CANARA BANK vs MRS. SIDDAMMA and others on 27 July 2019

1. 1) **Mrs.Siddamma** W/o Ningaiah

2. 2) **Mr.Manjaiah** S/o Ningaiah

3. 3) **Mr.Devaraj** S/o Ningaiah

**All are r/at:** Tagadur Village Nuggehalli Hobli C.R.Patna Taluk Hassan District-573 118

**....DEFENDANTS**

**Counsels on record/appeared for:**

**Applicant** : JS Advocates **Defendants 1 to 3** : Ex-parte

2T.A.2274/2017 in O.A.No.389/2016**FINAL ORDERS**

The present Application came to be registered on the basis of jurisdictional transfer and renumbered as Transfer Application No.2274/2017 under Section 19 of the Recovery of Debts Due to Banks & Financial Institutions Act, 1993, seeking recovery of an amount of Rs.14,10,785/- (Rupees fourteen lakh ten thousand seven hundred and eighty-five only) from the Defendants together with interest and cost.

2. The case of the applicant bank that defendants had approached the applicant bank for financial assistance in order to extend their agricultural activities. The applicant bank considered their request and sanctioned Farm machinery loan of Rs.5,00,000/- vide sanction letter dated 10.03.2007. 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. Defendants 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 memorandum, memorandum of agreement, RC book, simple mortgage deed, letter of revival, legal notice 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.14,10,785/- (Rupees fourteen lakh ten thousand seven hundred and eighty-five only) .

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, Mr. Suresh T, 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 9 documents came to be marked as Ex.A-3 to Ex.A-11.

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:

- a) Whether Plaintiff/applicant bank proves its case as contended in the plaint/application?

- b) What order?

11. For the following reasons, I answer the above referred points in the following manner:

**REASONS**

12. Mr. Suresh T, 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-11 which clearly establish the case of the applicant bank to allow the present TA. Added to this, the defendants remained absent 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. Consequently, Interim order of temporary injunction of schedule 'A' and 'B' properties in IA Nos.497/2016 and 498/2016 passed on 01.03.2016 is made absolute.

14. Therefore, for these reasons, present TA is to be allowed with costs as sought by the applicant bank.

6T.A.2274/2017 in O.A.No.389/2016**:ORDER:**

Present TA stands allowed as prayed for with costs. Consequently, Interim order of temporary injunction of schedule 'A' and 'B' properties in IA Nos.497/2016 and 498/2016 passed on 01.03.2016 is made absolute.

Defendants shall be jointly and severally liable to pay Rs.14,10,785/- (Rupees fourteen lakh ten thousand seven hundred and eighty-five only) including with current and future interest as applicable, 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 in the Schedule-A and mortgaged immovable properties as described in the Schedule-B 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 Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this **27^th day of July, 2019**)

(K. Ravindran Nair) Presiding Officer I/C - DRT II, Bengaluru

8T.A.2274/2017 in O.A.No.389/2016**ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**

AW.1 – Mr. Suresh T 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.11 : 9 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**

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