Allowed

Canara Bank v. Mr.C.Munisamy (Deceased)

DRT30 Nov 2023TA/651/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's transfer application for recovery of an outstanding debt of Rs. 23,01,192/- from the deceased borrower's legal heirs and co-obligants. The court directed the sale of mortgaged properties to recover the dues, awarding pending, future, and pendentelite interest at 12% p.a.

What did the court decide?

Recovery of Rs. 23,01,192/- plus interest at 12% p.a. via sale of secured properties; issuance of Recovery Certificate; costs allowed.

Canara Bank versus Mr.C.Munisamy (Deceased) — Specific Performance | DRT (2023)

¶1

IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI Dated this 30^th day of November, 2023

¶2

PRESENT: SHRI T.RAJESH PRESIDING OFFICER

¶3

TA.No.651 OF 2023 (Old TA.No.195/2019–DRT-I, Chennai) (Old OA.No.88/2018–DRT-III, Chennai)

¶4

Canara Bank,

¶5

Registered office at No. 112, J.C.Road, Bangalore – 560 002, Having one of the branch office at Vaniyambadi branch, Vellore Disctrict - 635 751. Represented by its Manager, T.M.Raveendar.

¶6

… Applicant.

¶7

Vs.

¶8

Mr.C.Munisamy (Deceased)

¶9

S/o.Chinapaiyan.

¶10

Mr. M.Palani,

¶11

S/o.C.Munisamy.

¶12

Both residing at No.1, Beemakulam PO Veeraragavalasai Village, Vaniambadi Taluk, Vellore District.

¶13

Mr.D.Velayudham, S/o.Duraisami 4/428,Betha Veppampattu, Beemakulam PO, Veeraragavalasai Village, Vaniambadi Taluk, Vellore District.

¶14

¶15

Smt. Sumathi, D/o.C.Munisamy, 4/428, Betha Veppampattu, Beemakulam PO, Veeraragavalasai Village, Vaniambadi Taluk, Vellore District. . … Defendants. (Amended as per order dt.16.07.2019 in IA 758/2019)

¶16

Counsel for Applicant : M/s.Orbit Law Services. 1^st Defendant : Deceased. Defendants 2 to 4 : Absent.

¶17

ORDER

¶18

The above Transfer Application is filed under section 19 of the Recovery of Debt and Bankruptcy Act seeking recovery of Rs. 23,01,192/- (Rupees Twenty Three Lakhs One Thousand One Hundred and Ninety Two only) with further interest from the date of filing of the TA and also by allowing the same to be recovered from the defendants 2 to 4 jointly and severally and also by sale of the schedule mentioned properties.

¶19

The above original application is filed before the DRT-III and stood transferred to DRT-I and again to this Tribunal and renumbered as above.

¶20

The case of the applicant can be encapsulated as follows:

¶21

¶22

The defendants being the borrowers and 3^rd defendant being coobligant had applied for and availed a credit facility for Rs. 5,40,000/-.

¶23

It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount with interest @ 12% p.a. promptly and regularly, without fail.

¶24

Apart from execution of the necessary loan documents, the defendants had created security by way of equitable mortgage over the schedule mentioned properties. The defendants had also executed various letters acknowledging the liability.

¶25

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 on 30.03.2016.

¶26

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 defendant to get the account regularized over to pay back the amount.

¶27

It is also the case of the applicant that despite repeated reminders and requests, the defendants had failed to make the repayment forcing the

¶28

¶29

applicant to file this TA seeking recovery of the amount due in the account with further interest and cost.

¶30

During the pendency of TA, the 1^st defendant expired and the LR of 1^st defendant is impleaded as D4. Even as the defendants 2 to 4 failed to enter appearance and hence the matter is proceeded exparte.

¶31

The applicant had let in evidence through AW1 who had sworn to a Proof Affidavit in terms of the pleadings in the TA and also produced Exhibits A1 to A9 and got the same marked in evidence.

¶32

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

¶33

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

¶34

ii) What orders are to be passed?

¶35

Both these issues are gone into and decided together.

¶36

The case put forth by the applicant in the Application remains unrebutted as defendants remain uncontested. 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

¶37

¶38

amount as claimed in the TA is outstanding in the account, which the applicant is entitled to get recovered from the defendants 2 to 4 and their assets (including the schedule mentioned properties). The claim of the applicant is well within the period of limitation and there is no Capitalization of penal interest. Since TA claim is arrived at by calculating interest at agreed rate and interest claimed is on the higher

¶39

rate, pendentelite and future interest is awarded @ 12% p.a. (simple).

¶40

In view of the finding as entered above

¶41

i) TA No.651/2023 stands allowed.

¶42

ii) Applicant is permitted to recover an amount of Rs. 23,01,192/- (Rupees Twenty Three Lakhs One Thousand One Hundred and Ninety Two only) with future and pendentelite interest @ 12% p.a. (simple) from the date of filing of the TA till realization from the defendants 2 to 4 after giving credit to all the amounts recovered and received during the pendency of the TA.

¶43

iii) The schedule property to be proceeded against and sold and if the sale proceeds are not sufficient, the defendants 2 to 4 and their other assets are liable to be proceeded against.

¶44

¶45

However, the liability of 4^th defendant is limited to the

¶46

extent of interest she inherited from deceased 1^st defendant.

¶47

iv) A Recovery Certificate is to be drawn and issued to the

¶48

recovery officer to enable recovery of the amount as per the above terms.

¶49

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.

¶50

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.

¶51

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

¶52

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

¶53

Canara Bank v. Mr.C.Munisamy (Deceased)

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr.C.Munisamy (Deceased)

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

Similar cases

Indian Bank versus M/s. Royal Agro and Diary Limited

M/s. Idbi Bank Ltd. versus M/s V.S Enterprises

Thangamani oil Stores versus Indian Overseas Bank

State Bank of India, versus R.M.Ezhilarasu

Tamilnad Mercantile Bank Limited versus Mr.S.Rengaraj

Idbi Bank versus Ramajayam R