Debts Recovery Tribunals and Appellate Tribunals
CITY UNION BANK LIMITED vs DIGIC MEDIA on 29 December 2023
IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI
Dated this 29th day of December, 2023
PRESENT: SHRI T.RAJESH
PRESIDING OFFICER
TA.No.351 OF 2023
(Old OA.No.22/2021–DRT-I, Chennai)
City Union Bank Limited,
Rep. by its Branch Manager,
5/33, Needamangalam Main Road,
Sakkottai (PO),
Kumbakonam – 612 401.
… Applicant.
Vs.
1. M/s.Digic Media,
Rep.by its Proprietrix,
Mrs.J.Sudha,
2/860,863, First Floor,
OVM Complex,
Sarangapani Sannathi Street,
Kumbakonam – 612 001.
2. Mrs.J.Sudha,
W/o.S.Jayaraman,
5/14, Needamangalam Main Road,
Sakkottai (PO),
Kumbakonam Taluk,
Thanjavur District.
… Defendants.
Counsel for Applicant
: Mr.R.Sriram.
Defendants
: Exparte.
……
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ORDER
1. The above Transfer Application is filed Under Section 19 of the Recovery of Debt and Bankruptcy Act seeking recovery of Rs.13,91,550/- with further interest from the date of filing of the TA and by allowing the same to be recovered from the defendants personally and also by sale of schedule mentioned property.
2. The above OA is filed before the DRT-I and takes stood transferred to this Tribunal and renumbered as above.
3. The case of the Applicant can be encapsulated as follows: The 1st defendant a proprietary concern represented by its proprietrix the 2nd defendant had applied for and availed a CFGT Term loan and CGFT CCOD facility for Rs. 16,00,000/- and 2,00,000/- respectively.
4. It is also stated that the above facilities were availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail. It is also stated that the defendants had duly executed revival letters.
5. Apart from execution of the necessary loan documents, the hypothecation over the machineries was marked as being the security for repayment of the loan.
6. Even though the defendants had obliged themselves to repay the amount promptly and regularly, they failed to do so resulting defaults in the account and the same being declared as NPA on 31.03.2018.
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 though a lawyer notice on 24.07.2018 was issued the same was returned unserved.
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. Even as the defendants failed to enter appearance, they were set exparte on 27.06.2022.
10. The applicant had let in evidence through AW1 and produced Exhibits A1 to A20 and got the same marked as 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 OA 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. The evidence tendered by the applicant remains uncontroverted and undispute. 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 stated in the TA is outstanding in the account, which the applicant is entitled to get recovered from the defendants and their assets. The claim of the applicant is well within the period of limitation and there is no Capitalization of penal interest.
13. In view of the finding as entered above.
i) TA No.351 OF 2023 stands allowed.
ii) Applicant is permitted to recover the total amount of Rs.13,91,550/- (Rupees Thirteen Lakhs Ninety One Thousands Five Hundred and Fifty only) with future and pendentelite interest @14.25% p.a. with the monthly rests from the date of filing of the TA till realization from the defendants and by proceeding against the schedule mentioned hypothecated assets after giving credit to all the amount recovered and received during the pendency of the TA.
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