Court Proceedings

Judgement:

 In view of the above reasons;

(A) Although the loan agreement in respect of the loan amount of Nu. 3,000,000/- (Three million) availed by the defendant Ugyen Wangchuk from the Royal Insurance Corporation of Bhutan Limited on 04/06/2010 vide loan account No. CRCS/2010/84 was made to be executed between the defendant Ugyen Wangchuk and the Royal Insurance Corporation of Bhutan Limited as per Section 16 of the Contract Act of Bhutan and Section 35 of the Evidence Act of Bhutan, the signature in the agreement was signed by Ugyen Wangchuk’s sister Tshering Pem as per Section 3 and 4 of the Evidence Act of Bhutan. Further, CIB report of the defendant has not been verified while sanctioning the loan, and without the consent of Ugyen Wangchuk, some of the employees of the Royal Insurance Corporation of Bhutan Limited have withdrawn and deposited the money against Ugyen Wangchuk’s loan account No. CRCS/2010/84 without his consent and without adhering to the banking norms. Further, as per Section 3 and 4 of the Evidence Act of Bhutan, it has been proven that a total seven (7) Bank Guarantee encashment amount has been merged in this loan account without any proper documentation. While examining the repayments made against this loan account, it has been established that Ugyen Wangchuk has not made any repayment in this loan account but rather the Royal Insurance Corporation of Bhutan Limited has sanctioned new loans and closed old loan accounts without following the norms. Therefore, since both the parties are at fault, as per section 22 of the Movable and Immovable Properties Act of Bhutan and as per the Principle of Interenational Law which states that “When both the parties are at fault the loss has to be shared equally” the total outstanding principal amount, interest and late fee of Nu. 102,393,280.11/- (One Hundred Two Million Three Hundred Ninety-Three Thousand and Two Hundred Eighty and Cheltrum Eleven) has to be shared equally between the parties thereby each party being liable for Nu.34,131,093.37/- (Thirty-Four Million One Hundred Thirty-One and Ninety-Three and Cheltrum Three Seven). The parties who are responsible for the lapses being firstly, Ugyen Wangchuk, secondly, the relevant employees of the bank, and thirdly, the Royal Insurance Corporation of Bhutan Limited are each liable for one-third of the total liability, which must be paid to the Royal Insurance Corporation of Bhutan Limited within six (6) months from the date of this judgment as per section 56 of the Movable and Immovable Property Act of Kingdom of Bhutan.

Judgement:

In accordance with the above, (A) the respondent, Ugyen Wangchuk, executed Loan Agreements on 12 different accounts with the Royal Insurance Corporation of Bhutan since 14.06.2010, as per Section 16 of the Evidence Act of Bhutan and Section 35 of the Contract Act of Bhutan. Despite this, on some Loan Agreements, the signatures were signed by Ugyen Wangchuk, while on some were signed by Tshering Pem. Furthermore, during the loan sanctioning process, the respondent's CIB reports were not verified, and some employees of RICBL withdrew and deposited funds from Ugyen Wangchuk's Loan accounts without his consent. Moreover, according to Section 3 and 4 of the Evidence Act of Bhutan, seven bank guarantee amounts were merged in the loan accounts without completing necessary documentation formalities. Additionally, it was discovered that the bank guarantees did not conform to the norms. Upon further investigation, it was revealed that the repayments made into the loan accounts were not made by Ugyen Wangchuk but rather involved repeatedly taking new loans and closing the old ones, which is not in accordance with RICBL norms. Based on these findings, in accordance with Section 22 of the Movable and Immovable Properties Act and the International Doctrine "when both parties are at fault, the loss has to be shared equally," and considering the principal, interest, and penalties accrued as of 31.7.2021, totaling Nu. 102,393,280.11, the loss must be shared equally among the parties responsible for the aforementioned faults. Firstly, Ugyen Wangchuk; secondly, the relevant dealing officials of RICBL; and thirdly, RICBL itself. Each intended party is liable for Nu. 34,131,093.37, and these portions must be paid in accordance with banking norms and Section 56 of the Movable and Immovable Properties Act. Thus, from the date of judgment, each party's portion must be paid in full to RICBL within six months. The judgment has been passed. (B) Ugyen Wangchuk Construction Firm's owner, Ugyen Wangchuk’s mortgaged properties for 12loans, in accordance to Section 24(2)(a) of the Movable and Immovable Property Act and Sections 55(1) and 77(1) of the Movable and Immovable Property Act, without violation of these provision, if the mortgaged properties conform to the norms, RICBL may seek a seizure order from the court, and according to Section 64(1) of the Movable and Immovable Property Act, the mortgaged properties may be sold.

Order: 

(A) Although the loan agreement in respect of the loan amount of Nu. 3,000,000/- (Three million) availed by the defendant Ugyen Wangchuk from the Royal Insurance Corporation of Bhutan Limited on 04/06/2010 vide loan account No. CRCS/2010/84 was made to be executed between the defendant Ugyen Wangchuk and the Royal Insurance Corporation of Bhutan Limited as per Section 16 of the Contract Act of Bhutan and Section 35 of the Evidence Act of Bhutan, the signature in the agreement was signed by Ugyen Wangchuk’s sister Tshering Pem as per Section 3 and 4 of the Evidence Act of Bhutan. Further, CIB report of the defendant has not been verified while sanctioning the loan, and without the consent of Ugyen Wangchuk, some of the employees of the Royal Insurance Corporation of Bhutan Limited have withdrawn and deposited the money against Ugyen Wangchuk’s loan account No. CRCS/2010/84 without his consent and without adhering to the banking norms. Further, as per Section 3 and 4 of the Evidence Act of Bhutan, it has been proven that a total seven (7) Bank Guarantee encashment amount has been merged in this loan account without any proper documentation. While examining the repayments made against this loan account, it has been established that Ugyen Wangchuk has not made any repayment in this loan account but rather the Royal Insurance Corporation of Bhutan Limited has sanctioned new loans and closed old loan accounts without following the norms. Therefore, since both the parties are at fault, as per section 22 of the Movable and Immovable Properties Act of Bhutan and as per the Principle of Interenational Law which states that “When both the parties are at fault the loss has to be shared equally” and as per the judgment rendered by the Supreme Court vide (Hung-Om 18-10) 4/7/2018, the total principal amount, interest and late fee as of 31/07/2021 amounting to Nu. 102,393,280.11/- (One Hundred Two Million Three Hundred Ninety-Three Thousand and Two Hundred Eighty and Chetrum Eleven) has to be shared equally between the parties thereby each party responsible for the aforementioned lapses firstly, Ugyen Wangchuk, secondly, the relevant employees of the bank, and thirdly, the Royal Insurance Corporation of Bhutan Limited liable for Nu.34,131,093.37/- (Thirty-Four Million One Hundred Thirty-One and Ninety Three and Cheltrum Three Seven) being one-third of total liability must pay their share of liability to the Royal Insurance Corporation of Bhutan Limited within six (6) months from the date of this judgment as per section 56 of the Movable and Immovable Property Act of Kingdom of Bhutan. 

  བཀའ་རྒྱ། - ORDER

ཀ༽   རྩོད་ཟླ་ཨྱོན་དབང་ཕྱུག་གིས་ སྤྱི་ཚེས་༠༤.༠༦.༢༠༡༠ལས་ཚུར་རྩིས་དེབ་ཁག་༡༢ལུ་ འབྲུག་རྒྱལ་ཉེན་སྲུང་ ལས་འཛིན་ཚད་ལས་བསྐྱིན་འགྲུལ་ལེན་པའི་སྐབས་སུ་ བསྐྱིན་འགྲུལ་གྱི་འགན་རྒྱ་འདི་འབྲུག་རྒྱལ་ཉེན་སྲུང་ལས་ འཛིན་ཚད་དང་རྩོད་ཟླ་ཨྱོན་དབང་ཕྱུག་གཉིས་ཀྱི་བར་ན་བཟོས་ཡོད་རུང་ གན་རྒྱ་འདི་ནང་ས་ཡིག་ཁ་ཤས་ཨྱོན་དབང་ ཕྱུག་དང་གཞན་མི་ངོ་ཚེ་རིང་པདྨོ་གིས་ཡང་བརྐྱབ་བཅུག་ཡོད་པའི་ཁར་ བསྐྱིན་འགྲུལ་སྤྲོད་པའི་ནམ་དུས་རྩོད་ཟླ་གི་ ༼CIB༽ཞིབ་དཔྱད་འབད་བ་མིན་འདུག་པ་དང་ འབྲུག་རྒྱལ་ཉེན་སྲུང་ལས་འཛིན་ཚད་ནང་ལཱ་འབད་མི་ ལས་བྱེད་པ་ ཁ་ཤས་ཀྱིས་ཨྱོན་དབང་ཕྱུག་ལས་གནང་བ་མེད་པར་ཨྱོན་དབང་ཕྱུག་གི་རྩི་དེབ་ནང་ལས་ དངུལ་ཁང་གི་ལམ་ལུགས་ དང་ མ་འཁྲིལ་བར་དངུལ་ཕྱིར་བཏོན་དང་ཚུར་བཙུགས་འབད་བའི་འཛོལ་བ་ཡོད་པ་མ་ཚད་ རྩིས་དེབ་འདི་ན་༼Bank guarantee༽བསྡོམས་ཁག་༧ དེ་ཅིག་བཏང་ཡོད་མི་གི་དངུལ་འདི་ཚུ་ཡང་རྩིས་དེབ་འདི་གི་ཐོག་ཁར་ ཡིག་ཆས་ཚུ་ ཚུལ་མཐུན་གང་ཡང་མེད་པར་ བསྐྱིན་འགྲུལ་འདི་གི་ཐོག་ཁར་བསྡབ་ཡོད་པའི་མངོན་གསལ་འབྱུང་བ་དང་ རྩིས་དེབ་ འདི་ནང་བསྐྱིན་ཚབ་བསྟབ་མི་ཚུ་ དབྱེ་ཞིབ་འབདཝ་ད་ ཨྱོན་དབང་ཕྱུག་ཁོ་རའི་ཁ་ཐུག་ལས་བསྟབ་བསྟབ་མེན་པར་ འབྲུག་རྒྱལ་ཉེན་སྲུང་ལས་འཛིན་ཚད་ཀྱིས་ལམ་ལུགས་དང་མ་འཁྲིལ་བར་ བསྐྱིན་འགྲུལ་གསརཔ་ལེན་ཡི་ལེན་ཡི་ར་ རྩིས་དེབ་རྙིངམ་ཚུ་མཇུག་བསྡུ་ཡོད་པའི་འཛོལ་བ་རྩ་ཕན་ཚུ་ལུ་ཡོདཔ་ལས་ རྒྱལ་སྤྱི་ཁྲིམས་ཀྱི་གཞི་རྩ་ ༼when both parties are at fault the loss has to be shared equally༽ ཟེར་མི་དང་མངོན་མཐོ་(ཧཱུཾ་ཨོམ་༡༨-༡༠)༤/༧/༢༠༡༨ ཅན་མའི་དཔེ་གཞི་འཁྲུན་ཆོད་དང་འཁྲིལ་ སྤྱི་ཚེས་ ༣༡.༧.༢༠༢༡ ཚུན་བསགས་ཡོད་པའི་ ངོ་བོ་དང་སྐྱེད་ ཉེས་སྐྱེད་བསྡོམས་དངུལ་ཀྲམ་ ༡༠༢,༣༩༣,༢༨༠.༡༡/-༼ས་ཡ་གཅིག་ བརྒྱ་གཉིས་ དང་གསུམ་འབུམ་དགུ་ཁྲི་སུམ་སྟོང་གཉིས་བརྒྱ་བརྒྱད་ཅུ་དང་ཕྱེད་ཀྲམ་བཅུ་གཅིག༽པོ་ གྱོངས་རྒུད་ འདྲ་མཉམ་བཀལ་ཏེ་ རེ་རེའི་སྟེང་ཁར་དངུལ་ཀྲམ་༣༤་,༡༣༡,༠༩༣.༣༧/- ༼ས་ཡ་སུམ་བཅུ་སོ་བཞི་དང་ ཆིག་འབུམ་ སུམ་ཁྲི་གཅིག་སྟོང་ དགུ་བཅུ་གོ་ གསུམ་དང་ ཕྱེད་ཀྲམ་སོ་བདུན༽པོ་ སྐབས་འབབ་པའི་རྩོད་བཤེར་དེ་ནང་ གོང་ འཁོད་ཀྱི་ཆེད་དམིགས་ཀྱི་ནོར་བ་བྱུང་བཙུག་མི་ རྩ་ཕན་ དང་པ་ ཨྱོན་དབང་ཕྱུག་ གཉིས་པ་ འབྲེལ་གཏོགས་ཡོད་ མི་དངུལ་ཁང་གི་ལས་བྱེདཔ་དང་ གསུམ་པ་ འབྲུག་ཉེན་སྲུང་ལས་འཛིན་ཚད་བཅས་ལུ་ དཔྱ་གསུམ་ལུ་དབྱེ་འདི་ དཔྱ་རེ་རེ་སྨིན་ཡོད་མི་འདི་ དངུལ་ཁང་གི་ལམ་ལུགས་དང་འཁྲིལ་ འཁྲུན་ཆོད་གནང་བའི་ཉིན་ལས་འགོ་བཟུང་ དུས་ ཡུན་ཟླ་ངོ་༦གི་ནང་འཁོད་ ཁོང་རའི་བགོ་བཤའ་འདི་ཚང་སྒྲིགས་འབྲུག་རྒྱལ་ཉེན་སྲུང་ལས་འཛིན་ཚད་ལུ་ བསྟབ་དགོས་ པར་འཁྲུན་ཆོད་གནང་གྲུབ་པ་དང་ :

Order: 

(A) Ugyen Wangchuk has taken out 12 different loans from Royal Insurance Corporation of Bhutan (RICBL) since June 4, 2010, signing some of the loan agreements himself and others signed by Tshering Pem. During the loan transactions, the defendants' Credit Information Bureau (CIB) report was not verified. Some RICBL employees debited and credited the loan accounts without Ugyen Wangchuk's consent, and seven bank guarantees were merged with the loan accounts without proper documentation. Upon further investigation, it was discovered that Ugyen Wangchuk did not make the loan repayments himself, but instead, new loans were sanctioned to close the old ones, which goes against RICBL's loan norms. Based on the reasons above and the international doctrine that "when both parties are at fault, the loss has to be shared equally," and on the Supreme Court Judgement (ཧཱུཾ་ཨོམ18-10) on 4/7/2018 states that the principal amount, interest, and penalties as of 31/07/2021, totaling Nu. 102,393,280.11/- (One Hundred Two Million Three Hundred Ninety-Three Thousand Two Hundred Eighty and Chetrum Eleven), must be shared equally between the parties. Therefore, each party is liable for Nu. 34,131,093.37/- (Thirty-Four Million One Hundred Thirty-One and Ninety-Three and Cheltrum Three Seven), including firstly, Ugyen Wangchuk; secondly, the relevant employees of the bank; and thirdly, the Royal Insurance Corporation of Bhutan Limited. The parties are required to settle their liability to the Royal Insurance Corporation of Bhutan Limited within six (6) months from the date of this judgment, as per section 56 of the Movable and Immovable Property Act of the Kingdom of Bhutan.