1 OA No.

354 /2017

THE DEBTS RECOVERY TRIBUNAL – II AT CHENNAI

DATED THIS 16th day of February, 2018

PRESENT : SHRI R.RAVINDRA BOSE, M.A., M.L.,

PRESIDING OFFICER

OA No.354/2017

Andhra Bank,
Kodambakkam Branch,
4/9, 4th Main Road, United India Colony,
Kodambakkam,
Chennai - 600024. … Applicant

Vs.

Mrs.M.Madathi,
W/o S.Murugan,
Proprietrix : Sri Kumar And Company,
15/2C, Govindan Road, West Mambalam,
Chennai – 600033. … Defendant.

Counsel for applicant : S/Sri P.Veeraraghavan, M.G.Ramanathan &

V.P.Parivallal
Defendants : Ex-parte.
…..

ORDER
1. This application is filed by applicant bank u/s.19 (1) of the Recovery of Debts
and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’) on 01.07.2017 for
recovery of an amount of Rs.10,01,963/- together with further interest @ 11.50% p.a.
with monthly rests and overdue/additional interest @ 2% p.a. towards Term Loan credit
facility from the defendant from the date of filing O.A. till the date of realization together
with costs;
 2 OA No.354 /2017

Brief of Application :-

2. Defendant being the Proprietrix of Sri Kumar and Co., approached the applicant
bank and availed Term Loan Credit facility loan of Rs.10 lakhs on 03.02.2016 under
Pradhan Manthri Mudra Yojana (PMMY) on execution of necessary loan documents.
Defendant agreed to pay interest @ 11.50% p.a. and to repay the loan in 60 monthly
instalments. On availing the loan, the defendant failed to repay the loan and hence, the
account was classified as NPA on 31.10.2016. Therefore, the Applicant bank issued
legal notice dt.17.10.2016. This notice was acknowledged by the defendant on
03.12.2016. In spite of this, defendant failed to repay the loan. Hence, the present OA is
filed. The defendant is liable to pay a sum of Rs.10,01,963/- with interest.

3. Defendant set ex-parte.

Point for consideration :-

4. Whether the applicant bank is entitled for the claim amount in the application
from the defendant?

Point :-

5. The applicant filed this application to recover an amount of Rs.10,01,963/- .

6. To prove its claim, the applicant examined its Senior Branch Manager
Mrs.K.Vidhya and filed proof affidavit along with 6 documents and they were marked as
Exhs.A1 to A6.

7. Heard the Ld. Counsel for applicant bank and carefully gone through the OA,
Proof affidavit and the clinching documents Exhs.A1 to A6 and the evidence of
Branch Manager proved the applicant bank’s claim of Rs.10,01,963/- from the defendant
beyond any doubt.
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8. The applicant bank has prayed for interest @ 11.50 % p.a. and overdue/additional
interest of 2% p.a. from the date of O.A. till the date of realization in respect of Term
Loan Credit facility. On perusal of documents it reveals that the defendant was not able to
repay the amount as per the terms and conditions agreed by her due to financial crisis or
some other reasons. Further, the loan is sanctioned under Pradhan Manthri Mudra
Yojana (PMMY). In these circumstances, the contractual rate of interest awarded will
not meet the ends of justice. Therefore, in the interest of justice, I am inclined to reduce
the rate of interest u/s Section 19(20) of RDDB&FI Act.

9. In the result, application is allowed as under :-

(a) The applicant bank is entitled to recover a total sum of Rs.10,01,963/-

(Rupees Ten Lakhs One Thousand Nine Hundred and Sixty Three only)
together with interest @ 7.5% p.a. (simple) towards Term Loan Credit facility
from the defendant from the date of OA till the date of realization together
with costs;

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

(d) Issue recovery certificate in favour of the applicant bank in terms of this final
order.

(e) 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, transcribed by her, corrected, signed and pronounced by me in the Open Court, this 16th
day of February, 2018)

Sd/-
(R. RAVINDRA BOSE)
PRESIDING OFFICER
 4 OA No.354 /2017

under Pradghan Manthri Mudra Yojana (PMMY),