BANK OF INDIA vs M.Sri Ravikumar on 31 January 2019

ORDER

1. This application is filed by the applicant bank under 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 defendant for recovery of a sum of Rs.5,70.736.30p due under Cash Credit Facility and a sum of Rs.21,54,690.26p due under Home Loan Facility together with interest at 14.45% and 9.70% per annum with monthly rests respectively from the date of filing of the application till the date of realization in full, for sale of the schedule mentioned properties, along with costs of this application.

2. Brief facts of Application are as follows: 2.1 The applicant bank submits that the defendant availed a Cash Credit Facility to the tune of Rs.5.00 lakhs on 21.1.2013 and a Home Loan Facility to the tune of Rs.20.00 lakhs on 25.7.2013 and executed necessary loan and security documents such as demand promissory note, Agreement of Cash Credit Facility, etc. on 21.1.2013 in respect of Cash Credit Facility and Demand Promissory Note, Agreement of Home Loan, etc. on 25.7.2013 and a Memorandum of Deposit of Title deeds on 26.7.2013 in respect of Home Loan. 2.2 It is further submitted that the aforesaid loans were duly secured as and by a hypothecation of plant, machinery/movables mentioned in Schedule A of the application, besides equitable mortgage dated 26.7.2013 created over Schedule B mentioned property in favour of the applicant bank. 2.3 It is stated that after availing the above facilities, the defendant miserably failed and neglected to fulfill his obligations, as per the terms and conditions and committed default. Therefore, the account of the defendant has been classified as NPA. Thereafter, the applicant bank issued a demand notice calling upon the defendant to repay the outstanding dues. Subsequently, the defendant has acknowledged the debt on 12.1.2016 with regard to Cash Credit Facility. However, the defendant failed and neglected to clear the dues. Hence, the present TA.

3. Defendant remained exparte.

4. Point for consideration: Whether the applicant bank is entitled for the amount claimed in the application from the defendant? If so, at what rate of interest?

5. Point Whether the applicant bank is entitled for the amount claimed in the application from the defendant? If so, at what rate of interest?

5.1 Toprove its claim, the applicant bank filed proof affidavit through its Constituted Attorney along with 22 documents, which are marked as Ex.A1 to A22. The proof affidavit of the applicant bank remain unchallenged and unrebutted. Therefore, on careful consideration of the material placed before the Tribunal, coupled with the proof affidavit filed on behalf of the applicant bank, I am satisfied that the applicant bank has successfully proved the TA claim against the defendant. Hence, it is held that the applicant bank is entitled for a Recovery Certificate for a sum of Rs.5,70,736.30p due under Cash Credit Facility and a sum of Rs.21,54,690.26p due under Home Loan Facility together with pendent lite and future interest at 9% per annum (simple) from the date of filing of the application till the date of realization in full. Point is answered accordingly.

6. For the reasons stated as above, it is held that the applicant bank is entitled for a Recovery Certificate against the defendant for a sum of Rs.5,70,736.30p due under Cash Credit Facility and a sum of Rs.21,54,690.26p due under Home Loan Facility together with pendent lite and future interest at 9% per annum (simple) from the date of filing of the application till the date of realization in full, for sale of the schedule mentioned properties along with costs of this application.

7. In the result, application is allowed as under:

(a) The applicant bank is entitled to recover a sum of Rs.5,70,736.30p due under Cash Credit Facility and a sum of Rs.21,54,690.26p due under Home Loan Facility together with pendent lite and future interest at 9% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendant.

(b) It is further ordered that in case of default of payment by the defendant, the applicant bank is entitled to sell the schedule mentioned properties and adjust the sale proceeds towards the amount due.

(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant is personally liable for all such amounts due.

(d) It is further ordered that any amount remitted or realized, if any, during the course of the proceedings, shall be given due credit to the loan account of the defendant.

(e) The applicant bank is entitled for costs of this application.

8. The applicant bank is directed to file costs memo within two weeks of the receipt of this order.

9. Issue recovery certificate in favour of the applicant bank in terms of this final order.

10. Communicate a copy of the order to the parties concerned in terms of Rule 16 read with Rule 2(c) of DRT (Procedure)Rules, 1993. (Dictated to stenographer (SN), transcribed by him, corrected, signed and pronounced by me in the Open Court, this 31st day of January, 2019) Sd/- (N.V.BADARINATH) PRESIDING OFFICER DRT-I, CHENNAI