STATE BANK OF INDIA vs P.Ramaiah on 10 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.12,03,055/- together with interest at 14.75% per annum with monthly rests from the date of filing of the application i.e. 18.6.2014 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 who is an agriculturist requested for a loan to dig bore well and also to purchase Tractor and trailor. The defendant also made a request to renew the existing agricultural loan and extension of time to the tune of Rs.5,50,000/- and Rs.62,000/-. The applicant bank considered the request of the defendant and sanctioned the said credit facility subject to the terms and conditions contained in the Arrangement Letters dated 3.5.2008 and 27.9.2013 executed by the defendant. 2.2 It is submitted that the defendant availed the loan and executed necessary loan and security documents such as Arrangement letter, Hypothecation agreement, etc. on 3.5.2008. The defendant also executed revival letters on 1.5.2011 and 16.10.2013. It is stated that the defendant undertook to repay the loan with interest, as per the terms and conditions of the Arrangement Letters dated 3.5.2008 and 27.9.2013. 2.3 It is submitted that subsequent to the disbursement of the aforesaid loan amount, the defendant did not operate the loan account and failed and neglected to pay the outstanding in the loan account. Despite repeated reminders from the applicant bank, the defendant did not regularize the loan account, consequently, the account was declared as NPA on 23.4.2013. It is further submitted that the applicant bank seized and sold away the tractor and trailer and the sale amount is credited into the account of the defendant. Thereafter also, the defendant did not come forward to clear the balance dues. It is stated that the defendant is liable to repay a sum of Rs.11,34,515/- under Account No.30379340953 and a sum of Rs.68,540/- under Account No.33334425090, in all totalling to a sum of Rs.12,03,055/- due as on 9.6.2014 together with future interest. 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 Chief Manager along with 29 documents, which are marked as Ex.A1 to A29. 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.12,03,055/- 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.12,03,055/- 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.12,03,055/- 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 10th day of January, 2019) Sd/- (N.V.BADARINATH) PRESIDING OFFICER DRT-I, CHENNAI