Debts Recovery Tribunals and Appellate Tribunals
BANK OF INDIA vs Mr Maharudrapa Veerappa Karadiguddi on 31 August 2019
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT
BENGALURU**
Dated this the 31<sup>st</sup> day of August 2019
**:Present:**
**Shri K Ravindran Nair
Hon'ble Presiding Officer
In-charge-DRT-II**
**TA.No.1105/2017
(IN OA.2232/2015-DRT-I)**
**BETWEEN**
**BANK OF INDIA,
Hire-Bagewadi Branch
Belgaum District,
Belgaum,**
**Represented by its Constituted Attorney- Mr. Shivarudrayya. C. Kolummath, Sr. Manager, Bengaluru.**
..... **APPLICANT**
**AND:**
1. **1) Mr. MAHARUDRAPPA VEERAPPA KARADIGUDDI,**
A/p: Hosur, Tq: Bailhongal, Dist: Belgaum.
2. **2) Mr. ADIVEPPA VEERAPPA KARADIGUDDI,**
A/p: Hosur, Tq: Bailhongal, Dist: Belgaum.
3. **3) Mr. MAHANTESH VEERAPPA KARADIGUDDI,**
A/p: Hosur, Tq: Bailhongal, Dist: Belgaum.
4. **4) Mr. MAHANTESH BASANGOU DA GOUDAR,**
A/p: Rudrapur at Dundankoppa, Ta. Soundatti Dist: Belgaum.
2TA.No.1105/2017
5) **Mr. GOUDAPPA SIDDALINGAPPA PATHANI,**
A/p: Village Karvinkoppa at Okkundi,
Tq: Bailhongal,
Dist: Belgaum. .... **DEFENDANTS**
**Counsels on record/appeared for:**
Applicant : Sri. Sachin. P. Bichu.
D1 to D5 : *Ex parte.*
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**FINAL ORDER**
The present Application dated 10.12.2015 came to be registered on the basis of jurisdictional transfer and renumbered as TA.No.1105/2017 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 seeking recovery of an amount of Rs.11,07,675.68 (Rupees eleven lakh, seven thousand, six hundred seventy-five and Paise sixty-eight only) from the Defendants together with interest and cost.
2. The case of the applicant bank is that Defendants No.1 to 3 (borrowers) and defendants No.4 and 5 (guarantors) had approached the applicant bank for financial assistance. The applicant bank considered the requests of the defendants and sanctioned (i)Agriculture Term Loan of Rs.6,50,000/- and (ii)Crop Loan of Rs.1,00,000/-, both the loans vide Sanction 3TA.No.1105/2017
Letter dated 08.02.2006. The Defendants have executed requisite necessary documents in favour of the applicant bank for the above said loans. The defendants have agreed to repay the said loans as per the terms and conditions of the applicant bank. After availing the loans, the defendants 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 is filed. The applicant bank has produced the documents in favour of its case viz., Loan Application, Sanction Letter, Agreement for Term Loan, Demand Promissory Note, Deed of Guarantee, Mortgage Deed, and Certified Accounts Extract, Power of Attorney, etc.,
3. Further the Defendants agreed to repay the above loans 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.
4TA.No.1105/2017
4. The Defendants after utilizing the entire loan proceeds for the above said purposes have failed to make the repayments of the loans due as agreed and they have not serviced the interest thereon as per the terms and conditions. The Defendants have become chronic defaulters in the loan accounts and not taken any steps to clear the dues 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.11,07,675.68 (Rupees eleven lakh, seven thousand, six hundred seventy-five and Paise sixty-eight only).
6. After transfer of the TA, summons were sent through RPAD, same were served on the Defendants 1 to 3 and summons of defendants No.4 and 5 returned with postal shara as 'Not claimed' and summons published by paper publications in two daily newspapers on defendants No.4 and 5. Even then, when the defendants were called out, they are remained absent and placed *ex-parte*.
5TA.No.1105/2017
7. To prove the case of the Applicant Bank, its Branch Manager - Mr. Varun Jayaram Shetty 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:
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. Mr. Varun Jayaram Shetty - Branch Manager of the applicant bank came to be examined as AW-1. His affidavit by 6TA.No.1105/2017
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, in spite of paper publication, the Defendants No.4 and 5 have 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. Therefore, for these reasons, present TA is to be allowed with costs as sought by the applicant bank.
**:ORDER:**
Present TA stands allowed with costs. Defendants shall be jointly and severally liable to pay entire TA amount of Rs. 11,07,675.68 (Rupees eleven lakh, seven thousand, six hundred seventy-five and Paise sixty-eight only) with interest at the rate of 18% p.a., from the date of application till the date of realization, as sought by the Applicant Bank in the TA.
7TA.No.1105/2017
In the event of failure of Defendants to pay the said TA amount, the applicant bank is at liberty to sell the mortgaged immovable properties (owned by the defendants No.1 to 3) as mentioned in the Schedule-A of the main Application according to Law 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.
8TA.No.1105/2017
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 **31<sup>st</sup> day of August, 2019**)
**(K. RAVINDRAN NAIR)** Presiding Officer I/c - DRT II, Bengaluru.
**ANNEXURES:**
**LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Mr. Varun Jayaram Shetty, Branch Manager of Applicant Bank.
**LIST OF DOCUMENTS MARKED ON BEHALF OF APPLICANT BANK:**
Ex.A.1 : Affidavit of AW.1. Ex.A.2 : List of documents. Exs.A.3 – 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.