Bank to enforce it's claim (Article 62 Schedule I of Limitation Act); hence, on the basis of mortgage created on 14.11.2011, the claim / original Application is filed well within the period of limitation as prescribed u/s 24 of RDB Act, 1993 (as amended from time to time).

9. Applicant Bank has stated that the outstanding balance in Loan Account (inclusive of accrued Interest and other charges as calculated upto 08.03.2018) is **Rs.10,84,192.00** (Rupees ten lacs eighty four thousand one hundred ninety two) as on 08.03.2018, which is the amount claimed by the applicant Bank in the original Application, and the defendants No.1 to 3 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 on judgment @ 12.70% per annum with monthly rests, while in the letter of Arrangement dated 14.11.2011 the rate of interest @ 15% per annum, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 12.70% per annum, with quarterly rests, from 09.03.2018, 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./273 of 2019 (arising out of O.A./263 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./273 of 2019 (arising out of O.A./263 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the Defendants No.1, 2 & 3. It is hereby ordered that the Defendants No.1, 2 & 3 are hereby directed to pay, jointly and / or severally, the total debt amount of **Rs.10,84,192.00** (Rupees ten lacs eighty four thousand one hundred ninety two) due and payable, inclusive of interest and other charges as calculated upto 08.03.2018; and interest for the period *pendente lite* and future @ 12.70% per annum, with quarterly rests, from 09.03.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan account 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 & 3. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) Defendants No.1, 2 & 3 are debarred from transferring, alienating, encumbering or disposing of the mortgaged immovable property(s), described in Schedule 'A' at page 18 and para III.A at page 4 & 5 of the original Application, as under:

*"All That piece and parcel of land with structure measuring 10 decimal more or less Mouza – Patherberia, J.L. No.52, Touzi No.40, Ra Sa No.56, Dag No.1457 & 1458, L.R Khatian No.2270, R.S. Khatian No.413, P.S.- Bisnupur, District – South 24-Parganas under Deed No.1765 of 2002 registered in favour of Chandi Charan Batabayal."*

The Defendants are also debarred from transferring, alienating, encumbering or disposing any other property(s) and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants No.1 to 3.

(iv) Defendants No.1, 2 & 3 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 property(s), as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendants both moveable and immovable and also proceed against the Defendants No.2 & 3 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 & 3 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 Defendants No.1, 2 & 3, 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.AJ273 of 2019 (arising out of O.AJ263 of 2018) is allowed and stands disposed of.**

File be consigned to Record room.

This order is dictated and corrected by the undersigned and pronounced on this the 08^th day of July, 2025.

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

(Arbind Madhav) Presiding Officer DRT-2, Kolkata