Allowed

Union Bank of India v. Mr. N. Balu

DRT8 Feb 2024TA/459/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Union Bank of India for a Recovery Certificate of Rs.15.39 crores against 63 respondents, including individuals and a corporate guarantor, based on un-rebutted evidence regarding agricultural loans and a composite guarantee. The court directed recovery from specific borrowers and the guarantor jointly and severally, with interest and costs

What did the court decide?

Recovery Certificate issued for Rs.15,39,83,618/- with interest from specific respondents jointly and severally, and against hypothecs.

Union Bank of India versus Mr. N. Balu — Banking and Recovery | DRT (2024)

¶1

IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI Dated this 8^th day of February, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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T.A.No.459 of 2023

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(Old OA.No.196/2019-DRT-I, Chennai)

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Union Bank of India, (erstwhile Corporation Bank), Aduthurai Branch, No.9 G, Kumbakonam- Mayuram Road, Main Road, Aduthurai – 612 101 ThiruvidiMuruthur Taluk, Thanjavur District … Applicant

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Vs.

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1. Mr. N. Balu, Son of Mr.Natesan, No.3/38D, Kakapalayam, Naduvalur,Udaiyarpalayam- 612 904 Ariyalur District.

¶8

2. Mr. K.Ramamurthy, Son of Mr. Kounden, No.138, Nadu Street, Arunkurukkai, Thirukovilur, Villupuram District – 605 803.

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3. Mr.J.Manikandan, Son of Mr. Jayaraman, No.1 E, Vinayakar Koil Street, Eripalayam, Panruti,- 607 112. Cuddalore District.

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4. Mr.S.Sathyaraj, Son of Mr. Shanmugam, No.1/87-96 MGR Colony, Melasooriyamoolai, Thiruvidaimaruthur – 612 102. Thanjavur District.

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5. Mr.V.Kathirkaman, Son of Mr. Veerapan, No.24, Pudupet, Manamedu, Puducherry – 607 402.

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6. Mr.M.Sathyadoss, Son of Mr. Mannangkatti No.46, Mariamman Koil Street, Puthupet, Puducherry – 605 001.

¶14

7. Mr.S.Michael Raj, Son of Mr. Souri Muthu, No.423. Periyar Nagar, Thuhili, Thiruvidaimaruthur, - 609 804. Thanjavur District.

¶15

8. Mr.V.Kasimani, Son of Mr.Vaithilingam, No.122, Ambedkar Nagar, Agaram Colony, MalaiperumalAgaram – 607 402, Cuddalore District

¶16

9. Mr.S.Raghuraman, Son of Mr. Somu, No.1/69, South Street, Koothanur, Thirulogi Post, Thiruvidaimaruthur, Thanjavur – 612 102.

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10. Mr. M.Devanathan Son of Mr.Muniyan, No.25, Mariyamman Koil Street, Puthupet, Puducherry – 607 402

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11.	Mr. M.Ramu
	Son of Mr.Mayavan
	No.20, Mariyamman Koil Street,
	Puthupet, Puducherry – 607 402
12.	Mr.T.Kaliyamurthy
	Son of Mr.Thulukkanam
	Puthupet Bahur, Puducherry – 605 001
13.	Mr.E.Anbazhagan
	Son of Mr.Ekambaram
	No.23, Mariamman Koil Street,
	Puthupet Bahur, Puducherry – 605 001
14.	Mr.P.Pakkiri
	Son of Mr.Pavadai
	No.10, Mariyamman Koil Street, Puthupet, Puducherry – 607 402
15.	Mr. M.Maran
	Son of Mr.Manickam
	No.135-1, Mariamman Koil Street,
	MalaiperumalKuppam, Cuddalore – 606 301
16.	Mr. K.Chandrasekar
	Son of Mr.Kannan
	No.54C, Dharka Street,
	Pallavarayantham P.O, Panruti, Cuddalore – 607 102
17.	Mr.R.Kaliyamoorthi
	Son of Mr.Rathinam
	No.170, Mariyamman Koil Street, Kuyilapalayam P.O, Cuddalore – 607 102
18.	Mr.Punniyamoorthi
	Son of Mr.Kannan
	No.215, Darka Street, KuyilapalayamPallavarayanatham,
	Panruti, Cuddalore – 607 102

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19. Mr. K.Paramasivam Son of Mr.Kesavan No.103, South Street, Kattusellur, Thirukovilur, Villupuram – 605 803.

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20. Mr. R.Selvarasu Son of Mr. Ranganathan, No.30-B1, South Street,Azhagapuram, Udaiyarpalayam – 608 901, Ariyalur District.

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21. Mr.M. Vijayaganth Son of Mr. Mani No.37, Adidravidar Street, Vanapuram, Govindapuram, Thiruvidaimaruthur – 612101, Thanjavur District.

¶24

22. Mr. J. Veeramani Son of Mr. Jayaraman No.305, South Street, Edaiyakurichi, Udaiyarpalayam – 621719, Ariyalur District.

¶25

23. Mr. S. Chelladurai S/o Somu Nainar No. 1249, North Street, Andimadam Post, Udaiyarpalayam – 621 812, Ariyalur District.

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24. Mr.T. Kanagaraj S/o Thillaigovinthan No. 714, Mariyamman Koil Street, Oraiyur Post, Panruti – 607 108, Cuddalore District.

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25. Mr. M. Thoppai(Deceased) 26. Mr. R. Vikiraman S/o Ramasamy No. 10/56, Vinayagarkoil Street, Keezhkavarapattu Post, Panruti – 607 112, Cuddalore District.

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27. Mr. T. Veeramuthu S/o Thillaigovinthan No.714, Mariyamman Koil Street, Oraiyur Post, Panruti – 607 108, Cuddalore District.

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28. Mr.C. Rajaraman S/o Chinnadurai No. 1/14, Mela Street,VelurMullukudi, Thiruvidaimaruthur – 612 102, Thanjavur District.

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29. Mr.R. Anbazhagan S/o Rajam No. 338, Kaliamman Koil Street, Maharajapuram, Thiruvidaimaruthur -609 802, Thanjavur District.

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30. Mr.S.Chinnadurai, Son of Mr.Sadayan, No.2, Middle Street, Agarakottalam, Sangarapuram – 606202, Villupuram District.

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31. Mr.P.Kadhiravan, Son of Mr.Pazhanivel, No.3/553, South Street, Parukkal Post, Udaiyarpalayam, - 621 804, Ariyalur District.

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32. Mr.S.Sudhagar, Son of Mr.Samykannu, No.3/36, South Street, Parukkal Post, Udaiyarpalayam, - 621 804,Ariyalur District.

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33. Mr. R.Murugan, Son of Mr. Rajarethinam, No.40, Thulampoondi, Thirukoilur Taluk, Villupuram – 605757

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34. Mr. K Muthulingam,

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Son of Mr. Kesavan, No.4/3A, North Street,AlurMemalur, Thirukovilur, Villupuram - 605751

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35. Mr. R Ramu, Son of Mr.Raj, South Street, Thulampoondi, Aalur Post, Villupuram District – 605751

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36. Mr. S. Dhanapal, Son of Mr. Subburayan, No. 1/10F South Street, Arulampadi, Sangarapuram, Villupuram – 605 702

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37. Mr. D. Arunachalam Son of Mr. Devaraj, No. 4 55 South Street, Kattusellur Post, Ulundurpettai, Villupuram District – 605 751

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38. Mr. V. Ravichandran Son of Mr. Velu, No.4341, West Street, Thulampoondi, Thirukovilur, Villupuram District – 605751

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39. Mr. P. Periyasamy Son of Mr. Pichaikaran, No. 18/A/19 Kovil Street, Arulampadi, Sangarapuram, Villupuram District – 605 702

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40. Mr. A. Masilamani Son of Mr. Azhakesan, No. 117, Mariyamman Koil Street, Rayarpalayam, Manaputhur, Panruti, Cuddalore – 607101

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41. Mr. Marimuthu G, Son of Mr. Ganesan, No. 150, Keela Veethi,

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¶47

Thiruvidaimaruthur, Thanjavur District – 607 108 42. Mr. S. Ramachandiran Son of Mr. Samikannu, No. 511, Kudiyana Street, Thathuvanchery, Ukkarai, Thanjavur District - 612504 43. Mr. S.Thamusamy, S/o Sivasamy, No. 109, Thoppu Street, ThiruvaipadiVeerakkan, Thiruvidaimaruthur – 612 504, Thanjavur District 44. Mr. A.Arputharaj S/o Anthonisamy No. 1-73/ 1-58 Main Road, Thugili, Thiruvidaimaruthur – 609 804, Thanjavur District. 45. Mr. M.Gunasekaran S/o Muthaiyan No.7, VadakkuAdidravidar Street, KeelasooriyamoolaiThirulogi, Thiruvidaimaruthur – 609 804 Thanjavur District. 46. Mr. M.Sundaramurthy S/o Mahalingam No. 29 D, Nedunthidal, Adhithravida Street, Thirulogi,Thiruvidaimaruthur – 609 804, Thanjavur District. 47. Mr. M.Sounderarasan S/o Manickam 2/95, Kaliyamman Koil Street, Kelathur, Thiruvidaimaruthur – 609 804,Thanjavur District. 48. Mr. S. Arivalagan S/o Samidurai

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¶49

No. 546 A South Athidravidar Street Thirulogi, Thiruvidaimaruthur, Thanjavur District - 609 804 49. Mr.R. Pazhani S/o Ramaiah No.174 Aathuvazhi, Kottaiyur, Sivagiri, Thirunelveli District - 627 760 50. Mr.S.Sivan S/o Suruli No. 126/206, Vetha Koil Street, Aathuvazhi, Kottaiyur, Sivagiri, Tirunelveli District- 625 620 51. Mr M. Ramesh Kumar S/o Marimuthu No. 131/164, School Street, Aathuvazhi, Kottaiyur, Sivagiri, Tirunelveli District - 627 760 52. Mr. A. Kanagaraj S/o Antony, No. 87, School Street,Aathuvazhi, Kottaiyur, Sivagiri, Tirunelveli District - 627 760 53. Mr.R. Srikanth S/o Ramar, No. 216, School Street, Aathuvazhi, Kottaiyur, Sivagiri, Tirunelveli 627 951 54. Mr. S. Ramesh S/o Swaminathan No. 3/113 A Agraharam, Thiruvaduthrai, Nagapattinam District - 609 805 55. Mr.KArumaidurai, S/o Mr Kannaiyan No.1/72 Athidravidar Street

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Palakudi, Thiruvalliyangudi, Thiruvidaimaruthur, Thanjavur District - 612 102

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56. Mr.S.Anbazhagan, S/o MrSaminathan, No. 3/130 Athidravidar Street Kanjanur,Thiruvidaimaruthur, Thanjavur District - 612 502

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57. Mr. S. Chandru S/o Mr Sekar No. 133 A Athidravidar Street Palakudi, Thiruvalliankudi Thiruvidaimaruthur, Thanjavur District- 612 102

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58. Mr.G.Vinothkumar S/o MrGodandabani No. 4/66 B Nadu Street, Poondi, Ulundurpettai, Villupuram District – 607 201

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59. Mr P Adhinayakan S/o Mr Perumal No. 352, West Street Arunkurukkai, Thirukovilur, Villupuram District - 605 802

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60. Mr.T. Sakthivel S/o Mr Dhandapani No. 199/187 Mariyamman Koil Street Kuyilapalayam, Panruti, Cuddalore District - 607 102

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61. Sri Ambika Sugars Ltd., Kottur – Thukili Village, Thiruvidaimarudur Taluk Thanjavor District

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Also at : Shree Ambika Sugars Ltd., No.12, Nungambakkam High Road, 5^th Floor, ELDARODO, Chennai 600 034 62. Mr T Mahendran Age, 30 Years Son of Late.T.Thoppai, No. 4/141A North Street, ThulampoondiAaloor Post, Thirukovilur – 605 751, Villupuram District 63. Mr T Mahalingam Age, 25 years Son of Late.T.Thoppai, No. 4/141A North Street, ThulampoondiAaloor Post, Thirukovilur – 605 751, Villupuram District (Defendant No.62 & 63 are Legal heirs of the Deceased Defendant No.25) … Defendants Counsel for Applicant : M/s. A. Jaishankar Counsel for Defendant D61 : M/s. R. Parthsarathy Defendants D1 – D60, D62, D63 : Exparte. ……

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¶61

ORDER

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The Application is filed Under Section 19(1) of the Recovery of DebtsAndBankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for Rs.15,39,83,618/- due in the credit facilities of short Term Agriculture loans availed by the defendants.

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It is the case of the applicant that the 61^st defendant had approached the erstwhile Corporate Bank seeking sanction of a credit facility for Rs.49.50 Crores payable towards labour charges. It is also stated that the erstwhile corporation Bank had sanctioned the said facility which is inclusive of 60 separate loans sanctioned to defendants 1 to 60. It is further stated that all these credit facilities were secured by the (Common) Corporate Guarantee provided by D61. The facilitieswere availed to finance the cane harvest cutters. The 61^st defendant as authorized by the board resolution dated 24.09.2015,(entered into a Guarantee) as a CompositeAgreement up to limit of Rs.49.50 crores,(with the creditor).

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It is also stated that the individual borrowers; defendants 1 to 60 had executed loan documents in lieu of the various credit facilitiesfor the amounts covered by the same, agreeing to repay the same in terms of the repayment manner set out in terms of the agreement.

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The Applicant further contends that despite availing the credit facility by obliging to pay back the amounts, 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.The LRs of D25 were impleaded as defendants 62 & 63 and by the order dated 08.09.2022,all the defendants except D61 were set exparte.

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The Applicant let in evidence through AW1, filed proof affidavit in confirmation with the pleadings and got marked Exbs. A1 to A665.

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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 evidences remain un-rebutted and hence proved. Even though the defendant D61 entered appearance and filed reply statement, no contra evidence is available from the side of the defendant.The documents produced by the Applicant are found to be admissible and are sufficient to prove the TA claim. Hence the Applicant is to be found entitled for the TA claim. The TA claim is

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made within limitation and there is no capitalization of penal interest.

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In view of the above:

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i. TANo: 459 of 2023 stands allowed.

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ii. Applicant is permitted to recover an amount of Rs.15,39,83,618/-(Rupees Fifteen Crores Thirty Nine Lakhs Eighty Three Thousand Six Hundred and Eighteen Only/-) out of which an amount of

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1. Rs.24,40,898/- is to be recovered from defendants 1 and 61 jointly and severally;

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1. Rs.28,66,829/- is to be recovered from defendants 2 and 61 jointly and severally.

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1. Rs.28,65,827/- is to be recovered from defendants 3 and 61 jointly and severally.

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1. Rs.28,65,827/- is to be recovered from defendants 4 and 61 jointly and severally.

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1. Rs.27,22,545/- is to be recovered from defendants 5 and 61 jointly and severally.

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1. Rs.25,79,257/- is to be recovered from defendants 6 and 61 jointly and severally.

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¶86

1. Rs.25,79,257/- is to be recovered from defendants 7 and 61 jointly and severally.

¶87

1. Rs.24,35,970/- is to be recovered from defendants 8 and 61 jointly and severally.

¶88

1. Rs.28,65,827/- is to be recovered from defendants 9 and 61 jointly and severally.

¶89

1. Rs.21,48,652/- is to be recovered from defendants 10 and 61 jointly and severally.

¶90

1. Rs.25,78,356/- is to be recovered from defendants 11 and 61 jointly and severally.

¶91

1. Rs.27,21,593/- is to be recovered from defendants 12 and 61 jointly and severally.

¶92

1. Rs.22,91,884/- is to be recovered from defendants 13 and 61 jointly and severally.

¶93

1. Rs.21,48,652/- is to be recovered from defendants 14 and 61 jointly and severally.

¶94

1. Rs.28,64,826/- is to be recovered from defendants 15 and 61 jointly and severally.

¶95

1. Rs.21,47,905/- is to be recovered from defendants 16 and 61 jointly and severally.

¶96

¶97

1. Rs.21,47,905/- is to be recovered from defendants 17 and 61 jointly and severally.

¶98

1. Rs.21,47,905/- is to be recovered from defendants 18 and 61 jointly and severally.

¶99

1. Rs.28,62,047/- is to be recovered from defendants 19 and 61 jointly and severally.

¶100

1. Rs.28,62,047/- is to be recovered from defendants 20 and 61 jointly and severally.

¶101

1. Rs.22,89,663/- is to be recovered from defendants 21 and 61 jointly and severally.

¶102

1. Rs.24,32,762/- is to be recovered from defendants 22 and 61 jointly and severally.

¶103

1. Rs.21,46,569/- is to be recovered from defendants 23 and 61 jointly and severally.

¶104

1. Rs.25,77,849/- is to be recovered from defendants 24 and 61 jointly and severally.

¶105

1. (Rs.22,89,663/- is to be recovered from defendants 61, 62 and 63. However, defendants 62 and 63 are the legal heirs of deceased defendant D25 – Mr. M. Thoppai and are liable only to the extent of assets they have inherited from the Deceased Mr. M. Thoppai)

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1. Rs.21,46,569/- is to be recovered from defendants 26 and 61 jointly and severally.

¶108

1. Rs.25,75,856/- is to be recovered from defendants 27 and 61 jointly and severally.

¶109

1. Rs.21,45,672/- is to be recovered from defendants 28 and 61 jointly and severally.

¶110

1. Rs.28,60,856/- is to be recovered from defendants 29 and 61 jointly and severally.

¶111

1. Rs.25,74,783/- is to be recovered from defendants 30 and 61 jointly and severally.

¶112

1. Rs.22,88,711/- is to be recovered from defendants 31 and 61 jointly and severally.

¶113

1. Rs.21,45,672/- is to be recovered from defendants 32 and 61 jointly and severally.

¶114

1. Rs.27,17,822/- is to be recovered from defendants 33 and 61 jointly and severally.

¶115

1. Rs.25,74,783/- is to be recovered from defendants 34 and 61 jointly and severally.

¶116

1. Rs.25,74,761/- is to be recovered from defendants 35 and 61 jointly and severally.

¶117

¶118

1. Rs.21,45,672/- is to be recovered from defendants 36 and 61 jointly and severally.

¶119

1. Rs.22,88,711/- is to be recovered from defendants 37 and 61 jointly and severally.

¶120

1. Rs.25,74,783/- is to be recovered from defendants 38 and 61 jointly and severally.

¶121

1. Rs.21,45,672/- is to be recovered from defendants 39 and 61 jointly and severally.

¶122

1. Rs.21,45,672/- is to be recovered from defendants 40 and 61 jointly and severally.

¶123

1. Rs.28,60,856/- is to be recovered from defendants 41 and 61 jointly and severally.

¶124

1. Rs.21,45,672/- is to be recovered from defendants 42 and 61 jointly and severally.

¶125

1. Rs.21,45,672/- is to be recovered from defendants 43 and 61 jointly and severally.

¶126

1. Rs.24,30,899/- is to be recovered from defendants 44 and 61 jointly and severally.

¶127

1. Rs.28,59,857/- is to be recovered from defendants 45 and 61 jointly and severally.

¶128

¶129

1. Rs.27,16,872/- is to be recovered from defendants 46 and 61 jointly and severally.

¶130

1. Rs.27,16,872/- is to be recovered from defendants 47 and 61 jointly and severally.

¶131

1. Rs.27,16,872/- is to be recovered from defendants 48 and 61 jointly and severally.

¶132

1. Rs.22,87,915/- is to be recovered from defendants 49 and 61 jointly and severally.

¶133

1. Rs.28,59,857/- is to be recovered from defendants 50 and 61 jointly and severally.

¶134

1. Rs.27,16,872/- is to be recovered from defendants 51 and 61 jointly and severally.

¶135

1. Rs.30,02,848/- is to be recovered from defendants 52 and 61 jointly and severally.

¶136

1. Rs.28,59,857/- is to be recovered from defendants 53 and 61 jointly and severally.

¶137

1. Rs.27,16,872/- is to be recovered from defendants 54 and 61 jointly and severally.

¶138

1. Rs.28,59,857/- is to be recovered from defendants 55 and 61 jointly and severally.

¶139

¶140

1. Rs.28,59,857/- is to be recovered from defendants 56 and 61 jointly and severally.

¶141

1. Rs.28,59,857/- is to be recovered from defendants 57 and 61 jointly and severally.

¶142

1. Rs.32,88,564/- is to be recovered from defendants 58 and 61 jointly and severally.

¶143

1. Rs.28,59,641/- is to be recovered from defendants 59 and 61 jointly and severally.

¶144

1. Rs.34,31,538/- is to be recovered from defendants 60 and 61 jointly and severally.

¶145

with futureand pendentelite interest @10 %p.a. (simple)from the date of filing of the TA till realization from the defendants and their assets after giving credit to all the amount recovered and received during the pendency of the TA and also by proceeding against hypotheca.

¶146

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.

¶147

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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¶149

Communicate a copy of the order to the parties concerned in terms of

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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 8^th day of February, 2024)

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Sd/-

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

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Union Bank of India v. Mr. N. Balu

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mr. N. Balu

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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