Allowed

The Karur Vysya Bank Ltd., v. Ms.S.Kotteswari

DRT1 Feb 2024OA/392/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Applicant's application for a Recovery Certificate under Section 19(1) RDB Act, confirming the claim of Rs.54,45,677 but refusing penal interest. The Court directed issuance of the certificate with future interest at 11% p.a. and recovery of costs.

What did the court decide?

Recovery Certificate issued for Rs.54,45,677 with future interest @11% p.a., costs awarded to the applicant.

The Karur Vysya Bank Ltd., versus Ms.S.Kotteswari — Banking and Recovery | 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.392 of 2022

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The Karur Vysya Bank Ltd., Rep. by its Branch Manager, Nadukuppam Branch, Plot No.2, Arni Padavedu Road, Nadukuppam Village, Arni Taluk, Tiruvannamalai District – 606 903. … Applicant.

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Vs.

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Ms.S.Kotteswari, W/o.Mr.Padmanaban, No. 30-1, Mada Veethi, Agaram Village, Arni – 632 301. 2. Mr.M.Padmanaban, S/o.Mr.Manogaran, No.30, Ward No.1, Mada Veethi, Agaram , Arni – 632 316. … Defendants. Counsel for Applicant : M/s.Shyam Kumar. 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

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Certificate for Rs.54,45,677/- due in the Credit facility of

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Warehouse loan availed by the defendants from erstwhile Corporation Bank.

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The Applicant contends that a credit facility of Rs.35,00,0000/- was availed by 1^st defendant and 2^nd defendant stood as guarantor. It is also stated that the facility is secured by hypothecation of commodity stored in warehouse.

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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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Even though defendants entered appearance, they failed to appear later and filed reply statement. Hence he was set exparte on 15.05.2023.

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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 A11.

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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. 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. However, the prayer for penal interest is refused.

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In view of the above

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i) OA No.392 of 2022 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.54,45,677/(Rupees Fifty Four Lakhs Forty Five Thousands Six Hundreds and Seventy Seven only) with future and pendentelite interest @11% p.a. 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.

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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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The Karur Vysya Bank Ltd., v. Ms.S.Kotteswari

Case brief

What is this about?

What did the court decide?

The Karur Vysya Bank Ltd., v. Ms.S.Kotteswari

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

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