Allowed

Bank of Baroda, v. Mr.G.Shanmugam

DRT30 Nov 2023TA/777/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed a transfer application filed by Bank of Baroda jointly and severally against borrowers and guarantors for recovery of an outstanding agricultural loan of Rs. 14,82,506/- with interest, permitting sale of charged properties.

What did the court decide?

Recovery of Rs. 14,82,506/- with 9% simple interest. Sale of scheduled properties and other assets. Issuance of recovery certificate.

Bank of Baroda, versus Mr.G.Shanmugam — Specific Performance | 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.777 OF 2023

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(Old TA.No.37/2019–DRT-I, Chennai) (Old OA.No.412/2017–DRT-III, Chennai)

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BANK OF BARODA,

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Having its Head Office at Mandvi, Baroda and one of its Branch known as Arasur Branch at No.73/3-B, Trichy Main Road, Arasur - 607 107. Villupuram District. Represented by its Senior Branch Manager Mr.S.Samuel Stephen.

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… Applicant.

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Vs.

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Mr.G.Shanmugam, S/o.Mr.Govinda Gounder, Melamangalam Village, Pincode - 607 107. Tirukkoilur Taluk, Villupuram District.

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Mr.S.Krishnamurthy, S/o.Mr.Srinivasan, Melamangalam Village, Pincode - 607 107. Tirukkoilur Taluk, Villupuram District.

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Mr.K.Velmurugan,

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S/o.Mr.Kalivarathan, Melamangalam Village, Pincode - 607 107. Tirukkoilur Taluk, Villupura1n District.

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Mr.S.Prahalathan, S/o.Mr.Srinivasan, Melamangalam Village, Pincode - 607 107. Tirukkoilur Taluk, Villupuram District. … Defendants.

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Counsel for Applicant : M/s.N.K.Sriraman. 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.14,82,506/- 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-III and stood transferred to DRT-I and again 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 the following facilities from the applicant:

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SL.NO.	Credit Facility	Amount
1.	BKCC Crop loan	Rs. 2,00,000/-
2.	Agricultural loan	Rs. 2,00,000/-
3.	BKCC Crop loan	Rs. 60,300/-
4.	Agricultural loan	Rs.2,00,000/-

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It is also stated that the above facilities were availed after execution of necessary loan documents by defendants 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 mentioned properties. Over and above hypothecation over crops and movables were also created as security for repayment of the loan.

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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 17.12.2013.

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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 had on 11.03.2016 caused

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to issue a lawyer notice requiring 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 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 12.12.2017.

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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 ExhibitsA1 to A40 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 OA 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

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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 defendants and their assets (including the schedule mentioned property). 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 one, 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.777/2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.14,82,506/- (Fourteen Lakhs Eighty Two Thousands Five Hundred and Six only) with future and pendentelite interest @ 9% p.a. (simple) from the date of filing of the TA till realization from the defendants and also by sale of hypotheca after giving credit to all the amount recovered and received during the pendency of the TA.

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iii) The schedule property be proceeded against and sold and if the sale proceeds are not sufficient 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 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 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.Shanmugam

Case brief

What is this about?

What did the court decide?

Bank of Baroda, v. Mr.G.Shanmugam

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

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