Allowed

Bank of Baroda v. Smt. G. Jeevitha

DRT28 Dec 2023TA/168/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application under the RDB Act for recovery of agricultural loans. It permitted realization of the principal sum from 19.11.2019 plus simple interest at 10% p.a. and authorized auction of mortgaged properties.

What did the court decide?

Applicant permitted to realize aggregate sum of Rs.3,12,04,171/- from 19.11.2019 till realization in full along with simple interest at 10% per annum and costs.

Bank of Baroda versus Smt. G. Jeevitha — Contract and Commercial Disputes | DRT (2023)

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BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

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Dated this 28^th day of December, 2023

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PRESENT: SHRI T. RAJESH

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PRESIDING OFFICER

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TA No.168 of 2023

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(Originally filed before DRT-I Chennai as OA No.97 of 2020 and thereafter transferred to this Tribunal and renumbered as TA No.168 of 2023)

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Bank of Baroda Rep. by its Branch Manager Cuddalore Branch No.74, Car Street Cuddalore – 607 002 …Applicant

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Versus

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Smt. G. Jeevitha

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D/o Govindarajan Sitharasur Main Road Natham Village, Kizharungunam Post Panruti Taluk, Cuddalore – 607 101

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M. Sekar

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S/o Munusamy

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No.111C, Natham Village Kizharungunam Post Panruti Taluk, Cuddalore – 607 105

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Mrs. S. Revathi W/o Selvam

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59A, Sayapettai Street Semmandalam, Cuddalore – 607 001

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Mrs. S. Senthamarai W/o Sekar No.111C, Natham Village Kizharungunam Post Panruti Taluk, Cuddalore – 607 105

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G. Raghuraman S/o Govindarajan Sitharasur Main Roadm Natham Village Kizharungunam Post Panruti Taluk, Cuddalore – 607 101

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Mrs. R. Akilandeswari W/o Raghuraman Sitharasur Main Road, Natham Village Kizharungunam Post, Panruti Taluk Cuddalore – 607 101 …Defendants

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Counsel for the Applicant Bank : M/s S. Pandurangan Defendants : Ex- parte

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FINAL ORDER

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This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of an aggregate sum of Rs.3,12,04,171/- from the 19.11.2019 till the date of realization in full along with costs of this application and for sale of schedule mentioned properties in the following manner: -

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(a) A sum of Rs.45,22,185/- together with interest at the rate of 12.20% per annum with half yearly rests from defendants 1, 5 and 6 being the amount due under Vijaya Kisan Card Loan Account;

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(b) A sum of Rs.59,55,749/- together with interest at the rate of 12.20% per annum with half yearly rests from defendants 1, 5 and 6 being the amount due under Agri Term Loan Account.

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(c) A sum of Rs.23,06,949/- together with interest at the rate of 12.20% per annum with half yearly rests from defendants 2, 5 and 6 being the amount due under Vijaya Kisan Card Loan Account;

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(d) A sum of Rs.46,37,135/- together with interest at the rate of 12.20% per annum with half yearly rests from defendants 2, 5 and 6 being the amount due under Agri Term Loan Account;

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(e) A sum of Rs.22,91,814/- together with interest at the rate of 12.20% per annum with half yearly rests from defendants 3, 5 and 6 being the amount due under Vijaya Kisan Card Loan Account;

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(f) A sum of Rs.45,73,282/- together with interest at the rate of 12.20% per annum with half yearly rests from defendants 3, 5 and 6 being the amount due under Agri Term Loan Account;

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(g) A sum of Rs.22,91,892/- together with interest at the rate of 12.20% per annum with half yearly rests from defendants 4, 5 and 6 being the amount due under Vijaya Kisan Card Loan Account;

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(d) A sum of Rs.46,25,165/- together with interest at the rate of 12.20% per annum with half yearly rests from defendants 4, 5 and 6 being the amount due under Agri Term Loan Account

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The above Original Application is filed before DRT-I Chennai and stood transferred to this Tribunal and renumbered as above.

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The case of the applicant can be encapsulated as follows: -

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(a) The defendants 1 to 4 had availed various credit facilities from erstwhile Vijaya Bank, Cuddalore Branch from time to time and the defendant executed security documents and created securities in favour of Vijaya Bank. Pursuant to the merger of Vijaya Bank with Bank of Baroda the accounts got transferred to the applicant bank. All the loans are collaterally secured by mortgage of Schedule ‘B’ property belonging to 6^th defendant. The 1^st defendant fraudulently concealing the sale of Schedule ‘A’ property by her had allegedly created

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mortgage over the Schedule ‘A’ as a security without having title for the loans sanctioned to defendants 1 to 4.

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(b) The 1^st defendant approached the applicant by loan application dated 15.03.2012 seeking credit facility under Vijaya Kisan Card and the applicant considering the said request sanctioned a limit of Rs.31,00,000/- to the 1^st defendant and the 1^st defendant executed necessary loan and security documents on 17.3.2012. The 5^th defendant executed guarantee agreement on 17.3.2012. The defendants 1 and 6 created mortgage over the schedule ‘A’ and ‘B’ properties in favour of applicant. The 1^st defendant committed default and the loan account was classified as NPA on 29.11.2014, however the defendants executed acknowledgement of liability on 13.09.2014 and 23.02.2017. The defendants 1, 5 and 6 are now due and liable to pay a sum of Rs.45,22,185/- as on 18.11.2019 together with further interest.

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(c) The 1^st defendant approached the applicant by loan application dated 20.04.2012 seeking credit facility under Agri Term Loan and the applicant considering the said request sanctioned a limit of Rs.24,00,000/- to the 1^st defendant and the 1^st defendant executed necessary loan and security documents on 28.05.2012. The 5^th defendant executed guarantee agreement on 17.3.2012. The defendants 1 and 6 created mortgage over the schedule ‘A’ and ‘B’ properties in favour of applicant. The 1^st defendant committed default and the loan account was classified as NPA on 29.11.2014, however the defendants executed acknowledgement of liability on 13.09.2014 and 28.02.2017. The

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defendants 1, 5 and 6 are now due and liable to pay a sum of Rs.59,55,749/- as on 18.11.2019 together with further interest.

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(d) The 2^nd defendant approached the applicant by loan application dated 20.03.2012 seeking credit facility under Vijaya Kisan Card and the applicant considering the said request sanctioned a limit of Rs.8,00,000/- to the 2^nd defendant and the 2^nd defendant executed necessary loan and security documents on 30.03.2012. The 1^st defendant executed guarantee agreement on 30.3.2012. The defendants 1 and 6 created mortgage over the schedule ‘A’ and ‘B’ properties in favour of applicant. The 2^nd defendant committed default and the loan account was classified as NPA on 01.10.2014, however the defendants executed acknowledgement of liability on 13.10.2014 and 14.06.2017. The defendants 2, 5 and 6 are now due and liable to pay a sum of Rs.23,06,949/- as on 18.11.2019 together with further interest.

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(e) The 2^nd defendant approached the applicant by loan application dated 20.03.2012 seeking credit facility under Agri Term Loan and the applicant considering the said request sanctioned a limit of Rs.18,00,000/- to the 2^nd defendant and the 2^nd defendant executed necessary loan and security documents on 30.03.2012. The 1^st defendant executed guarantee agreement on 30.3.2012. The defendants 1 and 6 created mortgage over the schedule ‘A’ and ‘B’ properties in favour of applicant. The 2^nd defendant committed default and the loan account was classified as NPA on 01.10.2014, however the defendants executed acknowledgement of liability on 13.10.2014 and 16.05.2017. The

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defendants 2, 5 and 6 are now due and liable to pay a sum of Rs.46,37,135/- as on 18.11.2019 together with further interest.

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(f) The 3^rd defendant approached the applicant by loan application dated 03.04.2012 seeking credit facility under Vijaya Kisan Card and the applicant considering the said request sanctioned a limit of Rs.8,00,000/- to the 3^rd defendant and the 3^rd defendant executed necessary loan and security documents on 12.04.2012. The 1^st defendant executed guarantee agreement on 12.4.2012. The defendants 1 and 6 created mortgage over the schedule ‘A’ and ‘B’ properties in favour of applicant. The 3^rd defendant committed default and the loan account was classified as NPA on 12.08.2014, however the defendants executed acknowledgement of liability on 30.04.2014 and 01.04.2017. The defendants 3, 5 and 6 are now due and liable to pay a sum of Rs.22,91,814/- as on 18.11.2019 together with further interest.

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(g) The 3^rd defendant approached the applicant by loan application dated 12.04.2012 seeking credit facility under Agri Term Loan and the applicant considering the said request sanctioned a limit of Rs.18,00,000/- to the 3^rd defendant and the 3^rd defendant executed necessary loan and security documents on 12.04.2012. The 1^st defendant executed guarantee agreement on 12.4.2012. The defendants 1 and 6 created mortgage over the schedule ‘A’ and ‘B’ properties in favour of applicant. The 3^rd defendant committed default and the loan account was classified as NPA on 12.08.2014, however the defendants executed acknowledgement of liability on 30.04.2014 and 21.04.2017. The

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defendants 3, 5 and 6 are now due and liable to pay a sum of Rs.45,73,282/- as on 18.11.2019 together with further interest.

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(h) The 4^th defendant approached the applicant by loan application dated 02.04.2012 seeking credit facility under Vijaya Kisan Card and the applicant considering the said request sanctioned a limit of Rs.8,00,000/- to the 4^th defendant and the 4^th defendant executed necessary loan and security documents on 12.04.2012. The 1^st defendant executed guarantee agreement on 12.04.2012. The defendants 1 and 6 created mortgage over the schedule ‘A’ and ‘B’ properties in favour of applicant. The 4^th defendant committed default and the loan account was classified as NPA on 13.10.2014, however the defendants executed acknowledgement of liability on 13.10.2014 and 10.05.2017. The defendants 4, 5 and 6 are now due and liable to pay a sum of Rs.22,91,892/- as on 18.11.2019 together with further interest.

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(i) The 4^th defendant approached the applicant by loan application dated 02.04.2012 seeking credit facility under Agri Term Loan and the applicant considering the said request sanctioned a limit of Rs.18,00,000/- to the 4^th defendant and the 4^th defendant executed necessary loan and security documents on 12.04.2012. The 1^st defendant executed guarantee agreement on 12.04.2012. The defendants 1 and 6 created mortgage over the schedule ‘A’ and ‘B’ properties in favour of applicant. The 4^th defendant committed default and the loan account was classified as NPA on 13.10.2014, however the defendants executed acknowledgement of liability on 13.10.2014 and

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10.05.2017. The defendants 4, 5 and 6 are now due and liable to pay a sum of Rs.46,25,165/- as on 18.11.2019 together with further interest.

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(j) It is stated that one Mr. Govindarajan and his family members viz., Mrs. Manjula, Mr. Raghuraman, Mrs. Akilandeswari, Mr. Rajesh, Mrs. Priyanka, Mrs. Sathya, Mrs. Jeevitha, Mr. Naveen Kumar, Mrs. Udhayakumari, Ms. Jeevith and Mrs. Revathi and their acquaintances viz., Mr. Sekar and Mrs. Senthamarai have availed various credit facilities from the applicant bank. It is also stated that Ms. Jeevitha, daughter of said Mr. Govindarajan has allegedly created mortgage by deposit of title deeds as a security over her immovable property, which she has already disposed off. Similarly, Mr. G. Raghuraman, 5^th defendant has allegedly created mortgage over his property for the loan availed by him, concealing the settlement of the above property in favour of his wife prior to mortgage.

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It is further stated that even though the defendants had obliged to repay the amount promptly and regularly, they failed to do so resulting in default in repayment and hence the account was classified as NPA.

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It is contended by the applicant that the applicant’s officials had on many occasions approached the defendants requesting them to regularize the account and despite the same, no effort was made by the defendants to get the account regularized or to pay back the amount.

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It is also the case of the applicant that despite repeated reminders and requests the defendant failed to make the repayment forcing the applicant to file this OA

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seeking recovery of the amount due in the account with further interest and costs.

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The defendants remained absent and hence were called absent and set ex-parte on 13.07.2022.

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The applicant had let in evidence through AW-1, who had sworn to a Proof Affidavit in terms of the pleading in the OA and also produced Exhibits A-1 to A-82 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter: -

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(i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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(ii) What orders are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained ex-parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible. From the statement of accounts as produced by the applicant, it is evident that the amount as claimed in the OA is outstanding in the account, which the applicant is entitled to get recovered from the defendants and their

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assets. The claim of the applicant is well within the period of limitation and there is no capitalization of penal interest.

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In view of the fact that the subject loan is an agricultural loan availed by the defendants and the applicant has claimed interest at contractual rates till the time of filing of the application and the interest rates have also considerably come down, this Tribunal is inclined to reject the prayer of the applicant for award of interest with monthly rests and award the pendent lite and future interest at simple and reduced rates.

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In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan and the defaults committed by the defendants, which the applicant is entitled to realize. Hence, TA is disposed off in the following manner: -

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(a) TA No.168 of 2023 stands allowed.

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(b) Applicant is permitted to realize an aggregate sum of Rs.3,12,04,171/from the 19.11.2019 till the date of realization in full along with costs of this application and for sale of schedule mentioned properties in the following manner: -

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(i) A sum of Rs.45,22,185/- together with interest at the rate of 10% per annum simple from defendants 1, 5 and 6 jointly and severally being the amount due under Vijaya Kisan Card Loan Account and a sum of Rs.59,55,749/- together with interest at the rate of 10% per annum simple

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from defendants 1, 5 and 6 being the amount due under Agri Term Loan Account.

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(ii) A sum of Rs.23,06,949/- together with interest at the rate of 10% per annum simple from defendants 2, 5 and 6 jointly and severally being the amount due under Vijaya Kisan Card Loan Account and a sum of Rs.46,37,135/- together with interest at the rate of 10% per annum simple being the amount due under Agri Term Loan Account;

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(iii) A sum of Rs.22,91,814/- together with interest at the rate of 10% per annum simple from defendants 3, 5 and 6 jointly and severally being the amount due under Vijaya Kisan Card Loan Account and a sum of Rs.45,73,282/- together with interest at the rate of 10% per annum simple being the amount due under Agri Term Loan Account;

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(iv) A sum of Rs.22,91,892/- together with interest at the rate of 10% per annum simple from defendants 4, 5 and 6 jointly and severally being the amount due under Vijaya Kisan Card Loan Account and a sum of Rs.46,25,165/- together with interest at the rate of 10% per annum simple being the amount due under Agri Term Loan Account.

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(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant the defendants 1 to 6 are personally liable for all such amounts as aforementioned due under their respective Loan Accounts.

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(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the order.

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(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

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Communicate a copy of the order to the parties concerned in terms of Section

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19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to PS, transcribed by him, corrected, signed and pronounced by me in Open Court, on this the 28^th day of December, 2023)

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Sd/(T. RAJESH ) PRESIDING OFFICER DRT-II, CHENNAI

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Bank of Baroda v. Smt. G. Jeevitha

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Smt. G. Jeevitha

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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