Debts Recovery Tribunals and Appellate Tribunals
INDIAN OVERSEAS BANK vs M/S.S.L.N GLASS PLYWOODS & HARDWARE & ANR (BLR) on 16 February 2019
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**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.1897/2017**
**(O.A.No.2106/2016-DRT-I)**
**BETWEEN:**
**Indian Overseas Bank**
Banashankari Branch, 28
27<sup>th</sup> Cross, Near Monotype Bus Stop Bengaluru-560 070
**Represented by its Branch Manager**
Sri P.K.Singhal
**APPLICANT**
**AND:**
1) M/s SLN Glass Plywoods & Hardware
Rep.by its Proprietrix-Smt Mangala
46, 4<sup>th</sup> Cross, Jayamaruthinagar Nandini Layout, Bengaluru-560096
2) Mr.V.K.Ramalingegowda
S/o Kempaiah
33 (Old No.49) Sy.No.24/3
Ward No.12, No.675, 4<sup>th</sup> Cross Jayanagar, H.M.Nayak Road Bengaluru-560096
**Also at: 46, 4<sup>th</sup> Cross, Jayamaruthinagar**
Nandini Layout, Bengaluru-560096
**DEFENDANTS**
**Counsels on record/appeared for:**
Applicant : Sri Harikrishna S Holla
Defendants-1 & 2 : 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.54,01,815/- from the Defendants with interest and cost.
2. The case of the applicant bank that 1<sup>st</sup> defendant had approached the applicant bank for financial assistance along with defendant No.2 as guarantor. The applicant bank considered their request and sanctioned Cash credit of Rs.49,00,000/- vide sanction letter dated 05.02.2013. 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, continuity letter, agreement of term loan, letter of hypothecation, guarantee agreement, memorandum of deposit of title deeds, demand notice, possession notices 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 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. 54,01,815/- .
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 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 13 documents came to be marked as Ex.A-3 to Ex.A-15.
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 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-15 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.54,01,815/- with future interest at the rate of 13.50% p.a 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 mortgaged immovable property as described in the Schedule of the main petition according to the 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 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 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
7T.A.No.1897/2017 (O.A.No.2106/2016-DRT-I)**ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Sri Vedanand Chaturvedi 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.15 : 13 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
Cha
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