STATE BANK OF INDIA vs Mr.R.Selvakumar 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.11,15,179.99p due as on 21.4.2014 together with interest at 16.50% per annum with half yearly rests from 22.4.2014 till the date of realization in full, for sale of the schedule mentioned property along with costs of this application.

2. Brief facts of Application are as follows: 2.1 The applicant bank submits that the defendant, who is an agriculturist requested the applicant bank vide his application dated 13.6.2007 to sanction Agriculture Loan facility to the tune of Rs.5.00 lakhs for purchase of Tractor and Trailor. Accordingly, the applicant bank considered the said request of the defendant and granted the aforesaid Cash Credit Facility subject to the terms and conditions as envisaged under the Arrangement Letter dated 13.6.2007 executed by the defendant. 2.2 It is submitted that the defendant executed necessary loan and security documents such as Hypothecation Agreement, etc. on 13.6.2007 and has undertaken to repay the loan amount together with interest, as per the terms and conditions of the Arrangement Letter dated 13.6.2007. 2.3 It is stated that subsequent to the disbursement of the aforesaid loan amount, the defendant was not operating the loan account and failed and neglected to repay the loan. Therefore, the loan account was classified as NPA on 8.4.2011. Thereafter, the applicant bank sent letter/representationsto the defendant to repay the loan amount together with accumulated interest which evoked no response from the defendant. The applicant bank seized and sold the tractor and trailer and the sale amount was credited into the account of the defendant. Thereafter also, the defendant did not come forwardto 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 To prove its claim, the applicant bank filed proof affidavit through its Assistant Manager along with 17 documents, which are marked as Ex.A1 to A17. 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.11,15,179.99p due as on 21.4.2014 together with pendent lite and future interest at 9% per annum (simple) from 22.4.2014 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.11,15,179.99p due as on 21.4.2014 together with pendent lite and future interest at 9% per annum (simple) from 22.4.2014 till the date of realization in full, for sale of the schedule mentioned property 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.11,15,179.99p due as on 21.4.2014 together with pendent lite and future interest at 9% per annum (simple) from 22.4.2014 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 property 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