Debts Recovery Tribunals and Appellate Tribunals

IDBI BANK vs S DEVI on 28 February 2019

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BEFORE THE DEBTS RECOVERYTRIBUNAL –I ATCHENNAI

Dated this 28th Day of February, 2019

Present: SHRI N.V.BADARINATH

PRESIDING OFFICER

TA241/2018

(OA 56/2015 on the file of DRT-III, Chennai)

IDBI Bank Limited

Represented by its Branch Head,

Having its Branch Office at

Sree Narayanagiri Plaza (Ground Floor)

No.688/188 E. Kamarajanar Road,

Attur,Salem – 636 102.

…Applicant Bank

Vs.

1. Mr.R. Senthil kumar (Deceased)

2. Mrs. S. Devi,

Wife of Late Senthilkumar

MGR Nagar,

Asanur,Ulundurpet Tk,

Villupuram District – 606 305.

3. K. Kanagavalli,

Mother of Late Senthilkumar

MGR Nagar,

Asanur,Ulundurpet Tk,

Villupuram District – 606 305.

4. Shri S. Suryaprakash

Son of Late Senthilkumar

MGR Nagar,

Asanur,Ulundurpet Tk,

Villupuram District – 606 305.

5. S. Soundarya,

D/o Late Senthilkumar,

Through Mother and Guardian Mrs. S. Devi MGR Nagar, Asanur,Ulundurpet Tk, Villupuram District – 606 305.

..Defendants.

[Defendants 2 to 5 are impleaded as legal heirs of deceased 1st defendant viz R. Senthilkumar as per the order of DRT-III, Chennai dated 14.3.2017 passed in I.A. No.188 of 2017]

Counsel for the Applicant Bank

: M/s. Shivakumar and Suresh , Advocates, Defendants remained exparte.

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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 defendants jointly and severally for recovery of a sum of Rs.26,56,036.71 Ps. together with pendilite and further interest @ 13.75 % p.a. with monthly rests in respect of Term Loan facility from the defendants 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. On perusal of the order sheet dated 14.3.2017 reveals that I.A. No.188 of 2017 filed to implead legal heirs of deceased 1st defendant was allowed on 14.3.2017 and the legal heirs of deceased D1 were impleaded as defendants 2 to 5 and amended application was filed on 22.3.2017 .

3. Defendants remained exparte.

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 defendants? If so, at what rate of interest? 5.1 To prove its claim, the applicant bank filed proof affidavit through its Authorised Signatory i.e. Manager along with 20 documents, which are marked as Ex.A1 to A20 . 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 defendants. Point is answered accordingly.

5.2. However , it is made clear that since defendants 2 to 5 being the legal representatives of the deceased 1st defendant viz. R. Senthilkumar the liability of the defendants 2 to 5 are only to the extent of the estate, if any, inherited by them from late R. Senthilkumar and the defendants 2 to 5 are not personally liable for the TAclaim.

6. For the reasons stated as above, it is held that the applicant bank is entitled for a Recovery Certificate against the defendants 2 to 5, for recovery of a sum of Rs.26,56,036.71p 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 property along with costs of this application.

7. In the result, application is allowed as under: a) The applicant bank is entitled to recover from the defendants 2 to 5 a sum of Rs. 26,56,036.71p 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, b) The defendants 2 to 5 being the legal representatives of the deceased 1st defendant viz. R. Senthilkumar the liability of the defendants 2 to 5 are only to the extent of the estate, if any, inherited by them from late R. Senthilkumar and the defendants 2 to 5 are not personally liable for the TAclaim, c) 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. d) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants are personally liable for all such amounts due. e) 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. f) 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 28th day of February, 2019) Sd/- (N.V.BADARINATH) PRESIDING OFFICER DRT-I, CHENNAI

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