STATE BANK OF INDIA vs SRI. NEELAKANTA GOUDA H. PATIL on 29 October 2021

FINAL ORDER

1.. The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of DebB and Bankruptry Act, 1993, seeking recovery of money of Rs.42,63,893/- (Rupees Forty Two Lakh Sixty Three Thousand Eight Hundred Ninety Three onlyJ together with cosB, interest, etc.

2. The case of the Applicant Bank is that the Defendants had approached the Applicant Bank for Agriculture Term Loan and KCC Loan for purchasing Tractor and Trailer. The Applicant Bank considered the request and sanctioned Agriculture Term Loan of Rs.10,00,000/- on 31.03.2009 and KCC Loan of Rs.2,00,000/- for the purpose of growing sugarcane and ground nut, in terms of the loan agreemenb. In order to secure the bans, the Defendanb have executed documenB, viz., Sanction Lette4 Hypothecation Agreement Registered Mortgage Deed, Encumbrance Certifi

3. Furthel the Defendanb have agreed to pay th bans with variabh rate of interest, as applicable from time to time as per the directions of the Head Office / Cenffal Office of the Applicant Bank and penal interest in case of default and keep the accounts reguhr by paying installmenb as and when due to the satisfaction of the Applicant Banh as detailed in the OA by the Applicant Bank.

4. The Defendanb after utilising the said bans have faibd and negbcted to make the repayment of the bans due as agreed and Defendanb have not serviced the interest thereon as per the terms and condition agreed by the DefendanE. In view of the continued default, the loan account was chssified as Non-Performing Asset on 31.03.2012. The Applicant Bank has issued Legal Notice to the Defendants. In spite of receipt of Legal Notice, the DefendanB 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 Defendans are liable to pay a Rs.a2,63,893/- (Rupees Forty Two Lakh Sixty Eight Hundred Ninety Three only). tal sum

6. After filing this OA, Summons was sent to the Defendants through RPAD but returned with postal remarks "Refused", which is deemed to be sufficient service for Defendants. When Defendanb were calbd out, DefendanB remained absent and placed as ex pafte.

7. To prove the case of the Applicant Banh is Chief Manageq, Sri Binoy Kumar Shrivastava 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 Documents came to be marked at Ex.A2 and 14 documenB came to be marked at Ex.A3 to 16.

8. No evidence on behalfofthe DefendanE'

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

10. Following poinB arise for my considera

1) Whether Plaintiff / Applicant proves as contended in the plaint / aPP

2) What Order? cation?

LL. For the folbwing 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 A16 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 0A 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 properties in accordance with law as sought Bank in the OA. the

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 persons and other property of the 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. (Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 29d day ofOctober, 2021) (K. RAVTNDRAN NArR) Presiding Officer DRT-I, Bengaluru K

ANNEXURES Witness Examined for the Applicant Bank: AW-1 : Sri Binoy Kumar Shirvastava Chief Manager of Applicant Bank List of Documents Exhibited for the Applicant Bank: : Affidavit of AW-1 : List of Documents

(K. RAVTNDRAN NArR) Presiding Officer DRT-I, Bengaluru Ex.A-1 Ex.A-2 Ex.A-3 to A-16 : 14 documents Witness Examined for the Defendants: .Nit- List of Documents Exhibited for the Defendants: .Nil- SG