Allowed

Canara Bank v. M/s.Mallick Medicals

DRT30 Nov 2023TA/294/2022

Case brief

AI extract

What is this about?

The Tribunal allowed a transfer application filed by Canara Bank to recover Rs.77,30,140.25 with interest from borrowers and their guarantors. The Tribunal permitted recovery via sale of the mortgaged schedule property and issuance of a recovery certificate.

What did the court decide?

The Transfer Application was allowed; recovery of Rs.77,30,140.25 with interest ordered; sale of schedule property permitted; recovery certificate issued.

Canara Bank versus M/s.Mallick Medicals — Contract and Commercial Disputes | DRT (2023)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 30^th day of November, 2023

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PRESENT : SHRI T.RAJESH PRESIDING OFFICER

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TA.No.294 OF 2022

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(Old OA No.25/2022-DRT-I, Chennai)

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CANARA BANK, Formerly Syndicate Bank, Aminjikarai Branch, No.6, Govindan Street, Ayyavoo Colony, Aminjkarai, Chennai-600029. Rep.by its Chief Manager and Principal Officer. IFSC Code : CNRB16021. … APPLICANT.

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Vs.

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M/s.Mallick Medicals, Rep.by its partners, a) Mr. K.Murali, b) Mr. K.Venkatesh & c) Mr.K.Prakash No.180, NSC Bose Road, Chennai-600001.

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Mr. K.Murali, S/o. Krishnan No.7/13, Lettangs Road, Vepery, Chennai-600007.

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Mr. K.Venkatesh, S/o. Krishanan, No.13/7, Lettangs Road, Vepery, Chennai-600007.

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Mr. K.Prakash, S/o.Krishnan, No.53/4, Diwan Rama Road Purasawalkam, Chennai-600084.

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M/s 7 Eleven Shipping Pvt. Ltd., Rep.by its Directors,

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a)Mr. R.Kumar,

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b)Mr. S.Kirubakaran, c)Mrs. K.Lalitha &

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d) Mrs. Yuvashree

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At No.53/9, R.K.Nagar,

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1^st Main Road, Kodungaiyur,

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Chennai-600118.

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Mr.R.Kumar, S/o. Ramanathan, No.178, Lake New Road, West Mambalam, Chennai-600033

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Mr. S.Kirubakaran, S/o. Soundharajan,

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No.88/50, Phase II, Sami Court Apartment, Parchalaiamman Koil Street, Chennai-600106.

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Mrs. K.Lalitha,

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W/o. R.Kumar, No.178, Lake New Road, West Mambalam, Chennai-600033.

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Mrs. R.Yuvashree, W/o. M.Rajakumar, No.179, EVR Lane, P H road, Kilpauk, Chennai-600010. … DEFENDANTS Counsel for Applicant : M/s.P.Sreenivasulu. Defendants : Exparte. ….. O R D E R

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The above Transfer Application is filed under section 19 of the

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Recovery of Debt and Bankruptcy Act seeking recovery of

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Rs.77,30,140.25 with further interest from the date of filing of the OA

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and also by allowing the same to be recovered from the defendants jointly and severally and allow the same to be recovered by sale of schedule mentioned property.

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

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The 1^st defendant a partnership firm with defendants 2, 3 and 4 as its partners being the borrower had applied for and availed the following facilities from the erst while syndicate bank.

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Credit facility	Amount
Loan A/c. No.60217910001812	Rs.10,00,000/-
SOD Facility	Rs.34,00,000/-

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It is also stated that the above facilities were availed after execution

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of necessary loan documents including DPN, agreement of hypothecation by defendants obliging themselves to repay the amount promptly with interest @10.95% and 11.2% and regularly, without fail.

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Apart from execution of the necessary loan documents, the 5^th defendant represented by its directors defendant 6 to 9 had created security by way of equitable mortgage over schedule A properties.

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Apart from execution of the necessary loan documents, a composite hypothecation agreement was also executed in respect of loans as being the security for repayment of loans.

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Even though the defendants had obliged themselves to repay the amount promptly and regularly, they failed to do so resulting defaults in the account and the same being declared as NPA.

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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 over to pay back the amount. .

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It is also the case of the applicant that despite repeated reminders and requests the defendants had failed to make the repayment forcing the applicant to file this OA seeking recovery of the amount due in the account with further interest and cost. It is also stated that erst while Syndicate bank got amalgamated with the applicant.

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Even as the defendants failed to enter appearance, they were set exparte on 22.02.2023.

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The applicant had let in evidence through AW1 who had sworn to a Proof Affidavit in terms of the pleadings in the OA and also produced Exhibits A1 to A 34 and got the same marked in evidence.

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Heard the counsel for the applicant and considered the contention as taken in the OA in the light of documentary evidence and proof affidavit. The following issues arise for consideration in this matter.

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i) Whether the applicant had succeeded in proving the OA claim?

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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. The evidence tendered by the applicant remains uncontroverted and undispute. 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 stated in the TA is outstanding in the account, which the applicant is entitled to get recovered from the defendants and their assets (including the schedule mentioned property). The claim of the applicant is well within the period of limitation and there is no Capitalization of penal interest. Since the interest claimed is on the higher side and OA claim is arrived at by calculating interest at agreed rate, pendentelite and future interest is awarded at simple rate.

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In view of the finding as entered above

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i) TA.No.449 of 2023 stands allowed. ii) Applicant is permitted to recover an amount of Rs.77,30,140.25 (Rupees Seventy Seven Lakhs Thirty Thousand One Hundred and Forty Paisa Twenty Five

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only) with future and pendentalate interest @12.95% on 12,50,753.74 and 13.2% on 64,79,386.51 per annum from the date of filing of the TA till realization from the defendants after giving credit to all the amount recovered and received during the pendency of the TA.

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iii) The schedule property to be proceeded against and sold and if the sale proceeds are not sufficient the defendants and their other assets are liable to be proceeded against.

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iv) A Recovery Certificate is to be drawn and issued to the recovery officer to enable recovery of the amount as per the above terms.

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v) Applicant is allowed to realize cost of the proceedings for which cost memo is to be filed in 7 days time from the date of receipt of the copy of the order.

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

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

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( Dictated to PA, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 30^th day of November, 2023 )

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Sd./-

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(T.RAJESH)

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PRESIDING OFFICER DRT-II, CHENNAI

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Canara Bank v. M/s.Mallick Medicals

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s.Mallick Medicals

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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