CANARA BANK vs Mr R Jothivel on 4 March 2019

ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts due and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendant for recovery of a total sum of Rs.11,24,698.90 p consisting of i) Agriculture Loan for Sugar Cane is Rs.35,093/- together with further interest @ 12.75 % p.a. (inclusive of penal interest of 2% p.a.) compounded with Half yearly rests ii) Vehicle Loan is Rs. 72,124/- together with further interest @ 13.60% p.a. (inclusive of penal interest of 2% p.a.) compounded with half yearly rests iii) General Credit Card Scheme is Rs. 30,024/- together with further interest @ 12.75% p.a. (inclusive of penal interest of 2% p.a.) Compounded with Half yearly rests

iv) Kisan Tatkal Loan is Rs. 61,885/- together with further interest @ 13.60 % p.a. (inclusive of penal interest of 2% p.a.) Compounded with Half yearly rests v) Dairy Loan is Rs. 81,926/- together with further interest @ 13.60 % p.a. (inclusive of penal interest of 2% p.a.) Compounded with Monthly rests and vi) Internet Café Loan is Rs. 8,43,646.90

p together with further interest @ 12.90 % p.a. (inclusive of penal interest of 2% p.a.) Compounded 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. Defendant remained exparte.

3. A perusal of the records reveal that the applicant bank has filed a Memo dated 31.1.2017 stating that out of six loan accounts, one of the loan account was closed and the applicant bank has reduced the total claim in the OA from Rs.11,24,698.90p to Rs.10,89,605.90p. Further the applicant bank prayed that the claim amount is Rs.10,89,605.90p in respect of the remaining five loan accounts and the relief claimed in the OA may be allowed be allowed as prayed for. In view of the memo filed by the applicant bank, the claim of the applicant bank is restricted to Rs.10,89,605.90p with future interest and costs of TA.

4. Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal. The point that arises for consideration is 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 defendant ? If so, at what rate of interest? To prove its claim, the applicant bank filed proof affidavit through its Authorised Signatory i.e. Chief Manager along with 29 documents, which are marked as Ex.A-1 to A-29. The proof affidavit of the applicant bank remain unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with Exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the TAclaim against the defendant. 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 recovery of a total sum of Rs.10,89,605.90p together with pendente lite future interest @ 9 % p.a. 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 total sum Rs. 10,89,605.90p 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 PS, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 4th day of March, 2019) Sd/- (N.V.BADARINATH) PRESIDING OFFICER DRT-I, CHENNAI