Allowed

State Bank of India v. P. Kaviyarasan

DRT26 Mar 2024TA/15/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by State Bank of India against the defendant for a housing loan amount. Evidence was un-reputed, claim deemed proved, and a recovery certificate directed with future interest.

What did the court decide?

Recovery certificate issued to recover Rs. 4,29,31,115/- with future interest at 8% p.a. from defendant and assigned properties.

State Bank of India versus P. Kaviyarasan — Landlord and Tenant | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 26^th day of March, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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T.A.No.15of 2023

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(Old OA.No.267/2022-DRT-I, Chennai)

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State Bank of India Stressed Assets Recovery Branch Indian Red Cross Society Building No. 32, Montieth Road, Egmore, Chennai – 600 008 …Applicant Vs.

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P. Kaviyarasan Old No. 3/109A, New No. 2/333, South Street, Melanatham Village, Mannargudi Taluk, Tiruvarur District – 614 105 ...Defendant

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Counsel for Applicant : M/s.O. Padmaprakash Defendant : Exparte ……

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ORDER

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The Application is filed Under Section 19(1) of the Recovery of Debts

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And Bankruptcy Act,1993 seeking for issuance of a Recovery Certificate for a total sum of Rs.4,29,31,115/-due under the Housing Loan Credit facilities along with future interest and costs and for sale of schedule mentioned properties.

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The above Original Application is filed before the DRT-I and stood transferred to this Tribunal and renumbered as above.

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The Applicant Bank contends that a Housing Loan credit facility of Rs. 1,00,00,0000 and another SBI Home Top Up Loan of Rs. 2,50,00,000/- were availed by Defendant. It is also stated that the facilities are secured by mortgage of schedule mentioned properties.

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It is also stated that the above facilities were availed after execution of necessary loan documents by the defendant, obliging himself 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 amounts, the defendant failed in compliance of the same and all the efforts of the Applicant Bank to make the defendant pay back the amounts failed, forcing the Applicant Bank to file this Application.

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Summons was taken out and as defendant failed to enter appearance, he was set exparte on 08.08.2023.

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The Applicant Bank let in evidence through AW1, filed proof affidavit in confirmation with the pleadings and got marked Exhs.A1 to A9.

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Heard. The following issues arise for consideration.

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i. Whether the Applicant Bank had proved the TA 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 evidences remain un-rebutted and hence proved. The documents produced by the Applicant Bank are found to be admissible and are sufficient to prove the TA claim. Hence the Applicant Bank is found to be entitled for the TA claim. The TA claim is made within limitation and there is no capitalization of penal interest. Since the TA claim is arrived at by calculating interest at agreed rate, prayer for monthly rests is declined. During the pendency of the TA, the applicant has filed a part satisfaction memo stating that the Defendant has remitted a sum of Rs. 4,17,07,243/and the same is recorded.

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In view of the above:

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i. TA. No: 15of 2023 stands allowed.

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ii. Applicant Bank is permitted to recover an amount of Rs.4,29,31,115/-(Rupees Four Crore Twenty Nine Lakhs Thirty One Thousand One Hundred and Fifteen Only/-)together with future and pendentelite interest @ 8%p.a. (simple)from the date of filing of the TA till realization from the defendant personally and his assets including the schedule mentioned property after giving credit to all the amounts recovered and

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received during the pendency of the TA including the amount of part satisfaction amount of Rs. 4,17,07,243/-.

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iii. It is further ordered that any amount remitted or realized during the course of the proceedings, shall be given due credit to the loan account of the defendant.

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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 Bank 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

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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 26^th day of March, 2024)

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

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State Bank of India v. P. Kaviyarasan

Case brief

What is this about?

What did the court decide?

State Bank of India v. P. Kaviyarasan

Case brief

What is this about?

What did the court decide?

What the court decided

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