CANARA BANK vs Jagadammal 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.15,00,648/- due in the Agricultural Farm Machinery credit facility availed by deceased Muthugounder. It is also stated that the deceased Muthugounder along with his son the 2nd defendant had also executed a Memorandum of agreement for Agricultural loan.

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

3. It is also stated that the facility is secured by mortgage of schedule properties and also by hypothecation of tractor and trailer.

4. The Applicant further contents that despite availing the credit facility by obliging to pay back the amount, the borrowers failed in compliance of the same and all the efforts of the Applicant to make the borrowers pay back the amount failed forcing the Applicant to file this Application, against legal heirs of the deceased Muthugounder as the legal heirs also failed to repay the debt.

5. Summons was taken out and as the defendants 1, 3 to 6 entered appearance and filed vakkalath there was no representation for the 2nd defendant. Since no reply statement was filed by defendants 1,3 to 6 and there was no appearance for 2nd defendant, they were set ex-parte on 27.6.2022.

6. The Applicant let in evidence through AW1, filed proof affidavit in conforming with pleading and got marked Ext A1 to A12.

7. Heard, the following issues arise for consideration: - (a) Whether the Applicant had proved the OA 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 and 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 credit facility is for agricultural purpose and the OA claim is arrived at by calculating interest at agreed rate, pendente lite and future interest is awarded at 9% simple.

9. In view of the above, the following order is passed: - (a) TA No.744 of 2023 stands allowed.

(b) Applicant is permitted to recover an amount of Rs15,00,648/- (Rupees fifteen lakhs six hundred forty eight only) with future and pendente lite interest @ 9% simple PA from the date of filing of the OA/TA till realization from the defendants, after giving credit to all the amount recovered and received during the pendency of the OA/TA.

(c) The schedule property and hypothecated assets to be proceeded against and sold and if the sale proceeds are not sufficient the 2nd defendant personally and his other assets are liable to be produced against. The liability of defendants 1, 3 to 6 are limited to the estate they have inherited from deceased M. Muthugounder.

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

(e) 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