Debts Recovery Tribunals and Appellate Tribunals
INDIAN OVERSEAS BANK vs N.MURALI KRISHNA ALIAS N M KRISHNA 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
In-charge-DRT-II**
TA.NO.1027/2017 ✓
(OA.NO.2031/2016-DRT-II) ✓
**BETWEEN**
**INDIAN OVERSEAS BANK,** ✓
Banneraghatta Road Branch, ✓
New No.12, 1<sup>st</sup> Cross, ✓
N.S. Palya Industrial Area,
Banneraghatta Main Road,
Bengaluru -560 076.
**Represented by its Sr. Manager-**
**Sri. B.C. Nagaraju.**
- **APPLICANT**
**AND:**
**MR. N. MURALI KRISHNA**
**ALIAS MR. N.M. KRISHNA,**
S/o. Mr. N. Srinivasa Rao,
Aged about 43 years,
R/at No.274, 1<sup>st</sup> Floor, 12<sup>th</sup> Main, Classic Paradise Layout, Begur, Bengaluru – 560 068. - **DEFENDANT**
**Counsels on record/appeared for:**
Applicant : Sri. S.N. Keshava Bhat. ✓
Defendant : *Ex parte.*
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**FINAL ORDER**
The present Transfer Application is filed by the Applicant Bank under Section 19 of the Recovery of Debts 2TA.1027/2017
Due to Banks & Financial Institutions Act, 1993, seeking recovery of an amount of Rs.82,36,672/- from the Defendant with interest and cost.
2. The case of the applicant bank that Defendant had approached the applicant bank for financial assistance. The applicant bank considered his requests and sanctioned (i) Term Loan-1 of Rs.30,00,000/- vide Sanction Letter dated 07.06.2013, (ii) Term Loan-2 of Rs.20,00,000/-, vide Sanction Letter dated 13.01.2014, (iii) Cash Credit of Rs.10,00,000/-, vide Sanction Letter dated 07.10.2013 & (iv) Term Loan-3 of Rs.4.4 lakhs, vide Sanction Letter dated 03.02.2014. The Defendant has executed requisite necessary documents in favour of the applicant bank for the above said loans. The defendant has agreed to repay the said loan as per the terms and conditions of the applicant bank. After availing the loan, the defendant failed to regularize the loan accounts 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., Loan Applications, Credit Sanction Advices, On Demand 3TA.1027/2017
Promissory Notes, Letters of Undertaking, Term Loan Agreements, Memorandums of Deposit of Title Deeds, Letters of Confirmation, Supplemental Memorandum of Deposit of Title Deeds, Take Delivery Letters, Letters of Hypothecation, Hypothecation Agreements, Form-B extract issued by RTO, Letter, Demand Notice, and Certified Accounts Extracts, etc.,
3. Further the Defendant 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 Defendant after utilizing all the entire loan proceeds for the above said purposes has failed to make the repayments of the loan dues as agreed and he has not serviced the interest thereon as per the terms and conditions agreed by Defendant. The Defendant has become chronic defaulter in the loan accounts and not taken any steps to 4TA.1027/2017
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, Defendant is liable to pay a total sum of Rs.82,36,672/-.
6. After filing the TA, summon was sent and served on the Defendant through RPAD, when Defendant was called out, defendant remained absent and placed *ex-parte*.
7. To prove the case of the Applicant Bank, its Manager-Law 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 31 documents came to be marked as Ex.A-3 to Ex.A-33.
8. No evidence on behalf of the Defendant.
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:
5TA.1027/2017
1) Whether Plaintiff/applicant bank proves its case as contended in the plaint/application?
2) What order?
11. For the following reasons, I answer the above referred points in the following manner:
REASONS
12. The Manager-Law of the applicant bank came to be examined as AW-1. Her affidavit by way of evidence reiterates the facts pleaded in the plaint and her affidavit is also corroborated by the above referred Ex.A-3 to Ex.A-33, which clearly establish the case of the applicant bank to allow the present TA. Added to this, the Defendant has remained absent and hence it is to 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. Defendant shall personally liable to pay entire 6TA.1027/2017
TA amount i.e., Rs.82,36,672/- i.e., (i) Rs.35,66,700/- with current and future interest at 11.70% p.a on monthly rests in respect of Term Loan-1, (ii) Rs.23,19,376/- with current and future interest at 11.70% p.a. on monthly rests in respect of Term Loan-2, (iii) Rs.19,11,545/- with current and future interest at 14.70% p.a. on monthly rests in respect of Cash Credit Account and (iv) Rs.4,39,051/- with current and future interest at 12.20% p.a. on 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 Defendant to pay the said TA amount, the applicant bank is at liberty to sell the mortgaged immovable property and hypothecated movable assets as described in Schedule-A and B 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 7TA.1027/2017
person and other 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 taking into account 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 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.**
8TA.1027/2017 IN OA.2031/2016**ANNEXURE****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Sri. Vedanand Chathurvedi, Manager-Law 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.33 : 31 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.**
K\*