CENTRAL BANK OF INDIA vs MR PABITRA SARDAR on 3 July 2024

Page No.

KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2

ORDER SHEET (Continuation)

Central Bank of India

TA/81 of 2019 (O.A./64 of 2018)

Case No. \_\_\_\_\_

Vs. Mr. Pabitra Sardar

<table border="1"><thead><tr><th data-bbox="121 211 194 278">Date of Order</th><th data-bbox="194 211 768 278">Order with Signature</th><th data-bbox="768 211 897 278">Office action with date and dated Signature of parties when necessary</th></tr></thead><tbody><tr><td data-bbox="121 278 194 934">17<br/>03.07.2024</td><td data-bbox="194 278 768 934"><p>Counsel for the parties:<br/>Ms. Tutul Das Singh, Ld. Advocate for the applicant Bank.<br/>None appears for the defendant.<br/>T.A./81 of 2019 (arising out of O.A./64 of 2018) is allowed and disposed of.<br/>Final order / Judgment is in separate sheet.<br/>File be consigned to record room.<br/>Order be uploaded on the Tribunal's website.</p><p style="text-align: right;"><br/>(Arbind Madhav)<br/>Presiding Officer<br/>DRT-2, Kolkata</p></td><td data-bbox="768 278 897 934"></td></tr></tbody></table>

1

TA/81 of 2019 – DRT-2/Kol

**DEBTS RECOVERY TRIBUNAL - 2, KOLKATA**

Jeewan Sudha Bldg. 07^th Floor, 42/C, J.L. Nehru Road, Kolkata – 700071

**Before Shri Arbind Madhav, Presiding Officer**

**T.A. No. 81 of 2019** (arising out of O.A./64 of 2018)

**In the matter of –**

**Central Bank of India**, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Registered Office at Chandernaghar, Nariman Point, Mumbai – 400021, and carrying on business, *inter-alia*, from its Hari Mohan Ghosh Road Branch office at 8D, Hari Mohan Ghosh Road, P.S.- Garden Reach, Kolkata – 700024, District – South 24-Parganas, West Bengal.

..... Applicant Bank

-Versus-

- 1. **Mr. Pabitra Sardar**, Son of Ajit Sardar, residing at Chakraju Molla, Sardarpara, Bishnupur, P.S.- Bishnupur, Kolkata – 700104, District – South 24-Parganas, West Bengal.

..... Defendant

Counsel for parties:

For the Applicant Bank : Ms. Tutul Das Singh, Ld. Advocate S.S. & Associates, Advocates & Legal Consultant For the Defendant : *Ex-Parte*

**FINAL ORDER / JUDGMENT**

Delivered on 03.07.2024

Applicant, Central Bank of India instituted the present Application being the Original Application No.64 of 2018 filed in DRT-3, Kolkata on 25.01.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.11,30,429.00 (Rupees eleven lacs thirty thousand four hundred twenty nine) as on 08.01.2018 together with further interest @ 12.10% per annum, till realization of the entire dues. Subsequently, the instant case has been transferred to DRT-2, Kolkata vide 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 17.10.2019 and the same has been renumbered as T.A./ 81 of 2019 vide Ld. Registrar's order dated 26.10.2019.

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

(i) The defendant is engaged in Transport Business. That the Defendant had approached before the applicant Bank to avail a Term Loan vide loan Application dated 30.10.2014; copy of said loan Application is annexed and marked as Annexure 'A'. The defendant at the time of submission of Loan Application Form submits various documents, i.e. Voter I-Card, PAN Card, Ration Card, Electricity Bill, Driving License for the purpose of verification of residential address of the defendant. Copies of said documents are annexed and marked with Annexure 'B'.

(ii) The defendant in the month of November 2014 submits a Proforma Quotation for the purpose of purchase of Vehicle being Diesel Chassis Model CP-912/49-BS-III issued by Lexus Motors Ltd. In favour of defendant and cost of Body Fabrication for TATA 912/49 BS-III Bus Chasis issued by Julfikar Body Builders with the applicant Bank. Copy of the said proforma/quotation and cost of body fabrication are annexed and collectively marked with Annexure 'C'.

(iii) Upon consideration of loan Application, applicant Bank was pleased to grant / sanction a Term Loan facility of Rs.9,95,000/- (Rupees nine lacs ninety five thousand) under the 'Cent Shayog Scheme' in favour of the defendant vide sanction letter dated 24.11.2014. Copy of sanction letter dated 24.11.2014 is annexed and marked as Annexure 'D'.

(iv) The defendant submitted a Notarized Affidavit in the month of November 2014 for the said loan and undertakes to repay the entire amount alongwith accrued interest as per Bank's Rule. Copy of the said Affidavit is annexed and marked as Annexure 'F'.

(v) At the time of execution of Term Loan Agreement, the applicant sign, acknowledge, admit and deliver Letter of Interest Variation in favour of applicant Bank; copy of the same is annexed and marked with Annexure 'G'.

(vi) At the time of execution, the applicant Bank submits photocopy of Registration Certificate, Offer Letter for getting of Permanent Stage Carriage Permit in Route No. 12-C / 12-C/1 issued by Secretary, Regional Transport Authority, Kolkata, Govt. of West Bengal, Public Vehicles Department dated 15.09.2014. Copies of said documents are annexed and collectively marked with Annexure 'H'.

3. The Defendant availed and enjoyed the said Term Loan facility by opening Account in Bank's Hari Mohan Ghosh Road Branch, 8D, Hari Mohan Ghosh Road, P.S.- Garden Reach, Kolkata – 700024. The loan amount disbursed to the borrower's account. However, the defendant failed and neglected to abide by the terms and conditions of the facility. The Defendant did not repay the agreed EMIs and overdue interests in loan Account. Since the defendant did not pay any attention to regularize the Account inspite of repeated requests made by the Applicant Bank, the Account became out of order and was classified as N.P.A. on 29.04.2014. The applicant Bank vide its letters dated 13.07.2015, 07.08.2015, 10.09.2015, 03.10.2015, 19.10.2015 and 19.11.2015 requesting the defendant to regularize the loan Account, but the defendant did not comply the said letters; copies of said letters are annexed and collectively marked with Annexure 'I'. Despite that the defendant failed and neglected to discharge their obligations under the loan agreement, and the applicant

Bank vide its Letter dated 14.09.2017 duly intimated the same; copy of letter dated 14.09.2017 is annexed and marked with Annexure 'J'. However, the defendant visited the branch premises of the Bank and executed the Balance Confirmation letter dated 29.12.2017 confirming the outstanding balance in the account; copy of said balance confirmation dated 29.12.2017 is annexed and marked with Annexure 'K'. Certified copies of Statement of Account along with Certificate under Bankers' Books Evidence Act, with interest calculation sheet, have been filed to show and prove the dues (Annexure 'L'), and future interest @ 12.10% per annum, till the date of 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 Defendant by the Tribunal; service of Notice / summons upon the Defendant by postal service / hand delivery has been successfully completed, such has been recorded vide Ld. Registrar's order dated 25.01.2023. Applicant Bank was filed an I.A. being I.A./600 of 2019 dated 28.06.2019 praying to allow the applicant Bank to put on sale the hypothecated vehicle and sale proceeds be adjusted with the outstanding dues of the applicant Bank; the I.A. was allowed and disposed of with direction to process of sale along with valuation, details of bid along with successful bidder and reserve price fixed to be filed before the Tribunal by way of Affidavit within four weeks. Despite service, the sole defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded *ex-parte* vide order dated 30.04.2024. Ld. Advocate has submitted arguments on 30.04.2024.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Sajeet Kumar, Branch Manager of Bank's Hari Mohan Ghosh Road Branch, 8-D, Hari Mohan Ghosh Road, Kolkata – 700024 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 the original documents have been returned to 'Sanjoy Sarkar, Branch Manager of Bank's Hari Mohan Ghosh Road Branch, 8-D, Hari Mohan Ghosh Road, Kolkata – 700024 on 25.01.2023, such has been recorded in Ld. Registrar's order dated 25.01.2023. The documents produced by the Applicant Bank are exhibited and annexed at 'A-1' to 'A-12'.

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

6. 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 Term Loan facility under 'Cent Sahyog Scheme' of Rs.9,95,000/-. Applicant Bank has proved the creation of hypothecation of movable assets (vehicle), described in Schedule – I at page 24 of the O.A.

7. On the point of limitation, Loan has been sanctioned on 24.11.2014, security documents have been executed on 24.11.2014 and original Application has been filed on 25.01.2018. The defendant executed a Balance Confirmation dated 29.12.2017 admitting and confirming the outstanding balance in loan Account. As such, the original Application appears to have been filed well within the period of limitation.

8. Applicant Bank has stated that the outstanding balance in Term Loan Account (inclusive of accrued Interest and other charges calculated upto 08.01.2018) is **Rs.11,30,429.00** (Rupees eleven lacs thirty thousand four hundred twenty nine) as on 08.01.2018, which is the amount claimed by the applicant Bank in the original Application, and the defendant is liable to repay the said amount to the applicant Bank with *pendente lite* and future interest, till realization. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest @ 12.10% per annum, while in the sanction letter dated 24.11.2014 the rate of interest @ 10.75% per annum, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 10.75% per annum, with quarterly rests, from 09.01.2018, is allowed.

9. 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./81 of 2019 (arising out of O.A./64 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./81 of 2019 (arising out of O.A./64 of 2018), filed by the Applicant Bank, is allowed and debt is determined with cost against the sole Defendant. It is hereby ordered that the Defendant is hereby directed to pay the total debt amount of **Rs.11,30,429.00** (Rupees eleven lacs thirty thousand four hundred twenty nine) due and payable, inclusive of interest and other charges as calculated upto 08.01.2018; and interest for the period *pendente lite* and future rate @ 10.75% per annum, with quarterly rests, from 09.01.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendant 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 Defendant. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) The defendant debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets (vehicle); described in 'Schedule – I' at page 24 and para 3A at page 7 of the original Application, as under –

"Vehicle being Maker – TATA Motors Ltd. Model – TATA LP 912/49-BS-III-2014 having Registration No.WB-19 G-6046, Engine No.497TC92JVY834343 having value of Vehicle and Body with complete accessories."

The Defendant is also debarred from transferring, alienating, encumbering or disposing any other property(s) either movable or immovable and assets belonging to him till the aforesaid adjudicated debt amount are recovered from the Defendant.

(iv) The defendant is given a time of forty-five days from the date of this Final Order / Judgment for repayment of the above mentioned dues, so intimated to him. In case the Defendant fails 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 Defendant both moveable and immoveable and also proceed against the sole Defendant 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 Defendant 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 sole Defendant, 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./81 of 2019 (arising out of O.A./64 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 03^rd day of July, 2024.

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

(Arbind Madhav) Presiding Officer DRT-2, Kolkata

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