BANK OF INDIA vs M/S.A.G SURGICALS & PHARMACEUTICALS & ORS (MYSORE) on 16 February 2019

**FINAL ORDER**

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.20,63,558.16 from the Defendants with interest and cost.

2. The case of the applicant bank that Defendants had approached the applicant bank for financial assistance. The applicant bank considered her requests and sanctioned Cash Credit Facilities of (i) Rs.3.00 lakh, (ii) Rs.2.00 lakh, (iii)

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Rs.4.50 lakh and (iv) Rs.5.50 lakh, vide Sanction Letters dated 16.07.2010, 17.10.2011, 13.07.2002 and 02.07.2013, respectively. The Defendants have executed requisite necessary documents in favour of the applicant bank for the above said loan. The Defendants have agreed to repay the said loan as per the terms and conditions of the applicant bank. After availing the loan, the Defendants failed to regularize the loan account and also failed to pay the installments and 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., On Demand Promissory Notes, Bearer Letters (L-435), Deed of Guarantee, Hypothecation –cum- Loan Agreements (CHA-I), Composite documents, Letters of Undertaking, Stamped Undertaking and Certified Accounts Extract, etc.

3. Further the Defendants agreed to repay the above loan 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 4TA.2294/2017

to the satisfaction of the Applicant Bank, as detailed in the TA by the Applicant Bank.

4. The Defendants after utilizing the entire loan proceeds for the above said purposes have failed to make the repayment of the loan dues as agreed and they have not serviced the interest thereon as per the terms and conditions agreed by Defendants. The Defendants have become chronic defaulters in the loan accounts and 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, The Defendants are liable to pay a total sum of Rs. 20,63,558.16.

6. After filing the TA, summon was sent and served on the Defendants through RPAD. When the defendants called out, they remained absent and placed exparte.

7. To prove the case of the Applicant Bank, its Manager-Credit has filed his affidavit by way of evidence and same 5TA.2294/2017 IN OA.297/2016

and list of documents came to be marked as Ex.A-2 and 34 documents came to be marked as Ex.A-3 to Ex.A-36.

1. 8. No evidence on behalf of the Defendants.

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

3. 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 Manager-Credit 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-36, which clearly establish the case of the applicant bank to allow the present TA. Added to this, the Defendants has remained 6TA.2294/2017

which clearly establish the case of the applicant bank to allow the present TA. Added to this, the Defendants has remained absent and hence it is to be construed that he has 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.

**:ORDER:**

Present TA stands allowed as prayed for with costs.

Defendants shall jointly and severally liable to pay entire TA amount of Rs.20,63,558.16 together with interest at the rate of 13.95% p.a. plus 2% penal interest, compounded monthly rests, from the date of application till the date of realization., as sought by the Applicant Bank in the TA.

In the event of failure of Defendants to pay the said TA amount, the applicant bank is at liberty to sell the hypothecated movable assets as described 7TA.2294/2017

in the Schedule of the main petition according to Law as sought by the applicant bank in the TA.

In spite of sale of the property mentioned in the Schedule/s, if the TA amount is not fully realized, then the Applicant Bank is at liberty to proceed against the person and other properties of the Defendants are 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 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.

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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^th 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 – Sri. Shivanand Bhure, Manager-Credit of Applicant bank.

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

Ex.A.1 : Affidavit of AW.1. Ex.A.2 : List of documents. Exs.A.3 – A.36 : 34 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.

K\*