BANK OF INDIA vs Krishnan A 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. 18,62,078.80 with further interest from the date of filing of the TA and by allowing the same to be recovered from the defendant personally and from his assets.

2. The above TA 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 defendant who was running a hotel had applied for and availed a Term Loan for Rs. 15,00,000/- from the applicant.

4. It is also stated that the above facility was availed after execution of necessary loan documents by defendant obliging himself to repay the amount promptly and regularly, without fail in 81 equal EMIs of Rs.28,033/- p.m.

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

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 31.03.2015.

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. No repayment was made despite repeated request and even the defendant had acknowledged the liability 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 though defendant entered appearance, they were failed to appear later and filed reply statement. Hence they were set exparte on 19.10.2023. 10 The applicant had let in evidence through AW1 and produced Exhibits A1 to A17 and got the same marked.

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 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 stated in the TA is outstanding in the account, which the applicant is entitled to get recovered from the defendant and his 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.483 of 2023 stands allowed.

ii) Applicant is permitted to recover an amount of Rs.18,62,078.80 (Rupees Eighteen Lakhs Sixty Two Thousands Seventy Eight and Eighty Paisa only) with future and pendentelite interest @14.35% p.a. with monthly rests from the date of filing of the TA till realization from the defendant and also by proceeding against hypotheca 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