Allowed

Bank of India v. M/S Yalla Industrial Enterprises

DRT1 Feb 2024OA/255/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application for a recovery certificate. The court found the applicant's un-rebutted evidence proved the claim, permitted recovery of the principal and interest, and directed the issuance of a recovery certificate.

What did the court decide?

Application allowed. Recovery of Rs.22,54,791/- with future and pendent lite interest @9.15% p.a. Recovery Certificate to be issued.

Bank of India versus M/S Yalla Industrial Enterprises — Company and Corporate | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 1^st day of February, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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O.A.255 of 2022

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Bank of India, Rep. by its Constituted Attorney, Having branch office at Hosur Branch, M.M.Reddy Complex, Old Bangalore Road, Hosur – 635 109. IFSC :BKID0008173

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… Applicant.

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Vs.

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M/s.Yalla Industrial Enterprises, Represented by its proprietor, Mr.R.Deva Kumar, S.No:257/2, Shed No:4, Anumanpalli-Vill., Begapalli – PO, SIPCOT-1, Hosur - 635 126.

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R.Deva Kumar, S/o.K.E.Rajagopal, No.2/187, Kumudepalli Post, Hosur Taluk, Krishnagiri - 635 109. PAN :CIWPD1951R.

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… Defendants.

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Counsel for Applicant : M/s.Deepak Narayanan. Defendants : Exparte.

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ORDER

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The Application is filed Under Section 19 (1) of the Recovery of Debts And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for Rs.22,54,791/- due in the Credit facility of Term Loan availed by the defendants .

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The Applicant contends that a credit facility of Rs.18,00,0000/- was availed by defendants which was secured by hypothecation over machineries.

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The Applicant further contends that despite availing the credit facility by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to appear they were set exparte on 25.01.2023.

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The Applicant let in evidence through AW1, filed proof affidavit in confirmation with the pleadings and got marked Exhs.A1 to A12.

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Heard. The following issues arise for consideration:

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i) Whether the Applicant 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’s evidence remains un-rebutted and hence proved.

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The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.

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In view of the above

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i) OA No.255 of 2022 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.22,54,791/(Rupees Twenty Two Lakhs Fifty Four Thousands Seven Hundreds and Ninety One only) with future and pendentelite interest @9.15% per annum with monthly rests from the date of filing of the OA till realization from the defendants after giving credit to all the amounts recovered and received during the pendency of the OA and by sale of hypothecated machineries.

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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.

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iv) Applicant is allowed to realize cost of the proceeding 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) Rules, 1993.

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(Dictated to PA, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 1^st day of February, 2024)

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

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Bank of India v. M/S Yalla Industrial Enterprises

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Yalla Industrial Enterprises

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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