Debts Recovery Tribunals and Appellate Tribunals
lAKSHMI VILAS BANK vs M/S.JAMUNA MOBILES & ORS (BLR) on 23 February 2019
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**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU**
Dated this the 23<sup>rd</sup> day of February, 2019
**Present: Shri K Ravindran Nair,
Hon`ble Presiding Officer
Incharge-DRT-II**
**T.A.NO.1307/2017**
**(O.A.No.1661/2016-DRT-I)**
**BETWEEN:**
**The Lakshmi Vilas Bank Ltd.,**
Visveshwarapura Branch
Nelamangala Taluk
Bengaluru Rural District
**Represented by its Branch Manager**
Mr.Madhu N.S
**APPLICANT**
**AND:**
**1) M/s Jamuna Mobiles**
Rep.by its Proprietor
Mr.H.Anjanappa
S/o Late Hanumanthaiah
Shop No.6, Municipality Town Building
Sondekoppa Road, Nelamangala
Bengaluru Rural District-562123
**Also at:** No.6049/3, Maruthi Nilaya
Vijayanagar, Nelamangala
Bengaluru Rural District-562123
**2) Mr.A.Mohan Kumar**
S/o H.Anjanappa
No.6049/3, Maruthi Nilaya
Vijayanagar, Nelamangala
Bengaluru Rural District-562123
**3) Mr.Rangaswamappa**
S/o Mr.Hucha Ranga Shetty
#23, Annapurneshwari Layout
Weavers Colony, Nelamangala
Bengaluru Rural District-562123
**DEFENDANTS**
2TA No.1307/2017 in OA 1661/2016-DRT-I**Counsels on record/appeared for:**
<table><tbody><tr><td>Applicant</td><td>: Sri M.R.Shashidhar</td></tr><tr><td>Defendants 1 & 2</td><td>: Ex- parte</td></tr><tr><td>Defendants No.3</td><td>: Ambika Associates(WS not filed)</td></tr></tbody></table>
**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.39,83,967/- from the Defendants with interest and cost.
2. The case of the applicant bank that 1<sup>st</sup> defendant is a proprietorship firm had approached the applicant bank for financial assistance along with defendant No.2 and 3 as guarantors. The applicant bank considered their request and sanctioned Open cash credit limit of Rs.15 lakhs and Lakshmi small business loan of Rs.2,50,000/- vide sanction letters dated 12.11.2013 and 03.01.2014. Defendants have executed necessary and requisite loan related documents in favour of the applicant bank. After availing the loans, the defendants failed to regularize the loan accounts 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 applications, sanction letters, letters of undertaking, letters of hypothecation, letter of consent, letter of continuity, supplemental deed of hypothecation and certified copies of account extracts 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. 39,83,967/- .
6. After filing the TA, summons were sent and served on the defendants through RPAD, and when defendants were called out, defendants 1 and 2 remained absent and defendant No.3 appeared through his advocate but in spite of sufficient opportunities, written statement has not been filed and hence placed ex parte.
7. To prove the case of the Applicant Bank, its Branch 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 34 documents came to be marked as Ex.A-3 to Ex.A-36.
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 Branch 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-36 which clearly establish the case of the applicant bank to allow the present TA. Added to this, the defendants 1 and 2 have remained absent and conduct of defendant No.3 having not filed written statement in spite of sufficient opportunities hence it is to construed that they have admitted the entire case pleaded by the applicant bank as sought in the present TA.
13. Consequently, Interim order of temporary injunction of schedule property in IA No.3929/2016 passed on 26.08.2016 is made absolute.
14. 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. Consequently, Interim order of temporary injunction of schedule property in IA No.3929/2016 passed on 26.08.2016 is made absolute.
Defendants shall jointly and severally liable to pay Rs.39,83,967/- with interest at the rate of 15.50% p.a 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 mortgaged immovable property as described in the Schedule-I 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 **23<sup>rd</sup> day of February, 2019**)
K. Ravindran Nair Presiding Officer I/C - DRT II, Bengaluru
8TA No.1307/2017 in OA 1661/2016-DRT-I**:ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Sri Madhu N.S Branch 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.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
Cha