Allowed

Canara Bank, (Formerly Syndicate Bank) v. Mr.D.S.Bose

DRT28 Dec 2023TA/697/2022

Case brief

AI extract

What is this about?

Allowed a transfer application filed by Canara Bank under the Recovery of Debt and Bankruptcy Act for recovery of a car loan amount of Rs. 22,21,037.38 from the defendant, ordering the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 22,21,037.38 with interest at 12.35% p.a., directed against the defendant personally and hypothecated vehicle, along with issuance of Recovery Certificate.

Canara Bank, (Formerly Syndicate Bank) versus… — Contract and Commercial Disputes | DRT (2023)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI Dated this 28^th day of December, 2023

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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TA.No.697 OF 2022

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(Old OA.No.219/2022–DRT-I, Chennai)

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Canara Bank,

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(Formerly Syndicate Bank), Aminjikarai Branch, No.6/20, Govindan Street, Ayyavoo Colony, Aminjikarai, Chennai – 600 029. Rep. by its Chief Manager and Principal Officer. IFSC Code: SYNB0006021. … Applicant. Vs. Mr.D.S.Bose, S/o.Daniel Singaraj, No.7/24, Twin House, Mugappair West, Chennai – 600 037. … Defendant. Counsel for Applicant : M/s.P.Sreenivasulu. Defendant : Exparte. …… ORDER

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The above Transfer Application is filed under section 19 of the Recovery of Debt and Bankruptcy Act seeking recovery of Rs.22,21,037.38 with further interest from the date of filing of the TA and by allowing the

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same to be recovered from the defendant personally and from 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 had applied for and availed a car loan for Rs. 15,00,000/from erstwhile Syndicate Bank, which got amalgamated with the applicant.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendant obliging himself to repay the amount promptly and regularly, without fail in 84 equal monthly installments of Rs. 25,390/- p.m. each arrived at by calculation interest @10.35% p.a. thereon compounded monthly being 0.65% over BPLR.

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Apart from execution of the necessary loan documents, hypothecation over the vehicles was created as being the security for repayment of the loan.

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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.

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The applicant’s officials had on many occasions approached the defendant requesting him 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.

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It is also the case of the applicant that despite repeated reminders and requests, the defendant had failed to make the repayment forcing the applicant to file this TA 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 20.01.2023

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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 TA and also produced Exhibits A1 to A9 and got the same marked as evidence.

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Heard the counsel for the applicant and considered the contentions as

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taken in the TA 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 TA 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 defendant is admitting the liability. 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 TA is outstanding in the account, which the applicant is entitled to get recovered from the defendant and his 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 finding as entered above

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i) TA No.697/2022 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.22,21,037.38 (Rupees Twenty Two Lakhs Twenty One Thousands Thirty Seven and Thirty Eight Paisa only) with future and pendentelite interest @12.35% p.a. compounded monthly from the date of filing of the TA till realization from the defendant and also by proceeding against hypothecated vehicle 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 28^th day of December, 2023)

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

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Canara Bank, (Formerly Syndicate Bank) v. Mr.D.S.Bose

Case brief

What is this about?

What did the court decide?

Canara Bank, (Formerly Syndicate Bank) v. Mr.D.S.Bose

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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