Allowed

Bank of Baroda v. M. Gowri

DRT25 Mar 2024TA/335/2023

Case brief

AI extract

What is this about?

This Tribunal allowed the applicant bank's application for a recovery certificate. The court found the bank's evidence sufficient to prove the debt, permitting recovery of the principal amount, future interest, and attachment of mortgaged properties, while limiting personal liability to the primary borrower.

What did the court decide?

Recovery certificate issued for Rs. 13,10,513/-. Sale of schedule properties ordered. Personal liability limited to 1st defendant.

Bank of Baroda versus M. Gowri — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 25^th day of March, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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T.A.No.335of 2023

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(Old OA.No.37/2020-DRT-I, Chennai)

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Bank of Baroda Anguchettipalayam Branch, Anguchettipalayam, Cuddalore District

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…Applicant

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Vs.

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M. Gowri, W/o. Manavalan, 176, Ner Street, Keezharugunam, Natham, Panruti Taluk, Cuddalore District – 607 106

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R. Agilandeswari, W/o. G. Raguraman, 134, Ner Street, Natham (Post), Keezharugunam, Natham Village, Panruti Taluk, Cuddalore District

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S. Arulraj, S/o. Selvaraj, 11, Thanirthotti Street, Varakaalpattu, Varakaalpattu (Post), Cuddalore Taluk & District

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G. Jeevitha, D/o. Govindarajan, 13, Ward 10, Venugopalapuram West Street, Cuddalore District

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G. Sathya, D/o. Govindarajan, 13, Ward 10, Venugopalapuram West Street, Cuddalore District

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Naveen Kumar S/o. G Raguraman, 134, Ner Street, Natham (Post), Keezharugunam, Natham Village, Panruti Taluk, Cuddalore District ...Defendants Counsel for Applicant : M/s.E. Vijayaraghavan Defendants : Exparte

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ORDER

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The Application is filed Under Section 19(1) of the Recovery of DebtsAnd Bankruptcy Act,1993 seeking for issuance of a Recovery Certificate for a total sum of Rs.13,10,513/-due under the 2 credit facilities i.e. Rs. 8,94,349/- under the Crop Loan A/c and Rs. 4,16,164/- under the Jewel Loan A/c along with future interest and costsand 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 contendsthat a Crop Loan (Baroda Kisan Credit Card) credit facility of Rs. 6,10,000/- and a Jewel Loan credit facility of Rs. 3,00,000/- were availed by the 1^st Defendant.It is also stated

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that the facilities are secured by mortgage of schedule mentioned properties by the Defendants 2 to 6.

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It is also stated that the above facilities were availed after execution

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of necessary loan documents by the defendants, obliging themselves 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 defendants failed in compliance of the same and all the efforts of the Applicant Bank to make the defendants pay back the amounts failed, forcing the Applicant Bank to file this Application.

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Summons was taken out and as defendants failed to enter appearance, they were set exparte on 02.11.2021.

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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 A15.

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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

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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, which is on the higher side,prayer for monthly restsis declined.

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In view of the above:

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i. TA. No: 335of 2023 stands allowed.

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ii. Applicant Bank is permitted to recover an amount of Rs.13,10,513/-(Rupees Thirteen Lakhs Ten Thousand Five Hundred and Thirteen Only/-)together with future and pendentelite interest @ 15.15% p.a. (simple) from the date of filing of the TA till realization from the 1^st defendant personallyand her assets and also proceeding against and selling the schedule mentioned properties and appropriate the sale proceeds towards the decretal dues.However, from the documents provided, it is evident that there cannot be any personal liability on Defendants 2 to 6.

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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 defendants.

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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

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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 25^th day of March, 2024)

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

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Bank of Baroda v. M. Gowri

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M. Gowri

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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