PUNJAB NATIONAL BANK vs SMT. MUTYALAMMA on 15 October 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 17.03.2014 and numbered as OA. No. 589/2015, seeking recovery an sum of Rs.12,04,682/- (Rupees twelve lakh four thousand six hundred and eighty two Only) with further interest thereon and costs from the Defendants.

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.27/2017.

3TA. No. 27/2017**Brief facts of the case:**

3. It is the case of the applicant bank where in the Defendants are borrowers had approached the applicant bank seeking for Term Loan/ Cash Credit Loan Rs.8,00,000/- (Rupees eight lakh Only) for the purpose of financial requirement. After considering the proposal of the Defendants applicant bank sanctioned the for Term Loan/ Cash Credit Loan Rs.8,00,000/- (Rupees eight lakh Only) vide sanction letter dated 05.06.2010. The loan loan was repaid with interest @ 11.50% p.a. compounded with monthly rests. The defendant also agreed to pay penal interest @ 2% p.a. over and above. The loan account has irregular since 31.03.2012 and the installments have not been paid. Deposited demands, defendants have nor regularized the account.

4. The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendants executed Hypothecation Agreement dated 22.06.2010 and Registered Mortgage dated 20.04.2013 and Security Confirmation Letter dated 21.01.2014 in favour of the Applicant Bank.

5. The Applicant Bank submits that the Defendants, after availing the said facilities, failed to repay the loan amount and committed default. The Applicant Bank issue a Notice dated 21.01.2014 calling upon the defendants to repay the entire outstanding loan amount. However, there was no positive response from the Defendants. Hence, this Original Application (TA) has been filed to recover the dues from the Defendants.

4TA. No. 27/2017

6. After the filing of the OA, summons were sent to the Defendant Nos.3(a) to (e) through Registered Post with Acknowledgment Due the same is duly served with postal tract report on 02.01.2024 and Defendant Nos.1,2 & 4 summon was is duly returned unserved with postal shara "No such person" Hence, summons through substitute service was taken and the Applicant Bank published on 02.03.2022 in two daily leading newspapers, "The New Indian Express" in English Newspaper and "Kannada Prabha" in Kannada Newspaper. When TA was taken up on 18.01.2023 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant No.3 was placed exparte on 18.01.2023.

*Heard the submissions of Applicant Bank and perused the records.*

7. To prove the case of the Applicant Bank, Sri. E. Shivakumari D/o M. Eswaran, 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 A10. 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 5TA. No. 27/2017

final order on the following terms:

**: ORDER:**

9. The TA is allowed with costs,

- (a) The applicant bank is allowed to recover from Defendant ~~to pay~~ an amount of Rs.12,04,682/- (Rupees twelve lakh four thousand six hundred and eighty two Only) as on 10.03.2014 with future interest @ 16.50% p.a. from the date of the TA Application and till date of realization.

- (b) In the event of failure of the Defendants 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 defendants duly considering the amounts, if any, paid by the defendant and/or amount ✓

6TA. No. 27/2017

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 15^th Day of October 2024].

✓ (Imtiaz Ali) **PRESIDING OFFICER (I/c)** **DRT-II, BENGALURU**

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

AW-1: Sri. E. Shivakumari D/o M. Eswaran, Chief Manager, of Applicant Bank.

Exhibits on the part of the Applicant:

<table border="1"> <thead> <tr> <th>Exhibit Nos.</th> <th>Particulars of Documents</th> </tr> </thead> <tbody> <tr> <td>A1</td> <td>Applicant Evidence</td> </tr> <tr> <td>A2</td> <td>List of Documents.</td> </tr> <tr> <td>A3</td> <td>Power of Attorney</td> </tr> </tbody> </table>

7TA. No. 27/2017

<table border="1"> <tr> <td>A4</td> <td>Copy of the said Loan Application</td> </tr> <tr> <td>A5</td> <td>Copy of the Sanction Letter</td> </tr> <tr> <td>A6</td> <td>Copy of the Mortgage Deed</td> </tr> <tr> <td>A7</td> <td>Copy of the Hypothecation Deed</td> </tr> <tr> <td>A8</td> <td>Copy of the (office copy) Legal Notice</td> </tr> <tr> <td>A9</td> <td>Copy of the statement of accounts.</td> </tr> <tr> <td>A10</td> <td>Copy of the certificate as per Bankers Book of Evidence.</td> </tr> <tr> <td>A11</td> <td>Copy of the Letter of Balance confirmation.</td> </tr> </table>

**Witness Examined for the Defendants:** -Nil - **List of Documents Exhibited for the Defendants:** -Nil - **SCHEDULE 'A' PROPERTY**

All that piece and parcel of immovable property bearing Sy.No. 157/P4 measuring an extent of 2 acres situated at Doddathattamangala Village, Yeliyur, Devanahalli Taluk, Bangalore Rural District and bounded on the:

East: Chikkamunihanumappa's property

West: Munilakshma's Property.

North: Padmavathamma's property,

South: Yeliyur Border.

**SCHEDULE 'B' PROPERTY**

1. 1. The herds/flock/fish catch/ silk worms ad cocoons.

2. 2. The tools equipment/ fixtures/ boats/ machines, tractor/power tiller/tube well/electric motor/diesel engine and other movables connected with and relating to farming rearing cattle and/ or flock/ fishing/ sericulture.

(Imtiaz Ali) **PRESIDING OFFICER (I/c)** **DRT-II, BENGALURU**