CANARA BANK vs MEENAKSHI A PATIL on 31 January 2024

FINAL ORDER

The present OA has been flled by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money ol Rs,SL,72,ag7l- (Rupees fifty-one lakhs seventy-two thousand eight hundred thirty-seven only) together with costs, interest, etc.

2. The case of the Applicant Bank is that, the Defendant has approached the Applicant Bank for various credit \

r A No.0212022 facilities. Accordingly, the Applicant Bank has considered the request of the Defendant and sanctioned the following loans:

i) OCC/OSBD Loan of Rs.30,00,000/-, 15.10.2018 for working Capital, il) Term Loan of Rs.16,00,000/- on 15.10.2018 for purchase of Machineries, iil) CCSL Loan of Rs.2,50,000/- on 11.08.2020 and iv) GECL loan of Rs.7,60,000/- on 11.08.2020, in terms of the loans agreements. In order to secure the loans, the Defendant has executed documents, viz., Demand promissory note, cash credit agreement, Deed of hypothecation, Letters of undertaking, Letters of renewal, Sanction memorandum, Pronote, and Agreement cum deed hypothecatlon, Link letters, etc.,

3. Further, Applicant Bank submits that, the Defendant has agreed to repay the following toans: i) OCC/OSBD Loan of Rs.30,00,000/- wlth lnterest @ 10'85% p a or at such other rates as may be revised by the Bank from time to time' compounded monthly, ii) Term Loan of Rs 16,00,000/- in 60 monthly instatlment of Rs.34,988/- with interest @ 11 25olo p.a., iii) CCSL Loan of Rs.2,5O,O0O/- in 18 monthly installment of Rs.13,887/- along with interest @ 0 75olo and

iv) GECL loan of Rs.7,60,000/- in 36 installment of i I A No.02/2022 interest @ 0.6070.

4. Further, the Defendant has 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 accounts regular by paying installments as and when due to the satisfactlon of the Applicant Bank, as detailed in the OA by the Applicant Bank.

5. The Defendant after utilising the said loans has failed and neglected to make the repayment of the loans due as agreed and Defendant has not serviced the interest thereon as per the terms and condition agreed by the Defendant. The Defendant has failed to repay the loans installments as agreed and committed defaults in repayment. Hence, the loan accounts were classified as Non-Performing Assets on 01.04.2021. Thereafter, the Applicant Bank has sent Legal Notice on 24.72.2021 to the Defendants, demanding repayment of entire loan amounts with interest. In spite of receipt of the Legal Notice, the Defendant has failed to pay the outstanding dues and hence the recovery process is initiated to recover the dues. \

I 1A No.0212022

6. In the light of these factors, it is contended by the Applicant Bank that Defendant is liable to pay a total sum of Rs.51,72,837/- (Rupees fifty-one lakhs seventy-two thousand eight hundred thirty-seven only).

7. After filing this OA. summons were sent to the Defendant through RPAD remained unserved and returned to the sender with postal remarks "Party Left". Thereafter, the Applicant Bank has published the summons to the Defendant on 13.01.2023 in Local newspapers, viz., - "The New Indian Express" and "Kannadaprabha". When the Defendant is called out, the Defendants remained absent and placed ex pa rte. B. To prove the case of the Applicant Bank, The Branch Manager, Sri Amith Kumar, has filed her affidavit by way of evidence and the same was considered as evidence of AW,1 and marked at Ex.A1 and list of documents came to be marked at Ex.A2 and 27 documents came to be marked at Ex.A3 to A29.

9. No evidence on behalf of the Defendant.

10. Arguments of Learned Counsel for the Plaintiff/ Applicant Bank heard and perused the records of the case'

11. 't A No.O2/2022 Following points arise for my consideration:

1) Whether Plaintiff/Applicant Bank proves its case as contended in the plaint/application?

2) What Order? L2. For the following reasons, I answer the above- referred points in the following manner:

REASONS

13. The Branch Manager of the Applicant Bank came to be examined as AW.1. His affidavit by way of evidence reiterated the facts pleaded in the plaint and his affidavit is also corroborated by the above-referred Ex.A3 to A29 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the Defendant has remained absent, hence it is to be construed that Defendant has admitted the entire case pleaded by the Applicant Bank in the present OA. t4. Therefore, for these reasons, present OA is to be allowed with costs as sought by the Applicant Bank. \

1A No.0212022

ORDER

Present OA stands allowed as prayed for with interest and costs. In the event of failure of the Defendant to pay the said OA amount, the Applicant Bank is at liberty to sell the Schedule property as mentioned in the schedule of the main OA, in accordance with law as sought by the Applicant Bank in the OA. In spite of sale of the schedule property, as mentioned in the schedule of the main OA, if the OA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the person and other property of the Defendants in accordance with law. Applicant Bank shall file latest Memo of Calculation of OA 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 realised by sale of assets, etc., during the intervening period after filing the OA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendant to the Applicant Bank. \

T A No.02/2022 Office is directed to issue Recovery Certificate as sought by the Applicant Bank in the OA and do the needful as required under the law forthwith. The Office is directed to issue, as far as possible, free copy of this order to the pafties concerned. (Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 31st day of lanuary, 2024) t Y (rmtiak At.) Presiding'Officer DRT-I, Bengaluru ANNEXURES Witness Examined for the Aoolicant Bank: AW-1 : Sri Amith Kumar The Branch Manager of Applicant Bank List of Documents Exhibited for the Aoolicant Bank: Ex.A-l : Affidavit of AW-1 Ex.A-2 : List of Documents Ex.A-3 to A-29 : 27 documents Witness Examined for the Defendant:

- Nil - List of Documents Exhibited for the Defendant:

- NiI - \.. . ^,.2u V r.'u (rmtial2ali) Presiding Officer DRT-f, Bengaluru .sr.