The Debt Recovery Tribunal allowed a Transfer Application filed by Bank of Baroda to recover an outstanding loan of Rs. 2.64 Crore with interest from the defendant borrowers by sale of mortgaged properties.
Allowed recovery of Rs. 2,64,72,657/- plus interest @12.80% p.a. by sale of schedule 'A' and 'B' properties and issuance of a Recovery Certificate.
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
TA.No.809 OF 2023
(Old OA.No.45/2019–DRT-I, Chennai)
Bank of Baroda, No.53, Kamarajar Road, Kancheepuram – 631 501.
… Applicant.
Vs.
1 . M/s.Allwyn Builders, Rep. by its proprietor Mr.Y.Ruban Das No.69/246, Aganagam, Agan Nagar, Palanipet,
Arakkonam – 631 002.
ORDER
of Debt and Bankruptcy Act seeking recovery of Rs.2,64,72,657/- with
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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 schedule mentioned properties.
The 1st defendant a property concern with 2nd defendant as proprietor
had applied for and availed the following facilities totaling Rs.
3,44,70,000/- from the applicants.
| SL. No. | Credit Facility | Amount |
|---|---|---|
| 1. | Cash Credit | Rs. 1,00,00,000/- |
| 2. | Term Loan I | Rs. 9,70,000/- |
| 3. | Term Loan II | Rs. 10,00,000/- |
| 4. | Inland/Foreign letter of credit | Rs. 1,50,00,000/- |
| 5. | Forward contact | Rs. 75,00,000/- |
necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail (with interest +2% over MCLR+SP).
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necessary loan documents, hypothecation over the stocks and Book debts (schedule ‘A’) were marked as being the security for repayment of the loan. The facility was later modified to a line of credit of Rs.2,50,00,000/- and sub-limit of Rs.1,50,00,000/-. For the revised facilities also, the defendants had executed necessary documents and extended the mortgage.
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ii) What orders are to be passed?
Both these issues are gone into and decided together.
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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 as for realisation of amount secured by mortgage, the limitation is 12 years.
i) TA No.809/2023 stands allowed.
ii) Applicant is permitted to recover an amount of Rs.2,64,72,657/- (Rupees Two Crores Sixty Four Lakhs Seventy Two Thousands Six Hundred and Fifty Seven only) with future and pendentelite interest @12.80% p.a. with monthly rests from the date of filing of the TA till realization from the defendants also by selling ‘A’ & ‘B’ schedule properties after giving credit to all the amount recovered and received during the pendency of the TA.
iii) The schedule ‘B’ properties to 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.
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.
14.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.
(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
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2 issues framed by the court
Whether the applicant succeeded in proving the Transfer Application claim?
What orders are to be passed regarding the recovery of the amount?
3 provisions across 2 enactments
Bank of Baroda
M/s. Allwyn Builders
Mr. Y. Ruban Das
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
