KARNATAKA BANK LIMITED vs Prashant Harischandra Kharvi on 3 August 2022

FINAL ORDER

1. The present OA has been flled by the Applicant Bank \ TA.No.7/2019 under Section 19 of the Recovery of Debts and Bankruptry Act, 1993, seeking recovery of money of Rs.37,87,576/- (Rupees Thirty Seven Lakh Eighty Seven Thousand Five Hundred Sixteen only) together with cosb, interest, etc.

2. The case of the Applicant Bank is that the Defendant No.1 as borrower and DefendanB No.z to 8 as guarantors had approached the Applicant Bank to sanction Term Loan. The Applicant Bank considered the request and sanctioned Term Loan of Rs.50,00,000 /- on 28.17.2016, in terms of the ban agreements. In order to secure the ban, the Defendants have executed documenE, viz., Sanction Lette[ Term Loan Agreement, Deed of Mortgage, Hypothecation Agreement, Guarantee Letter Series etc.,

3. Furthe[ the Defendanb have agreed to repay the above ban with variabb rate of interest, as applicabb 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 accounE regular by paying installmens as and when due to the satisfaction ofthe Applicant Banh as detaibd in the 0A by the Applicant Bank.

4. The Defendant after utilising the said ban have faihd and neglected to make the repayment of the ban due as agreed and Defendant has not serviced the interest thereon as per the terms and condition agreed by the Defendans. The Applicant Bank has issued Notice on 02.08.2018 to the Defendanb. In spite of receipt of Notice the DefendanB have failed to pay the oubtanding dues and hence the recovery process is initiated to recover the dues.

5. In the Iight of these factors, it is contended by the Applicant Bank that Defendants are liabb to pay a total sum of Rs.37,87,516/- (Rupees Thirry Seven Lakh Eighty Seven Thousand Five Hundred Sixteen only).

6. After filing this OA. Summons were sent and served to DefendanB No.1 to 7 through RpAD and Summons sent to Defendant No.8 remained unserved and returned with postal remarks 'Addressee Refused". Hence service heH sufficient. When DefendanB were called out, Defendants remained absent and placed as ex parte.

7. To prove the case of the Applicant Bank, ib Manage4,

10. TA-No.7/2019 Sri Goutham Shetty, has fibd his affidavit by way of evidence and same was considered as evidence of AW.1 and marked at Ex.A1 and List of DocumenB came to be marked at Ex.A2 and 9 documenB came to be marked at Ex.A3 to 11.

8. No evidence on behalfofthe Defendants.

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

2) What Order?

11. For the following reasons, I answer the above-referred poinb in the folhwing manner:

REASONS

72. The 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 .A11 which clearly establish the case of the Applicant Bank to allow the present OA. 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 properties, if the OA 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 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. 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 10ft day ofAugust, 2022) \**'u (IMTIAL ALI) PRESIDING OFFICER DRT-I, Bengaluru t ANNEXURES Witness Examined for the Applicant Bank: AW-1 : Sri Goutham Shetty 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-11 : 9 documents Witness Examined for the Defendants:

- Nil- . NiI . \,,'s'o' (rMrrAz Arr) PRESIDING OFFICER DRT-I, Bengaluru SG