Intermittent Repayments led to Loan Account being a Non Performing Asset: DRT Directs Registry to Prepare Recovery Certificate [Read Order]

The Debts Recovery Tribunal (DRT) - III, Chennai noted that the intermittent repayments eventually led to the loan account turning into a non-performing asset and therefore directed the Registry to prepare a Recovery Certificate.

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The applicant, Canara Bank, submitted the brief facts of the case which state that the defendant is in the business of laying granite slabs and modular kitchen. The defendant, Yesu, was granted INR 15,00,000/- for which loan documents were executed as security. An enhancement of the overdraft facility was requested to the tune of increasing it to Rs.5 lakh more. The OD was renewed and a letter of renewal as security was executed as well.

The applicant submits that the defendant was not regular with payments and eventually they stopped. The defendant did not clear the liability of the loan account being classified as a Non-PerformingAsset (NPA) on 05.03.2018. The defendant neither appeared nor was represented in the hearings of the original applications filed by the Applicant Bank.

The Senior Manager, Mr. Naveen Karthik, of Canara Bank filed his affidavit with a list of documents. After careful scrutiny, execution of the loan was proved to be true and the defendant was set aside ex-parte on 16.03.2022 but has not taken action to contest the claim.

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The tribunal held that the applicant bank had proved its claim against the defendant and was allowed to recover with interests INR 25,40,017/- after the bank files memo of calculation and cost.

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