STATE BANK OF INDIA vs R.Jayaprakash on 31 January 2019

**ORDER**

1. This application is filed by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act (erstwhile Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendant, for recovery of a sum of Rs.39,94,381/- together with interest @10.5%p.a with monthly rests from the date of application till the date of realization in full along with costs of this application and also sale of the mortgaged immovable property and to render justice.

2. **Brief facts of Application are as follows:**

2.1: The applicant bank stated that the defendant approached the applicant bank's Egmore Branch for purchase of a flat measuring 1176 sq. ft. morefully described in the schedule to the OA. After thorough scrutiny of the loan application, the applicant bank sanctioned a sum of Rs.36 lakhs on 26.7.2016 for which the defendants executed requisite documents.

2.2. The defendant availed the housing loan and agreed to repay principal and interest @ 9.40\$ p.a. in 239 EMIs at Rs.33370/- p.m. commencing from August, 2016. On

26.7.2016, the defendant executed memorandum of loan agreement for home loan and also executed memorandum of deposit of title deeds on 20.10.2016.

2.3. It is further submitted that inspite of undertaking to repay the said loan, the defendant did not do so and progressively became more and more chronic defaulter. The defendant was found to be evasive in the replies to regularize the account inspite of repeated reminders by the applicant bank. Hence, the loan account has been classified as NPA on 26.10.2017. Defendants have not taken any steps to regularize the loan account, eventhough the applicant bank initiated measures u/s 13(2) of the SARFAESI Act, and issued statutory notice to the defendants on 5.2.2018 calling upon the defendants to pay the outstanding amount.

2.4. As no amount is forthcoming, the applicant bank filed the present OA and prays for an order to render justice.

3. In this matter defendant remained exparte.

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

To prove its claim, the applicant bank filed proof affidavit through its Authorised Officer with documents, which are marked as Ex.A-1 to A-10. Thus, the proof affidavit of the applicant bank remained 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 as prayed for. Hence, it is held that the applicant bank is entitled for Recovery Certificate against the defendant.

5. For the reasons stated as above, it is held that the applicant bank is entitled for a Recovery Certificate against the defendant a sum of Rs.39,94,381/- together with interest @10.5%p.a. compounded monthly from 16.8.2018 till the date of realization in full along with costs of this application and also sale of the schedule mentioned property.

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

- (a) The applicant bank is entitled for a recovery certificate against the defendants for a sum of Rs.39,94,381/- together with interest @10.5%p.a. compounded monthly from 16.8.2018 till the date of realization in full.

- (b) It is further ordered that in case of default of payment by the defendant, the applicant bank is entitled to sell the schedule 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 defendant is personally liable for all such amounts due.

- (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 defendant.

- (e) The applicant bank is also 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 PS, transcript, corrected, signed and pronounced by me in the Open Court, this 31^st day of January, 2019)*

Sd/- **(N.V. BADARINATH)** PRESIDING OFFICER DRT-I, CHENNAI