Bank of India vs Mr. K. Kannan 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. 52,80,583 (Rupees Fifty Two Lakhs Eighty Thousand Five Hundred Eighty Three only) due in three agricultural term loan facilities availed by defendants 1 and 2 and guaranteed by deceased Kirumbanatham and 4th defendant.

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

3. The applicant contends that the credit facilitates of Rs.15,00,000/-, Rs.5,00,000/- and Rs.3,00,000/- were availed by defendants 1 and 2 and guaranteed by one Kirumbanatham and 4th defendant . It is also stated that the facility is secured by mortgage of the schedule properties owned by defendants 1, 2 and Kirumbanatham.

4. The Applicant further contents that despite availing the credit facility by obliging to pay back the amount, the defendant failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed forcing the Applicant to file this Application.

5. Summons was taken out and defendants 1,2 and 4 were served. As the 3rd defendant expired, a memo has been failed stating that D1,2 and 4 are legal heirs other than the additional defendants impleaded as 3(a). Since the defendant failed to enter appearance they were called absent and set exparte on 14.9.2022.

6. The Applicant let in evidence through AW1, filed proof affidavit in conforming with pleading and got marked Ext A1 to A19.

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 produce TA claim. Hence the Applicant is to be found entitled for the TA claim. The TA claim is made within limitation and there is no capitalization of penal interest. Since the TA claim is arrived at by calculating interest at the contractual rate, which is on the higher side, and also taking note of the fact that the credit facility is for agricultural purpose, pendente lite and future interest is awarded at 8% simple.

9. In view of the above, the following order is passed: - (a) TA No. 212 of 2023 stands allowed.

(b) Applicant is permitted to recover an amount of Rs 52,80,583/- with future and pendente lite interest @ 8% 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 TA, from the defendants 1, 2 and 4 jointly, severally, personally and also by proceeding against their assets including the scheduled property and other assets of deceased Kirumbanatham. It is made clear that the defendant No.3(a) is liable to the extent of estate inherited by him from deceased Kirumbanatham.

(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.

10. 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