Debts Recovery Tribunals and Appellate Tribunals
PUNJAB NATIONAL BANK vs M/s AHL Mining Company Pvt Ltd and Others on 26 May 2017
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BANGALORE**
**Dated this the 26<sup>th</sup> day of May 2018**
**Present: Sri K Srinivasan
Hon`ble Presiding Officer**
**T.A.NO.2281/2017
(O.A.NO.1312/2016-DRT-I)**
**Punjab National Bank**
Centenary Building
No.28, M.G.Road
Bangalore-560 001
**Represented by its Chief Manager**
Mr. T.Radhakrishnan
... **APPLICANT**
**And**
1) M/s AHL Mining Company Private
Limited, Regd.office No.12,
I Main, Dollars Colony, NTI Layout
RMV Extn.,II Stage
Bangalore
1A M/s AHL Mining Company Private
Limited, Ashok Colony,
Sandur, Bellary (Dist)-583 119
2) Mr.Anil H Lad
House No.140, HIG, 8<sup>th</sup> Cross
3<sup>rd</sup> Main, (Dollars Colony) RMV
2<sup>nd</sup> Stage Extn.,Bangalore-560 094
3) Smt.Aarti Lad
House of Lad, Palace Road
Sandur, Bellary-583 119
... **DEFENDANTS**
2T.A.No.2281/2017 (O.A.No.1312/2016-DRT-I)**Counsel on record/appeared for:**
Applicant : H.R.Katti & Associates
Defendants 1,1A & 3 : Exparte
Defendant No.2 : Abated
**ORDERS ON MAIN PETITION**
The present Transfer Application is filed by the Applicant Bank under Section 19 of the Recovery of Debts Due to Banks & Financial Institutions Act, 1993, seeking recovery of an amount of Rs.1,69,49,909/- (Rupees One crore sixty nine lakhs forty nine thousand nine hundred and nine only) from the defendants with interest and cost.
**2. BRIEF FACTS OF THE CASE OF THE APPLICANT BANK:**
i] It is contended by the applicant bank Defendants had approached them for grant of Credit facilities.
ii] The applicant bank on considering the request of the defendants and on the merits of the case, sanctioned term loan of Rs.21.70 crores (Rupees twenty one crores seventy lakhs only), Packing Credit limit of Rs.7.00 crores (Rupees Seven crores only) and FOBP/FOUBP/FOBNLC/FOUBNLC limits of Rs.7.00 crores (Rupees Seven crores only).
iii] It is contended that the defendants agreed to pay interest at 10.25% for term loan; presently BPLR to be minus 3.25% upto 180 days and as per bank rules/RBI guidelines in respect of FOBP limit, subject to variation in rate of interest from time to time.
iv) It is contended that the defendants agreed to repay term loan in 20 quarterly installments of Rs.108.50 lakhs after moratorium period of 6 months or upto 31.03.2007 which is later for Term Loan and for packing Credit and FOB limit as per agreed terms with the bank.
v] Defendants have executed the following documents for said loans:
- a) Sanction letters
- b) Board resolutions
- c) Loan agreement
- d) Hypothecation of assets
- e) General power of attorney
- f) Guarantee agreements
- g) MOEs. & title deeds
- h) Statement of accounts
3] Further, Defendants have agreed to repay the above loans with variable rate of interests, 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] The Defendants after utilizing all the entire loan proceedings for the above said purposes have failed to make the repayments of the loan dues as agreed and they have not serviced the interest thereon as per the terms and conditions agreed by defendant. The Defendants have become chronic defaulters in all the loan accounts. The Applicant Bank has issued demand notice to the defendant to clear the dues, for which the Defendants have not taken any steps to clear the dues and hence the recovery process is initiated 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.1,69,49,909/- (Rupees One crore sixty nine lakhs forty nine thousand nine hundred and nine only) as prescribed by bank/RBI from time to time, from the date of application till the date of realization of entire outstanding amount.
6] After filing this TA, summons were sent to the Defendants and served on the Defendants through RPAD. When Defendants were called, they remained absent and hence placed them ex-parte.
7] Copy of the TA is marked at Ex.A1 and List of documents of TA came to be marked at Ex.A-2 and 24 documents came to be marked at Ex.A3 to Ex.A-26.
8] Arguments of Learned Counsel for the Plaintiff/applicant bank heard and perused the records of the case.
9] 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?
REASONS
10] The bank filed verified original application with affidavit of Power of Attorney holder is marked at Ex.A1 and list of document is marked at Ex.A2 and 24 documents ExA3 to Ex.A26, which clearly establish the case of the applicant bank to allow the present TA. Added to it, the absence of the defendants appears to be intentional without any bonafide reasons and it
appears that they remained absent as they admit the entire case pleaded by the applicant bank as sought in the present TA.
11] 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 jointly and severally liable to pay entire TA amount together with current and future interest, costs, etc., 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 movable assets as described in schedule-A and mortgaged immovable property as described in schedule-B of the main petition according to 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 defendants are required under law and also as advised.
Applicant Bank shall file latest 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 as sought by the applicant bank in the TA and do the needful as required under law forthwith.
(Dictated to the Steno, transcribed by her and after necessary corrections, signed and pronounced by me in the Open Court on this 26<sup>th</sup> day of May 2018)
[K SRINIVASAN] HON'BLE PRESIDING OFFICER DRT II, BANGALORE
**ANNEXURES:**
**LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Sri T.Radhakrishanan, Asst.General Manager of Applicant Bank **LIST O DOCUMENTS MARKED ON BEHALF OF APPLICANT BANK:**
<table> <tbody> <tr> <td>Ex.A1</td> <td>:</td> <td>Affidavit of AW.1</td> </tr> <tr> <td>Ex.A2</td> <td>:</td> <td>List of documents</td> </tr> <tr> <td>Exs.A3 – A.26</td> <td>:</td> <td>24 documents</td> </tr> </tbody> </table>
**LIST OF WITNESSES EXAMINED ON BEHALF OF DEFENDANTS :**
- NIL -
**LIST OF DOCUMENTS MARKED ON BEHALF OF DEFENDANTS:**
-NIL-
HON'BLE PRESIDING OFFICER DRT II, BANGALORE
Cha\*