Allowed

Bank of Baroda v. Mr. G. Raghuraman

DRT30 Nov 2023TA/728/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of agricultural loans advanced to respondents. The court admitted the claim was unchallenged but modified the interest rate from compound to 8% simple interest per annum.

What did the court decide?

Sum of Rs.1,42,72,536/- with interest at 8% p.a. simple interest to be recovered from defendants jointly and severally via sale of properties or personal liability.

Bank of Baroda versus Mr. G. Raghuraman — 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 PRESIDING OFFICER

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TA No.728 of 2023

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(Originally filed before DRT-I Chennai as OA No.1/2020 and thereafter transferred to this Tribunal and renumbered as TA No.728 of 2023)

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Bank of Baroda Rep. by its Branch Manager Cuddalore Branch No.74, Car Street Cuddalore - 607702 …Applicant

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Versus

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Mr. G. Raghuraman S/o Govindarajan Sitharasur Main Road, Natham Village Kizharungunam Post Panruti Taluk, Cuddalore – 607 101

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Mrs. R. Akilandeswari W/o Raghuraman Sitharasur Main Road, Natham Village Kizharungunam Post

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Panruti Taluk, Cuddalore – 607 101

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Mrs. Udhayakumari W/o Ulaganathan Sitharasur Main Road, Natham Village Kizharungunam Post Panruti Taluk, Cuddalore – 607 101 …Defendants

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Counsel for the Applicant Bank : Mr. S. Pandurangan 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

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Debts and Bankruptcy Act, 1993 against the defendants for recovery of an

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aggregate sum of Rs.1,42,72,536/- comprising of the following from the date of filing of the OA till the date of realization in full along with costs of this application:

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(a) A sum of Rs.32,70,941/- with further interest at the rate of 12.20% per annum with half yearly rests being the amount due under Vijaya Kisan Card Loan Account from the defendants and for sale of properties mentioned in Schedule “A” to “C” to the OA ;

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(b) A sum of Rs.11,36,119/- with further interest at the rate of 12.20% per annum with half yearly rests being the amount due under Kissan Credit Loam Account from defendants 1 & 2;

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(c) A sum of Rs.22,63,607/- with further interest at the rate of 12.20% per annum with yearly rests being the amount due under Agri Term Loan Account from defendants 1 and 2 and for sale of Item No.1&3 of Schedule „A‟ and Item Nos. 1 and 2 of Schedule „B‟ to the OA;

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(d) A sum of Rs.26,20,829/ with further interest at the rate of 12.20% per annum with half yearly rests being the amount due under Vijaya Kisan Card Loan from defendants 1 to 3;

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(e) A sum of Rs.49,81,490/-/ with further interest at the rate of 12.20% per annum with half yearly rests being the amount due under Agri Term Loan from defendants 1 to 3 and for sale of Schedule A2 and B2 property of Schedule „C‟.

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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 applied and availed Vijaya Kisan Card Loan of Rs.24,00,000/- from the applicant on 17.03.2012, which was secured by crops grown by 1^st defendant and by equitable mortgage over the Schedule „A‟, Schedule B1, and Schedule „C‟ properties belonging to the defendants 1 to 3 and also by personal guarantee of 3^rd defendant. It is also stated that the above facilities were availed after execution of necessary loan documents on 17.03.2012 obliging themselves to repay the amount promptly and regularly, without fail. Apart from execution of necessary loan documents, the 1^st defendant deposited the title deeds of the schedule „A‟ and Item 2 of Schedule „B‟, the 2^nd defendant deposited the title deeds of the property more fully described in Schedule „B‟ to the OA and the 3^rd defendant deposited the title deeds of the property more fully described in Schedule „C‟ to the OA mentioned property with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 21.05.2012 and 16.03.2012 15.03.2014 registered as Doc. No.1487 of 2012, 940 of 2012 and 1054 of 2012.

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(b) The 2^nd defendant applied and availed Kisan Card Loan of Rs.18,00,000/from the applicant on 17.03.2012, which was secured by crops grown by 2^nd defendant and by equitable mortgage over the Schedule „A1 and Schedule „B‟ properties belonging to the defendants 1 and 2 and also by personal guarantee of 1^st defendant. It is also stated that the above facilities were availed after execution of necessary loan documents on 17.03.2012 obliging themselves to

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repay the amount promptly and regularly, without fail. Apart from execution of necessary loan documents, the 1^st defendant deposited the title deeds of the schedule „A1 and A3‟, the 2^nd defendant deposited the title deeds of the property more fully described in Schedule „B‟ to the OA mentioned property with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 15.04.2014.

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(c) The 2^nd defendant applied and availed Agri Term Loan of Rs.20,00,000/from the applicant on 26.04.2012, which was secured by equitable mortgage over the Schedule „A1 and Schedule „B‟ properties belonging to the defendants 1 and 2 and also by personal guarantee of 1^st defendant. It is also stated that the above facilities were availed after execution of necessary loan documents on 28.05.2012 obliging themselves to repay the amount promptly and regularly, without fail. Apart from execution of necessary loan documents, the 1^st defendant deposited the title deeds of the schedule „A1‟ and A3 properties to the OA with an intention to create equitable mortgage over the same.

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(d) The 3^rd defendant applied and availed Kisan Credit Card Loan of Rs.18,00,000/- from the applicant on 17.03.2012, which was secured by crops grown by 3^rd defendant equitable mortgage over the Schedule „A2 and Schedule „C‟ and B2 properties belonging to the defendants 1 to 3 and also by personal guarantee of 1^st defendant. It is also stated that the above facilities were availed after execution of necessary loan documents on 17.03.2012 obliging themselves to repay the amount promptly and regularly, without fail. Apart from execution of necessary loan documents, the 1^st defendant deposited the title deeds of the

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schedule „A2‟ and Item No.2 Schedule „B‟ and Schedule „C‟ properties to the OA with an intention to create equitable mortgage over the same and executed Memorandum dated 15.4.2014.

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(e) The 3^rd defendant applied and availed Agri Term Loan of Rs.20,00,000/from the applicant on 26.04.2012, which was secured by crops grown by 3^rd defendant equitable mortgage over the Schedule „A2 and Schedule „C‟ and B2 properties belonging to the defendants 1 to 3 and also by personal guarantee of 1^st defendant. It is also stated that the above facilities were availed after execution of necessary loan documents on 28.05.2012 obliging themselves to repay the amount promptly and regularly, without fail. Apart from execution of necessary loan documents, the 1^st defendant deposited the title deeds of the schedule „A2‟ and Item No.2 Schedule „B‟ and Schedule „C‟ properties to the OA with an intention to create equitable mortgage over the same and executed Memorandum dated 15.4.2014.

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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 31.12.2014.

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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 demand notice under

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Section 13(2) of the SARFAESI Act on 02.02.2015 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 27.02.2020.

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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- 55 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

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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 (including the scheduled property). 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 agricultural loan and the interest rates have come down the Tribunal is inclined to reject the interest with monthly rests and award simple interest at reduced rates.

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During the pendency of the OA, applicant filed part satisfaction memo stating therein that the applicant bank had sold the Item No.2 of the Schedule „A‟ property for a sum of Rs.90,00,000/- and has credited the same to the loan account after defraying the expenses. This Tribunal by its proceedings dated 22.08.2023 recorded part satisfaction of the OA claim for a sum of Rs.90,00,000/-.

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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.728 of 2023 stands allowed.

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(b) Applicant is permitted to realize an aggregate sum of Rs.1,42,72,536/comprising of the following from the defendants jointly and severally as mentioned against each facility, 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 schedule properties and other assets of the defendants.: -

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(i) A sum of Rs.32,70,941/- with further interest at the rate of 8% per annum (simple) being the amount due under Vijaya Kisan Card Loan Account from the defendants and for sale of properties mentioned in Schedule “A” to “C” to the OA: -

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(ii) A sum of Rs.11,36,119/- with further interest at the rate of 8% per annum (simple) being the amount due under Kissan Credit Loam Account from defendants 1 & 2;

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(iii) A sum of Rs.22,63,607/- with further interest at the rate of 8% per annum (simple) being the amount due under Agri Term Loan Account from defendants 1 and 2 and for sale of Item No.1&3 of Schedule „A‟ and Item Nos. 1 and 2 of Schedule „B‟ to the OA;

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(iv) A sum of Rs.26,20,829/ with further interest at the rate of 8% per annum (simple) being the amount due under Vijaya Kisan Card Loan from defendants 1 to 3;

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(v) A sum of Rs.49,81,490/-/ with further interest at the rate of 8% per annum (simple) being the amount due under Agri Term Loan from

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defendants 1 to 3 and for sale of Schedule A2 and B2 property of Schedule „C‟.

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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 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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Bank of Baroda v. Mr. G. Raghuraman

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Mr. G. Raghuraman

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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