Allowed

Bank of Baroda v. Ms. G. Manjula

DRT29 Dec 2023TA/645/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an application filed by Bank of Baroda against twelve defendants for recovery of loan amounts and interest. The court found the defendants failed to repay loans acquired using spurious jewels, directing the sale of mortgaged properties and personal liability.

What did the court decide?

Allowed the application; permitted realization of aggregate sum and interest from defendants jointly and severally; authorized sale of schedule properties; issued recovery certificate.

Bank of Baroda versus Ms. G. Manjula — Banking and Recovery | DRT (2023)

¶1

BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

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Dated this 29^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.645 of 2022

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(Originally filed before DRT-I Chennai as OA No.469 of 2017 and thereafter transferred to this Tribunal and renumbered as TA No.645 of 2022)

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Bank of Baroda Anguchettypalayam Branch No.116/3, Salem Main Road Anguchettypalayam, Panruti Taluk Represented by its Branch Manager

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…Applicant

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Versus

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Ms. G. Manjula

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W/o N. Govindarajan No.249, 1^st Street, Nallian Nallikuppam Post Panruti Taluk

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Mr. N. Govindarajan S/o Namadev No.169, 1^st Street, Nallian Nallikuppam Post

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Panruti Taluk

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Mrs. G. Sathya D/o Govindarajan No.169, 1^st Street, Nallian Nallikuppam Post Panruti Taluk

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Mrs. G. Valarmathy W/o N. Govindarajan No.169, 1^st Street, Nallian Nallikuppam Post Panruti Taluk

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Mrs. G.Jeevitha D/o Govindarajan No.169, 1^st Street, Nallian Nallikuppam Post Panruti Taluk

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Ms. U. Udhayakumari D/o Ulaganathan No.249, 1^st Street, Nallian Nallikuppam Post Panruti Taluk

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Mr. G. Raghuraman S/o Govindarajan Padayachi No.169, 1^st Street, Nallian Nallikuppam Post Panruti Taluk

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Mrs. R. Agilandeswari W/o G. Raghuraman 134, Ner Street, Natham Kezhlargunanatham Village Panruti Taluk, Cuddalore District

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Mr. Naveen Kumar S/o G. Raghuraman No.169, 1^st Street, Kelarungunram Natham, Panruti – 607 105

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Mrs. Priyanka W/o Mr. Rajesh 134, Killargunanatham Village Panruti Taluk, Cuddalore District Pincode – 607 101

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Mr. Arunraj S/o Selvaraj 11, Thaneerthoti Street Varakaalattu, Varakkaalpattu Post Cuddalore Taluk, Cuddalore District

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Ms. T. Vijaya W/o Thanakodi 113-B, Natham, Natham Post Panruti Taluk, Cuddalore District

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T. Sumathi W/o Thangarasu 201, Natham, Natham Post Panruti Taluk, Cuddalore District

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…Defendants

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Counsel for the Applicant Bank : Mr. W.S. Jayaprakash 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.1,29,07,372.64p from the date of filing of the application till the date of realization in full along with costs of this application and for selling schedule mentioned properties in the following manner: -

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(a) 1^st defendant and defendants 3, 5, 7 to 13 jointly and severally to pay an aggregate sum of Rs.22,72,289.36p comprising a sum of Rs.9,34,651,27p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under BKCC Loan Account; a sum of Rs.7,09,805.05p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under Jewel Loan Account No.16610600005810; a sum of Rs.6,27,833.04p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under Jewel Loan Account No.16610600005862.

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(b) 2^nd defendant and defendants 3, 5, 7 to 13 jointly and severally to pay an aggregate sum of Rs.16,97,847.92p comprising a sum of Rs.9,87,465.24p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under BKCC Loan Account; a sum of Rs.7,10,382.68p together

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with interest at the rate of 13.45% per annum with monthly rests being the amount due under Jewel Loan Account No.16610600005876;

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(c) 3^rd defendant and defendants 3, 5, 7 to 13 jointly and severally to pay an aggregate sum of Rs.13,72,450.94p comprising a sum of Rs.6,63,039.44p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under BKCC Loan Account; a sum of Rs.7,09,411.50p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under Jewel Loan Account No.16610600005805; a sum of Rs.6,27,833.04p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under Jewel Loan Account No.16610600005862.

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(d) 4^th defendant and defendants 4, 5, 7 to 13 jointly and severally to pay an aggregate sum of Rs.15,27,586/- comprising a sum of Rs.8,13,934.35p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under BKCC Loan Account; a sum of Rs.7,13,651.65p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under Jewel Loan Account No.16610600005803.

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(e) 5^th defendant and defendants 3, 5, 7 to 13 jointly and severally to pay an aggregate sum of Rs.14,78,835.53p comprising a sum of Rs.7,68,666.13p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under BKCC Loan Account; a sum of Rs.7,10,169.40p together

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with interest at the rate of 13.45% per annum with monthly rests being the amount due under Jewel Loan Account No.16610600005806.

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(f) 6^th defendant and defendants 3, 5, 7 to 13 jointly and severally to pay an aggregate sum of Rs.17,53,567.90p comprising a sum of Rs.10,39,916.25p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under BKCC Loan Account; a sum of Rs.7,13,651.65p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under Jewel Loan Account No.16610600005807.

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(g) 7^th defendant and defendants 3, 5, 8 to 13 jointly and severally to pay a sum of Rs.13,47,936.40p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under BKCC Loan Account.

¶42

(h) 8^th defendant and defendants 3, 5, 7, 9 to 13 jointly and severally to pay an aggregate sum of Rs.14,56,858.59 comprising a sum of Rs.8,66,748.32p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under BKCC Loan Account; a sum of Rs.5,90,110.27p together with interest at the rate of 13.45% per annum with monthly rests being the amount due under Tractor Loan Account No.16610600005458.

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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 1^st defendant approached the applicant for sanction of Baroda Kisan Credit Card (Crop Loan) to meet expenses of cultivation of Paddy and Banana on 24.09.2013 and also applied for Jewel Loan of Rs.5,00,000/- on 13.02.2014 and for Rs.4,40,000/- on 15.2.2014 and the applicant considering the said requests sanctioned BKCC Loan of Rs.6,30,000/- on 24.09.2013 and Jewel Loans of Rs.5,00,000/- and Rs.4,40,000/- on 13.2.2014 and 15.2.2014 respectively. The 1^st defendant availed the above loans by executing necessary loan and security documents on 24.09.2013, 13.02.2014 and 15.02.2014. The defendants 7 and 8 guaranteed the BKCC Loan by executing General Form of Guarantee on 24.09.2013.

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(b) The 2^nd defendant approached the applicant for sanction of Baroda Kisan Credit Card (Crop Loan) to meet expenses of cultivation of Paddy and Banana on 24.09.2013 and also applied for Jewel Loan of Rs.5,00,000/- on 18.02.2014 and the applicant considering the said requests sanctioned BKCC Loan of Rs.6,65,000/- on 24.09.2013 and Jewel Loans of Rs.5,00,000/- on 18.02.2014. The 2^nd defendant availed the above loans by executing necessary loan and security documents on 24.09.2013 and 18.02.2014. The defendants 7 and 8 guaranteed the BKCC Loan by executing General Form of Guarantee on 24.09.2013.

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(c) The 3^rd defendant approached the applicant for sanction of Baroda Kisan Credit Card (Crop Loan) to meet expenses of cultivation of Paddy and Banana on 24.09.2013 and also applied for Jewel Loan of Rs.5,00,000/- on 13.02.2014 and the applicant considering the said requests sanctioned BKCC Loan of Rs.4,50,000/- on 24.09.2013 and Jewel Loans of Rs.5,50,000/- on 13.02.2014. The 3^rd defendant availed the above loans by executing necessary loan and security documents on 24.09.2013 and 13.02.2014. The defendants 7 and 8 guaranteed the BKCC Loan by executing General Form of Guarantee on 24.09.2013.

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(d) The 4^th defendant approached the applicant for sanction of Baroda Kisan Credit Card (Crop Loan) to meet expenses of cultivation of Paddy and Banana on 24.09.2013 and also applied for Jewel Loan of Rs.5,00,000/- on 13.02.2014 and the applicant considering the said requests sanctioned BKCC Loan of Rs.5,50,000/- on 24.09.2013 and Jewel Loans of Rs.5,00,000/- on 13.02.2014. The 4^th defendant availed the above loans by executing necessary loan and security documents on 24.09.2013 and 13.02.2014. The defendants 7 and 8 guaranteed the BKCC Loan by executing General Form of Guarantee on 24.09.2013.

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(e) The 5^th defendant approached the applicant for sanction of Baroda Kisan Credit Card (Crop Loan) to meet expenses of cultivation of Paddy and Banana on 24.09.2013 and also applied for Jewel Loan of Rs.5,00,000/- on 13.02.2014 and the applicant considering the said requests sanctioned BKCC Loan of Rs.5,20,000/- on 24.09.2013 and Jewel Loans of Rs.5,00,000/- on 13.02.2014.

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The 5^th defendant availed the above loans by executing necessary loan and security documents on 24.09.2013 and 13.02.2014. The defendants 7 and 8 guaranteed the BKCC Loan by executing General Form of Guarantee on 24.09.2013.

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(f) The 6^th defendant approached the applicant for sanction of Baroda Kisan Credit Card (Crop Loan) to meet expenses of cultivation of Paddy and Banana on 25.09.2013 and also applied for Jewel Loan of Rs.5,00,000/- on 13.02.2014 and the applicant considering the said requests sanctioned BKCC Loan of Rs.7,00,000/- on 24.09.2013 and Jewel Loans of Rs.5,00,000/- on 13.02.2014. The 6^th defendant availed the above loans by executing necessary loan and security documents on 25.09.2013 and 13.02.2014. The defendants 7 and 8 guaranteed the BKCC Loan by executing General Form of Guarantee on 25.09.2013.

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(g) The 7^th defendant approached the applicant for sanction of Baroda Kisan Credit Card (Crop Loan) to meet expenses of cultivation of Paddy and Banana on 30.09.2013 and the applicant considering the said request sanctioned BKCC Loan of Rs.9,00,000/- on 30.09.2013. The 7^th defendant availed the above loan by executing necessary loan and security documents on 30.09.2013. The defendants 7 and 8 guaranteed the BKCC Loan by executing General Form of Guarantee on 30.09.2013.

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(h) The 8^th defendant approached the applicant for sanction of Baroda Kisan Credit Card (Crop Loan) to meet expenses of cultivation of Paddy and Banana on 24.09.2013 and also applied for Tractor Loan of Rs.6,50,000/- on 26.09.2013 and the applicant considering the said requests sanctioned BKCC Loan of Rs.5,85,000/- on 20.11.2013 and Tractor Loan of Rs.6,50,000/- on 26.09.2013. The 8^th defendant availed the above loans by executing necessary loan and security documents on 20.11.2013 and 26.08.2013. The 7^th guaranteed the loans by executing General Form of Guarantee on 26.09.2013.

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(i) The defendants 1 to 7 deposited the title deeds of their property more fully described in Schedule ‘A’ to the OA on 12.03.2014 with an intention to create equitable mortgage over the same and confirmed the same by letter dated 13.03.2014. The 8^th defendant deposited the title deeds of their property more fully described in Schedule ‘B’ to the OA on 26.03.2015 with an intention to create equitable mortgage over the same and confirmed the same by letter dated 26.03.2015. The 9^th defendant deposited the title deeds of their property more fully described in Schedule ‘C’ to the OA on 26.03.2015 with an intention to create equitable mortgage over the same and confirmed the same by letter dated 26.03.2015. The defendants 3 and 5 deposited the title deeds of their property more fully described in Schedule ‘D’ to the OA on 26.03.2015 with an intention to create equitable mortgage over the same and confirmed the same by letter dated 26.03.2015. The 10^th defendant deposited the title deeds of her property more fully described in Schedule ‘E’ to the OA with the applicant bank on 26.03.2015 and confirmed the same by letter dated 26.03.2015. The defendants 3, 5, 8, 9

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and 11 deposited the title deeds of their properties more fully described in Schedule ‘F’ to OA with an intention to create equitable mortgage over the same on 27.03.2015 and confirmed the same by letter on 27.03.2015. The defendants 12 and 13 deposited the title deeds of their property more fully described in Schedule ‘G’ to the OA on 26.03.2015 with an intention create equitable mortgage over the same and confirmed the same by letter dated 26.3.2015.

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(j) The jewel loans sanctioned and availed by defendants 1 to 6 were realized to be based on spurious jewels which had no realizable and the BKCC Loans were later realized to have been misutilised for purposes other than for which it was sanctioned and hence the applicant has initiated criminal action against those found guilty of such actions.

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(k) It is stated that the defendants 3, 5, 8, 9, 10, 11, 12 and 13 created equitable mortgage over immovable properties more fully described in Schedule ‘A’ to ‘G’ by depositing original title deeds relating to the said properties, however, Memorandum of Deposit of Title deeds were not registered as required.

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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 loan account was classified as NPA on 31.03.2015.

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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. The applicant issued legal notices to the

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defendants on 25.04.2016 calling upon the defendants to clear the outstanding dues evincing no reply from the defendants.

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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 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 29.08.2018.

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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-166 and got the same marked in evidence. In view of the additional affidavit filed by the applicant to the effect that the documents were seized by CBI in case registered by CBI, Anti Corruption Branch, Chennai in Case No.RC17/A/15/CBI/ACB/Chennai against G. Raghuram and others and the seizure memo dated 25.05.2015 and 26.05.2015 are filed, Exhibits A-1 to A-17, A-9 to A-15, A-17 to A-23, Ex.A-25 to A-42, Ex. A-44 to A-59, Ex. A-61 to Ex. A76, Ex. A-78 to A-92, Ex. A-94 to Ex. A-110, Ex. A-112 to Ex. A-119 and Ex. A- 120 being photocopies were marked subject to proof and relevancy.

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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 are availed by the defendants by pledging spurious jewels and the loans availed have been utilized for the purposes other than the one for which it was granted, this Tribunal is not inclined to interfere with the interest rates claimed by the applicant .

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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, from the date of filing

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of the application till the date of realization in full along with costs of this application and for sale of the schedule properties and other assets of the defendants: -

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(a) TA No.645 of 2022 stands allowed.

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(b) Applicant is permitted to realize an aggregate sum of Rs.1,29,07,372.64p from the defendants in the following manner: -

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(i) A sum of Rs.22,72,289.36p together with interest at the rate of 13.45% simple per annum from the defendants 1, 3, 5, 7 to 13 jointly and severally from the date of filing of the application till the date of realization in full along with costs of this application, after deducting all the amounts received by them during the pendency of OA, and also by selling the schedule mentioned properties and other assets of the defendants 1, 3, 5, 7 to 13.

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(ii) A sum of Rs.16,97,847.92p together with interest at the rate of 13.45% simple per annum from the defendants 2, 3, 5, 7 to 13 jointly and severally from the date of filing of the application till the date of realization in full along with costs of this application, after deducting all the amounts received by them during the pendency of OA, and also by selling the schedule mentioned properties and other assets of the defendants 2, 3, 5, 7 to 13.

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(iii) A sum of Rs.13,72,450.94p together with interest at the rate of 13.45% simple per annum from the defendants 3, 5, 7 to 13 jointly and severally from the date of filing of the application till the date of realization in full along with costs of this application, after deducting all the amounts received by them during the pendency of OA, and also by selling the schedule mentioned properties and other assets of the defendants 3, 5, 7 to 13.

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(iv) A sum of Rs.15,27,586/- together with interest at the rate of 13.45% simple per annum from the defendants 4, 3, 5, 7 to 13 jointly and severally from the date of filing of the application till the date of realization in full along with costs of this application, after deducting all the amounts received by them during the pendency of OA, and also by selling the schedule mentioned properties and other assets of the defendants 4, 3, 5, 7 to 13.

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(v) A sum of Rs.14,78,835.53p together with interest at the rate of 13.45% simple per annum from the defendants 5, 3, 7 to 13 jointly and severally from the date of filing of the application till the date of realization in full along with costs of this application, after deducting all the amounts received by them during the pendency of OA, and also by selling the schedule mentioned properties and other assets of the defendants 3, 5, 7 to 13.

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(vi) A sum of Rs.17,53,567.90p together with interest at the rate of 13.45% simple per annum from the defendants 6, 3, 5, 7 to 13 jointly and severally from the date of filing of the application till the date of realization in full along with costs of this application, after deducting all the amounts received by them during the pendency of OA, and also by selling the schedule mentioned properties and other assets of the defendants 6, 3, 5, 7 to 13.

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(vii) A sum of Rs.13,47,936.40p together with interest at the rate of 13.45% simple per annum from the defendants 7, 3, 5, 8 to 13 jointly and severally from the date of filing of the application till the date of realization in full along with costs of this application, after deducting all the amounts received by them during the pendency of OA, and also by selling the schedule mentioned properties and other assets of the defendants 7, 3, 5, 8 to 13.

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(viii) A sum of Rs.14,56,858.59p together with interest at the rate of 13.45% simple per annum from the defendants 8, 3, 5, 7, 9 to 13 jointly and severally from the date of filing of the application till the date of realization in full along with costs of this application, after deducting all the amounts received by them during the pendency of OA, and also by selling the schedule mentioned properties and other assets of the defendants 8, 3, 5, 7, 9 to 13.

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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 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 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 29^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. Ms. G. Manjula

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Ms. G. Manjula

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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