CANARA BANK vs Appavoo on 29 December 2023

FINAL ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.14,61,547.14p together with interest at the rate of 9.10% per annum with monthly rests, from the date of filing of the application till the date of realization in full along with costs of this application.

2. The above Original Application is filed before DRT-I Chennai and stood transferred to this Tribunal and renumbered as above.

3. The case of the applicant can be encapsulated as follows: - The defendant approached the erstwhile applicant viz., Syndicate Bank by submitting Loan Application dated 24.03.2016 for grant of Vehicle Loan under Synd Vehicle Scheme for purchasing Honda Mobilio and considering the said request the applicant sanctioned a sum of Rs.10,85,00/- to the defendant. The defendant executed necessary loan and security documents on 04.04.2016. The defendant hypothecated the Brand New Honda Mobilio 1.5 SMT (I-DTEC) more fully described in the schedule to the application.

4. It is further stated that even though the defendant had obliged to repay the amount promptly and regularly, they failed to do so resulting in default in repayment and hence the loan account was classified as NPA on 30.08.2016.

5. It is contended by the applicant that 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 or to pay back the amount.

6. It is also the case of the applicant that despite repeated reminders and requests the defendant failed to make the repayment forcing the applicant to file this OA seeking recovery of the amount due in the account with further interest and costs.

7. The defendant remained absent and hence were called absent and set ex-parte on 04.03.2020.

8. The applicant had let in evidence through AW-1, who had sworn to a Proof Affidavit in terms of the pleading in the OA and also produced Exhibits A-1 to A-5 and got the same marked in evidence.

9. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

10. The following issues arise for consideration in this matter: -

(i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

(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 defendant remained ex-parte. 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 OA 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.

12. In view of the fact that the subject loan is vehicle loan availed by the defendant and the applicant has claimed interest at contractual rates till the time of filing of the application and the interest rates have also considerably come down, this Tribunal is inclined to reject the prayer of the applicant for award of interest with monthly rests and award the pendent lite and future interest at simple and reduced rates.

13. In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan and the defaults committed by the defendant, which the applicant is entitled to realize. Hence, TA is disposed off in the following manner: - (a) TA No.614 of 2023 stands allowed.

(b) Applicant is permitted to realize a sum of Rs.14,61,547.14p together with interest at the rate of 9% simple per annum from the defendant from the date of filing of the application till the date of realization in full along with costs of this application and for sale of the hypotheca and other assets of the defendant.

(c) It is made clear that 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