Allowed

Canara Bank, v. Mr. Shankar Borrower

DRT30 Nov 2023TA/741/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the transfer application filed by Canara Bank against borrowers and guarantor for recovery of outstanding loan amount of Rs.29,55,064/- with interest, endorsing the sale of hypothecated property and other assets.

What did the court decide?

Recovery of Rs. 29,55,064/- with 9% simple interest; sale of properties; issuance of Recovery Certificate; cost of proceedings allowed.

Canara Bank, versus Mr. Shankar Borrower — Banking and Recovery | DRT (2023)

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

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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TA.No.741 OF 2022

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(Old OA.No.156/2019–DRT-I, Chennai)

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Canara bank, (Erstwhile Syndicate Bank), Tirupattur Branch, Represented by its Deputy Regional Manager, Regional Office II, Chennai. No.2/13, 2nd Floor, Gurumisri Complex, Kamarajar Street, Tambaram West, Chennai - 600 055.

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… Applicant.

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Vs.

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Mr. Shankar (Borrower), S/o.Mr.Chakarai, 5A, Samatchi Kottai, Eggoor Post, Uthangarai Taluk, Krishnagiri District.

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Mr.VijayaKumar (Guarantor), S/o.Vadivel, Visuvasam Patti, Mahanoor Patti Post Uthangarai Taluk, Krishnagiri District. … Defendants. Counsel for Applicant : M/s.K.V.Subramanian Associatez. Defendants : Exparte.

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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.29,55,064/- with further interest from the date of filing of the TA and by allowing the same to be recovered from the defendants jointly and severally and also by sale of the schedule mentioned properties.

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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 1^st defendant being the borrower and 2^nd defendant being the guarantor had applied for and availed a Term Loan facility from the erstwhile Syndicate Bank for the purchase of tractor and agricultural implements.

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It is also stated that the above facilities were availed after execution of

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necessary loan documents by defendants including demand promissory notes, deed of hypothecation and guarantee agreements obliging themselves to repay the amount promptly and regularly, without fail.

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Apart from execution of the necessary loan documents, the 1^st defendant had created security by way of equitable mortgage over the schedule properties.

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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 31.03.2009.

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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 over to pay back the amount. Even as no repayment was made despite repeated request, the applicant caused to issue a lawyer notice on 30.09.2016 requiring repayment of the amount due in account.

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It is also the case of the applicant that despite repeated reminders and requests, the defendants had 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 cost.

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Even as the defendants failed to enter appearance, they were set exparte on 19.06.2019.

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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 OA and also produced Exhibits A1 to A12 and got the same marked in evidence.

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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.

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i) Whether the applicant had succeeded in proving the OA 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 defendants remain exparte. 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 (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 the facility is agricultural facility, the pendentelite and future interest is awarded @ 9% (simple).

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In view of the finding as entered above

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i) TA No.741/2022 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.29,55,064/- (Twenty Nine Lakhs Fifty Five Thousands and Sixty Four only) with future and pendentelite interest @9% p.a. (simple) from the date of filing of the TA till realization from the defendants after giving credit to all the amounts recovered and received during the pendency of the TA.

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iii) The schedule property and the hypothecated tractor to be proceeded against and sold and if the sale proceeds are not sufficient or sale of tractor cannot be effected for any reason, the defendants and their other assets are liable to be proceeded against.

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iv) 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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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.

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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)

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Rules, 1993.

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

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

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Canara Bank, v. Mr. Shankar Borrower

Case brief

What is this about?

What did the court decide?

Canara Bank, v. Mr. Shankar Borrower

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Case details

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