HDFC Bank Limited vs R. Vivekananda on 22 September 2023

FINAL ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendant seeking issuance of a Recovery Certificate for recovery of a sum of Rs.42,76,088.87p together with interest at the rate of 13.50% per annum with monthly from 16.10.2018 till the date of realisation along with costs of the application.

2. The subject matter of the case is the Business Loan availed by the defendant from the Applicant Bank.

3. It is the case of the applicant that the defendant approached the applicant bank for grant of Business Loan and submitted requisite document vide Loan Application dated 14.07.2017 and considering the said request the applicant on 27.07.2017 sanctioned a sum of Rs.50,00,000/- to the defendant repayable in 48 Equated Monthly Installments of Rs.1,35,382/- commencing from 04.09.2017 to 04.08.2021and executed documents on 27.07.2017.

4. It is also the case of the applicant that the defendants violated the terms and conditions of sanction and committed default in repayments and failed to regularize the loan accounts despite repeated request the applicant issued a legal notice on 16.10.2019 calling upon the defendant to clear the dues and despite of the said notice failed to clear the outstanding dues.

5. It is the case of the applicant that after availing the loan, the defendant was irregular in remitting the loan amount. The efforts of the applicant bank to make the defendant to settle the loan did not yield any result, and hence the applicant approached this Tribunal seeking issuance of a Recovery Certificate allowing recovery of the amount due in the account.

6. Summons taken out to the defendant is served. As there was no representation on behalf of the defendant and on 06.08.2019, the defendant is called absent and set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 10 documents, which were marked as Ex. A-1 to A-10 on 16.05.2023. The Ld. Counsel for Applicant Bank made his submissions on

09.08.2023 and thereafter the matter stood till this date for passing final orders.

7. The following issues arise for consideration in the matter: - (a) Whether the applicant had succeeded in proving the liability of the defendant?

(b) What order as to cost of the proceedings need be passed?

These issues are considered together.

8. Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

9. The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-10 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendant. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the amount claimed by the applicant is due from the defendants. It is clear from the statement of accounts that penal interest is not capitalized.

10. In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

11. In view of the fact that the loan facility availed by the defendant is a business loan and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates.

12. In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: - (a) TA No.399 of 2023 stands allowed.

(b) Applicant is permitted to realize an aggregate sum of Rs.42,76,088.87p from the defendant together with interest at the rate of 10% per annum (simple), from the date of filing of OA till date of realization after deducting all the amounts received by them during the pendency of OA, and also by selling the other assets of the defendant.

(c) It is made clear that the defendant is personally liable for all such amounts due as ordered above.

(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 7 days from the date of receipt of the copy of the order.

(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

13. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993. (Dictated to PS, transcribed by him, corrected, signed and pronounced by me in Open Court on this the 22nd day of September, 2023) Sd/- (T. RAJESH) PRESIDING OFFICER DRT-II, CHENNAI