STATE BANK OF INDIA vs Rayappa Vittal Ninganur on 19 July 2022

FINAL ORDER

7. The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of Debs and Bankruptry Act, 1993, seeking recovery of money of Rs.46,50,538/- (Rupees Forty Six Lakh Fifty Thousand Five Hundred Thirty Eight onlyJ together with cosb, interest, etc.

2. The case of the Applicant Bank is that the Defendant No.1 as borrower through his father Vittal Siddappa Ninganur as Defendant No.1 was Mino4 in 2008 he attained majority and now he is around 30 years and Defendant No.2 as Nahrral Guardian for Defendant No.1 had approached the Applicant Bank for grant of Agricultural Term Loan, Cash Credit Facility and KCC Loan. The Applicant Bank considered the request and sanctioned Agricultural Term Loan of Rs.9,20,000/- on 75.07.2006, Cash Credit Loan of Rs.2,00,000/- and the said Cash Credit Loan has been closed and KCC of Rs.4,00,000/- on 01.06.2009. Further the Term Loan been rephased on 26.03.2017 where the overdue portion in a sum of Rs.6,58,000/- is credited to the original account No.64005726429 and debited to the rephased account number \

64075750405 and the said rephased account is herein after referred to as Rephased Account, in terms of the ban agreemenB. In order to secure the bans, the DefendanB have executed documen$, viz., Sanction Lette[ Hypothecation Agreement, Registered Mortgage Dee4 Encumbrance Certificate, Balance Confirmation Letter etc.

3. Further, the DefendanB have agreed to repay the above bans with variable rate 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 keep the accoun6 regular by paying installments as and when due to the satisfaction of the Applicant Banh as detailed in the OA by the Applicant Bank.

4. The Defendants after utilising the said bans have failed and neglected to make the repayment of the bans due as agreed and Defendants have not serviced the interest thereon as per the terms and condition agreed by the Defendanb. The Applicant Bank has sent Notice to the Defendants. In spite of receipt of Notice, the Defendants have failed to pay the TA.No.3sl2020 oubtanding 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 DefendanB are liabb to pay a total sum of Rs.46,50,538/- (Rupees Forty Six Lakh Fifty Thousand Five Hundred Thirty Eight onlyJ.

6. After filing this OA, Summons were sent and served to all the Defendans through RPAD. When Defendans were calhd out, DefendanE remained absent and placed as ex parte.

7. To prove the case of the Applicant Bank, its Chief Manager, Sri Binoy Kumar Srivastava, has filed his affidavit by way of evidence and 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 15 documents came to be marked at Ex.A3 to 17.

8. No evidence on behalfofthe DefendanB.

9. Argumenb of Applicant Bank heard Learned Counsel and perused the for the Plaintiff / records of the case. 4

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10. Following poinB arise for my consideration:

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

2) What Order? 71.. For the following reasons, I answer the above-referred points in the folbwing manner:

REASONS

72. 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 A17 which clearly establish the case of the Applicant Bank to allow the present OA. 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 OA.

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

ORDER

Present OA stands allowed as prayed for with interest and costs.

In the event of failure of the Defendants to pay the said 0A amount, the Applicant Bank is at liberty to sell the Schedule properties in accordance with Iaw as sought by the Applicant Bank in the 0A. In spite of sale of the schedule properties, if the 0A amount is not fully realised, then the Applicant Bank is at liberty to proceed against the person and other property ofthe 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 Defendants duly taking into account the amount/s, if any, paid by the Defendants 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 Defendants to the Applicant Bank. 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 parties concerned. (Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 19th day of J\ly,2022) o,,Xo,r PRESIDING OFFICER DRT-I, Bengaluru ANNEXURES Witness Examined for the Applicant Bank: AW-1 : Sri Binoy Kumar Srivastava Chief Manager of APPlicant Bank List of Documents Exhibited for the Applicant Bank: Ex.A-1 Ex.A-2 : Affidavit of AW-1 : List of Documents Ex.A-3 to A-17 : 15 documents Witness Examined for the Defendants:

- Nil-

- Nil- \nno' IIMTIAVALI) PRESIDING OFFICER DRT-I, Bengaluru SG