CORPORATION BANK vs M.M.POORNANANDA on 27 June 2020

**FINAL ORDER**

The present Original Application (OA) is filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of an amount of **Rs.11,74,925/- (Rupees eleven lakhs seventy-four**

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**thousand nine hundred twenty-five only)** besides future interest etc, in DRT-I, Bangalore and numbered as OA 1048/2016. Due to change of jurisdiction, the application was transferred to DRT-II and numbered as T.A.No. 2163/2017.

2. The case of the Applicant Bank is that the Defendant had approached the Applicant Bank for grant of credit facilities. Accordingly, the applicant bank considered his request and sanctioned Term loan of Rs.11.40 Lakhs on 07.02.2014.

3. The Defendant executed the necessary documents such as Loan Application, Acknowledgement on Sanction Memorandums, On Demand promissory note, take delivery of DPN, Agreement of Term Loan, Common Deed of Hypothecation, etc.

4. The Term Loan was to be repaid within 7 years in 81 EMI's of Rs. 20,600/- each with interest at the rate of 11.95% p.a., (floating).

5. Further the Defendant agreed to repay the above loans with variable rates of interest as applicable from time to time as per the directions of the Head Office/Branch Office of the 3T.A.NO.2163/2017

Applicant Bank and penal interest in case of default and keep the account regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the TA by the Applicant Bank.

6. The Applicant Bank further submits that after utilizing the entire loan proceeds for the above said purpose the Defendant has failed to make the repayments of the loan dues as agreed and has not serviced the interest thereon as per the terms and conditions agreed and the Defendant has become chronic defaulter and hence the account became NPA.

7. In the light of these factors, it is contended by the Applicant Bank that, Defendant is liable to pay a sum of **Rs. 11,74,925/- (Rupees eleven lakhs seventy-four thousand nine hundred twenty-five only).**

8. After filing of TA, summons was sent through RPAD and the same was returned with postal shara, "refused", which is deemed to be served. When Defendant was called out, he remained absent. Hence placed exparte.

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9. To prove the case of the Applicant Bank, it's Manager, Mr. H. K. Dinesh, has filed his affidavit by way of evidence and same was considered as evidence of AW-1 and marked as Ex.A1 and list of documents came to be marked as Ex.A2 and 9 documents came to be marked as Ex.A3 to Ex.A11.

10. No evidence on behalf of the Defendant.

11. Arguments of Learned Counsel for the Plaintiff / applicant bank heard and perused the records of the case.

12. Following points arise for my consideration:

- a) Whether Plaintiff/applicant bank proves its case as contended in the plaint/application?

- b) What order?

13. For the following reasons, I answer the above referred points in the following manner:

**REASONS**

14. The Manager of the Applicant Bank came to be examined as AW-1. His affidavit by way of evidence reiterates the facts 5T.A.NO.2163/2017

pleaded in the plaint and his affidavit is also corroborated by the above referred Ex. A3 to Ex.A.11 which clearly establishes the case of the applicant bank to allow the present TA. Added to this, the Defendant has remained absent which indicates that the Defendant has no objection to allow the present TA and also to admit the claim made by the Applicant Bank against the Defendant.

15. Therefore, for these reasons, present TA is to be allowed with costs as sought by the applicant bank.

**:ORDER:**

Present TA stands allowed as prayed for with interest and costs.

In the event of failure of Defendant to pay the said TA amount, the Applicant Bank is at liberty to sell the Hypothecated assets as described in the Schedule- A of the main petition in accordance with the law as sought by the Applicant Bank in the TA.

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Inspite of sale of the Hypothecated assets as mentioned in the Schedule- A, if the TA amount is not fully realized, then the Applicant Bank is at liberty to proceed against the person and other personal properties of the Defendant as required under law and also as advised.

Applicant Bank shall file fresh Memo of calculation of TA amount together with interest, costs etc., to be paid by Defendant duly considering the amount/s if any paid by the Defendant and/or amount realized by sale of assets, etc., during the intervening period after filing the TA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendant to the Applicant Bank.

Office is directed to issue the Recovery Certificate.

(Dictated to the Stenographer, after transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 27^th day of June, 2020)

**(K. Ravindran Nair)** **Presiding Officer** **I/c -DRT II, Bengaluru**

7T.A.NO.2163/2017**ANNEXURES****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT BANK:**

AW.1 – Mr. H. K. Dinesh. Manager of the Applicant bank

**LIST OF DOCUMENTS MARKED ON BEHALF OF APPLICANT BANK:**

Ex. A1	:	Affidavit of AW.1
Ex. A2	:	List of documents
Ex. A3 – A11	:	9 documents

**LIST OF WITNESSES EXAMINED ON BEHALF OF DEFENDANT:**

- NIL -

**LIST OF DOCUMENTS MARKED ON BEHALF OF DEFENDANT:**

-NIL-

(K Ravindran Nair) Presiding Officer I/c-DRT-II, Bengaluru

27/6/2017

ST

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