Allowed

Axis Bank Limited v. Dr.a.G.Rajan

DRT27 Mar 2024TA/418/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's application for a recovery certificate against the respondent for an overdraft dues. The court found the evidence unrebutted, admitted the claim within limitation, and awarded principal plus future and pendentlite interest at 8% per annum.

What did the court decide?

Issued a Recovery Certificate for recovery of Rs. 59,46,116.71 with future and pendentlite interest at 8% per annum from the filing date.

Axis Bank Limited versus Dr.a.G.Rajan — Banking and Recovery | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 27^th day of March, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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TA.No.418 of 2023

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(Old OA.No.450/2020 - DRT-I, Chennai)

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Axis Bank Limited, Represented by its Manager, Small Business Banking - SBB, No.87, Old No.17, 4^th Floor, J Block, 3^rd Avenue, Anna Nagar East, Chennai – 600 102. IFSC Code : UTIB0000016. … Applicant.

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Vs.

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Dr.A.G.Rajan, S/o.Mr.Ayyaswami, C/o.Aishwarya Medical Foundation, No.949-C, TVS Avenue, Anna Nagar West Extension, Chennai – 600 101.

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Also at Dr.A.G.Rajan, S/o.Mr.Ayyaswami, No.3, Sri Ayyappa Nagar, 200 Feet Road, Kolathur, Tiruvallur – 600 099. PAN No.AALPG5544Q. … Defendant.

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Counsel for Applicant : M/s.V.V.Sivakumar. Defendant : 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.59,46,116.71 due in Overdraft account availed by the defendant.

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The Applicant contends that the 1^st defendant availed financial assistance to the tune of Rs.50,00,000/- by way of overdraft to meet his business requirements.

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It is also stated that the above facilities were availed after execution of necessary loan documents by defendant obliging himself 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 defendant failed in compliance of the same and all the efforts of the Applicant to make the defendant pay back the amount failed forcing the Applicant to file this Application.

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Summons was taken out and as the defendant failed to enter appearance, he was 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 A9.

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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 @8% p.a. (simple).

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In view of the above

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i) TA No.418/2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.59,46,116.71 (Rupees Fifty Nine Lakhs Forty Six Thousands One Hundred Sixteen and Paise Seventy One only) with future and pendentelite interest @ 8% p.a. (simple) from the date of filing of the TA till realization from the defendant personally and also from his assets 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 27^th day of March, 2024)

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

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Axis Bank Limited v. Dr.a.G.Rajan

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Dr.a.G.Rajan

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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