CANARA BANK vs Mr G Kannusamy on 31 December 2019

ORDER

1. This application is filed by the applicant bank under Section 19 (1) Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants 2 to 8 to the extent of the estate acquired by them from deceased 1st defendant for recovery of a total sum of Rs.12,15,365/- consisting of (i) a sum of Rs.11,00,916/- due under Tractor Loan with interest @ 14.20% p.a. with half yearly rests from 03.06.2014 and sale of Schedule ‘A’ and ‘B’ mentioned properties and (ii) a sum of Rs.1,14,449/- due under Kissan Credit Card Loan with interest @ 9% p.a. with Half Yearly rests from 03.06.2014 and sale of Schedule ‘B’ property, till the date of realization in full along with costs of this application.

2. A perusal of the order sheet dated 23.012019 reveals that IA 1743/2019 filed to implead legal heirs of deceased 1st defendant was allowed on 06.05.2019 and the legal heirs of 1st defendant were impleaded as defendants 2 to 8 and amended application was filed on 25.06.2019.

2.1 Defendants remained exparte.

3. 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?

4. Point

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

4.1 To prove its claim, the applicant bank filed proof affidavit through its Authorized Signatory along with 21 documents, which are marked as Ex.A1 to A21. 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. Point is answered accordingly.

4.2 However, it is made clear that since defendants 2 to 8 being the legal representatives of the deceased 1st defendant viz. Mr.G.Kannusamy, the liability of the defendants 2 to 8 is only to the extent of their respective shares if any, inherited by them from the estate of late Mr.G.Kannusamy and the defendants 2 to 8 are not personally liable for the TA claim.

5. For the reasons stated as above, it is held that the applicant bank is entitled for a Recovery Certificate against the defendants 2 to 8 jointly and severally for a total sum of Rs.12,15,365/- consisting of (i) a sum of Rs.11,00,916/- due under Tractor Loan and sale of Schedule ‘A’ and ‘B’ mentioned properties and (ii) a sum of Rs.1,14,449/- due under Kissan Credit Card Loan and sale of Schedule ‘B’ property, 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, along with costs of this application. However, it is made clear that since defendants 2 to 8 being the legal representatives of the deceased 1st defendant viz. Mr.G.Kannusamy, the liability of the defendants 2 to 8 is only to the extent of their respective shares if any, inherited by them from the estate of late Mr.G.Kannusamy and the defendants 2 to 8 are not personally liable for the TA claim.

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

(a) The applicant bank is entitled to recover a total sum of Rs.12,15,365/- consisting of (i) a sum of Rs.11,00,916/- due under Tractor Loan together and (ii) a sum of Rs.1,14,449/- due under Kissan Credit Card Loan 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 2 to 8 jointly and severally;

(b) However, the defendants 2 to 8 being the legal representatives of the deceased 1st defendant viz. G.Kannusamy, the liability of the defendants 2 to 8 is only to the extent of their respective shares if any, inherited by them from the estate of late G.Kannusamy and the defendants 2 to 8 are not personally liable for the TA claim.

(c) It is further ordered that in case of default of payment by the defendants 2 to 8 the applicant bank is entitled to sell the schedule mentioned property in terms of order in Para 5 supra and adjust the sale proceeds towards the amount 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 deceased 1st defendant.

(e) The applicant bank is entitled for costs of this application.

7. The applicant bank is directed to file costs memo within two weeks of the receipt of this order.

8. Issue recovery certificate in favour of the applicant bank in terms of this final order.

9. 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 her, corrected, signed and pronounced by me in the Open Court, this 31st day of December, 2019)

Sd/- (Dr.N.V. BADARINATH) PRESIDING OFFICER DRT-I, CHENNAI