Debts Recovery Tribunals and Appellate Tribunals

HDFC BANK vs Mr Maran GD on 31 January 2019

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BEFORE THE DEBTS RECOVERYTRIBUNAL –I ATCHENNAI

Dated this 31st Day of January,2019

Present: SHRI N.V.BADARINATH

PRESIDING OFFICER

OA 212/2018

M/s HDFC Bank Ltd.

Rep. by its Manager,

Branch Office at “Retail Asset Division”

No.110, Ceebros Building,

4th Floor,Nelson Manikkam Road,

Aminjikarai, Chennai 600 029.

…Applicant Bank

Vs.

Mr.Maran GD

Rep. by Proprietor of M/s Traders

S/o Mr.Govindharajan,

312, 6th Street,

Kilpauk, Chennai 10.

…Defendant

Counsel for the Applicant Bank

:

M/s D. Satyaraj, S. Sheik Ismail & J. Prince Defendant remained exparte.

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O R D E R

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendant for recovery of a sum of Rs.15,43,469.17p together with interest at 16.25% per annum with monthly rests from 28.5.2018 till the date of realization in full, along with costs of this application.

2. Brief facts of Application are as follows: 2.1 The applicant bank submits that the first defendant in the year 2017 approached the applicant bank for a business loan and submitted the loan application on 21.8.2017 requesting the applicant bank to grant a loan of Rs.17.50 lakhs. 2.2 The applicant considered the said request of the defendant and sanctioned the Business Loan of Rs.17.50 lakhs under Loan Account No.50397401. The defendant availed the said loan and executed security documents such as Agreement for Loan, etc. on 24.8.2017. As per the loan agreement, the defendant agreed to repay the said loan in 18 equal monthly instalments of Rs.1,10,206/- per month commencing from 4.10.2017 to 4.3.2019 and to pay interest at 16.25% per annum with monthly rests and penal interest charges at 2% per month on unpaid EMI’s, as per the loan agreement dated 24.8.2017.

2.3. The applicant bank further stated that the defendant was irregular in making payments of the instalments under the above loan. Since the defendant failed and neglected to pay any amount under the loan account in spite of repeated demands and reminders, the applicant bank caused a legal notice on 30.5.2018, calling upon the defendant to repay the entire sum of Rs.15,43,469.17p, which included the principal, interest and other charges. Thereafter, the defendant did not come forwardto clear the dues. Hence, the present OA.

3. Defendant remained exparte.

4. Point for consideration: Whether the applicant bank is entitled for the amount claimed in the application from the defendant? If so, at what rate of interest?

5. Point

Whether the applicant bank is entitled for the amount claimed in the application from the defendant? If so, at what rate of interest? 5.1 To prove its claim, the applicant bank filed proof affidavit through its Manager along with 9 documents, which are marked as Ex.A1 to A9. The proof affidavit of the applicant bank remain unchallenged. Therefore, on careful consideration of the material placed before the Tribunal, coupled with the proof affidavit filed on behalf of the applicant bank, I am satisfied that the applicant bank has successfully proved the OA claim against the defendant. Hence, it is held that the applicant bank is entitled for a Recovery Certificate for a sum of Rs.15,43,469.17p along with future interest at 15.99% per annum (simple) from 28.5.2018 till the date of realization in full. Point is answered accordingly.

6. For the reasons stated as above, it is held that the applicant bank is entitled for a Recovery Certificate against the defendant for a sum of Rs.15,43,469.17p together with future interest at 15.99% per annum (simple) from 28.5.2018 till the date of realization in full, along with costs.

7. In the result, application is allowed as under:

(a) The applicant bank is entitled to recover a sum of Rs.15,43,469.17p together with future interest at 15.99% per annum (simple) from 28.5.2018 till the date of realization in full from the defendant.

(b) It is further ordered that in case of default of payment by the defendant, the defendant is personally liable for all such amounts due.

(c) It is further ordered that any amount remitted or realized, if any, during the course of the proceedings, shall be given due credit to the loan account of the defendant.

(d) The applicant bank is entitled for costs of this application.

8. The applicant bank is directed to file costs memo within two weeks of the receipt of this order.

9. Issue recovery certificate in favour of the applicant bank in terms of this final order.

10. Communicate a copy of the order to the parties concerned in terms of Rule 16 read with Rule 2(c) of DRT (Procedure)Rules, 1993. (Dictated to stenographer (SN), transcribed by him, corrected, signed and pronounced by me in the Open Court, this 31st day of January, 2019) Sd/- (N.V.BADARINATH) PRESIDING OFFICER DRT-I, CHENNAI

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