Allowed

Indian Overseas Bank v. Sundaram

DRT26 Mar 2024TA/382/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for a recovery certificate, confirming the debt claim was proven and unrebutted. It ordered the issuance of a certificate for recovery including principal and future interest at 8% p. with authority to sell scheduled properties.

What did the court decide?

Recovery certificate issued for Rs. 37,25,713/- plus future interest at 8% p.a. (simple); authority to sell scheduled properties granted.

Indian Overseas Bank versus Sundaram — Execution and Attachment | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 26^th day of March, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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T.A.No.382of 2023

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(Old OA.No.6/2020-DRT-I, Chennai)

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Indian Overseas Bank Chinnasalem Branch No. 378, Salem Main Road, Chinnaselam, Villupuram - 606 201

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…Applicant

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Vs.

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Mr. T. Sundaram, S/o. Mr. Thirumalai Reddiyar, No. 4/12, Koil Street, Patharampallam Village, Thengiyanatham Post, Chinnasalem Taluk, Villupuram District – 606 201

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Mr. G. Raghuram, S/o. Mr. Gopal, Thengiyanatham Village, Chinnasalem Taluk, Villupuram District – 606 201 ...Defendants

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Counsel for Applicant : M/s.Ananda Gomathy 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.37,25,713/-due under the two credit facilities i.e. Rs. 37,20,733/- under the Agricultural Term Loan A/c and Rs. 4,980/- under the Agricultural Cash Credit A/c along with future interest and costs and 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 contends thatan Agricultural Term Loan (IOB Green) credit facility of Rs. 17,00,000/- and an Agricultural Cash Credit facility of Rs. 67,000/- were availed by the 1^st Defendant for which the 2^nd Defendant stood as Guarantor.It is also stated that the Agricultural Term Loancredit facility is secured by hypothecation of schedule A mentioned properties and mortgage of schedule B mentioned properties.

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It is also stated that the above facilities were availed after execution 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. It is also stated that all the efforts of the Applicant Bank to make the defendants pay back the balance due amounts failed and the Applicant Bank is forced to file this Application.

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Summons was taken out and as defendants failed to enter appearance, theywere set exparte on16.03.2020.

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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 A16.

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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 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 has been arrived at by calculating interest at agreed rate which is on the higher side and as the credit

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facilities are for agricultural purpose, prayer for half yearly rests and penal interest is declined, and interest is awarded at 8% p.a. (simple).

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In view of the above:

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i. TA. No: 382of 2023 stands allowed.

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ii. Applicant Bank is permitted to recover an amount of Rs.37,25,713/(Rupees Thirty Sevenlakhs Twenty Fivethousand SevenHundred and ThirteenOnly/-)together with future and pendentelite interest @ 8% p.a. (simple)from date of filing of the TA till realizationfrom the defendants jointly, severally and personally and also proceeding against and selling the schedule mentioned properties.

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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 accounts of the defendant.

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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 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, this26^th day of March, 2024)

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Sd/-

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

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Indian Overseas Bank v. Sundaram

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Sundaram

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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Case details

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