UNION BANK OF INDIA vs VISHALI INDUSTRIES on 28 March 2024

FINAL ORDER

1. The Application is filed under Section 19(1) of the Recovery of Debt And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for Rs. 22,39,340/- due in the MSME loan availed by the defendants 1 and 2.

2. The above OA was originally filed before DRT-I and got transferred to this Tribunal and renumbered as above.

3. The applicant contends that the credit facility of Rs.20,00,000/- was availed by a proprietary concern being the defendant 1 and its proprietor; the defendant 2 as borrowers. It is also stated that the 3rd defendant stood as a guarantor. It is also contended that the facility is secured by mortgage of the schedule properties.

4. It is further contents that despite availing the credit facility by obliging to pay back the amount the defendants failed in compliance resulting in the account being classified as NPA on 29.5.2019 and a demand notice under Section 13(2) of the SARFAESI act was issued on 14.6.2019. Since the defendant failed to pay back the amount, the applicant preferred this TA seeking recovery of the amount due.

5. Summons was taken out and defendant entered appearance through a counsel. Since no reply statement was filed the chance for filing the reply statement was closed on 8.6.2022 and the defendants were subsequently called absent and set ex-parte on 4.1.2024.

6. The Applicant let in evidence through AW1, filed proof affidavit in conforming with pleading and got marked Ext A1 to A11.

7. Heard, the following issues arise for consideration: - (a) Whether the Applicant had proved the TA claim?

(b) What orders are to be passed? Both these issues are decided together

8. The Applicant evidence remained un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the TA claim. Hence the Applicant is to be found entitled for the TA claim.

9. During the pendency of the TA the bank has filed a part satisfaction memo stating that the mortgaged property was sold through SARFEASI proceedings and bank had received and amount of Rs.25,30,000/- which was duly adjusted to the loan account.

10. Taking note of the fact that TA claim is arrived at by calculating interest at the agreed rate, which is on the higher side, and also taking note of the fact that available security is already sold, pendente lite and future interest is awarded at 10% simple.

11. In view of the above, the following order is passed: - (a) TA No. 602 of 2022 stands allowed.

(b) Applicant is permitted to recover an amount of Rs. 22,39,340/- with future and pendente lite interest @ 10% simple per annum from the date of filing of the OA/TA till realization, after giving credit to all the amount recovered and received during the pendency of the OA/TA, from the defendants jointly, severally, personally and also by proceeding against their assets.

(c) A Recovery Certificate is to be drawn and issued to the recovery Officer to enable recovery of the as per the above terms.

(d) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

12. Communicate a copy of the order to the parties concerned in terms of section 19(21)(i) of the RDB Act, read with Rule 6 of DRT (Procedure) Rules, 1993. (Dictated to PS, transcribed by him, corrected, signed and pronounced by me in Open Court, on this the 28th day of March, 2024) Sd/- (T. RAJESH) PRESIDING OFFICER DRT-II, CHENNAI