Debts Recovery Tribunals and Appellate Tribunals
STATE BANK OF INDIA vs MAHADEVAPPA & ANR (MYSORE) on 21 December 2019
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU**
Dated this the 21<sup>st</sup> day of December 2019
**:Present:**
**Shri K Ravindran Nair
Hon`ble Presiding Officer
Incharge-DRT-II**
**T.A.No.908/2017
(O.A.No.1785/2015-DRT-I)**
**BETWEEN:**
**State Bank of India**
Chamundipuram
Mysore South
Keerthi Plaza, 2396, N.S.Road
Chamundipuram,Mysuru.
Represented by
Sri.Ganapati V.Hegde
S/o.Vishnu Hegde.
** ...APPLICANT**
**AND:**
**1. Sri. Mahadevappa.,**
S/o Late Basappa
**2. Sri.M.Mahesh.,**
S/o. Sri Mahadevappa
**Both R/at:**
Nandigunda Village
Thummanarle Post
Nanjangud Taluk-570 122.
Mysuru District.
** ....DEFENDANT**
**Counsels on record/appeared for:**
**Applicant : Sri P.L.Vijayakumar**
**Defendant 1 : Absent**
**Defendant 2 : M.Veeresh (WS not filed)**
2T.A.908/2017 in
O.A.No.1785/2015**FINAL ORDERS**
The present Application came to be registered on 30.07.2015 on the basis of jurisdictional transfer and renumbered as Transfer Application No.908/2017 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of an amount of Rs.13,73,294 (Rupees Thirteen lakhs seventy three thousand two hundred and ninety four only) from the Defendants together with interest and cost.
2. The case of the applicant bank is that defendants had approached the applicant bank seeking financial assistance towards ATL and ACC Loans. The applicant bank considered their request and sanctioned Agricultural Term Loan of Rs5.00/- lakhs vide sanction letter dated 19.07.2010. and Rs.3.00/- lakhs towards Agricultural Cash Credit Loan Limit vide sanction letter dated 19.07.2010. Defendants have executed necessary 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, they did not come forward to repay the 3T.A.908/2017 in
balance outstanding. Hence, O.A was filed and now transferred and re-numbered as TA.908/2017 on the point of jurisdiction. The applicant bank has produced the documents in favour of its case viz., loan application, sanction letter, acknowledgement letter, loan cum hypothecation, letter of arrangement, loan-cum-hypothecation agreement, Registered mortgage deed, certified copy of account extract etc.
3. Further the defendant 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 to keep the 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 defendant after utilizing the entire loan proceeds for the above said purpose has failed to make the repayments of the loan dues as agreed and she has not serviced the loan as per the terms and conditions agreed by her and became chronic 4T.A.908/2017 in
defaulter. The Applicant bank has issued legal notice to the defendants, for which the defendants has not taken any steps to clear the dues and hence, the recovery process is initiated against the defendant 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 sum of Rs.13,73,294/- (Rupees Thirteen lakhs seventy three thousand two hundred and ninety four only) .
6. After filing the OA, summons was sent through RPAD and were returned with postal shara "refused" in the case of Defendant No.1 which is deemed to be served. Defendant No.2 appeared through his advocate, but in spite of sufficient opportunity, Defendant No.2 M.Veeresh has not filed his written statement and when the defendants were called out, Defendant No.1 remained absent, hence , placed an ex parte.
7. To prove the case of the Applicant Bank, it's Chief Manager, Smt. Meghana Shivadas, D/o K. M. Shivadas, has filed her affidavit 5T.A.908/2017 in
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 10 documents came to be marked as Ex.A-3 to Ex.A-12.
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. Smt.Meghana Shivadas, D/o K.M.Shivadas, Chief 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 6T.A.908/2017 in
Ex.A-3 to Ex.A-12 which clearly establish the case of the applicant bank to allow the present TA. Added to this, the defendant No.2 in spite of entering appearance through his advocate did not chose to file the written statement and also not let in any evidence to contest the matter and rebut the claim of the applicant bank, hence it is to be construed that the defendant 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.
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**:ORDER:**
Present TA stands allowed with costs.
Defendants shall be jointly and severally is liable to pay Rs.13,73,294/- (Rupees Thirteen lakhs seventy three thousand two hundred and ninety four only) detailed as under (a) on Agricultural term loan of Rs.10,16,207/- at the rate of 13.05% P.A., (b) on Agricultural Cash credit loan of Rs.3,57,087/- at the rate of 7T.A.908/2017 in
11.85% P.A. both loan at half yearly 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 hypothecated immovable assets as mentioned in 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 Defendant 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 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 8T.A.908/2017 in 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 Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the **21<sup>st</sup> day of December, 2019**)
**(K. Ravindran Nair)** **Presiding Officer** **I/C -DRT II, Bengaluru**
9T.A.908/2017 in O.A.No.1785/2015**ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT- BANK:**
AW.1 – Smt.Meghana Shivadas, D/o K.M.Shivadas Chief Manager of the 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.12 : 10 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**
\*ss\*