Allowed

Canara Bank v. Mr.T.Subramani (Deceased)

DRT13 Feb 2024TA/190/2022

Case brief

AI extract

What is this about?

The Applicant filed an application for issuance of a Recovery Certificate under the RDB Act for an agricultural loan default. The court found the claim proved and admissible, granting recovery of the principal amount along with pendentelite and future interest at 9% p.a. simple, with a directive to issue a Recovery Certificate.

What did the court decide?

Recovery of Rs. 16,65,503.78 plus future and pendentelite interest at 9% p.a. (simple) via Recovery Certificate issued to Recovery Officer.

Canara Bank versus Mr.T.Subramani (Deceased) — Specific Performance | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL – II AT CHENNAI Dated this 13^th day of February, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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T.A.No.190 of 2022

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(Old OA.No.431/2020-DRT-I, Chennai)

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Canara Bank, Arakkonam Branch, Represented by its Chief Manager, No.14, Tirumalai Achari Street, Arakkonam, Vellore District – 631 001. … Applicant.

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Vs.

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Mr.T.Subramani (Deceased).

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Mr.S.Palani, S/o.Mr.T.Subramani, No.102, New No.201, Battai Street, Elathur Village & Post, Nemeli Taluk, Vellore District – 632 502.

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Mr.S.Saravanan,

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S/o.Mr.T.Subramani, No.102, New No.201, Battai Street, Elathur Village & Post, Nemeli Taluk, Vellore District – 632 502.

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Mr.S.Balamurugan, S/o.Mr.T.Subramani, No.102, New No.201, Battai Street, Elathur Village & Post, Nemeli Taluk, Vellore District – 632 502.

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Mrs.Anbarasi, S/o.Mr.T.Subramani, No.102, New No.201, Battai Street, Elathur Village & Post, Nemeli Taluk, Vellore District – 632 502.

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Mrs.Parimala, S/o.Mr.T.Subramani, No.102, New No.201, Battai Street, Elathur Village & Post, Nemeli Taluk, Vellore District – 632 502. … Defendants. Counsel for Applicant : M/s.M.Muthukumaran. 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.16,65,503.78 due in the credit facility of Farm Machinery Loan and Kisan OD availed by the 1^st defendant.

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The Applicant contends that a credit facility of Farm Machinery loan and Kisan OD for Rs. 5,15,000/- and Rs. 3,50,000/- respectively was availed by 1^st defendant. It is also stated that the facility is secured by mortgage of schedule mentioned properties and hypothecation of tractor.

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The Applicant further contends that despite availing the credit facility by obliging to pay back the amount, the 1^st defendant failed in compliance of the same and all the efforts of the Applicant to make

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the defendant pay back the amount failed forcing the Applicant to file this Application.

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The summons taken out to the sole defendant returned unserved stating “deceased”. The legal representative of the 1^st defendant were impleaded as defendant 2 to 6. Since the defendants 2 to 6 failed to appear, defendants 2, 3, 5 and 6 were set exparte on 07.09.2023 and 4^th defendant was set exparte on 10.11.2023.

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The Applicant let in evidence through AW1, filed proof affidavit in confirmation with the pleadings and got marked Ext A1 to A32.

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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 and hence proved. 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 claim is made within limitation and there is no capitalization of penal interest. Since the facility is related to agricultural activity, pendentelite and future interest is awarded @9% p.a. (simple).

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In view of the above

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i) TA No.190 of 2022 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.16,65,503.78 (Rupees Sixteen Lakhs Sixty Five Thousands Five Hundred Three and Seventy Eight Paise only) with future and pendentelite interest @9% p.a. (simple) from the date of filing of the TA till realisation from the defendants 2 to 6 to the extent of properties inherited by them from deceased 1^st defendant after giving credit to all the amounts recovered and received during the pendency of the TA.

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iii) The schedule property to be proceeded against and sold and if the sale proceeds are not sufficient the defendant 2 to 6 and their other assets to the extent of properties inherited by them from 1^st defendant to be proceeded against.

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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 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 13^th day of February, 2024)

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

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Canara Bank v. Mr.T.Subramani (Deceased)

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr.T.Subramani (Deceased)

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

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