HDFC BANK vs SRI CHANNAVIRAPPA AMBLI on 12 September 2022

**FINAL ORDER**

1. 1. The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of Rs.20,21,310/- (Rupees Twenty Lakh Twenty One Thousand Three Hundred Ten only) together with costs, interest, etc.

2. 2. The case of the Applicant Bank is that the Defendant No.1 as Borrower, Defendants No.2 as Co-Borrower, Defendants No.3 to 5 as Guarantors have approached the Applicant Bank for grant of 3TA No.2/2021

Cash Credit Loan and Term Loan facilities. The Applicant Bank considered the request and sanctioned Cash Credit Loan-I of Rs.12,25,000/-, Cash Credit-II of Rs.4,90,000/- and Term Loan of Rs.75,000/- on 24.06.2013, 26.10.2014, 28.07.2017 and 03.11.2017 for the purpose of crop production etc., in terms of the loan agreements. In order to secure the loans, the Defendants have executed documents, viz., Sanction of Agriculture Credit Overdraft/ Cash Credit facility, Agreement for Overdraft/Cash Credit cum Guarantee cum Hypothecation, Mortgage Deed, Supplemental Agreement, Agreement for dropline overdraft cum Hypothecation cum Guarantee, Sanction Letter, Loan cum Hypothecation etc.

3. Further, the Defendants have agreed to repay the above loans 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 accounts regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the OA by the Applicant Bank.

4TA No.2/2021

4. The Defendants after utilising the said loans have failed and neglected to make the repayment of the loans due as agreed and Defendants have not serviced the interest thereon as per the terms and condition agreed by the Defendants. In view of the continued default, the loan accounts were classified as Non-Performing Asset on 16.03.2020. The Applicant Bank has issued Legal Notice on 16.03.2020 to the Defendants. In spite of receipt of Legal Notice the Defendants have failed 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 Defendants are liable to pay a total sum of Rs.20,21,310/- (Rupees Twenty Lakh Twenty One Thousand Three Hundred Ten only).

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

7. To prove the case of the Applicant Bank, its Deputy Manager, Sri Anantha B. has filed his affidavit by way of evidence 5TA No.2/2021

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 22 documents came to be marked at Ex.A3 to 24.

1. 8. No evidence on behalf of the Defendants.

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

3. 10. 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?

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

**REASONS**

1. 12. The Deputy 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 A24 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the 6TA No.2/2021

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 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 of the Defendant 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 7TA No.2/2021

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 12^th day of September, 2022)

**(IMTIAZ ALI)** **PRESIDING OFFICER** **DRT-I, Bengaluru**

8TA No.2/2021**ANNEXURES****Witness Examined for the Applicant Bank:**

AW-1 : Sri Anantha B. Deputy 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 A-24 : 22 documents

**Witness Examined for the Defendant:**

- Nil -

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

- Nil -

12.9.22 (IMTIAZ ALI) PRESIDING OFFICER DRT-I, Bengaluru

\*VS\*