Debts Recovery Tribunals and Appellate Tribunals

CITY UNION BANK LIMITED vs M/s.Vijay Rajah Traders on 7 February 2019

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BEFORE THE DEBTS RECOVERY TRIBUNAL –I ATCHENNAI

Dated this 13th Day of February, 2019

Present: SHRI N.V.BADARINATH

PRESIDING OFFICER

TA219/2018

(OA 162/2016 on the file of DRT-III, Chennai)

City Union Bank Limited ,

Chidambaram Branch,

No.13AB West Car Street,

Chidambaram, Cuddalore District,

Tamilnadu

…Applicant Bank

Vs.

1. M/s. Vijay Rajah Traders

Proprietor Mr.N.Raja Iyyappan

S/o. R. Nagendramani

No.73, South Vania Street,

Chidambaram.

2. Mrs. R. Deepika Lakshmi,

W/o. Mr.N. Raja Iyyappan

No.73, South Vania Street,

Chidambaram.

3. Mr.R. Nagendramani,

S/o. Radhakrishna Nadar,

No.73, South Vania Street,

Chidambaram.

4. Mrs. N. Vijayalakshmi,

W/o. Nagendramani,

No.73, South Vania Street,

Chidambaram.

.. Defendants..

Counsel for the Applicant Bank

:

M/s. S. Sethuraman & A. Periyasamy

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.48,17,302.46 Ps. with interest at 16 % p.a. compounded monthly towards Credit facility (Business Loan) 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. Defendants remained exparte.

3. A perusal of the record reveals that the applicant bank has sold the schedule mentioned property by initiating measures under the SARFAESI Act and realized a sum of Rs.39,00,000/-. Part satisfaction memo to this effect has been filed and the same was recorded vide order dt. 2.3.2018.

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? To prove its claim, the applicant bank filed proof affidavit through its Brach Manager along with 8 documents, which are marked as Ex.A1 to A8. 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 TA claim against the defendants . 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 jointly and severally for recovery of a sum of Rs.48,17,302.46 ps. with pendent lite and future interest at 9% from the date of filing of the application till the date of realization in full along with costs of this application. The applicant bank shall give due credit the amount realized through sale of the schedule mentioned property to the loan account of the defendants

7. In the result, application is allowed as under:

(a) The applicant bank is entitled to recover a sum of Rs. 48,17,302.46p 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, jointly and severally, (b) It is further ordered that the applicant bank shall give due credit the amount realized through sale of the schedule mentioned property to the loan account of the defendants

(c) in case of default of payment of dues by the defendants, the defendants are personally liable for all such amounts due.

(d) 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 , transcribed by him, corrected, signed and pronounced by me in the Open Court, this 13th day of February, 2019) sd/- (N.V.BADARINATH) PRESIDING OFFICER

DRT-I, CHENNAI

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