STATE BANK OF INDIA vs SRI MUNISHAMY.C. on 30 April 2025

ORDER

1. The Application was originally filed before the Debts Recovery Tribunal-I, Bengaluru under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 and numbered as OA 1437/2014, seeking issuance of a Recovery Certificate for Rs.13,41,932/- due under the Agricultural Term Loan availed by the 1stdefendant, who is the guardian of defendants 2 to 5, from erstwhile State Bank of Mysore.

2. Subsequently, owing to bifurcation of jurisdiction vide Government of India Gazette Notification dated 30.01.2017, the Application (OA) was transferred to this Tribunal and renumbered as TA No.1219/2017.

3. It is stated by the Applicant that the above credit facility was availed after due execution of loan documents obliging to pay back the amount in 14 half yearly installments of Rs.41,800/- and the last installment of Rs.41,600/- . It is also agreed that amount will be repaid with interest @ 10.50% per annum.

4. The facility is secured by registered mortgage dated 15.11.2005 executed by defendant 1 for himself as Kartha and Father and natural guardian of defendants 2 to 5. By virtue of above deed of mortgage, the scheduled properties were given as security for the prompt repayment of the loan.

5. The Applicant further contends that despite availing the credit facility by obliging to pay back the amount, the defendant failed to comply with the same and all the efforts of the Applicant including issuance of legal notice to make the defendants pay back the amount failed forcing the Applicant to file this Application. It is also stated that under Agricultural Debt Relief Waiver and Debt Relief Scheme, a sum of Rs.3,13,745/- was granted by bifurcation on 16.6.2009.

6. Summons was taken out and D2 to D5 filed their Written Statement. However, by the proceedings dated 12.1.2023 the defendants 1 & 6 were called absent and set ex parte.

7. The Applicant let-in evidence through AW1, filed proof affidavit in conformity with pleading and got marked Ext A3 to A17. No defense evidence or rebuttal is available in respect of the contentions taken by the applicant as the defendants 1 & 6 were set exparte on 12.1.2023 and the Defendants 2 to 5 failed to adduce defence evidence.

8. Heard. The following issues arise for consideration: I. Whether the Applicant has proved the OA claim? II. What orders are to be passed? Both these issues are decided together.

9. The Applicant’s evidence remain un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to produce TA claim. Though D2 to D5 filed their

Written statement, they failed to prosecute the matter. Defendants 1 & 6 were set ex parte on 12.1.2023. Even going by their Written Statement, no specific case has been set up. Hence the Applicant is entitled for the TA claim. The TA claim is made within the limitation.

10. As the loan facility in issue is purely for Agriculture purpose and as the TA claim is arrived at by calculating amounts at compounding rates, pendente lite and future interest is awarded at simple rate, that too at reduced rate of 6%.

11. In view of the above i. TA No.1219 of 2017 is allowed; ii. Applicant is permitted to recover an amount of Rs.13,41,932/- (Rupees thirteen lakh forty one thousand nine hundred and thirty two only) with pendente lite and future interest @ 6% p.a. (simple) from the date of filing of the OA/TA till realization from the defendants by proceeding against the mortgage property described in the Schedule to the TA, after giving credit to all the amounts recovered and received, if any, during the pendency of the OA/TA.

iii. If the sale proceeds are not sufficient to wipe out the liability, the defendants are liable personally and their other assets are liable to be proceeded against. iv. A Recovery Certificate is to be drawn and issued to the recovery Officer to enable recovery of the as per the above terms. v. Applicant is allowed to realize costs of the proceeding for which costs memo is to be filed in 7 days’ time from the date of receipt of the copy of the order. vi. Schedule A and B properties to the TA be the schedule to the Recovery Certificate; vii. Interim Application pending, if any, stands disposed of with this Final order.

12. Communicate a copy of this order to the parties concerned in terms of Sec.19(21)(i) of the Recovery of Debts and Bankruptcy Act 1993 read with Rule 16 of DRT (Procedure) Rules 1993. (Dictated to Stenographer directly on the Computer, corrected and pronounced by me in the open Court on this the 30th day of April 2025)

Sd/-

(T. RAJESH)

Applicant’s Witness:

AW1 – Sri Nuvvula Kshitij – Assistant Manager, State Bank of India Applicant’s Exhibits

1. Ext. A3- loan application

2. Ext.A4- Sanction communication letter

3. Ext.A5- Agreement of hypothecation

4. Ext.A6- Illiterate borrowers declaration form

5. Ext.A7- Deed of guarantor

6. Ext.A8- Registered mortgage deed

7. Ext.A9- Confirmation of balance letter

8. Ext.A10- Revival letter

9. Ext.A11- Confirmation of balance letter

10. Ext.A12- Revival letter

11. Ext.A13- Legal notice

12. Ext.A14- Postal receipts

13. Ext.A15- Postal acknowledgment

14. Ext.A16 & A17– Statement of accounts extract.

Sd/- (T. RAJESH)