Debts Recovery Tribunals and Appellate Tribunals
M/s. The Karur Vysya Bank Ltd vs B Balaji on 27 March 2024
BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI
Dated this 27th day of March, 2024
PRESENT: SHRI T. RAJESH
PRESIDING OFFICER
TA No. 543 of 2023
(Originally filed before DRT-I Chennai as OA No.417/2019 and thereafter transferred to this Tribunal and renumbered as TA No.543 of 2023)
M/s. The Karur Vysya Bank Ltd
Shree Bhavan, T.S. No. 5504/05
Marthandapuram 1st street
Pudukottai-622001
Rep. by its Senior Manager
…Applicant
Versus
1.
B Balaji
S/o Mr. Balan
No.5/285, Mariamman Koil Street
Venugopal Nagar, Thiruverumbur
Trichy – 620 019
2.
Mr. K Senthilkumar
S/o Karuppaiah
No.8/19, Theradi Street, Virachilai,
Thirumayam, Pudukottai – 622 412
3.
Mrs. K Vijayakumari
W/o Karuppaiah
No.8/19, Theradi Street, Virachilai,
Thirumayam, Pudukottai – 622 412
4.
Mr. R M Karuppiah
S/o Ramaiyah Thevar
No.8/19, Theradi Street, Virachilai,
Thirumayam, Pudukottai – 622 412
5.
Mrs. S. Subashini
W/o Senthilkumar
No.8/19, Theradi Street, Virachilai,
Thirumayam, Pudukottai – 622 412
6.
Mrs. Annie
W/o Mr. John
No.22, Rosery Church 1st street
Mylapore, Chennai – 600 004
7.
Mr. A Kathiravan
S/o Late Mr. Antony
No.21, Ambedkar 2nd street,
Vellanur Village, Chennai – 600 062
…Defendants
Counsel for the Applicant Bank
: M/s S. Parthasarathy
Counsel for Defendants
: Ex-parte
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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. 75,35,780.13 (Rupees Seventy Five Lakhs Thirty Five Thousand Seven Hundred Eighty and Thirteen paisa only) due in Credit Facility of pledge Loan availed by the 1st defendant.
2. The above TA was originally filed before DRT-I and got transferred to this Tribunal and renumbered as above.
3. The Applicant contents that a credit facility of Rs. 65,23,000/- was availed by the 1st defendant and originally 2nd defendant stood as guarantors. It is also stated that further time as requested was granted and defendants 3 to 5 and 7 extended additional guarantee and 3rd defendant executed mortgage of schedule A property. It is also contended that additional security was also provided by mortgage of B scheduled property by 6th defendant.
4. The Applicant further contends 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 including issuance of a demand notice on 2.1.2019 failed forcing the Applicant to file this Application.
5. A reply statement was filed by the defendant putting forward a general denial. However the availment of credit facility is admitted.
6. The Applicant let in evidence through AW1, filed proof affidavit in conforming with pleading and got marked Ext A1 to A15. No counter proof affidavit was filed despite being provided with opportunity.
7. Heard, the following issues arise for consideration: -
(i) Whether the Applicant had proved the TA claim?
(ii) What orders are to be passed? Both these issues are 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 prove 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 agreed rate and the same is not interfered with pendente lite and future interest is awarded at 8% per annum (simple).
9. In view of the above, the following order is passed: - (a) TA No. 543 of 2023 stands allowed.
(b) Applicant is permitted to recover an amount of Rs. 75,35,780.13p (Rupees Seventy Five Lakhs Thirty Five Thousand Seven Hundred Eighty and Thirteen paisa only) with future and pendente lite interest @ 8% PA (simple) 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 jointly, severally and personally and also by sale of schedule mentioned properties 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 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 the Open court, this the 27th day of March, 2024) Sd/-
(T.RAJESH)
PRESIDING OFFICER
DRT-II, CHENNAI