UNION BANK OF INDIA vs YAWANTH PRABALA on 29 December 2023

ORDER

1. The above Transfer Application is filed under section 19 of the Recovery of Debt and Bankruptcy Act seeking recovery of Rs.33,41,570/- with further interest from the date of filing of the TA and by allowing the same to be recovered from the defendants jointly and severally and also by sale of the schedule mentioned property.

2. The above original application is filed before the DRT-I and stood transferred to this Tribunal and renumbered as above.

3. The case of the applicant can be encapsulated as follows:

The defendants approached the applicant bank for a Housing loan for Rs.34,97,000/- and got availed the same from the applicant whereas 1st defendant stood as the borrower and 2nd defendant stood as the guarantor.

4. It is also stated that the above facility was availed after execution of necessary loan documents by the defendants, obliging themselves to repay the amount promptly and regularly, without fail in 139 equated monthly installments of Rs.43,077/-.

5. Apart from execution of the necessary loan documents by the defendants, the defendants had created security by way of equitable mortgage over the schedule mentioned properties.

6. Even though the defendants had obliged themselves to repay the amount promptly and regularly, they failed to do so, resulting in defaults in the account and the same being declared as NPA on 28.02.2019.

7. The applicant’s officials had on many occasions approached the defendants requesting them to regularize the account and despite the same, no effort was made by the defendants to get the account regularized over to pay back the amount. Even as no repayment was made despite repeated requests, the applicant had on 02.04.2019

caused to issue a legal notice requiring repayment of the amount due in the account.

8. It is also the case of the applicant that despite repeated reminders and requests, the defendants had failed to make the repayment forcing the applicant to file this TA seeking recovery of the amount due in the account with further interest and cost.

9. The defendants had entered appearance and filed their reply statement contending that the NPA classification is not in accordance with the statute and that the Bank had levied excess interest.

10. The applicant had let in evidence through AW1 who had sworn to a Proof Affidavit in terms of the pleadings in the TA and also produced Exhibits A1 to A9 and got the same marked in evidence. No defense evidence was adduced.

11. Heard the counsel for both sides and considered the contentions 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 TA claim? ii) What orders are to be passed?

Both these issues are gone into and decided together.

12. The case put forth by the applicant in the Application remains unrebutted as no defense evidence was adduced. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible. From the statement of accounts as produced by the applicant, it is evident that the amount as claimed in the TA is outstanding in the account, which the applicant is entitled to get recovered from the defendants and their assets (including the schedule mentioned property). The claim of the applicant is well within the period of limitation and there is no Capitalization of penal interest. It is also reported that during the pendency of TA the schedule properties were sold and a part satisfaction for Rs.30,00,000/- is recorded. Since the secured asset is already sold and facility is a housing loan pendentelite and future interest is awarded at 9% p.a. (simple).

13. In view of the finding as entered above i) TA No.231 of 2022 stands allowed. ii) Applicant is permitted to recover an amount of Rs.33,41,570 (Rupees Thirty Three Lakhs Forty One

Thousand Five Hundred Seventy only) with future and pendentelite interest @ 9% p.a. (simple) from the date of filing of the TA till realization from the defendants and their assets after giving credit to all the amount recovered and received during the pendency of the TA including the part satisfaction of Rs.30,00,000/- recorded on 04.07.2023. iii) A Recovery Certificate is to be drawn and issued to the recovery officer to enable recovery of the amount as per the above terms. iv) 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.

14. 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 PA, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 29th day of December, 2023)

Sd./- (T. RAJESH) PRESIDING OFFICER DRT-II, CHENNAI