STATE BANK OF INDIA vs MS RASHIDA BEGUM on 10 September 2024

1. **Ms. Rashida Begum**, Wife of Sahauddin, carrying on business as proprietress under the name and style of M/s Rashida Manufacturing Enterprise, 2/C/H/10, Chatu Babu Lane, P.S.- Entally. Kolkata – 700014,

..... Defendant

Counsel for parties:

For the Applicant Bank : Mr. Anirban Pramanick.

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

Delivered on 10.09.2024

Applicant, State Bank of India instituted the present Application being the Original Application No.736 of 2018 filed in DRT-3, Kolkata on 05.09.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.11,47,822.00 (Rupees eleven lacs forty seven thousand eight hundred twenty two) as on 14.08.2018 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./ 341 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) That the Defendant is the borrower of the loan account. On or about 06.06.2016 the defendant had applied and approached before the applicant Bank for cash credit facility (Mudra Loan) aggregating to a sum of Rs10,00,000.00 (Rupees ten lakhs) only for the purpose of expansion of her business. The applicant Bank by their appraisal dated 30.06.2016 sanctioned cash credit facility. At the time of sanctioning of said credit facility, the effective rate of interest was @ 9.85% per annum with monthly rests. The primary security for the advance was the hypothecation of socks and receivables be it present or future in the name of the firm. Copy of loan application form and Bio-data form dated 06.06.2016 is annexed and marked with letter 'A' and Exhibit AW-1; copy of Appraisal Form dated 30.06.2016 is annexed and marked with letter 'B' and Exhibit AW-2.

(iii) In consideration of the aforesaid credit facility of Rs.10.00 lakhs, the defendant executed the following security documents:

(a) Hypothecation cum working capital agreement Said document is annexed and marked with letter "C" and Exhibit-AW-3.

3. The Defendant availed and enjoyed the said credit facility by opening Account in Defendant's name in Bank's Rajarhat Branch, Block-A, Rajarhat Expressway, Kolkata – 700157. However the defendant failed and neglected to abide by the terms and conditions of the facilities. The Defendant did not repay the outstanding Bank's dues and overdue interests in loan Account. In spite of repeated requests and personal contact made by the Applicant Bank, the defendant failed to regularize the loan Account. Since the defendant did not pay any attention to regularize the Account, the Account became out of order and was classified as N.P.A. on 28.11.2017. However, these requests were ignored by the defendant and the applicant Bank finding no other alternative issued a legal notice dated 20.08.2018 by its Advocate demanding to repay the outstanding Bank's dues, but the defendant did not comply the said notice; copy of Advocate's letter is annexed and marked with letter 'E' and Exhibit AW-5. Certified copies of Statement of Account along with Certificate under Bankers' Books Evidence Act, with Statement of Claim, have been filed to show and prove the dues (Letter 'D' and Exhibit AW-4), 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 notice / summons was sent to the Defendant by the Tribunal; service of Notice / summons upon the Defendant by postal service has been successfully completed, such has been recorded vide order dated 16.10.2023. 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 04.03.2024. Written notes of arguments have been filed by the applicant Bank on 29.07.2024, wherein stated the brief facts of the case as has been narrated in the original application.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Sri Diptendu Kumar Rakshit, Deputy Manager of Bank's SMECCC, 1, Strand Road, Samriddhi Bhavan, 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 the original documents have been returned to Shri Goutam Kr. Kundu, Manager of Bank's SMECCC, 1, Strand Road, Samriddhi Bhavan, Kolkata-700001 on 14.11.2022, such has been recorded in Ld. Registrar's order dated 14.11.2022. The documents produced by the Applicant Bank are exhibited and annexed at 'AW-1' to 'AW-5'.

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

1. 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 cash credit facility (Mudra Loan) of Rs.10.00 lakhs. Applicant Bank has proved the hypothecated movable assets, described in Schedule at page 12 of the original application.

2. 7. On the point of limitation, Loan has been sanctioned on 30.06.2016, security documents have been executed on 30.06.2016 and original Application has been filed on 05.09.2018. As such, the original Application appears to have been filed well within the period of limitation.

3. 8. Applicant Bank has stated that the outstanding balance in Loan Account as on 14.08.2018 (Interest calculated upto 28.11.2017) is Rs.10,13,612.75 and uncharged interest calculated from 29.11.2017 to 14.08.2018 is Rs.96,110.00.00 have been added / debited in the Account; thus the outstanding claim amount comes to **Rs.11,47,822.00** (Rupees eleven lacs forty seven thousand eight hundred twenty two) as on 14.08.2018, 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 *pendentelite* 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 @ 18% per annum, while in the Arrangement / sanction letter the rate of interest @ 9.85% per annum, with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 9.85% per annum, with quarterly rests, from 15.08.2018, is allowed.

4. 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./341 of 2020 (arising out of O.A./736 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A. /341 of 2020 (arising out of O.A./736 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.11,47,822.00** (Rupees eleven lacs forty seven thousand eight hundred twenty two) due and payable, inclusive of interest and other charges as calculated up to 14.08.2018; and interest for the period *pendentelite* and future rate @ 9.85% per annum, with quarterly rests, from 15.08.2018, 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 *pendentelite* and future interest shall be calculated on the reduced amount.

(iii) The defendant debarred from transferring, alienating, encumbering or disposing of the hypothecated moveable assets; described in 'Schedule' at page 12 of the original Application, as under –

*"Hypothecation of stocks and receivables be it present or future in the name of the firm M/s Rashida Manufacturing Enterprise at 2/C/H/10, Chatu Babu Lane, P.S.-Entally, Kolkata-700014."*

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 immovable 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 favor 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./341 of 2020 (arising out of O.A.736 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 10^th day of September, 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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