KARNATAKA GRAMIN BANK vs SRI. SHARANAPPA MALIPATIL on 24 November 2023

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 19.01.2015 and numbered as OA. No. 850/2015, seeking recovery an sum of Rs.40,94,000/- (Rupees forty lakh ninety four thousand 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.1964/2017. Brief facts of the case:

3. The present OA is filed by Pragathi Krishna Gramin Bank and in view of amalgamation with Karnataka Gramin Bank as per the Government Notification, the claim of Pragathi Krishna Gramin bank is continued by Karnataka Gramin Bank.

4. In the case of the applicant bank the Defendant No.1 is the Borrower and Defendant No.2 Co-obligant. The 1st Defendant had approached the applicant bank seeking for Produce Loan of Rs.24,00,000/- (Rupees twenty four only) in Loan Account No. PLPS 153/2009. The Produce Loan Agreement (General) dated 01.01.2010 entered in to 3000 bags to Sona Masuri Paddy for security of the above said loan. The 1st Defendant the Bank sanctioned Loan of Rs.24,00,000/- (Rupees twenty four lakh only) along with interest @ 12% p.a. payable by the bank and also agreed to pay 2% penal interest in the event of default in the payment of the loan amount with interest.

5. 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 Loan Agreement (General) and Pronote dated 01.01.2019 and Letter of Pledge and Undertaking Letter dated 01.01.2010 regarding notice of Variation of interest and Letter of Access dated 01.01.2010 and Letter of Revival dated 01.10.2021 in favour of the applicant bank.

6. The Applicant Bank submits that the Defendants, after availing the said loans, failed to repay the loan amount and committed default. The bank issued Notice and Legal Notice dated 23.08.2012 calling up on the Defendants to pay the outstanding loan amount. However, there was no positive response from the defendants. Hence, this Transfer Application (TA) has been filed to recover the dues from the defendants.

7. After the filing of the OA, summons was sent to the Defendant No. 2 through Registered Post with Acknowledgment Due, but same was duly served and Defendant No.1 same was returned unserved with postal shara “Party Left without Information”. Hence, summons through substitute service was taken and the Applicant Bank published on 12.04.2019 in two daily leading newspapers, “The New Indian Express” in English Newspaper and “Vijaya Karnataka” in Kannada Newspaper. When OA was taken up on 15.03.2022 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 & 2 were placed exparte on 15.03.2022. Heard the submissions of Applicant Bank and perused the records.

8. To prove the case of the Applicant Bank, Sri. Raju S/o Kashinath, Branch Manager has filed his 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 defendants remained ex-parte, the TA claim remains unchallenged. There is no contra-evidence available on record to repudiate the claim of the Applicant Bank.

9. 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:

10. The TA is allowed with costs,

(a) The applicant bank is allowed to recover from Defendants jointly, severally and personally an sum of Rs.40,94,000/- (Rupees forty lakh ninety four thousand only) along with interest @ 11.75% p.a. under loan A/c No. PLPS 153/2009 (New No. 52015304015309) together with interest and future interest and present interest @ 11.75% + 2% p.a. interest compounded half yearly from the date of applicant and till the date of realizations.

(b) In the event of failure of the Defendants to pay the loan dues as ordered above, the applicant bank is at liberty to proceed against the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law;

(c) 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 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 Defendants to the applicant bank.

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

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

11. 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 24th Day of November, 2023]

Sd/- PRESIDING OFFICER

DRT-II, BENGALURU

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sri. Raju S/o Kashinath, Branch Manager of Applicant Bank.

Exhibits on the part of the Applicant:

Exhibit Nos. Particulars of Documents A1 Applicant’s Evidence A2 List of Documents A3 Original Loan Agreement (General0 dated 01.01.2010 A4 Original Pronote dated 01.01.2010 for Rs.24,00,000/- A5 Original letter of Pledge dated 01.01.2010 A6 Original undertaking letter dated 01.01.2010 regarding notice of Variation of interest A7 Original Letter for safety of Goods dated 01.01.2010 A8 Original Letter of access dated 01.01.2010 A9 Office copy of the Bank Notice dated 22.06.2011 A10 Office copy of the Legal Notice dated 23.08.2012 A11 Original Letter of Revival dated 01.10.2012 executed by 1st defendant. A12 Original Letter of Revival dated 01.10.2012 executed by 1st defendant. A13 The Bank statements in respect of Loan Account.

Witness Examined for the Defendants:-Nil – List of Documents Exhibited for the Defendants:-Nil

Sd/- PRESIDING OFFICER

DRT-II, BENGALURU