State Bank of India vs R. Ramalingam 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. 41,86,298/- due in the Agricultural Term loan availed by the defendants.

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.6,97,000/- was availed by the defendants. It is also stated that the facility is secured by mortgage of the schedule properties and by hypothecation.

4. It is further contended that despite availing the credit facility by obliging to pay back the amount in 7 yearly installments of Rs.1,67,978/- each commencing from 5.11.2019 and ending on 5.3.2025. Even though the defendant was obliged to pay back the amount borrower with interest, they failed in compliance of the same and efforts of the Applicant to make the borrowers pay back the amount failed the Applicant is left with no remedy other than to file this Application.

5. Summons was taken out and as the defendants failed to appear they were called absent and set ex-parte on 17.10.2023.

6. The Applicant let in evidence through AW1, filed proof affidavit in conformation with pleading and got marked Ext A1 to A51.

7. 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.

8. The Applicant evidence remain 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 OA 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 12% simple.

9. In view of the above, the following order is passed: - (a) TA No.735 of 2023 stands allowed.

(b) Applicant is permitted to recover an amount of Rs.41,86,298/- (Rupees Forty one thousand eighty six thousand two hundred ninety eight only) with future and pendente lite interest @ 12% simple P.A 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 including the scheduled property and hypothecated 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.

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