Allowed

Canara Bank v. M/s. Sri Ayyanar Enterprises

DRT2 Feb 2024OA/163/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Open Application filed by Canara Bank for a recovery certificate. The bank proved an outstanding loan facility of Rs. 15 Lakhs with future interest. The court granted recovery of Rs. 32.30 Lakhs plus 9% p.a. interest and declared personal liability of the proprietor. Penal interest was declined.

What did the court decide?

Granted recovery certificate for Rs. 32,30,188/- with future interest at 9% p.a.; declared proprietor personally liable.

Canara Bank versus M/s. Sri Ayyanar Enterprises — Company and Corporate | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI Dated this 2^nd day of February, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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OA.No. 163 of 2022

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Canara Bank, Hosur SME Branch No. 550/1, Bagalur Road, Hosur – 635 109, Krishnagiri District

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…Applicant

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Vs.

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M/s. Sri Ayyanar Enterprises Represented by its Proprietor: Mr. M Sakthivel 312/3C1, Opp. To Indian Oil Petrol Bunk, Avalapalli Road, Hosur – 635 109

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Mr. M Sakthivel, S/o. Muthu Proprietor of: M/s. Sri Ayyanar Enterprises No. 2/577, A 1, Avalapalli Road, Basthi Indira Nagar, Hosur – 635 109

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Also at:

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Mr. M. Sakthivel, S/o. Muthu Proprietor of: M/s. Sri Ayyanar Enterprises 312/3C1, Opposite to Indian Oil Petrol Bunk Avalapalli Road, Hosur – 635 109

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Also at:

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Mr. M Sakthivel, S/o. Muthu, No. 1/15, Rajacity, Thotagiri Road, Hosur Town and Taluk, Hosur Krishnagiri District – 635 109 …Defendants Counsel for Applicant : M/s. R. Jagadeesan& Co. Defendants : Exparte

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ORDER

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The Application is filed Under Section 19 (1) of the Recovery of DebtsAnd Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for Rs.32,30,188/-due in the credit facilities of Overdraft - MSE loan facilityavailed by the defendant and with future interest.

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The Applicant Bank contends that atotal credit facility of Rs. 15,00,000/-

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was availed by the1^st DefendantProprietaryConcern represented by the2^nd Defendant proprietor.

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It is also stated that the above facilities were availed by the defendants 1 and 2 after execution of necessary loan documents obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant Bank further contends that despite availing the credit facilities by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant Bank to make

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the defendants pay back the amount failed forcing the Applicant Bank to

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file this Application.

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Summons was taken out and as the defendants failed to enterappearance, they were set exparte on 23.01.2023.

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The Applicant Bank let in evidence through AW1, filed proof affidavit in confirmation with the pleadings and got marked Ext A1 to A23.

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Heard. The following issues arise for consideration:

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i. Whether the Applicant Bank had proved the OA claim?

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ii. What orders are to be passed?

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Both these issues are decided together.

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The Applicant Bank’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant Bank are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant Bank is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.The prayer for penal interest is declined.

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In view of the above

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i. OA. No: 163 of 2022stands allowed.

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ii. Applicant Bank is permitted to recover an amount of Rs.32,30,188/- (Rupees Thirty Two Lakhs Thirty Thousand One Hundred and Eighty Eight Only/-)with future and pendentelite interest @ 9% p.a. (simple)from the date of filing of the OA till

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realization from the defendants and their assetsafter giving credit to

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all the amounts recovered and received during the pendency of the OA.

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iii. In case of default of payment by the defendants, the 2^nd defendant is personally liable for all such amounts due and payable to the Applicant Bank.

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iv. A Recovery Certificate is to be drawn and issued to the recovery Officer to enable recovery of the amounts as per the above terms.

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v. Applicant Bankis 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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10.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-2, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 2^nd day of February, 2024)

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

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Canara Bank v. M/s. Sri Ayyanar Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s. Sri Ayyanar Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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