Debts Recovery Tribunals and Appellate Tribunals
STATE BANK OF INDIA vs M.B BASAVARAJU on 28 December 2019
12
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU**
Dated this the 28<sup>th</sup> day of December 2019
**:Present:
Shri K Ravindran Nair
Hon'ble Presiding Officer
In-charge-DRT-II
T.A.No.1323/2017
(O.A.No.543/2016-DRT-I)**
**BETWEEN:**
**State bank of India,**
Chamundipuram
Mysore South
Keerthi Plaza,-2396,N.S.Road,
Chamundipuram Mysore.
**Represented by its Chief Manager**
Sri.Ganapati V.Hegde
S/o.Vishnu Hegde .
** ... APPLICANT**
**AND:**
**Sri. M.B.Basavaraju.,**
S/o Sri Basave Gowda
**R/at:** Marballihundi Village,
Jayapura Hobli
Mysore Taluk and District,
** ... DEFENDANT**
**Counsels on record/appeared for:**
**Applicant : Pendeyal Law Services**
**Defendant : Ex-parte**
**FINAL ORDERS**
The present Application came to be registered on 30.07.2015 and transferred to DRT-II, Bengaluru, on the point of jurisdiction and renumbered as Transfer Application 2T.A.1323/2017 in
No.1323/2017 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of an amount of Rs.14,89,283/- (Rupees Fourteen lakhs Eighty-Nine Thousand Two Hundred Eighty-Three only) from the Defendant together with interest and cost.
2. The case of the applicant bank is that defendant who is an Agriculturist had approached the applicant bank seeking financial assistance for (i) Agricultural Term Loan (ATL) to purchase Tractor and trailer, (ii) Agricultural Cash Credit Loan Limit (KCC) for cultivation expenses. The applicant bank considered his request and sanctioned ATL of Rs.4 lac vide sanction letter dated 25.10.2007, and KCC of Rs.1.10 lac, vide sanction letter dated 10.05.2010. Defendant has executed necessary documents in favour of the applicant bank. After availing the loan, the defendant failed to regularize the loan account and also failed to pay the interest/installments, and he did not come forward to repay the balance outstanding. The applicant bank has produced the documents in favour of its case viz., loan application, sanction 3T.A.1323/2017 in
letter, promissory note, legal notice, legal notice, certified copy of account extract etc. The Applicant bank has issued legal notice dated 14.05.2014 to the defendant, for which the defendant has not taken any steps to clear the dues. Hence, the O.A was filed in DRT-I and now numbered as TA.1323/2017 upon transfer to DRT-II.
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 have failed to make the repayments of the loan dues as agreed, not serviced the interest thereon as per the terms and conditions agreed by them and became chronic 4T.A.1323/2017 in
defaulters 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, Defendant is liable to pay a sum of Rs.14,89,283/- (Rupees Fourteen lakhs eighty nine thousand two hundred and eighty three only) .
6. After filing the OA, summons were sent through RPAD and same was duly served on the defendant. When defendant was called out, he remained absent and hence, placed ex parte.
7. To prove the case of the Applicant Bank, its Chief Manager, Smt. Meghna Shivadas D/o K.M.Shivadas, 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 11 documents came to be marked as Ex.A-3 to Ex.A-13.
8. No evidence on behalf of the Defendant.
5T.A.1323/2017 in
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 Ex.A-3 to Ex.A-13 which clearly establish the case of the applicant bank to allow the present TA. Added to this, the defendant remained absent, hence it is to be construed that the defendant have admitted the entire case pleaded by the applicant bank as sought in the present TA.
6T.A.1323/2017 in
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.
Defendant is personally liable to pay Rs.14,89,283/- (Rupees fourteen lakhs eighty nine thousand two hundred and eighty three only) as detailed under (a) Agricultural term loan of Rs.12,45,210/- (Rupees Twelve lakhs forty five thousand two hundred and ten only) with interest at the rate of 14.60% P.A.(ii) Agricultural cash credit loan limit of Rs.2,44,073/- (Rupees two lakhs forty four thousand seventy three only) with interest at the rate of 13.85% P.A. both at half yearly rests, from the date of application till the date of final realization, as sought by the Applicant Bank in the TA.
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 7T.A.1323/2017 in the Defendant 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 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 **28<sup>th</sup> day of December, 2019**)
**(K. Ravindran Nair)** **Presiding Officer** **I/C -DRT II, Bengaluru**
8T.A.1323/2017 in O.A.No.543/2016**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.13 : 11 documents
**LIST OF WITNESSES EXAMINED ON BEHALF OF DEFENDANT :**
- NIL -
**LIST OF DOCUMENTS MARKED ON BEHALF OF DEFENDANT:**
-NIL-
**(K Ravindran Nair) Presiding Officer I/c-DRT-II, Bengaluru**
\*SS\*