Indian Bank, vs M/s.Asha Prabhu Designs, 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.45,59,177.98 with further interest from the date of filing of the TA and by allowing the same to be recovered from the defendant and also by sale of hypothecated movables and assets.

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 defendant who is equipped in manufacture of handcrafted furniture had applied for and availed an OCC Limit of Rs. 36,00,000/- and a Term Loan for Rs.5,70,000/- from the applicant.

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.

5. Apart from execution of the necessary loan documents, hypothecation over the movables was marked as being the security for repayment of the loan.

6. Even though the defendant had obliged herself to repay the amount promptly and regularly, she failed to do so resulting defaults in the account and the same being declared as NPA on 14.09.2018 and 29.10.2018 respectively.

7. The applicant’s officials had on many occasions approached the defendant requesting her 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. Even as no repayment was made despite repeated requests, the applicant had on 15.03.2019 caused to issue a lawyer 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 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 the defendant failed to enter appearance resulting her set exparte on 06.12.2021.

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 A19 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 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 her 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.456/2023 stands allowed. ii) Applicant is permitted to recover an amount of Rs.45,59,177.98 (Rupees Forty Five Lakhs Fifty Nine

Thousands One Hundred and Seveny Seven and Paise Ninety Eight only) with future and pendentelite interest @11.45% p.a. on Rs.40,48,971.28 and @10.15% p.a. on Rs.5,10,206.70 from the date of filing of the TA till realization from the defendant after giving credit to all the amounts recovered and received during the pendency of the TA and by sale of hypothecated movable assets. 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