CANARA BANK vs Anbalagan 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.50,88,829/- with further interest from the date of filing of the TA and by allowing the same to be recovered from the defendant personally and also by sale of the schedule mentioned properties and hypothecated movables.

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 is as follows:- The defendant had applied for and availed following facilities from the applicant. Sl no Credit facility Amount

1. Loan for deepening, desilting and changing of sub mersible pump set & motor loan. Rs.4,00,000/-

Tractor loan Rs.5,80,000/-

Kisan Credit Card Loan Rs.1,83,000/-

Kisan Credit card Loan Rs.47,000/-

Short Term Loan Rs.4,00,000/-

4. It is also stated that the above facilities were availed after execution of necessary loan documents by defendant obliging himself to repay the amount promptly and regularly, without fail.

5. Apart from execution of the necessary loan documents, the defendant had created common security by way of equitable mortgage over the ‘F’ schedule properties common to all credit facilities. Over and above the same, hypothecation over the movables described in schedule ‘A’ to ‘E’

were marked as being the security for repayment of respective loans which includes pump set, tractor, crops and sand, clay and firewood and finished bricks.

6. Even though the defendant had obliged himself to repay the amount promptly and regularly, he failed to do so resulting defaults in the account and the same being declared as NPA on 31.05.2011.

7. The applicant’s officials had on many occasions approached the defendant requesting him to regularize the account and despite the same, no effort was made by the defendant to get the account regularized over to pay back the amount.

8. It is also the case of the applicant that despite repeated reminders and requests, the defendant 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. Even though the defendant entered appearance he had not filed written statement and subsequently as the defendant failed to enter appearance he was set exparte on 06.10.2023.

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 A 40 and got the same marked in evidence.

11. Heard the counsel for the applicant 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 defendant remains exparte. 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 defendant and his assets (including the schedule mentioned properties. The claim of the applicant is well within the period of limitation and there is no Capitalization of penal interest. Since the credit facilities are for agricultural purposes and as the TA claim are arrived at by calculating interest at contractual rate pendentelite and future interest is awarded at 10% p.a. (simple). The prayer of penal interest is also rejected.

13. In view of the finding as entered above i) TA No.34/2022 stands allowed. ii) Applicant is permitted to recover an amount of Rs.50,88,829/- (Rupees Fifty Lakhs Eighty Eight Thousand Eight Hundred Twenty Nine only) with future and pendentelite interest @ 10% p.a. (simple) from the date of filing of the TA till realization from the defendant after giving credit to all the amount recovered and received during the pendency of the TA and also by proceeding against the hypothecated assets described in schedule ‘A’ to ‘E’ to the TA. iii) The schedule ‘F’ property to be proceeded against and sold and if the sale proceeds are not sufficient the defendants and their other assets are liable to be proceeded against. iv) A Recovery Certificate is to be drawn and issued to the recovery officer to enable recovery of the amount as per the above terms. v) 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