Allowed

Canara Bank v. Mr.R.Shankar

DRT27 Mar 2024TA/815/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the application filed by Canara Bank against two defendants. The court held the evidence un-rebutted and admissible, proving the dues for farm and machinery loans, and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs. 59,08,848/- with future and pendentelite interest @ 8% p.a. (simple). Costs of proceedings allowed.

Canara Bank versus Mr.R.Shankar — Contract and Commercial Disputes | 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.815 of 2023

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(Old OA.No.256/2021 - DRT-I, Chennai)

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Canara Bank, IFSC – CNRB0001221, Thanjavur Main Branch, Represented by its Chief Manager, (Erstwhile Syndicate Bank), No.1783, South Main Street, Opposite to Rajarajan Clinic, Thanjavur - 613 009. Thanjavur District. … Applicant.

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Vs.

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Mr.R.Shankar, S/o.Shri Ramachandran, No.174, South Street, Vaduvur Thenpathy Village, Mannargudi Taluk, Thiruvarur District – 614 019.

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Mr.S.Baskar, S/o.Shri Sakthivel, No.8/92-A, Sathanur South Street, Vaduvur Thenpathy Village, Mannargudi Taluk, Thiruvarur District – 614 019. … Defendants. Counsel for Applicant : Mr.M.Muthukumaran. Defendants : 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.59,08,848/- due in Farm Loan and Farm Machinery Loan availed by the defendants.

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The Applicant contends that the 1^st defendant availed Farm Loan of Rs.4,09,000/- and Farm Machinery Loan of Rs.3,91,000/- for purchase developing the loan and for purchase of Tractor for which 2^nd defendant stood as guarantor. It is stated that the said facilities were secured by schedule mentioned properties.

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It is also stated that the above facilities were availed after execution of necessary loan documents by defendants obliging themselves 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 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 and as the defendants failed to enter appearance, they were set exparte on 13.12.2023.

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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 A21.

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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 and the loan availed is for agriculture purpose, 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.815/2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.59,08,848/(Rupees Fifty Nine Lakhs Eight Thousands Eight Hundred and Forty Eight only) with future and pendentelite interest @8% p.a. (simple) from the date of filing of the TA till realization from the defendants jointly, severally, personally and also from their assets including the sale of schedule mentioned properties 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

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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 27^th day of March, 2024)

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

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Canara Bank v. Mr.R.Shankar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr.R.Shankar

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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