CENTRAL BANK OF INDIA vs ASIT KUMAR DEY on 9 November 2020

1. ]UDGEMENT This is an Original Applicatlon made of Debts Due to Banks and Financial the applicant against the Certificate to the tune of and other usual reliefs. under Section 19 of the Recovery Institutions Act, 1993 initiated by defendants praying for issuance of Recovery Rs. 29,88,783/- together with interest, cost a

2. The instant Original Application being Case T.A. No. 64 of 2014 arising out of No. O.A. 696 of 2014 was filed on 17.06.2014 before the DRT- II, Kolkata for recovery of a sum of Rs. 29,88,783/- due and payable from the defendants No. 1, being the principal borrower, towards outstanding dues as on 27,05.2014 in respect of the credit facilities to the tune of Rs. 25,00,000/- sanctioned and granted by the Applicant Bank to the Borrower/Defendant No. 1 under CGTMSE facility. The instant O.A. No. 696 of 2014 had been flled before the 0RT-II, Kolkata within the period of limitation and within the jurisdictlon of the Hon'ble Tribunal. Subsequently, the O.A. has been transferred to this Hon'ble DRT-III, Kolkata and renumbered as T'A. No. 64 ot 2014. The brief facts of the case as made out in the Original Application by the applicant bank is that the defendant No.1 made a request to the applicant's branch at Salt Lake Branch on or about 07 'LZ'ZOIL for cash credit Loan facilities of Rs. 25,00,000/- and submitted requisite information by way of letter of Hypothecation of Stock, D'P' Notes daled 24.12.2012 and signing of letter of consent dated 24'12'2012' The Applicant Bank having given due consideration and after proper scrutiny of the apPllcation dated 7th December, 2011 submltted by the Borrower, being the Defendant No. 1, sanctioned a cash credit facilities for limit of Rs. 25,OO,OOO/- only vide its sanctlon letter dated 22,12,207L to the Borrower. The defendant on acceptance of the terms and conditions as contained in the sanction letters dated 2Z'L2'2017 and as stipulated ln Annexure-'B' executed certain documents and a Demand Promissory Notes for Rs.25,OO,OOO/-, as stipulated along with Annexurerc" with a promise to pay a total sum of Rs' 25,OO,O0O/- to the Applicant Bank on demand with interest thereon with monthly rest J.

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The defendant No. 1, to secure the said cash credit loan facilities, executed Letter of Hypothecation of Stock on 24.12.2Ot2 and a letter of consent in favour of the applicant for Rs. 25,00,000/- agreeing to pay interest @ 1olo Per annum over the central Bank's Prime Lending Rate with monthly rests and deposited several other documents which would be kept as security as stipulated in Annexure -'A'and Annexure -'c-3'. To secure the loan, defendant No. 1 agreed and guaranteed for payment of Rs. 25,0O,OOO/- together with interest thereon or on such sum as might be due or at such other rate of interest with the applicant in respect of Cash Credit loan facilities availed of by him' The defendant No. t had executed the following banking documents on:

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9. i) ii) iii) Letter of Hypothecation of Stock dated Demand Promissory Notes bY the 24.12.2012 Letter of consent daled 74.12.2072' 24.12.20L2 Defendant No. 1 dated The defendant enjoyed the money from the aforesaid loan but failed to operate the Cash Credlt Loan accounts effectively and as a result of which the loan accounts became irregular NPA on and from 28.06.2013 and for which the Applicant had issued letters dated ?7.09.2013 Under section 13(2) of the SARFAESI Act, 2002' The Borrower being the Defendant No. 1 neglected to pay their outstanding amount in spite of letter sent on 27.09 2013 as stipulated in Annexure

- 'D-4'. A sum of Rs. 29,88,783/- is due against the defendant which the defendants had not paid despite repeated demands and requests' Finding no other way to recover the dues of the bank, the applicant o(

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12. bank had filed this Oriqinal Application for the recovery of the aforesaid amount and for the issuance of Recovery Certificate against the defenda nts. 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 defendant appeared through their Counsel and prayed time for filing of W.S. But no W.S. was filed on behalf of the sole defendant as a result of which they were proceeded ex-parte vide order dated 06.02.2020 of this Tribunal. 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. The defendant 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 defendant had utilized the loan facilities granted by the bank? (iii) Whether the defendant is liable to pay the amount due to the applicant bank or not? The applicant bank by oral and documentary evidence has established its case. The documentary evidence comprises from Annexure/Exhlbit- 'A' to Annexure 'X', whlch are available in paper book filed by the applica nt bank. From the perusal of the documents referred above and the certifled copy of the statement of account, which is filed as Annexure'A' - 'X" it is established that the defendant had availed the financial facilities from the applicant bank and had withdrawn the amount through the account.

14. tt5. The oral testimony comprises of an affidavit of Shri Indranil Kumdu, working as Branch Manager of the Applicant Bank' The averments in the application and the facts stated by the witness of the applicant in this affidavit are un-rebutted.

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77. From the perusal of the Statement of Account which is at Annexure'F' the total outstanding comes to Rs. 29,88,783/- as on ?7 '05'?014, which the applicant bank is entitled to recover from the defendant' In view of the above 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 entitled to recover a sum of Rs. 29,88,783/- 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 @ 1olo Per annum over the Central Bank's Prime Lending Rate with monthly rests with simple rate of interest from the date of filing of the Original Application till the date of realization.

ORDER

T.A. No. 64 of 2014 filed by the Applicant Bank is allowed and debt is determined with cost against the defendant lt is hereby ordered that applicant bank is entitled to recover from the defendants the total amount to the tune of Rs' 29'88'783/- (Rupees twenty nine lakhs eighty eight thousand seven hundred and eighty three only) with pendentelite and future interest @ 1olo per annum over the Central Bank's Prime Lending Rate with monthly rests with simple rate of interest on the amount due from the date of fillng of the Original Appllcation' i'e' 17 '06'2014 till full and final realization of the claim amount'

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Amount, if any, paid by the defendant in the loan accounts or amount, if any, recovered by the Applicant Bank after filing of the O.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. 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. Defendant 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 fail 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. Let the Certificate of Recovery be drawn up by Ld Reglstrar forthwith in terms of Judqement 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' Ld. Recovery Officer shall reatize the amount as per the Recovery Certificate from the defendants in accordance with law' Ld. Registrar of certificate in term this Tribunal is directed to deliver recovery of the final order /judgement for recovery of

(s) o.- the sum against the defendants in favour of the Applicant Bank under Section 19 (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.

(8) The parties are directed to appear before the Recovery Officer on f8.12.2O20 for further action in accordance with law in the event the entire amount is not paid by the sald date' Accordingly, the Original Application being T.A' No' 368 of 2014 is allowed and stands disposed of. Copy of the Judgement/Final Order be uploaded in the Tribunal's website. File is consigned to the Record Room. ( Dictated to Steno, transcribed by him, correcteg, :i9""9 ?iU pronounced by me in the open Court on thls the, o5 -1\ - 2020) ' A'r'c"c*."** ( ANiL KUMAR CHATURVEDI ) PRESIDING OFFICER.

Order Sheet (Continuation) Case No. TA No.64 of 2014 Central Bank of India Vs. Asit Kumar Dey Date of

Order

Order with signature Omce action with date and d.ted Signature of partles when Order No.14 ot.or.Ivu lThe proceedrnSs ol rhe coun.r€.onducted oiti.er.eeidences. Als rh. Adlo.are! and rhe co.l€r€ncing lloh ihen residences/off ic6) lhroueh v'deo .onle.encinS ,rom r€iidentia staii joined lh. proc€edin8! through vdeo Order pronounced (Vide separate sheets consisting 8 pgs). In the result, T.A. No. 64 of 2014 is allowed with costs. Issue Recovery Certificate accordingly. |. x ugpj{:z (A. K.Chaturvedi) Presiding Officer DRT-3, Kolkata '))