BANK OF INDIA vs C GOVINDARASAN on 28 March 2024

FINAL ORDER

1. The above Original Application is filed under Section 19 of the Recovery of Debt and Bankruptcy Act seeking recovery of a sum of Rs.53,11,967/- with further interest from the date of filing of the OA and also by allowing the same to be recovered from defendants personally and from their assets including the schedule mortgage properties.

2. The above original application is filed before the DRT-I and stood transferred to this Tribunal and renumbered as above.

3. The applicant contends that the defendants had approached the applicant and availed the following credit facilities viz., Agricultural Term Loan for Rs.15 lakhs, Agricultural term loan II for Rs.5 lakhs and Agricultural Crop Loan for Rs.3 lakhs.

4. It is also stated that the above facilities were availed after execution of necessary loan documents obliging themselves to repay the amount promptly and regularly, without fail.

5. Apart from execution of the necessary loan documents, equitable mortgage over the schedule properties were created as collateral security and hypothecation agreement was also executed by the defendant hypothecating the crops and other movables.

6. Even though the defendants had obliged themselves to repay the amount promptly and regularly, they failed to do so resulting defaults in the account and the same being declared as NPA on 30.6.2016.

7. The applicant’s officials had on many occasions approached the defendants requesting them to regularize the account and despite the same no effort was made by the defendants to get the account regularized over to pay back the amount.

8. It is also the case of the applicant that despite repeated reminders and requests the defendants had failed to make the repayment forcing the applicant to file this OA seeking recovery of the amount due in the account with further interest and cost.

9. Eventhough the defendants entered appearance and had sought time to file reply statement, no reply statement was filed and hence the defendants were called absent and set exparte on 27.6.2023.

10. The applicant had let in evidence through AW1 who had sworn to a Proof Affidavit in terms of the pleadings in the OA and also produced Exhibits A1 to A16 and got the same marked in evidence.

11. Heard the counsel for the applicant and considered the contention as taken in the TA in the light of documentary evidence and proof affidavit. The following issues arise for consideration in this matter: -

(i) Whether the applicant had succeeded in proving the OA claim.

(ii) What orders are to be passed?

Both these issues are gone into and decided together.

12. The case put forth by the applicant in the Application remains unrebutted as defendants remained ex-parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidence put forth by the applicant were found admissible. From the statement of accounts as produced by the applicant, it is evident that the amount as claimed in the OA is outstanding in the account, which the applicant is entitled to get recovered from the defendants and their/ his assets (including the scheduled property) the claim of the applicant is well within the period of limitation and there is no Capitalization of penal interest.

13. Since the credit facility is admittedly for agricultural purpose and as the OA claim is arrived at by calculating interest at agreed rate pendente lite and future interest is awarded at 8% per annum (simple).

14. In view of the finding as entered above, the following order is passed: - (a) TA No.681 of 2023 stands allowed.

(b) Applicant is permitted to recover an amount of Rs.53,11,967/- (Rupees fifty three lakhs eleven thousand nine hundred sixty seven only) with future and pendente lite interest at the rate of 8% per annum (simple) from the date of filing of the TA till realization from the defendants jointly, severally, personally and also by proceeding against their assets, including the sale of schedule mortgaged properties and hypothecated assets, after giving credit to all the amount recovered and received during the pendency of the TA .

(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 proceedings for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

15. 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