CANARA BANK vs S. Devakumar on 29 December 2023

FINAL ORDER

1. The above Original Application is filed under section 19 of the Recovery of Debt and Bankruptcy Act seeking recovery of Rs.23,78,597.78p with further interest from the date of filing of the TA and also by allowing the same to be recovered from the defendant and his 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 is as follows. The defendant approached erstwhile syndicate bank and availed a Credit Facility for the purchase of three Tata

Indigo eCS LS vehicle under Synd Transport Scheme totallingr Rs.15,93,000/-.

4. It is also stated that the above facility was availed after execution of necessary loan documents obliging himself to repay the amount in equal monthly installments of Rs.35,250/- commencingfrom 30.4.2015 and ending at 30.6.2022. Apart from execution of the necessary loan documents, hypothecation over the vehicles were marked being the security for repayment of the loan.

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

6. The applicant’s officials had on many occasions approached the defendant requesting them 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.

7. 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.

8. Despite taking out substitute service through paper publication, the defendant failed to enter appearance resulting the defendant called absent and set ex- parte on 15.9.2022.

9. The applicant had let in evidence through AW1 who had sworn to a Proof Affidavit in terms of the pleadings in the OA and also produced Exhibits A1 to A9 and got the same marked in evidence.

10. Heard the counsel for the applicant and considered the contention 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.

11. The case put forth by the applicant in the Application remains unrebutted as defendants remain exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidence 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 accounts, 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.

12. Since the TA claim is arrived at by calculating interest at agreed rate and interest claimed is on the higher side pendente lite and future interest is awarded at simple rate, that too at reduced rate.

13. In view of the finding as entered above

(a) TA No. 576 of 2023 stands allowed.

(b) Applicant is permitted to recover an amount of Rs.23,78,597.78p being the total due amount with future and pendent lite interest @ 9% (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 and selling the hypothecated vehicles.

(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant Bank, the defendant is personally liable for all such amounts due under the Loan Accounts.

(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the order.

(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final 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 PS, transcribed by him, corrected, signed and pronounced by me in Open Court, on this the 29th day of December, 2023) Sd/- (T. RAJESH) PRESIDING OFFICER DRT-II, CHENNAI