Allowed

Punjab National Bank v. M/s.Srinivasa Educational Academy

DRT20 Mar 2024TA/186/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's case for recovery of dues and issuance of a recovery certificate against the educational academy and its guarantors after finding the evidence unrebutted.

What did the court decide?

Recovery certificate issued for Rs.27.52 crores plus interest at 13% p.a., enforceable jointly and severally against respondents and their mortgaged assets.

Punjab National Bank versus M/s.Srinivasa Educational… — Execution and Attachment | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 20^th day of March, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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TA.No.186 of 2023

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(Old OA.No.342/2019 - DRT-I, Chennai)

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M/s.Punjab National Bank, Anna Nagar Branch, (IFSC Code:PUNB0138400), U-10, 4^th Main Road, Anna Nagar, Chennai – 600 040. Represented by its Chief Manager.

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… Applicant.

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Vs.

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M/s.Srinivasa Educational Academy, (PAN No.AADTS6264K), RVS Nagar, Murukambattu, Tirupathi Road, Chittoor – 517 127. Andhra Pradesh. Represented by its President Mr.R.Venkataswamy.

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Dr.R.Venkataswamy, (PAN No.AFOPR4868Q), S/o.Late Mr.Ravoori Kanakaiah, D.No.9/18, RVS Nagar, Murukambattu, Tirupathi Road, Chittoor – 517 127. Andhra Pradesh.

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Mr.R.V.Srinivas, (PAN No.AFEPR9651K), S/o.Dr. R.Venkataswamy, D.No.9/18, RVS Nagar, Murukambattu, Tirupathi Road, Chittoor – 517 127. Andhra Pradesh.

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Dr.Allikeswari,

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(ABEPR5225P), W/o. Dr. R.Venkataswamy, D.No.9/18, RVS Nagar, Murukambattu, Tirupathi Road, Chittoor – 517 127. Andhra Pradesh.

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Mrs.R.Sumalatha, (PAN No.AFEPR9661M), D/o. R.Venkataswamy, D.No.9/18, RVS Nagar, Murukambattu, Tirupathi Road, Chittoor – 517 127. Andhra Pradesh.

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Dr.R.Madhuri Gandhi, (PAN No.ABEPR5254J), D/o. R.Venkataswamy, D.No.6-7-619A, Sripuram Colony, K.T.Road, Tirupathi – 517 501.

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Mrs.R.Usharani, (PAN No.AEBPR9416E), D/o. R.Venkataswamy, D.No.9/18, RVS Nagar, Murukambattu, Tirupathi Road, Chittoor – 517 127. Andhra Pradesh.

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Mr.R.V.Balaji, (PAN No.ATQPR6029M), S/o.R.Venkataswamy, D.No.6-7-619A, Sripuram Colony, K.T.Road, Tirupathi – 517 501.

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Counsel for Applicant Defendants

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… Defendants.

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: M/s.R.Umasuthan. : 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.27,52,62,693.40 due in the Term Loan and Bank Guarantees availed by the defendants.

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The Applicant contends that the 1^st defendant availed Term Loan of Rs.40,00,000/- and Bank Guarantee of Rs.11,50,00,000/- for which defendants 2 to 8 stood as guarantors. It is further stated that the said facilities were 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 defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant 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 to make the defendants pay back the amount failed forcing the Applicant to file this Application.

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The 2^nd defendant filed reply statement which was adopted by other defendants admitting the deposit of title deeds. However the legality

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of the mortgage is disputed. It is also stated that the claim of the applicant is barred by limitation.

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Summons was taken out and even though the reply statement was filed by defendants and entered appearance in restoration petition, they failed to appear subsequently and were set exparte on 05.03.2024.

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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 A34.

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Heard. The following issues arise for consideration:

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i) Whether the Applicant 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’s evidence remains un-rebutted as no contra evidence is available from the side of the defendants. Even though the written statement is filed, no documents supporting the same is adduced or any serious dispute is raised in respect of documents relied by the applicant and hence the evidence is proved. There is no dispute as to the liability and defaults raised in the reply statement and there is no contra evidence. The documents produced by the Applicant are found to be admissible and are sufficient to prove the TA claim. Hence the Applicant is found to be entitled for the TA claim. The TA

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claim is made within limitation and there is no capitalization of penal

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interest. Since the TA claim is arrived at by calculating interest at agreed rate which is on the higher side, pendentelite and future interest is awarded @13% p.a. (simple).

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In view of the above

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i) TA No.186/2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.27,52,62,693.40 (Rupees Twenty Seven Crores Fifty Two Lakhs Sixty Two Thousands Six Hundred Ninety Three and Paise Forty only) with future and pendentelite interest @13% p.a. (simple) from the date of filing of the TA till realization from the defendants jointly, severally, personally and from their assets including the sale of schedule mentioned mortgaged properties after giving credit to all the amounts recovered and received during the pendency of the TA.

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iii) 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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iv) 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.

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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 20^th day of March, 2024)

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

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Punjab National Bank v. M/s.Srinivasa Educational Academy

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s.Srinivasa Educational Academy

Case brief

What is this about?

What did the court decide?

What the court decided

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