STATE BANK OF INDIA vs ASHOK BISWAS AND ORS on 16 March 2020

JUDGEMENT

This is an Transfer Application under Section Debts Due to Banks and Financial Institutions 19 of the Recovery of Act, 1993 initiated by the applicant against the defendants praying for issuance of Recovery Certificate to the tune of Rs.14,66,I23.79 together with interest, cost and other usual reliefs. The brief facts of the case as made out in the Transfer Application by the applicant bank is that the defendant no.1 had approached the applicant bank for grant of financial assistance for his cultivation of

3. fishery business wherein the defendants no.2 and 3 had stood as guarantors. The applicant bank after examining the feasibility of the said proposal had sanctioned an agriculture loan of Rs.10.50 lakhs on 07.77.2007 in favour of defendant no.1 with certain terms and conditions, which was accepted by the defendants. To avail the above loan limit, the defendants had executed the loan documents on

07. fl-2007 in favour of the applicant bank. To secure the above loan, the defendants no.1 to 3 had created equitable mortgage of their properties in favour of the applicant bank by depositing the original title deed in the bank. After availing the loan, the defendant no.1 had utilized the said loan amount in his business and operated the loan account at the initial stage but subsequently the defendants had failed to operate the said loan account in terms of the agreement between the parties as a result of which the loan account became irregular. A sum of Rs.14,66,723,78 is due against the defendants which the defendants had not paid despite repeated demands and request. Finding no other way to recover the dues of the bank, the applicant bank had Rled this Transfer Application for the recovery of the aforesaid amount and for the issuance of Recovery Certificate against the defendants. Notices were issued to the defendants to show cause as to why the relief prayed for by the applicant bank be not granted. After issuance of the notice, the defendants had neither appeared nor had filed their show cause reply. Consequently, the said defendants were set ex- parte on 13.12.2019. The Tribunal had no other option but to hear ex- parte against the defendants. I have heard the learned Counsel for the applicant bank and have perused the relevant documents.

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7. The defendants had not contested the case of the applicant bank. Thus, the point for determination in this case is (i) Whether the claim of the applicant bank is within time ? (ii) Whether the defendants had utilized the loan faciliues granted by the bank ? (iti) Whether the defendants are liable to the amount due to the applicant bank or not ? The applicant bank by oral and documentary evidence has established its case. The documentary evidence comprlses from Annexure/Exhibit- A to Annexure/Exhibit-H, which are available in paper book filed by the aPplicant bank. From the perusal of the documents referred above and the certified copy of the statement of account, which is filed as Annexure/Exhibit_A to H, it is estaOlished that the defendants had availed the financial facilities from the applicant bank and had withdrawn the amount through the account. The oral testimony comprises of an affidavit of Shri Gouri Sankar working as Chief Manager of the Applicant Bank. The averments in application and the facts stated by the witness of the applicant in affidavit are un rebutted. From the perusal of the Statement of Account which is Annexure/Exh ibit- H, the total outstanding comes to Rs.14,66,123.7g which the applicant bank is entiued to recover from the defendants.

11. In view of the above discussion and after considering the entire evidence-on-affidavit of the applicant bank and the documents filed by the applicant bank, I have no hesitation to hold that the applicant bank is entiUed to recover a sum of Rs.14,66,123.78 from the defendants who are liable for the same. The applicant bank shall also be entitled to pendentelite and future interest on the said amount @ B,

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117o Per annum with simple from the date of filing of the Original Application till the date of realization.

ORDER

(1) T.A. No.202 of 2014 filed by the Applicant Bank is allowed and debt is determined with cost against the defendants. It is hereby ordered that applicant bank is entitled to recover from the defendants the total amount to the tune of Rs.14,66,123.78 (Rupees Fourteen Lakhs Sixty Six Thousand One Hundred Twenty Three and Palse Seventy Eight only) with pendentelite and future interest @ 11olo per annum with simple on the amount due from the date of filing of the Transfer Application, i.e. 12.08.2014 (i.e. O.A. No.946 of 2014) tlll full and final realization of the claim amount.

(2) Amount, if any, paid by the defendants in the loan account or amount, if any, recovered by the Applicant Bank after flling of the T.A. the same be taken into account while arriving at the exact amount of dues/debt payable by the defendants. Accordingly, pendentelite and future interest shall be calculated on the reduced amount.

(3) Defendants are debarred from disposing, alienating or dealing with any of the properties belonging to them till the aforesaid decretal debt is recovered from the defendants.

(4) Defendants are given a time of thirty days from the date of the Judgement/Final Order for repaying of the above mentioned dues, so intimated to them. In case the defendants fails to pay the dues within the above mentioned time, the applicant bank is entitled to recover its dues by sale of secured assets, if any. Applicant bank is also entitled to proceed against personal properties of the defendants (Both movable and immovable) and also proceed against the defendants personally to recover the dues in accordance with law.

(5) Let the CertiRcate of Recovery be drawn up by Ld. Registrar forthwith in terms of Judgement for issuance of the same against defendants in favour of the applicant bank under Section 19 (22) of the Recovery of Debts and Bankruptcy Act, 1993 and put up the same for issuance of the Certificate. o-

(6) Ld. Recovery OFficer shall realize the amount as Per the Recovery Certificate from the defendants in accordance with law.

(7) Ld. Registrar of this Tribunal is directed to deliver recovery certificate in term of the final orderfiudgement for recovery of the sum against the defendants in favour of the Applicant Bank under Section L9 (22) of the Recovery of Debts due to the Bank and Financial Institutions Act, 1993 now known as Recovery of Debts and Bankruptcy Act, 1993. Accordingly, the Original Application being T.A. No.202 of 2014 is allowed and stands disposed of, Copy of the ludgement/Final Order be upload in the Tribunal's website. File is consigned to the Record Room. ( Dictated to P.S., transcribed by him, corrected, signed and pronounced by me in the open court on this the 16th day of March, 2020 ) A'n u*-\,'u'r' ( ANIL KUMAR CHATURVEDI ) PRESIDING OFFICER.

Order Sheet (Continuation) State Bank of India. Vs. Ashok Abiswas & Ors. Cas6 No. T.A. No.202 of 2014 er pronoun ide separate sheets). with costs. In the result, T.A. No.202 of 2014 is allowed Issue Recovery Certificate accordingly. Oato of Ords. Office action wdh date rnd d.ted signrture ol partle3 when nrc9394ry Order No.19 16.0 3.2020

1.1. la^s.^1r.ll (A.K,Chaturvedi) Presiding Officer, DRT-3, Kolkata. Order with Signaturo