STATE BANK OF INDIA vs M/s Kadnich Designs REP BY ITS PROPRIETOR MR. ABDUL KHADER KUTHAT IBRAHIM on 30 September 2024

**FINAL ORDER**

The present TA have been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy 2TA No. 71/2020

Act, 1993, seeking recovery of money of **Rs.22,78,387/-** **(Rupees twenty-two lakhs seventy-eight thousand** **three hundred and eighty-seven only)** together with costs, interest, etc.

2. The case of the Applicant Bank is that, the Defendants have availed Term loan of Rs.12,00,000/- on 04.06.2016 to meet out his business requirement and Working Capital Loan of Rs.3,00,000/- on 04.06.2016 along with interest for his business purpose from the Applicant Bank, in terms of the loan agreements. In order to secure the loans, the Defendants have executed documents, viz., Letter of arrangement, Agreements of loan cum hypothecation and Agreement for lease of premises, etc.,

3. Further, Applicant Bank submits that, the Defendants have agreed to repay the Term Loan of Rs.12,00,000/- with interest at the rate of 11.50% p.a. in 63 monthly installments of Rs.26,741/- and Working Capital Loan of Rs.3,00,000/- with interest at the rate of 10.10% p.a. with monthly rests. The Defendants are also liable to pay additional 2% interest p.a. over and above normal interest in case of default in repayment.

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4. Further, the 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 accounts regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the TA by the Applicant Bank.

5. The Defendant^side after utilising the said loans has failed and neglected to make the repayment of the loan dues as agreed and Defendants have not serviced the interest thereon as per the terms and condition agreed by the Defendant. The Defendants have failed to regularise the loan accounts and hence the Applicant Bank has classified the loan accounts as Non-performing Asset on 04.05.2017. Hence the recovery process is initiated to recover the dues.

6. In the light of these factors, it is contended by the Applicant Bank that Defendants are liable to pay a total sum of **Rs.22,78,387/- (Rupees twenty-two lakhs seventy-eight thousand three hundred and eighty-seven only)**.

7. After filing this TA, summons was sent and served to the Defendant No.2 through RPAD. Defendant No. 1

4TA No. 71/2020

remained unserved and returned with postal remarks "**Addressee Left**". When the Defendant~~s~~ are called out, the Defendants remained absent and placed ex parte.

8. To prove the case of the Applicant Bank, it's Chief Manager, Sri Narshimha Murthy, has filed his 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 12 documents came to be marked at Ex.A3 to A14.

9. No evidence on behalf of the Defendant~~s~~.

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

11. 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?

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

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REASONS

13. The Chief 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 A14 which clearly establish the case of the Applicant Bank to allow the present TA. Added to this, the Defendants have remained absent, hence it is to be construed that Defendants have admitted the entire case pleaded by the Applicant Bank in the present TA.

14. Therefore, for these reasons, present TA is to be allowed with costs as sought by the Applicant Bank.

ORDER

Present TA stands allowed with interest with costs.

The Defendants are liable to pay to the Applicant in a sum of **Rs.22,78,387/-** with pendent lite and future interest at the rate 10% p.a. from the date of application till realization.

In the event of failure of the Defendant to pay the said TA amount, the Applicant Bank is at liberty to sell the schedule movable properties as mentioned in the schedule of 6TA No. 71/2020

the main TA, in accordance with law as sought by the Applicant Bank in the TA.

In spite of sale of the schedule movable properties, as mentioned in the schedule of the main TA, if the TA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the person and other property of the Defendant in accordance with law.

Applicant Bank shall file latest 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 realised 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 as sought by the Applicant Bank in the TA 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 parties concerned.

(Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 30^th day of September, 2024)

**(Imtiaz Ali)** **Presiding Officer** **DRT-I, Bengaluru**

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TA No. 71/2020

**ANNEXURES**

**Witness Examined for the Applicant Bank:**

AW-1 : Sri Narshimha Murthy The Chief Manager of Applicant Bank

**List of Documents Exhibited for the Applicant Bank:**

Ex.A-1 : Affidavit of AW-1 Ex.A-2 : List of Documents Ex.A-3 to A14 : 12 documents

**Witness Examined for the Defendant:**

- Nil -

**List of Documents Exhibited for the Defendant:**

- Nil -

*F30.9.24* **(Imtiaz Ali)** **Presiding Officer** **DRT-I, Bengaluru**

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