Allowed

State Bank of India, v. Mr.S.Syed Ghouse

DRT19 Feb 2024TA/342/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by State Bank of India for issuance of a recovery certificate for housing and home top-up loans. After finding the applicant's claim proved and noting partial recovery via SARFAESI Act, the Tribunal sanctioned the total recovery amount with future and pendentel interest.

What did the court decide?

Issuance of Recovery Certificate for Rs.96,42,532/- with future and pendentel interest; permission to recover from defendants personally and against their assets.

State Bank of India, versus Mr.S.Syed Ghouse — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-II AT CHENNAI

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Dated this 19^th day of February, 2024

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PRESENT: SHRI T.RAJESH

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PRESIDING OFFICER

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TA No.342 of 2023

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(Old OA No.56/2021-DRT-I, Chennai)

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State Bank of India,

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Retail Assets Centralized Processing Centre, No.16, Whannels Road, First Floor, Egmore, Chennai – 600 008. Represented by its Chief Manager. … Applicant.

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Vs.

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Mr.S.Syed Ghouse, S/o.Mr.Syed Hussain.

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Mrs.Yasmin Banu, W/o.S.Syed Ghouse.

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Both are residing at Plot No.211, S-1, 2^nd Floor, Super Foundations, Pulavar Illam, Chowdhry Nagar, 11^th Main Road, Valasaravakkam, Chennai – 600 087. … Defendants. Counsel for Applicant : M/s.M.Suresh. Defendants : Exparte. …… 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 total sum of Rs.96,42,532/- due in the Housing loan and Home Top-up loan availed by the defendants.

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The Applicant contends that the above credit facilities totaling Rs.91,18,000/-was availed by the defendants. It is also stated that the facility is secured by mortgage of schedule mentioned properties.

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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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Summons was taken out and as the defendants failed to appear they were set exparte on 07.06.2022.

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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 A19.

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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

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and are sufficient to prove the TA claim. Hence the Applicant is found

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to be entitled for the TA claim. During the pendency of the TA, the applicant has filed a part satisfaction memo stating that the schedule properties were sold under SARFAESI Act and realized a sum of Rs.76,10,000/- and the same is recorded. The TA claim is made within limitation and there is no capitalization of penal interest. Since the credit facility availed is for the purpose of housing loan wherein the property is already sold through SARFAESI Act during the pendency of the TA and TA claim is arrived at by calculating interest at agreed rate, which is on the higher side pendentelite and future interest is awarded at simple rate.

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In view of the above

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i) TA No.342 of 2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.96,42,532/(Rupees Ninety Six Lakhs Forty Two Thousands Five Hundred and Thirty Two only) with future and pendentelite interest @8.40% p.a. (simple) on Rs.66,76,739/- and @9.05% p.a. (simple) on Rs.29,65,793/- from the date of filing of the TA till realization from the defendants personally and by proceeding against their assets after giving credit to all the amounts recovered and received during the pendency of the TA

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including the amount of part satisfaction of Rs.76,10,000/already recorded.

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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 proceeding 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 (Procedure) Rules, 1993.

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(Dictated to PA, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 19^th day of February, 2024)

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State Bank of India, v. Mr.S.Syed Ghouse

Case brief

What is this about?

What did the court decide?

State Bank of India, v. Mr.S.Syed Ghouse

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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