Debts Recovery Tribunals and Appellate Tribunals
BANK OF BARODA vs M/S.ECO PET PLASTIC RECYCLING INDUSTRY & ORS (BLR) on 16 February 2019
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU**
Dated this the 16<sup>th</sup> day of February, 2019
**Present: Shri K Ravindran Nair**
**Hon'ble Presiding Officer**
**Incharge-DRT-II**
**T.A.NO.1334/2017**
**(O.A.No.1289/2016-DRT-I)**
**BETWEEN:**
**Bank of Baroda**
Rajarajeshwarinagar Branch
No.874, BEML Layout, 2<sup>nd</sup> Cross 9<sup>th</sup> Main, 4<sup>th</sup> Stage, Rajarajeshwarinagar Bengaluru-560098
**Represented by its Asst.General Manager**
Mr.V.G.Pandit ✓ . . . **APPLICANT**
**AND:**
1. 1) M/s ECOPET Plastic Recycling Industry By its Partners - Mr.Roshan Krishnappa Mr. Anil Surya & Mrs.Aarthi Rajesh Sy.No.107, Opp: Muthurayaswamy Temple Near Big Baniyan Tree, Ramohalli Kengeri Hobli, Bengaluru-560060
2. 2) Mr .Roshan Krishnappa
Partner of M/s M/s ECOPET Plastic Recycling Industry, S/o Krishnappa R/at: No.118, 14<sup>th</sup> Cross, 1<sup>st</sup> 'K' Block Rajajinagar, Bengaluru-560010
3. 3) Mr. Anil Surya
Partner of M/s M/s ECOPET Plastic Recycling Industry, s/o Narayanappa No.134, Sarkar Butahalli, D.G.Post Hoskote Taluk, Bengaluru Rural District Bengaluru-562114
4) Mrs.Aarthy Rajesh
Partner of M/s M/s ECOPET Plastic Recycling Industry, R/at: No.401, 4<sup>th</sup> Floor Prithvi Apartment, 13<sup>th</sup> Cross G.M.Palya, Tippasandra Bengaluru-560 075 . . . **DEFENDANTS**
**Counsels on record/appeared for:**
Applicant : Sri Gopalakrishna R.Hegde
Defendant 1 to 4 : Ex parte
**FINAL ORDERS**
The present Transfer Application is filed by the Applicant Bank under Section 19 of the Recovery of Debts Due to Banks & Financial Institutions Act, 1993, seeking recovery of an amount of Rs.31,62,020/- from the Defendants with interest and cost.
2. The case of the applicant bank that defendants 2 to 4 are being the partners of 1<sup>st</sup> defendant had approached the applicant bank for financial assistance for purchase of working capital of their business. The applicant bank considered their request and sanctioned cash credit facility of Rs.25,00,000/- vide sanction letter dated 29.03.2014. Defendants have executed necessary and requisite loan related documents in favour of the applicant bank. After availing the loan, the defendants failed to regularize the loan
account and also failed to pay the installments. Defendant did not come forward to repay the balance outstanding. Hence, the present TA. The applicant bank has produced the documents in favour of its case viz., Loan application, sanction letter, DP Note, instrument of hypothecation of goods, general undertaking, general form of guarantee and certified copy of account extract etc.,
3. Further the Defendants agreed to repay the above loans with variable rate of interest, as applicable from time to time as per the directions of the Head Office/Central Office of the 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.
4. The Defendants after utilizing all the entire loan proceeds for the above said purposes have failed to make the repayments of the loan dues as agreed and they have not serviced the interest thereon as per the terms and conditions agreed by the defendants and have become chronic defaulters and the Applicant bank has issued legal
notice dated 30.09.2015 to the defendants for which the defendants have not taken any steps to clear the dues and hence the recovery process is initiated to recover the dues.
5. In the light of these factors, it is contended by the Applicant Bank that, Defendants are liable to pay a total sum of Rs.31,62,020/- .
6. After filing the TA, summons were sent and served on the defendants through RPAD, and when defendants were called out, defendants remained absent and hence, placed ex-parte.
7. To prove the case of the Applicant Bank, its Chief Manager has filed his affidavit by way of evidence and same was considered as evidence of AW-1 and marked at Ex. A-1 and list of documents came to be marked as Ex.A-2 and 16 documents came to be marked as Ex.A-3 to Ex.A-18.
8. No evidence on behalf of the Defendants.
9. Arguments of Learned Counsel for the Plaintiff/ applicant bank heard and perused the records of the case.
10. Following points arise for my consideration:
1. 1) Whether Plaintiff/applicant bank proves its case as contended in the plaint/application?
2. 2) What order?
11. For the following reasons, I answer the above referred points in the following manner:
**REASONS**
12. The Chief Manager of the applicant bank came to be examined as AW-1. His affidavit by way of evidence reiterates the facts pleaded in the plaint and his affidavit is also corroborated by the above referred Ex.A-3 to Ex.A-18 which clearly establish the case of the applicant bank to allow the present TA. Added to this, the defendants have remained absent and hence it is to be construed that they have admitted the entire case pleaded by the applicant bank as sought in the present TA.
13. Therefore, for these reasons, present TA is to be allowed with costs as sought by the applicant bank.
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**:ORDER:**
Present TA stands allowed as prayed for with costs.
Defendants shall jointly and severally liable to pay Rs.31,62,020/- with interest at the rate of 14.25% p.a with monthly rests, from the date of application till the date of realization, as sought by the Applicant Bank in the TA.
Applicant Bank shall file fresh Memo of calculation of TA amount together with interest, costs etc., to be paid by Defendants duly taking into account the amount/s if any paid by the Defendants 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 Defendants to the Applicant Bank.
Office is directed to issue Recovery Certificate.
(Dictated to the Steno, transcribed by her and after necessary corrections, signed and pronounced by me in the Open Court on this **16<sup>th</sup> day of February, 2019**)
K. Ravindran Nair Presiding Officer I/C - DRT II, Bengaluru
**:ANNEXURES:**
**LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Mr.Sunil Meshram Chief Manager of Applicant bank
**LIST OF DOCUMENTS MARKED ON BEHALF OF APPLICANT BANK:**
Ex.A1 : Affidavit of AW.1 Ex.A2 : List of documents Exs.A3 – A.18 : 16 documents
**LIST OF WITNESSES EXAMINED ON BEHALF OF DEFENDANTS :**
- NIL –
**LIST OF DOCUMENTS MARKED ON BEHALF OF DEFENDANTS:**
-NIL-
K Ravindran Nair Presiding Officer I/c-DRT-II, Bengaluru
Cha
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