DRT-II Chennai allowed a transfer application filed by Canara Bank to recover debt of Rs.1.09 crore from borrowers and co-borrowers who failed to repay a credit facility. The court granted recovery via hypothecated assets.
Recovery of Rs.1,09,25,392 with interest at 17.5% p.a.; Recovery Certificate issued for enforcement against assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI Dated this 29th day of December, 2023
PRESENT: SHRI T.RAJESH PRESIDING OFFICER
T.A.No.760 of 2022
(Old OA.No.113/2019–DRT-I, Chennai)
Canara Bank,
(Formerly known as Syndicate Bank), Egmore Branch, IFSC No.SYNB0006014, Rep. by its Chief Manager, No.16, Police Commissioner Office Road, Egmore, Chennai – 600 008.
… Applicant.
Vs.
Chennai – 600 024.
1
ORDER
of Debts and Bankruptcy Act seeking recovery of Rs.1,09,25,392.12 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 hypotheca.
The 1st defendant company had availed credit facility of Rs.85,00,000/-
as Cash Credit. The 2nd and 3rd defendants stood as co-borrowers. The credit facility was availed from erstwhile Syndicate Bank which got amalgamated with the applicant, who got substituted in palace of the former.
2
3
Both these issues are gone into and decided together.
4
applicant is well within the period of limitation and there is no
Capitalization of penal interest.
i) TA No.760 of 2022 stands allowed. ii) Applicant is permitted to recover an amount of Rs.1,09,25,392 (Rupees One Crore Nine Lakhs Twenty Five Thousands Three Hundred and Ninety Two only) with future and pendentelite interest @ 17.5% p.a. with monthly rests from the date of filing of the TA till realization from the defendants after giving credit to all the amount recovered and received during the pendency of the TA and the same is allowed by proceeding against hypotheca and other assets of the defendants.
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.
5
Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)
Rules, 1993.
(Dictated to PA, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 29th day of December, 2023)
Sd./- (T. RAJESH) PRESIDING OFFICER DRT-II, CHENNAI
6
2 issues framed by the court
Whether the applicant had succeeded in proving the Transfer Application claim?
What orders are to be passed?
2 provisions across 1 enactments
Canara Bank
M/s. Focus Guarding Solutions (P) Ltd.
Mr.J.Salahudeen
Mrs.R.Priyadharshini
SHRI T.RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
