INDIAN OVERSEAS BANK vs Mr.M.Murugesan & 2 Others on 4 July 2019

ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts due and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants jointly and severally for recovery of a total sum of 14,17,856/- consisting of a sum of Rs.12,06,938/- due under Agricultural Term Loan with further interest at 11.95% per annum along with half yearly rests along with 2% overdue interest from defendants 1 to 2 jointly and severally, a sum of Rs.54,088/- due under Agricultural Cash Credit-I with further interest at 10.45% per annum with half yearly interest along with 2% overdue interest from defendants 1 and 2 jointly and severally and a sum of Rs. 1,56,830/- due under Agricultural Cash Credit-II with further interest at 10.45% per annum with half yearly rests along with 2% overdue interest from defendants 1 and 3 jointly and severally from the date of filing of the application till the date of realization in full, for sale of the schedule mentioned properties along with costs of this application.

2. Defendants remained exparte.

3. Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal. The point that arises for consideration is Whether the applicant bank is entitled for the amount claimed in the application from the defendants ? If so, at what rate of interest?

4. Point Whether the applicant bank is entitled for the amount claimed in the application from the defendants ? If so, at what rate of interest? 4.1 To prove its claim, the applicant bank filed proof affidavit through its Branch Manager along with 34 documents, which are marked as Ex.A1 to A34. The proof affidavit of the applicant bank remain unchallenged and unrebutted.Therefore, on careful consideration of proof affidavit along with Exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendants . Point is answered accordingly.

5. For the reasons stated as above, it is held that the applicant bank is entitled for a Recovery Certificate against the defendants jointly and severally for recovery of a total sum of 14,17,856/- consisting of a sum of Rs.12,06,938/- due under Agricultural Term Loan from defendants 1 to 2 jointly and severally, a sum of Rs.54,088/- due under Agricultural Cash Credit-I from defendants 1 and 2 jointly and severally and a sum of Rs. 1,56,830/- due under Agricultural Cash Credit-II from defendants 1 and 3 jointly and severally together with pendent lite and future interest at 9% per annum (simple) from the date of filing of the application till the date of realization in full, for sale of the schedule mentioned properties along with costs of this application.

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

(a) The applicant bank is entitled to recover a total sum of a total sum of 14,17,856/- from the defendants jointly and severally, consisting of a sum of Rs.12,06,938/- due under Agricultural Term Loan from defendants 1 to 2 jointly and severally, a sum of Rs.54,088/- due under Agricultural Cash Credit-I from defendants 1 and 2 jointly and severally and a sum of Rs. 1,56,830/- due under Agricultural Cash Credit-II from defendants 1 and 3 jointly and severallywith pendent lite and future interest at 9% per annum (simple) from the date of filing of the application till the date of realization in full.

(b) It is further ordered that in case of default of payment by the defendants, the applicant bank is entitled to sell the scheduled mentioned properties and adjust the sale proceeds towards the amount due.

(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants 1 and 2 are personally liable for all such amounts due under Agricultural Term Loan and Agricultural Cash Credit-I and defendants 1 and 3 are personally liable for all such amounts due under Agricultural Cash Credit-II.

(d) 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 defendants.

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

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

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

9. 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 PA (SN), transcribed by him, corrected, signed and pronounced by me in the Open Court, this 4th Day of July, 2019) Sd/- (N.V.BADARINATH) PRESIDING OFFICER DRT-I, CHENNAI