STATE BANK OF INDIA vs M/S. RAPID SECURITY & CORPORATE SERVICES REP BY PROP SRI.T.N.DEVARAJ on 31 July 2024

FINAL ORDER

The Application was originally filed before the Debts Recovery Tribunal-1, Bangalore under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 on 11.08.2016 and numbered as OA. No. 2072/2016, seeking recovery an sum of Rs.13,22,873/- (Rupees thirteen lakh twenty two thousand eight hundred and seventy three Only) with further interest thereon and costs from the Defendant.

2. Subsequently, in view of the Government of India Notification & Official Gazette dated 30.01.2017, the case was transferred to this Tribunal and renumbered as TA.24/2017. Brief facts of the case:

3. It is the case of the applicant bank where in the Defendant is the Proprietary concern of Sri. T.N. Devaraj. The Defendant had approached the applicant bank seeking for Term Loan under SMECC of Rs.2,45,000/- (Rupees two lakh forty five thousand only) on 28.09.2011, in Loan A/c No.640884817122 for the purpose of purchase of Car (Maruth Suzuki Omni Car). The loan was to be repaid in 60 equated monthly installment of Rs.5,512/- with interest @ 12.75% p.a. in respect of the said loan.

3.1. The defendant executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendant executed Letter of arrangement dated

07.09.2011 and agreement of loan-cum-hypothecation dated 28.09.2011 and Revival letter dated 20.08.2014 in favour of the Applicant Bank.

4. Further, the Defendant had approached the applicant bank seeking for Cash Credit Loan under SMECC of Rs.12,00,000/- (Rupees twelve lakh only) on 22.06.2013, in Loan A/c No.64037892785. The loan was repayable in 12 months with minimum interest @ 11.90% p.a. in respect of the said loan.

4.1. The defendant executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendant executed Letter of arrangement dated 22.06.2013 and agreement of loan-cum-hypothecation dated 02.07.2013 and Letter of consent dated 02.07.2013 and Revival Letter dated 20.05.2016 in favour of the Applicant Bank.

5. The Applicant Bank submits that the Defendant, after availing the said facilities, failed to repay the loan amount and committed default. The loan account of the Defendant had been classified as a Non Performing Asset (NPA) and the Applicant Bank issued a Legal Notice dated 30.07.2016 calling upon the defendant to repay the entire outstanding loan amount. However, there was no positive response from the Defendant. Hence, this Original Application (TA) has been filed to recover the dues from the Defendant.

6. After the filing of the TA, summons was sent to the Defendant through Registered Post with Acknowledgment Due the same is duly returned unserved with postal shara “Addressee Left”. Hence, summons through substitute service was taken and the Applicant Bank published on 25.04.2023 in two daily leading newspapers, “The New Indian Express” in English Newspaper and “Kannada Prabha” in Kannada Newspaper. When OA was taken up on 03.01.2024 even after giving sufficient time, there was no appearance or representation from the Defendant; hence, Defendant was placed exparte on 03.01.2024.

Heard the submissions of Applicant Bank and perused the records.

7. To prove the case of the Applicant Bank, Sri. Kamalesh Kumar S/o Late. Parasnath Sharma, Chief Manager, has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, the list of Document came to be marked as Ex.A2 and documents came to be marked as Ex.A3 to A13. As the Defendant remained ex- parte, the TA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

8. Having regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled to a final order on the following terms:

: O R D E R:

9. The TA is allowed with costs,

(a) The applicant bank is allowed to recover from DefendantS liable to pay an amount of Rs.13,22,873/- (Rupees thirteen lakh twenty two thousand eight hundred and seventy three Only) consisting of: i. A sum of Rs.57,509/- (Rupees fifty seven thousand five hundred and nine only) under Term Loan in A/c No.64084817122 together with interest @ 10.25% p.a. from the date of OA application and till the date of realization. ii. A sum of Rs.12,65,364/- (Rupees twelve lakh sixty five thousand three hundred and sixty four only) under Term Loan in A/c No.64037892785 together with interest @ 13.40% p.a. from the date of OA application and till the date of realization.

(b) In the event of failure of the Defendant to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned property in the TA;

(c) Schedule mentioned property in the TA shall be appended to this final order;

(d) If the sale proceeds of the schedule mentioned properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) respectively to recover the balance dues as required under law; (e) The applicant bank shall file the latest memo of calculation of TA amount together with interest, costs etc., to be paid by the defendant duly considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during the intervening period after the filing of the TA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by the respective defendants to the applicant bank.

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

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

(h) Interim Application pending if any, stands disposed of with this Final

Order.

10. A copy of this order be communicated to the parties concerned. [Dictated to the (CS), transcribed by her, corrected and signed by me on this the 31st Day of July 2024].

(Imtiaz Ali) PRESIDING OFFICER (I/c)

DRT-II, BENGALURU

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sri. Manoj Kumar Behera, Branch Manager, of Applicant Bank. Exhibits on the part of the Applicant:

Exhibit Nos. Particulars of Documents Date A1 Applicant Evidence

A2 List of Documents.

Term Loan under SMECC of Rs.2,45,000/- granted on 28.09.2011 in A/c No.64084817122

A3 Letter of Arrangement sanctioning the loan with terms and conditions. 07.09.2011 A4 Agreement of loan cum Hypothecation 28.09.2011 A5 Consent Letter 28.09.2011 A6 Revival Letter 28.09.2011 A7 Tax Invoice 28.09.2011 A8 Statement of Account extract

Term Loan under SMECC of Rs.12,00,000/- granted on 22.06.2013 in A/c No.64037892785

A9 Letter of Arrangement with terms and conditions 22.06.2013 A10 Agreement of loan cum hypothecation 02.07.2013 A11 Letter consent doing routine transactions at Chamrajpet Branch 02.07.2013 A12 Revival Letter 20.05.2016 A13 Legal Notice 30.07.2016 A14 Statement of Account Extract

Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

SCHEDULE “A” MOVABLE PROPERTIES

Hypothecation of Car Maruth Suzuki Omni Car bearing No. KA 05 MK 4852, Chassis Number MA3EVB11S01313637, Engine No.F8BIN4411901

and goods available in defendant premises which are Hypothecated in cash credit loan.

(Imtiaz Ali) PRESIDING OFFICER (I/c)

DRT-II, BENGALURU