Allowed

Canara Bank v. M/s Mmr Enterprises

DRT27 Mar 2024TA/724/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the application for issuance of a Recovery Certificate against surety and mortgagors for non-payment of an overdraft facility, permitting recovery of principal, interest, and costs.

What did the court decide?

Recovery Certificate issued for Rs. 3,61,41,794.06 with 13% p.a. simple interest; recovery from defendants jointly, severally, and personally and by sale of assets.

Canara Bank versus M/s Mmr Enterprises — Banking and Recovery | DRT (2024)

¶1

BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

¶2

Dated this 27^th day of March, 2024

¶3

PRESENT: SHRI T. RAJESH

¶4

PRESIDING OFFICER

¶5

TA No.724 of 2023

¶6

(Originally filed before DRT-I Chennai as OA No.214 of 2022 and thereafter transferred to this Tribunal and renumbered as TA No.724 of 2023)

¶7

Canara Bank (Erstwhile Syndicate Bank) Egmore Branch, No.16, Police Commissioner Officer Road Egmore, Chennai-600008 Rep. by its Chief Manager and Principal Officer ….Applicant

¶8

Versus

¶9

M/s MMR Enterprises, Rep. by its Proprietor Sandeep R No.36/28, New Thandavaraya Street Old Washermanpet, Chennai – 600 021

¶10

Sandeep R S/o. B, Radheshyam Prop. of M/s MMR Enterprises New No.36/28, Thandavaraya street Old Washermanpet, Chennai – 600 021

¶11

R. Suraj Kumar S/o. B Radheshyam New No.36/28, Thandavaraya street Old Washermanpet, Chennai – 600 021 ….Defendants

¶12

Counsel for the Applicant Bank : M/s P. Sreenivasulu Counsel for Defendants : Ex-parte

¶13

FINAL ORDER

¶14

The Application is filed under Section 19(1) of the Recovery of Debt And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for Rs. 3,61,41,794.06p (Rupees Three Crores Sixty One Lakhs Forty One

¶15

¶16

Thousand Seven Hundred Ninety Four and Six paisa only) due in Credit Facility of Over draft availed by the defendants from erstwhile syndicate Bank.

¶17

The above TA was originally filed before DRT-I and got transferred to this Tribunal and renumbered as above.

¶18

The Applicant contents that a credit facility of Rs. 25,00,00,000/-was availed by 1^st defendant through 2^nd defendant and 3^rd defendant stood as guarantor. It is also stated that the facility is secured by mortgage of schedule properties belonged to 2^nd and 3^rd defendants and hypothecated assets.

¶19

The Applicant further contents 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 defendants pay back the amount failed forcing the Applicant to file this Application.

¶20

Summons was taken out and as the defendant failed to appear he was set exparte on 25.09.2023.

¶21

The Applicant let in evidence through AW1, filed proof affidavit confirming with the pleadings and got marked Ext A1 to A20.

¶22

Heard, the following issues arise for consideration: -

¶23

(i) Whether the Applicant had proved the TA claim?

¶24

(ii) What orders are to be passed?

¶25

Both these issues are decided together.

¶26

¶27

The Applicant evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove TA claim. Hence the Applicant is to be found 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 and the same is not interfered with pendente lite and future interest is awarded at 13% per annum simple.

¶28

In view of the above, the following order is passed: -

¶29

(a) TA No.724 of 2023 stands allowed.

¶30

(b) Applicant is permitted to recover an amount of Rs. 3,61,41,794.06 (Rupees Three Crores Sixty One Lakhs Forty One Thousand Seven Hundred Ninety Four and Six paisa only) with future and pendente lite interest @ 13% per annum simple from the date of filing of the OA/TA till realization, after giving credit to all the amount recovered and received during the pendency of the OA/TA, from the defendants jointly, severally and personally and also by sale of their assets including the sale of schedule mentioned property after giving credit to all the amount recovered and received during the pendency of the TA.

¶31

(c) A Recovery Certificate is to be drawn and issued to the recovery Officer to enable recovery of the as per the above terms.

¶32

(d) 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.

¶33

¶34

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

¶35

19(21)(i) of the RDB Act, read with Rule 6 of DRT (Procedure) Rules, 1993.

¶36

(Dictated to PS, transcribed by him, corrected, signed and pronounced by me in the Open court, this the 27^th day of March, 2024)

¶37

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

¶38

Canara Bank v. M/s Mmr Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s Mmr Enterprises

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

Coram

Case details

Similar cases

Canara Bank versus G. Edison

Bank of Baroda versus Jayakandan

State Bank of India versus Mr. S. Natarajan

State Bank of India versus Paramesh

State Bank of India versus Sri Vivekananda Builders

Canara Bank versus Mr. S. Pannerselvam