CORPORATION BANK vs SRI SADIQ PASHA Prop of S P R Silks on 19 October 2019

**FINAL ORDER**

The present Application dated 25.06.2016 came to be registered on the basis of jurisdictional transfer and renumbered as TA.No.623/2017 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 seeking recovery of an amount of Rs.36,92,787/- (Rupees thirty-six lakh, ninety-two thousand, seven hundred and eighty-seven only) from the Defendants together with interest and cost.

2. The case of the applicant bank is that 1^st defendant is carrying on business under the name and style as M/s. S P R Silks, who had approached the applicant bank for financial assistance to meet his working capital requirements. Considering the request of the defendants, the Applicant Bank has sanctioned cash credit loan of Rs.35,00,000/-, vide Sanction Letter dated 11.11.2013. The defendant No.2 stood as guarantor to the above said loan. The Defendant No.1 has executed 3TA.No.623/2017

requisite necessary documents in favour of the applicant bank for the above said loan. The defendants have agreed to repay the said loan 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. The defendant did not come forward to clear the dues in response to Re-call notice dated 02.02.2016 issued by the Applicant Bank. Hence, the OA was filed and now numbered as TA.623/2017. The applicant bank has produced the documents in favour of its case viz., Credit sanction intimation, Request for Overdraft facilities, On Demand Promissory Note, Take Delivery Letter to DPN, Guarantee Agreement, Memorandum of Deposit of Title Deeds, Common Deed of Hypothecation, Legal Notice, and Certified Accounts Extract.

3. Further the Defendants agreed to repay the above loan 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 to keep the 4TA.No.623/2017

account regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the OA by the Applicant Bank.

4. The Defendants after utilizing the entire loan proceed for the above said purpose have failed to make the repayments of the loans due as agreed and they have not serviced the loan as per the terms and conditions. The Defendants have become chronic defaulters in the loan account 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.36,92,787/- (Rupees thirty-six lakh, ninety-two thousand, seven hundred and eighty-seven only) together with interest and costs.

6. After transfer of the OA, summons was served on defendant No.1 through RPAD, and summons of defendant No.2 returned with postal shara as "insufficient address". Thereafter, 5TA.No.623/2017

summons published against the defendant No.2 through paper publication in two daily newspapers. The defendant No.1 appeared through his counsel, but not filed written statement. Even then, when the defendants were called out, they are remained absent and placed *ex-parte*.

7. To prove the case of the Applicant Bank, it's Sr. Manager - Mrs. Vani has filed her 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:

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

2. 2) What order?

6TA.No.623/2017

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

**REASONS**

12. Mrs. Vani – Senior Manager 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-11, which clearly establish the case of the applicant bank to allow the present TA. Added to this, the defendant No.1 who entered appearance, but did not choose to file written statement and he remained absent and in spite of paper publication, the Defendant No.2 has 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.

**:O R D E R:**

Present TA stands allowed with costs.

Defendants shall be jointly and severally liable to pay 7TA.No.623/2017

entire TA amount of Rs. 36,92,787/- (Rupees thirty-six lakh, ninety-two thousand, seven hundred and eighty-seven only) together with pendent elite interest and future interest at 11.65% (exclusive of 2% penal interest) per annum, with monthly compounded rests, from the date of filing of Application to the date of final realization as sought by the Applicant Bank in the OA/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, hypothecated movable assets as mentioned in the Schedule-A and B respectively 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.

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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 the 19^th day of October, 2019.)

**(K. RAVINDRAN NAIR)**

Presiding Officer

I/c - DRT II, Bengaluru.

9TA.No.623/2017 IN OA.2056/2016-DRT-I**ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**

AW.1 – Mrs. Vani, Senior 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.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.

K\*

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