Debts Recovery Tribunals and Appellate Tribunals
CORPORATION BANK vs M.S.Santhosh on 17 August 2019
P.A.
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU**
Dated this the 17<sup>th</sup> day of August, 2019
**Present: Shri K Ravindran Nair
Hon`ble Presiding Officer
Incharge-DRT-II**
**T.A.No.426/2017**
**(O.A.NO.2156/2015-DRT-II)**
**BETWEEN:**
**Corporation Bank**
L-351, Ashoka Road
Mysuru-570 001
**Represented by its Manager**
**Dr.N.Govindu**
** ...APPLICANT**
**AND:**
1. **1) Sri M.S.Santhosh**
S/o Late Sri M.N.Shantharaj
R/at: No.446/A, 1<sup>st</sup> Stage
T.N.Pura Road, Siddarthanagar
Nazarabad Mohalla, Mysore
2. **2) Smt.M.S.Anitha**
W/o Sri K.S.Veeresh
D/o Late Sri M.N.Shantharaj
C/o Sri M.S.Swamy, Coffee Planter
R/at: Kamanahalli Village
Sakaleshpura Taluk
Hassan District
3. **3) Smt.M.S.Shruthi**
W/o Sri L.Prasanth
D/o Late Sri M.N.Shantharaj
R/at: No.21, Siddalingeswara Nilaya
3<sup>rd</sup> Cross, L.G.Halli, RMV 2<sup>nd</sup> Stage Bengaluru-560 094
** ...DEFENDANTS**
**Counsels on record/appeared for:**
**Applicant : Sri V.B.Ravi Shankar**
**Defendants 1 to 3 : Ex-parte**
2T.A.426/2017 in O.A.No.2156/2015**FINAL ORDERS**
The present Application came to be registered on 19.11.2015 on the basis of jurisdictional transfer and renumbered as Transfer Application No.426/2017 under Section 19 of the Recovery of Debts Due to Banks & Financial Institutions Act, 1993, seeking recovery of an amount of Rs.10,91,644/- (Rupees ten lakh ninety-one thousand six hundred and forty-four only) from the Defendants together with interest and cost.
2. The case of the applicant bank is that late Sri M.N.Shantharaju, father of the defendants had approached the applicant bank for financial assistance in order to extend his agricultural activities. The applicant bank considered his request and sanctioned Farm machinery loan of Rs.10,00,000/- vide sanction letter dated 20.02.2008. Late Sri M.N.Shantharaju has executed necessary and requisite loan related documents in favour of the applicant bank. After availing the loan, Sri M.N.Shantharaju has failed to regularize the loan account and also failed to pay the installments, he did not come forward to repay the balance outstanding. The
applicant submits that Sri M.N.Shantharaju died on 13.11.2013 leaving behind the defendants herein to succeed to his estate and wife of Sri M.N.Shantharaju predeceased him on 13.08.2010, hence the defendants herein have been arrayed as parties, hence, the present TA against them is filed. 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 Late Sri M.N.Shantharaju agreed to repay the above loan with variable rates 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. Late Sri M.N.Shantharaju after utilizing the entire loan proceeds for the above said purpose have 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 him and has become chronic defaulter and hence, the recovery process is initiated against the defendants 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.10,91,644/- (Rupees ten lakh ninety-one thousand six hundred and forty-four only) .
6. After filing the TA, summons were sent and served on the defendants 1 and 2 through RPAD, defendant No.3 by paper publication, and when defendants were called out, defendants remained absent and hence, they were placed ex parte.
7. To prove the case of the Applicant Bank, its Asst.General Manager, Mr. N.Govindu, 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 12 documents came to be marked as ~~Ex.A-3~~ to Ex.A-14.
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.N.Govindu, Asst.General 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-14 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 attachment before judgment and injunction dated 07.12.2015 passed in IA
No.5008/2015 against the property of the defendant 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 with costs. Consequently, Interim order of attachment before judgment and injunction dated 07.12.2015 passed in IA No.5008/2015 against property of the defendant is hereby made absolute.
Defendants shall be jointly and severally are liable to pay Rs.10,91,644/- (Rupees ten lakh ninety-one thousand six hundred and forty-four only) with interest at 17.00% p.a. (including 2% penal interest) along with pendentite lite and future interest with 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-A and hypothecated movable assets as described in the Schedule-B of the main petition in accordance with law as sought by the applicant bank in the TA.
In spite of sale of the properties 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 deceased M.N.Shantharaj, if any inherited by defendants herein, 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 the **17<sup>th</sup> day of August, 2019**)
**(K. Ravindran Nair)** **Presiding Officer** **I/C - DRT II, Bengaluru**
8T.A.426/2017 in O.A.No.2156/2015**ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Mr. N.Govindu Asst.General 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.14 : 12 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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