Allowed

Canara Bank v. Abhimanyu Nithyanand

DRT21 Mar 2024TA/506/2022

Case brief

AI extract

What is this about?

DRT-II, Chennai allowed the bank's application for a recovery certificate under the RDB Act. The debt claim was proved un-rebutted. The court granted recovery of principal with future interest at 12% p.a. and permitted issuance of a recovery certificate.

What did the court decide?

Issuance of Recovery Certificate; Recovery of Rs. 11,31,271/- with future interest @ 12% p.a. from respondents jointly, severally and personally.

Canara Bank versus Abhimanyu Nithyanand — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI Dated this 21^st day of March, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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T.A.No.506of 2022

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(Old OA.No.21/2020-DRT-I, Chennai)

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Canara Bank Erstwhile Syndicate Bank Nungambakkam Branch No. 7, “Satya Plaza”, Dr. Thirumurthy Nagar, Main Road, Nungambakkam, Chennai – 600 034 …Applicant

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Vs.

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Mr. Abhimanyu Nithyanand (Borrower) S/o. Mr. S. T. Nithyanandam Flat No. 9, P A Apartments, Old No. 4, New No. 17, Kamaraj Salai, R A Puram, Chennai – 600 028

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Mr. S. T. Nityanandam (Co-Borrower) F/o. Mr. Abhimanyu Nithyanand Flat No. 9, P A Apartments, Old No. 4, New No. 17, Kamaraj Salai, R A Puram, Chennai – 600 028

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Mrs. Latha Nithyanandam (Co-Borrower) W/o. Mr. S.T. Nithyanand Flat No. 9, P A Apartments, Old No. 4, New No. 17, Kamaraj Salai, R A Puram, Chennai – 600 028 ...Defendants

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Counsel for Applicant : M/s. K. V. Subramanian Associatez Defendants : Exparte ……

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ORDER

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The Application is filed Under Section 19(1) of the Recovery of Debts And Bankruptcy Act,1993 seeking for issuance of a Recovery Certificate for a total sum of Rs.11,64,324/-due underthe Term Loan A/c along with future interest and costs.

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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 thata Term Loan credit facility of Rs. 4,00,000/- were availed by the defendants 1 to 3 for the purpose of higher education.

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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 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, theywere set exparte on 06.10.2023.

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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 A11.

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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 is arrived at by calculating interest at agreed rate, which is on the higher side,prayer formonthly restsis declined and penal interest is declined and interest is awarded @

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12% p.a. (simple).

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In view of the above:

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i. TA. No: 506of 2022 stands allowed.

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ii. Applicant Bank is permitted to recover an amount of Rs.11,31,271/-(Rupees ElevenLakhs Thirty OneThousand

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TwoHundred and Seventy OneOnly/-)together with future and pendentelite interest @ 12% p.a. (simple)from the date of filing of the TA till realization from the defendants jointly, severallyand personally and also from their assets.

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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 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 21^st day ofMarch, 2024)

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

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Canara Bank v. Abhimanyu Nithyanand

Case brief

What is this about?

What did the court decide?

Canara Bank v. Abhimanyu Nithyanand

Case brief

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What did the court decide?

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