HDFC BANK vs Ms PSV Sea Foods Private Limited & 3 Others on 21 January 2019

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 defendants jointly and severally for recovery of a sum of Rs.51,76,167.66p together with interest at 15.75% per annum with monthly rests from 22.09.2017 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 is the borrower, the second defendant is the co-borrower and the third defendant is a Director of 1st defendant company. It is stated that in the year 2016, defendants approached the applicant bank for a business loan and submitted the loan application on 27.10.2016 requesting the applicant bank to grant a loan of Rs.50.00 lakhs. 2.2 The applicant considered the said request of the defendants and sanctioned the Business Loan of Rs.50.00 lakhs under Loan Account No.43461381. The defendants availed the said loan and executed security documents such as Agreement for Loan, etc. on 28.10.2016 . As per the loan agreement, the defendant agreed to repay the said loan in 36 equal monthly instalments of Rs.1,75,169/- per month commencing from 4.12.2016 to 4.11.2019 and to pay interest at 15.75% per annum with monthly rests and penal interest charges at 2% per month on unpaid EMI’s, as per the loan agreement dated 28.10.2016.

2.3. The applicant bank further stated that the defendants were 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 22.9.2017, calling upon the defendants to repay the entire sum of Rs.51,76,167.66p, which included the principal, interest and other charges. The said notice was received and acknowledged by the defendants on 26.9.2017. Thereafter, the defendants did not come forwardto clear the dues. Hence, the present OA.

3. The defendants failed to comply with the conditional order passed in IA 630/2018 dated 26.9.2018 to receive reply statement as well as counter proof affidavit and the said IA stood dismissed for non compliance on 14.11.2018.

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

5. Point Whether the applicant bank is entitled for the amount claimed in the application from the defendants? If so, at what rate of interest? 5.1 To prove its claim, the applicant bank filed proof affidavit through its Manager along with 10 documents, which are marked as Ex.A1 to A10. 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 defendants. Hence, it is held that the applicant bank is entitled for a Recovery Certificate for a sum of Rs.51,76,167.66p along with future interest at 15.75% per annum (simple) from 22.9.2017 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 defendants jointly and severally for a sum of Rs.51,76,167.66p together with future interest at 15.75% per annum (simple) from 22.9.2017 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.51,76,167.66p together with future interest at 15.75% per annum (simple) from 22.9.2017 till the date of realization in full from the defendants jointly and severally.

(b) It is further ordered that in case of default of payment by the defendants, defendants 2 and 3 are 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 defendants .

(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 21st day of January, 2019) Sd/- (N.V.BADARINATH) PRESIDING OFFICER DRT-I, CHENNAI