Allowed

Bank of Baroda v. Vishwantah

DRT19 Mar 2024TA/917/2023

Case brief

AI extract

What is this about?

The Appraisal Tribunal awarded a recovery certificate to Bank of Baroda against three respondents for a housing loan default. The court admitted the claim as time-barred evidence remained un-rebutted, ordered recovery of the principal and limited future interest, and denied relief against the third defendant.

What did the court decide?

Recovery certificate issued for Rs. 38,12,788.24 with interest @9% p.a. from 1st and 2nd defendants; no relief against 3rd defendant.

Bank of Baroda versus Vishwantah — Banking and Recovery | DRT (2024)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 19^th day of March, 2024

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PRESENT: SHRI T.RAJESH PRESIDING OFFICER

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TA.No.917 of 2023

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(Old OA.No.617/2019 - DRT-I, Chennai)

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Bank of Baroda, (Formerly known as Dena Bank), Represented by its Chief Manager, Nungambakkam Branch, No.14, Avenue Road, Chennai – 600 034.

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… Applicant.

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Vs.

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Mr.K.R.Vishwanath, S/o.Late S.R.Ranganathan, Flat No.F-2, First Floor, G.K.Flats, Plot No.10/14, Narayana Maistry First Street, Villivakkam, Chennai – 600 049.

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And also at : - A4, Kailash Apartments, No.17, Bharathi Nagar, Race View Colony, Guindy, Chennai – 600 032.

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Mrs.Komala Ranganathan, W/o. Late S.R.Ranganathan, A4, Kailash Apartments, No.17, Bharathi Nagar, Race View Colony, Guindy, Chennai – 600 032.

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Mr.A.Raja, Flat No.F-2, First Floor, G.K.Flats, Plot No.10/14, Narayana Maistry First Street, Villivakkam, Chennai – 600 049. … Defendants.

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Counsel for Applicant : M/s.G.R.Lakshmanan. 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 Rs.38,12,788.24 due in Housing Loan availed by the defendants from the erstwhile Dena Bank.

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The Applicant contends that the 1^st and 2^nd defendants availed Housing Loan of Rs.11,25,000/-. It is stated that the said facility was secured by mortgage of schedule mentioned property. It is further stated that as per the encumbrance certificate, the 1^st and 2^nd defendants have entered into an agreement of sale with 3^rd defendant and an advance of Rs.1,00,000/- has been made by 3^rd defendant.

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It is also stated that the above facility was availed after execution of necessary loan documents by 1^st and 2^nd 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 1^st and 2^nd defendants

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failed in compliance of the same and all the efforts of the Applicant to make the 1^st and 2^nd 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 03.06.2022.

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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 A17.

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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 @9% p.a. (simple) and prayer for monthly rests is declined.

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In view of the above

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i) TA No.917/2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.38,12,788.24 (Rupees Thirty Eight Lakhs Twelve Thousands Seven Hundred Eighty Eight and Paise Twenty Four only) with future and pendentelite interest @9% p.a. (simple) from the date of filing of the TA till realization from the defendants 1 and 2 jointly, severally, personally and also from their assets including the sale of schedule mentioned property after giving credit to all the amounts recovered and received during the pendency of the TA. No relief is granted against 3^rd defendant.

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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 19^th day of March, 2024)

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

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Bank of Baroda v. Vishwantah

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Vishwantah

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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