Debts Recovery Tribunals and Appellate Tribunals
STATE BANK OF INDIA vs E Raja on 4 September 2023
**IN THE DEBTS RECOVERY TRIBUNAL AT COIMBATORE**
DATED THIS 04<sup>th</sup> DAY OF SEPTEMBER, 2023
**PRESENT: SHRI. M.P. BALASUBRAMANIAN, M.A., B.L., PRESIDING OFFICER**
**TRANSFER APPLICATION No.987 of 2019**
BETWEEN
State Bank of India,
RASMECCC,
SBI Building, First Floor,
Fort Main Road,
Salem - 636 001.
... Applicant Bank
AND
1. Sri. E. Raja,
Proprietor,
M/s. R R K Blue Metals,
3/115 Parakkadu,
Salethampatti,
Suramangalam,
Salem - 636 005.
2. Mr. V. Edumban,
S/o. Vaduganathan,
3/115 Paraikadu,
Salethampatty,
Salem - 636 005.
... Defendants
Appearance of Advocates:
Counsel for Applicant Bank
None for Defendants
: Shri.S.Rengasamy
: Set Ex-parte
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**ORDER**
1. This Original Application is filed by the Applicant Bank, under Section 19 (1) of the RDDB & FI Act, 1993, [Handwritten signature and stamp area]
2TA 987/2019
a. to direct the Defendants personally to pay to the Applicant Bank a sum of Rs.11,19,167/- (Rs.1,16,254/- Term Loan Account + Rs.10,02,913/- C.C. Account) together with contracted interest at the rate of 12.90% per annum with Compounded Monthly Rests, from the date of Application, till the date of its realization, failing which;
b. to direct to sell the, immovable property more fully described hereunder in the Schedule and the sale proceeds appropriated for recovery of Rs.11,19,167/- (Rs.1,16,254/- Term Loan Account + Rs.10,02,913/- C.C. Account) together with contracted interest at the rate of 12.90% per annum with Compounded Monthly Rests, from the date of Application, till the date of its realization and for Costs of this OA.
**BRIEF FACTS**
2. The Averments made by the Applicant Bank in the Application are stated as follows:
2.1. The 1<sup>st</sup> Defendant approached RASMECCC, Salem of Applicant Bank for credit facilities for his development of his business. The Applicant Bank considered the request of the 1<sup>st</sup> Defendant, sanctioned Cash Credit Loan of Rs.9.00 Lakhs and Term Loan of Rs.17.40 Lakhs (Total Rs.26.40 Lakhs) on 14.06.2011 to the 1<sup>st</sup> Defendant. The 2<sup>nd</sup> Defendant agreed to stand as Guarantor and guarantee to due repayment of EMIs.
2.2. After availing the Loans, the Defendants have executed the essential documents on 14.06.2011 in favour of Applicant Bank, such as Letter of Arrangement executed by the 1<sup>st</sup> Defendant, Letter - cum- Hypothecation Agreement executed by the 1<sup>st</sup> Defendant, Agreement of Guarantee executed by the 2<sup>nd</sup> Defendant.
2.3. The loans availed by the 1<sup>st</sup> Defendant, the 2<sup>nd</sup> Defendant as a Guarantor had deposited his title deeds with the Applicant Bank in respect of Schedule of property and executed Memorandum of Title Deeds and the same was also registered.
3TA 987/2019
The Defendants agreed to repay the CC Loan together with floating rate of interest @ 13.75% with compounded monthly rests and in Term Loan together with floating rate of interest @ 14.25% and also agreed to pay interest as and when it is changed by the Applicant Bank from time to time. The Defendants were executed revival letters on 29.01.2015 & 22.06.2015.
2.4. After availing of the loans, the Defendants to repay the liability in defaulted manner. Inspite of repeated Demands and several reminders made by the Applicant Bank to the Defendants, the Defendants did not pay the due loan amounts. Therefore, the Applicant Bank filed this OA against the Defendants for recovery of the OA amount, and this Hon'ble Tribunal may be allowed the OA with Costs.
3. The Defendants called absent and were set ex-parte on 13.10.2017.
4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by Mr.V.Kalaimani, Chief Manager of the Applicant Bank and marked the documents as Exts.A-1 to A-8 in support of its claim in the OA. A cumulative analysis of both the Proof Affidavits and documents marked by the Applicant Bank would prove the claim of the Applicant Bank in the OA.
6. Therefore, in view of the observations made supra, the OA stands allowed and the Applicant Bank is entitled to recover,
a. from the Defendants personally, jointly & severally, a sum of Rs.11,19,167/- (Rs.1,16,254/- Term Loan Account + Rs.10,02,913/- C.C. Account) together with contracted interest at the rate of 12.90% per annum with Compounded Monthly Rests, from the date of Application, till the date of its realization, failing which
b. the Applicant Bank is hereby directed to sell the mortgaged property mentioned hereunder in Schedule, and the sale proceeds appropriated for recovery of Rs.11,19,167/- (Rs.1,16,254/- Term Loan Account + Rs.10,02,913/- C.C.
4TA 987/2019
Account) together with contracted interest at the rate of 12.90% per annum with Compounded Monthly Rests, from the date of Application, till the date of its realization with Costs of this OA.
6. In the result,
a. it is hereby directed the Defendants personally, jointly & severally, to pay to the Applicant Bank for a sum of a sum of Rs.11,19,167/- (Rs.1,16,254/- Term Loan Account + Rs.10,02,913/- C.C. Account) together with contracted interest at the rate of 12.90% per annum with Compounded Monthly Rests, from the date of Application, till the date of its realization, failing which;
b. the Applicant Bank is hereby directed to sell the mortgaged property described in Schedule and the sale proceeds appropriated for recovery of Rs.11,19,167/- (Rs.1,16,254/- Term Loan Account + Rs.10,02,913/- C.C. Account) together with contracted interest at the rate of 12.90% per annum with Compounded Monthly Rests, from the date of Application, till the date of its realization with Costs of this OA.
7. All the pending IAs. if any, stand closed and disposed of by this Tribunal.
8. The Registry is directed to prepare DRC in terms of this Final Order. The Applicant Bank shall file memo of costs within 15 days from the date of this Order.
9. The Registry is directed to communicate the copy of this Order to both parties as provided in Rule 16 of the Debts Recovery Tribunal (Procedure) Rules, 1993 as amended in 2016.
*Dictated to Steno, directly typed on the Computer corrected and pronounced by me in the open Tribunal, this the 04<sup>th</sup> day of September, 2023.*
**[M. P. BALASUBRAMANIAN]**
5TA 987/2019
SCHEDULE
Salem West Registration District, Suramangalam Sub Registration District, Salem Taluk, Sivathapuram Village in Survey No.1/1B, bearing Door No.1/77, to an extent of 2538 Sq. ft. within the Boundaries.
<table style="width: 100%; border-collapse: collapse;"> <tr> <td style="width: 20%;">North</td> <td style="width: 5%;">:</td> <td style="width: 75%;">Madavan's land</td> </tr> <tr> <td>South</td> <td>:</td> <td>Lakshmi's land</td> </tr> <tr> <td>East</td> <td>:</td> <td>Sukunthala's land</td> </tr> <tr> <td>West</td> <td>:</td> <td>main road proceeding to Selathampatty</td> </tr> </table>
Measurements :
East West :
North : 86 ft., South : 102 ft.,
North South :
East : 29 ft., West : 25 ft.,
**[M.P. BALASUBRAMANIAN]**
PROOF AFFIDAVIT OF THE APPLICANT BANK
1. 1. Sri. V. Kalaimani, Chief Manager.
LIST OF DOCUMENTS MARKED BY THE APPLICANT BANK
<table border="1" style="width: 100%; border-collapse: collapse;"> <thead> <tr> <th style="width: 10%;">Sl. No.</th> <th style="width: 15%;">Date</th> <th style="width: 65%;">Description of Document</th> <th style="width: 10%;">Exhibits</th> </tr> </thead> <tbody> <tr> <td style="text-align: center;">1</td> <td style="text-align: center;">14.06.2011</td> <td>Original – Letter of Arrangement executed by the Defendants in favour of the Applicant Bank for Rs.26.40 Lakhs.</td> <td style="text-align: center;">A.1</td> </tr> <tr> <td style="text-align: center;">2</td> <td style="text-align: center;">14.06.2011</td> <td>Original – Hypothecation Agreement executed by the 1<sup>st</sup> Defendant in favour of the Applicant Bank.</td> <td style="text-align: center;">A.2</td> </tr> <tr> <td style="text-align: center;">3</td> <td style="text-align: center;">14.06.2011</td> <td>Original – Guarantee Agreement executed by the 2<sup>nd</sup> Defendant in favour of the Applicant Bank.</td> <td style="text-align: center;">A.3</td> </tr> </tbody> </table>
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<table border="1"><tr><td>4</td><td>15.06.2011</td><td>Original - E.M. Confirmation Letter executed by the 2<sup>nd</sup> Defendant in favour of the Applicant Bank.</td><td>A.4</td></tr><tr><td>5</td><td>15.06.2011</td><td>Original - Memorandum Relating to Deposit of Title Deeds executed by the 2<sup>nd</sup> Defendant in favour of the Applicant Bank.</td><td>A.5</td></tr><tr><td>6</td><td>29.01.2015</td><td>Original - Revival Letter executed by the 1<sup>st</sup> Defendant in favour of the Applicant Bank.</td><td>A.6</td></tr><tr><td>7</td><td>22.06.2015</td><td>Original - Revival Letter executed by the 1<sup>st</sup> Defendant in favour of Applicant Bank.</td><td>A.7</td></tr><tr><td>8</td><td>--</td><td>Statement of Accounts.</td><td>A.8</td></tr></table>
**[M.P. BALASUBRAMANIAN]**