State Bank of India vs R. Muthuramalingam 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. 34,06,987.47p due in the credit facilities of agricultural term loan, pipe line loan and KCC crop loan availed by the defendant.

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 facilities of Rs.4,51,000/-, Rs.1,03,000/- and Rs.5,54,000/- were availed as per term loan, Pipe Line loan and Kisan

Credit card. It is also stated that the credit facilities were availed by the defendants by due execution of loan documents. The facility is secured by mortgage of schedule properties and also by hypothecation.

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. The summons issued to the defendant were returned as “refused” and held to be sufficient service. Since the defendants failed to appear he was set ex- parte on 3.6.2022.

6. The Applicant let in evidence through AW1, filed proof affidavit in conforming with pleading and got marked Exhibits A1 to A40.

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 prove the TA claim. Hence the Applicant is to be found entitled for the OA claim. The TA claim is made within limitation and there is no capitalization of penal interest. Since the credit facility is for agricultural purpose and TA 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.903 of 2023 stands allowed.

(b) Applicant is permitted to recover an amount of Rs. 34,06,987.47p (Rupees Thirty four lakhs six thousand nine hundred seven and paise forty seven only) with future and pendente lite interest @ 9% 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 defendant, personally and also by proceeding against the selling his assets including the scheduled mortgaged properties 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 proceedings 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