Allowed

City Union Bank Limited v. Baranidharan

DRT21 Feb 2025OA/223/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of outstanding dues of approximately Rs. 1.12 crore from the borrowers and co-obligants who failed to repay their personal loan, resulting in a final order permitting asset sales and issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 1,12,70,349/- with interest; liberty to sell personal assets; issuance of Recovery Certificate.

City Union Bank Limited versus Baranidharan — Contract and Commercial Disputes | DRT (2025)

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OA No.223/2022 (E)

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21.02.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 21^st day of February, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 223 of 2022

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M/s. City Union Bank

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Tambaram Branch,

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No. 24/38, Rajaji Salai,

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Tambaram West,

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Chennai – 600 045.

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Rep by its Branch Manager ….Applicant

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-Vs-

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Mr. K. Baranidharan, S/o. Mr. B.S. Kannan

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No.20, Anna Nagar, 1^st Street, Selaiyur,

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Kancheepuram District – 600 073.

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Mrs. K. Manonmani,

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W/o. Mr. B.S. Kannan No.20, Anna Nagar, 1^st Street, Selaiyur, Kancheepuram District – 600 073. ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. Anuradha Balaji

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Defendants 1 & 2 were set ex-parte on 11.10.2022

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: - FINAL ORDER - :

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This original application is filed on 27.06.2022 by the applicant bank under

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Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants for

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recovery of a total sum of Rs.1,12,70,349/- (Rupees One Crore Twelve Lakhs

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OA No.223/2022 (E)

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21.02.2025

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Seventy Thousand Three Hundred and Forty Nine Only) due in respect of Personal Loan (Account No.501912090013753) together with further interest @ 12.50% p.a., with monthly rests compounded along with penal interest @ 2% p.a., from the date of application till the date of realization in full from the defendants jointly and severally, and for costs of this application.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Hon‟ble Tribunal.

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The case of the Applicant Bank is that the Defendants 1 & 2 approached the Applicant Bank seeking Personal Loan for business development and submitted Loan Application on 29.06.2019.

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It is submitted by applicant bank that upon request of defendants, the applicant bank had sanctioned Personal – Clean Loan amount of Rs.75,00,000/- on 29.06.2019 to first defendant, as borrower and second defendant as co-obligant. Defendants availed the said facility agreeing jointly and severally to repay the same together with interest @ 12.50% p.a., with monthly rests within a period of 6 months, as per the terms of sanction, which was duly acknowledged by the defendants.

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The applicant bank submits that to secure the loan, the defendants 1 & 2 had executed the following loan documents in favour of the Applicant Bank on 29.06.2019;

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(i) Demand Promissory Note executed by the defendants 1 & 2 for

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OA No.223/2022 (E)

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21.02.2025

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Rs.75,00,000/- agreeing jointly and severally to repay the same together with interest at the minimum rate of 12.50% per annum with monthly rests within a period of 6 months.

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(ii) Application cum Undertaking for loan executed by the defendants 1 & 2.

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(iii) Consent letter for charging of the “MCLR” based interest rates, for the loans, though termed as “Base Rate” in the documents.

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It is further submitted that over a period of time after availing the loan, the defendants failed to conduct the account as per the terms of sanction. As the installments in the loan account were not paid on time, the account became irregular and was classified as NPA on 31.08.2019 in accordance with RBI guidelines. When the dues remain unpaid, the Applicant Bank issued a recall notice to the defendants on 03.06.2022, which returned unserved with the endorsement as “Addressee Left”. despite several reminders, defendants did not repay the dues,. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants D1 and D2 through Registered Post with Acknowledgment Due, which was returned unserved with postal endorsement as „Left‟. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 11.10.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants D1 and D2 were placed ex-parte on 11.10.2022.

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Heard the submissions of Applicant Bank and perused the records.

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OA No.223/2022 (E)

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21.02.2025

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To prove the case of the Applicant Bank, Mrs. S. Kanagavalli, Chief Manager, has filed her Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A1 to A8 . As the defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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:O R D E R:

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants jointly and severally, a sum of Rs.1,12,70,349/- (Rupees One Crore Twelve Lakhs Seventy Thousand Three Hundred and Forty Nine Only) due in respect of Term Facility (Personal Loan Account No.501912090013753) together with further interest @ 12.50% p.a., with monthly rests compounded along with penal interest @ 2% p.a., from the date of application till the date of realization in full.

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(b) The applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) to recover the balance dues as required under law;

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OA No.223/2022 (E)

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21.02.2025

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(d) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the defendants duly considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by defendants to the applicant bank.

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(e) The applicant bank shall file memo of costs within ten days from the date of this final order.

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(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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A copy of this order be communicated to the parties concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 21^st day of February, 2025)

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OA No.223/2022 (E)

21.02.2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. V. Prabhakaran, Authorized Legal Officer of applicant bank.

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Exhibits on the part of the Applicant:

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INDEX TO EXHIBITS FILED ALONG WITH PROOF AFFIDAVIT BY THE

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APPLICANT BANK

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Sl. No.	Description of Documents	Exhibit No.
1.	Sanction Ticket issued by the Central Office of the ApplicantBankdated29.06.2019	A-1
2.	Sanction Letter in Form 16 issued by the Applicant Bank dated29.06.2019	A-2
3.	Demand Promissory Note executed by the defendantss dated29.06.2019	A-3
4.	Undertaking for loan in form 42 executed by the defendantss1&2dated29.06.2019	A-4
5.	Undertaking Letter for charging of the “MCLR” based interest rates , for the loans, through termed as “Base Rate” inthe documents dated29.06.2019	A-5
6.	Legal Notice issued by the Advocate of the Applicant Bank recalling the outstanding loan from the defendantss dated 03.06.2022	A-6
7.	ReturnedEnvelopes (2 Nos) dated14.06.2022	A-7
8.	Statement of Account in respect of personal loan A/c. No. 501912090013753 along with Memorandum of Interest	A-8

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil -

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SCHEDULE

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- NIL -

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

City Union Bank Limited v. Baranidharan

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. Baranidharan

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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