Allowed

Punjab National Bank v. M/s Avn Tours and Travels

DRT30 Nov 2023TA/582/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application seeking recovery of a defaulted term loan. The court found the claim proved, reduced interest to 9% simple, and directed recovery from the defendants' assets and personal liability.

What did the court decide?

Applicant permitted to realize Rs.51,17,128/- with future interest at 9% p.a. simple from the date of application till realization, after deducting amounts already received.

Punjab National Bank versus M/s Avn Tours and Travels — Specific Performance | DRT (2023)

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BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

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Dated this 30^th day of November, 2023

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PRESENT: SHRI T. RAJESH

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PRESIDING OFFICER

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TA No.582 of 2022

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(Originally filed before DRT-I Chennai as OA No.277 of 2020 and thereafter transferred to this Tribunal and renumbered as TA No.582 of 2022)

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Punjab National Bank Nungambakkam Branch No.9, Nungambakkam High Road Chennai – 600 034 Represented by its Chief Manager …Applicant

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Versus

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M/s AVN Tours and Travels

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Rep. by its Partners Prakasam Street, T. Nagar Habibullah Road, Chennai – 600 017

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Also at

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No.82, MIG-2, Ellaya Street Thiruvalluvar Nagar, Tondiarpet

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Chennai – 600 081

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Mr. Navin Prakash No.16/1, 4^th Cross Street Thiruvalluvar Nagar, Tondiarpet Chennai – 600 081

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Mr. S. Vikas

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Orchid Sengacheri Flats Muthusawamy Street, Chrompet Chennai – 600 044

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Mr. Ajay Benjamin No.1/136, Perumal Koil Street Ayyapanthangal, Chennai - 600056 …Defendants

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Counsel for the Applicant Bank : M/s S. Vaidyanathan 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 a sum of Rs.51,17,128/- together with interest @14.05% per annum with monthly rests plus 2% penal interest from the date of filing of the application till the date of realization in full along with costs of this application.

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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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The 1^st defendant represented by its Partners, defendants 2 to 4 had approached the applicant vide application dated 20.06.2015 for grant of Term Loan for purchase of 7 Maruti Swift Dzire Cars for operation as taxi cabs and considering said request the applicant sanctioned a sum of Rs.46 lakhs vide its sanction letter dated 30.06.2015. It is stated that the 1^st defendant executed necessary loan documents on 30.06.2015 and the defendants 2 to 4 executed guarantee agreements on 30.06.2015 thereby personally guaranteeing due repayment of the loan facility availed by the 1^st defendant. It is also stated that the 1^st defendant hypothecated the vehicles purchased from and out of the loan funds availed from applicant bank.

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It is further stated that even though the defendants had obliged themselves 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 on 09.10.2017.

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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. It is stated that as no repayment was forthcoming despite repeated request the applicant issued legal notice 09.05.2018 requiring the 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 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 costs.

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It is the further case of the applicant that the defendants failed to enter appearance he was called absent and set ex-parte on 17.06.2022.

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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-11 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 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 a vehicle loan and the interest rates have come down the Tribunal is inclined to reject the prayer for interest with monthly rests and award simple interest at reduced rates and the prayer for grant of penal interest is rejected.

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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, which the applicant is entitled to realize. Hence, TA is disposed off in the following manner: -

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(a) TA No.589 of 2022 stands allowed.

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(b) Applicant is permitted to realize an aggregate amount of Rs.51,17,128/with future and pendentelite interest @9% p.a., simple from the

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defendants jointly and severally, from the date of filing of the OA till realization, after deducting all the amounts received by them during the pendency of OA, and also by selling the hypotheca, if any, and other assets of the defendants.

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(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant Bank, the defendants are personally liable for all such amounts due under the Loan Accounts.

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(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 7 days from the date 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 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 30^th day of November, 2023)

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

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Punjab National Bank v. M/s Avn Tours and Travels

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Avn Tours and Travels

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

Coram

Case details

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