Federal Bank Ltd vs A Janaki And Ors

This Original Application has been filed on 19.05.2018 by the applicant bank under S.19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - for short 'the Act' - for recovery of the sum of Rs.21,11,466.94 due under the FKCC account with interest on the sum of Rs.20,31,804.67 @14.63% per annum from the defendants jointly and severally and by sale of 'A' schedule immovable property.

The defendants having been duly served with summons by registered post entered appearance through counsel and obtained adjournment for filing written statement, they did not present any cause in writing as to why the relief prayed for by the applicant bank shall not be granted. Subsequently, when the OA was taken up on 18.12.2018, the defendants 1 to 3 remained absent and they were not represented and thus they were declared exparte on that day.

The Senior Manager and Constituted Attorney of the applicant bank, as AW1 filed proof affidavit and got marked Exts.A1 to A15 in support of its case.

Although the defendants remained absent, I have examined the question of maintainability and jurisdiction and I found that the OA is well maintainable and this Tribunal has jurisdiction to entertain the same.

According to the applicant bank, the defendants on 04.06.2010 availed an FKCC loan of Rs.7 Lakhs for seasonal agricultural operations on due execution of necessary security documents in its favour and at the request of the defendants the said loan/limit was renewed/enhanced to Rs.12 Lakhs on 1.07.2013 upon executing necessary security documents. The repayment of the amounts due under the aforesaid limit was collaterally secured by the equitable mortgage created by the 1st defendant over 'A' schedule immovable property.

The case of the applicant bank regarding recovery of the sum of Rs.21,11,466.94/- claimed as due under Ext.A13 certified copy of the statement of account relating to FKCC limit as on 19.05.2018, the date of the OA with interest pendentelite and post final order interest on the sum of Rs.20,31,804.67 from the defendants jointly and severally and by sale of 'A' schedule immovable property is proved by the uncontroverted averments in the proof affidavit of AW1 along with Exts.A1 to A15.

Having regard to the amounts availed for agricultural purpose, and the repayments made, and the interest and the penal interest charged, and the prevailing rate of interest for advances of and above Rs.20 lakhs under the priority agricultural sector in the applicant bank, this Tribunal in exercise of its discretionary power as provided under S.19(20) of the Act in granting interest is of the view that the applicant bank is entitled to get interest pendente-lite and post final order interest @11% per annum.

In the above circumstances, the applicant bank is entitled to and given a final order in the following lines:-

(a) The applicant bank is allowed to recover the sum of Rs.21,11,466.94/-(Rupees Twenty One Lakhs Eleven Thousand Four Hundred and Sixty Six and Ninety Four Paise Only) with interest on the sum of Rs.20,31,804.67 (Rupees Twenty Lakhs Thirty One Thousand Eight Hundred and Four and Paise Sixty Seven Only) @11% per annum from 20.05.2018 till realisation and also its costs from the defendants jointly and severally and by sale of 'A' schedule immovable property.

(b) 'A' schedule to the OA shall be appended to this final order.

(c) The applicant bank shall file memo of costs within ten days from the date of this final order.

(d) A certificate of recovery shall be drawn up on the basis of this final order and be issued along with a copy of this final order to the Recovery Officer for recovery of the amount of debt specified under paragraph 8(a) above and for distribution of the proceeds from the sale of 'A' schedule immovable property in the order of priority as provided under sub-section (20AB) of S.19 of the Act.

Communicate a copy each of this final order and the recovery certificate to be issued as specified under paragraph 8(d) above to both parties as provided under sub-section (21)(i) of S.19 of the Act r/w R.16 of the Debts Recovery Tribunal (Procedure) Rules, 1993 as amended from time to time.