STATE BANK OF INDIA vs Shivanaguda B Patil 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'48,89,018/- (Rupees Forty Eight Lakh Eighty Nine Thousand Eighteen only) together with costs, interest, etc'

2. The case of the Applicant Bank is that the DefendanB had approached the Applicant Bank for grant of ATL Facility and KCC Facility. The Applicant Bank considered the request and sanctioned ATL Facility of Rs'10'00'000/- on 31'03'2009 and KCC Facility of Rs'2,00,000/- on15'07'2009' Further the ATLaccountbeenrephasedon25.0g.20l2andtheApplicant Bank segregated a sum of Rs'10'34'000 l- and credited to rephased account bearing No'64105476791 and the said amount is debited to the Original ATL Account bearing No.6404232612L, interms of the loan agreements' In order to secure the bans, the DefendanE have executed documenB' viz'' Sanction Lettef, Hypothecation Agreement' Registered Mortgage Deed, Encumbrance Certificate' Interest Cabulation Sheet etc'

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3. Furthe[ 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 / Cental Office of the Applicant Bank and penal interest in case of default and keep the accounE regular by paying installmenB as and when due to the satisfaction of the Applicant Bank, as deaibd in the OA by the Applicant Bank.

4. The Defendanb after utilising the said bans have failed and neghcted 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 Legal Notice on 20.09.20L2 to the DefendanB. In spite of receipt of Legal Notice, the DefendanB have faibd to pay the outstanding 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.48,89,018/- (Rupees Forty Eight Lakh Eighty Nine Thousand Eighteen onlyJ.

6. After filing this 0A, Summons were sent and served to all the Defendants through RPAD. When Defendants were called out, DefendanE remained absent and placed as ex parte.

7. To prove the case of the Applicant Banh 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 14 documents came to be marked at Ex.A3 to 16. B. No evidence on behalfofthe Defendants.

9. ArgumenB of Learned Counsel for the Plaintiff / Applicant Bank heard and perused the records of the case. Folbwing poinB arise for my consideration: 1l Whether Plaintiff / Applicant Bank proves its case as contended in the plaint / application?

2) What Order? 7L. For the folbwing reasons, I answer the above-referred poinb in the folbwing manner:

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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 A16 which clearly establish the case of the Applicant Bank to allow the present 0A. Added to this, the Defendants have remained absen! 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 OA amount the Applicant Bank is at liberty to sell the Schedule properties in accordance with law as sought by the Applicant Bank in the OA. \ In spite of sale of the schedule amount is not fully realised, then the properties, if the OA 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 0A 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 offuly, 2022) u,,k,*u 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 : Affidavit of AW-1 Ex.A-Z : List of Documents Ex.A-3 to A-16 : 14 documents Witness Examined for the Defendants:

- NiI . List of Documents Exhibited for the Defendants:

- NiI- \nn oo OMTIAYALD PRESIDING OFFICER DRT-I, Bengaluru SG