Allowed

City Union Bank Limited v. Mrs.N.Amutha

DRT21 Mar 2024TA/216/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by City Union Bank Limited for issuance of a Recovery Certificate. The court held the evidence un-rebutted and sufficient, granting recovery of Rs.28,14,410/- with future and pendentelite interest at 13% p.a., including costs.

What did the court decide?

Recovery certificate issued for Rs.28,14,410/- with future and pendentelite interest @13% p.a. to be recovered jointly, severally, from respondents and their assets.

City Union Bank Limited versus Mrs.N.Amutha — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 21^st day of March, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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TA.No.216 of 2023

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(Old OA.No.88/2020 - DRT-I, Chennai)

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City Union Bank Limited, Rep. by its Asst. General Manager, Thanjavur Branch, No.1658, South Main Street, Thanjavur – 613 009. … Applicant.

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Vs.

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Mrs.N.Amutha,

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W/o.D.Natarajan, No.350, Fathima Nagar, N.K.Road, Thanjavur – 1.

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N.Balamurugan, S/o. D.Natarajan, No.350, Fathima Nagar, N.K.Road, Thanjavur – 1.

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N.Balavenkatesh, S/o. D.Natarajan, No.350, Fathima Nagar, N.K.Road, Thanjavur – 1. … Defendants. Counsel for Applicant : Mr.R.Sriram. Defendants : 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

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Certificate for Rs.28,14,410/- due in OSL Term Loan availed by the defendants.

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The Applicant contends that the 1^st and 2^nd defendants availed OSL Term Loan of Rs.25,00,000/- for which 3^rd defendant stood as guarantor. It is stated that the said facility was secured by mortgage of schedule mentioned property.

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It is also stated that the above facility was 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 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 enter appearance they were set exparte on 14.06.2022.

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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 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 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.216/2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.28,14,410/(Rupees Twenty Eight Lakhs Fourteen Thousands Four Hundred and Ten 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 also from their assets and by sale of schedule mentioned property 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 Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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(Dictated to PA, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 21^st day of March, 2024)

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

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City Union Bank Limited v. Mrs.N.Amutha

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. Mrs.N.Amutha

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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