Debts Recovery Tribunals and Appellate Tribunals
PHOENIX ARC PVT LTD vs M/S. GIRISH CEMENTS on 2 March 2019
✓
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU**
Dated this the 2<sup>nd</sup> day of March, 2019
**Present: Shri K Ravindran Nair
Hon'ble Presiding Officer
Incharge-DRT-II**
**T.A.NO.1660/2017**
**(O.A.No.1536/2014-DRT-I)**
**BETWEEN:**
**PHOENIX ARC PRIVATE LIMITED**
No.58 & 59, Sree Complex
BHSC T Block, Banashankari 3<sup>rd</sup> Stage Bengaluru-560085
**Represented by its Authorized Signatory**
Mr N.Shyam Prasad
- **APPLICANT**
**AND:**
**M/s Girish Cements**
No.635/B, I Block, 2<sup>nd</sup> Stage
Dr.Rajkumar Road, Rajajinagar
Bengaluru-560010
Rep.by its Proprietor
Mr.M.R.Girish
Also at: No.1, 1<sup>st</sup> Main, 11<sup>th</sup> Cross West of Chord Road, 2<sup>nd</sup> Stage Mahalakshmipuram,Bengaluru-560086
- **DEFENDANT**
**Counsels on record/appeared for:**
Applicant : The Firm
Defendant : 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.14,07,213.49 from the Defendant with interest and cost.
2. The case of the applicant bank that defendant had approached the applicant bank for financial assistance for his business purpose. The applicant bank considered his request and sanctioned business installment loan of Rs.15,00,000/- on 06.02.2008. Further, the defendant has executed requisite and necessary loan related documents in favour of the applicant bank for the above said loan. 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 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., loan application, DP note, assignment deed, letters, loan recall notice and certified copy of account extract 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 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.14,07,213.49.
6. After filing the TA, summon was sent and served on the defendant through RPAD, and when defendant was called out, defendant remained absent and hence, placed ex-parte.
1. 7. To prove the case of the Applicant Bank, its Authorized signatory as filed her affidavit by way of evidence and same was considered as evidence of AW-1 and marked at Ex. A1 and list of documents came to be marked as Ex.A2 and 13 documents came to be marked as Ex.A3 to Ex.A15.
2. 8. No evidence on behalf of the Defendant.
3. 9. Arguments of Learned Counsel for the Plaintiff/applicant bank heard and perused the records of the case.
4. 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?
5. 11. For the following reasons, I answer the above referred points in the following manner:
REASONS
1. 12. The Authorized signatory 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-15 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 be construed 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.
Citations and Judicial Treatment
Cited by
0
Decisions in the index citing it
Cites
0
Decisions referred to
In this index
0
Of the decisions it cites
Overruled / Questioned
0
No negative treatment found
Loading the citing and cited decisions…
This judgment in the centre: on the left the decisions it cites, on the right the decisions citing it. Colour is the treatment; choose a decision to open it.
**:ORDER:**
Present TA stands allowed as prayed for with costs.
Defendant shall personally liable to pay entire TA amount of Rs. 14,07,213.49 with current and future interest at the rate of 19% p.a, 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 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 the 2<sup>nd</sup> day March, 2019)
K. Ravindran Nair Presiding Officer I/C - DRT II, Bengaluru
**ANNEXURES:**
**LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Smt.Laxmi Rathod Authorized signatory of Applicant Bank
**LIST OF DOCUMENTS MARKED ON BEHALF OF APPLICANT BANK:**
<table><tbody><tr><td>Ex.A1</td><td>:</td><td>Affidavit of AW.1</td></tr><tr><td>Ex.A2</td><td>:</td><td>List of documents</td></tr><tr><td>Exs.A3 – A.15</td><td>:</td><td>13 documents</td></tr></tbody></table>
**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