STATE BANK OF INDIA vs P.Panneerselvam & 7 Others 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 defendants jointly and severally for recovery of a sum of Rs.10,10,958/- due as on 30.8.2014 together with interest at 16.05% per annum with monthly rests 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 defendants approached the applicant bank seeking Agricultural Term Loan to buy a Tractor for agricultural purposes and one ACC for cultivation of Paddy and the applicant bank considered the said request of the defendants and granted an advance of Rs.5.80 lakhs under Loan Account No.11092342151 and a sum of Rs.81,000/- under Loan Account No.32363961792. 2.2 It is submitted that the said loan was sanctioned on the basis of the collateral security of properties morefully described in the schedule of the application owned by the 2nd defendant. The defendants executed Hypothecation agreement on 16.11.2006 and 20.6.2013, thereby agreeing to repay the amount advanced by the applicant bank with interest at 12.25% (ATL) and 7% (ACC) per annum with monthly rests within eight and half years commencing from December, 2006. The defendants also confirmed the deposit of title deeds as per letter dated 17.11.2006, confirming the Memorandum of Deposit of Title deeds and unregistered Memorandum of Deposit of Title Deeds dated 16.11.2006. 2.3 It is submitted that the defendants made their last remittance on 5.6.2012 (ATL) and the applicant bank declared the account of the defendants as NPA on 24.10.2013. The defendants failed and neglected to pay the outstanding amount in spite of demands and reminders. Hence, the present TA.

3. A perusal of order sheet dated 10.5.2016 reveals that the applicant bank filed a memo dated 10.5.2016 stating therein that the first defendant and defendants 3 to 8 are the legal heirs of deceased second defendant and that they are already on record. 3.1 Defendants remained exparte.

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

5. Point Whether the applicant bank is entitled for the amount claimed in the application from the defendants? If so, at what rate of interest? 5.1 To prove its claim, the applicant bank filed proof affidavit through its Chief Manager 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 defendants,1 3 to 8. Hence, it is held that the applicant bank is entitled for a Recovery Certificate for a sum of Rs. Rs.10,10,958/- 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 defendants 1, 3 to 8 jointly and severally for a sum of Rs.10,10,958/- 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.10,10,958/- 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 defendants 1, 3 to 8 jointly and severally.

(b) It is further ordered that in case of default of payment by the defendants, 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 defendants 1 and 3 to 8 are 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 defendants.

(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