Allowed

Indian Bank, (Allahabad Bank) v. M/s. Progressive Engineering Works

DRT29 Nov 2023TA/531/2023

Case brief

AI extract

What is this about?

DRT-II Chennai allowed the transfer application filed by Indian Bank (formerly Allahabad Bank) to recover Rs. 25,28,357.17 with interest from respondents who defaulted on cash credit and term loan facilities. The court issued a recovery certificate for reinstatement of proceedings.

What did the court decide?

Recovery of Rs. 25,28,357.17 with interest at 11.30% on cash credit and 10.15% on term loan from filing of TA till realization.

Indian Bank, (Allahabad Bank) versus M/s… — Contract and Commercial Disputes | DRT (2023)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 29^th day of November, 2023

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PRESENT : SHRI T.RAJESH PRESIDING OFFICER

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TA.No.531 OF 2023

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(Old OA No.632/2019-DRT-I, Chennai)

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Indian Bank, (Allahabad Bank) Rep.by its Senior Manager, Anna Nagar Branch, F48, New.No.54, Avenue, Anna Nagar East, Chennai-600102. (As amended by Hon’ble Tribunal vide its Order dt.04.08.2023.) … APPLICANT

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Vs.

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M/s. Progressive Engineering Works, Rep.by its Prop.V.Raghunathan, No.24, Vedhachalam, Avenue, 3^rd Street, Thiruvottriyur, Chennai-600 019.

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Also at Mr. V.Raghunathan, S/o. Varadhachariar, No.W-44-A, BSNL Staff Quarters, Anna Nagar West, Chennai-600040. …DEFENDANTS Counsel for Applicant : Mr.S.Pandurangan. Defendant : 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.25,28,357.17 with further interest from the date of filing of the TA

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and also by allowing the same to be recovered from the defendant personally and his assets.

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The above original application is filed before the DRT-I 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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The defendant being the borrower had applied for and availed a Cash Credit for Rs.17,00,000/- and a Term Loan for Rs.5,75,000/-the following facilities from the erst while Allahabad Bank.

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It is also stated that the above facilities were availed after execution of necessary loan documents by defendants including Demand Promissory Note and Hypothecation agreement obliging themselves to repay the amount promptly and regularly, without fail.

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It is also stated that the defendant had executed necessary revival letters.

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Even though the defendant had obliged himself to repay the amount promptly and regularly, he failed to do so resulting defaults in the account and the same being declared as NPA on 25.02.2019.

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The applicant’s officials had on many occasions approached the defendant requesting him to repay the account and despite the same, no effort was made by the defendant to get the account regularized

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over to pay back the amount. Even as no repayment was made despite repeated request, the applicant had issued various reminder letters requiring repayment of the amount due in the account.

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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.

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Even as the defendant failed to enter appearance, he was set exparte on 21.02.2020. After the amalgamation of Allahabad bank, the applicant bank got substituted in its place.

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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 A22 and got the same marked.

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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 as defendants remain exparte. 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 his assets. The claim of the applicant is well within the period of limitation and there is no Capitalization of penal interest. The transaction being a commercial one this Tribunal is of the view that interest can be awarded at the agreed rates.

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In view of the finding as entered above

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i) TA.No.531 OF 2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.25,28,357.17 together with interest @ 11.30% on Rs.21,70,477.17 due in the Cash Credit account and with interest @ 10.15% on Rs.3,57,880/- due in Term Loan, both with monthly rest from the date of filing of the TA till realization from the defendants and his assets after giving credit to all the amount recovered and received during the pendency of the TA.

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iii) 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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iv) 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 29^th day of November, 2023 )

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

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Indian Bank, (Allahabad Bank) v. M/s. Progressive Engineering Works

Case brief

What is this about?

What did the court decide?

Indian Bank, (Allahabad Bank) v. M/s. Progressive Engineering Works

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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