CANARA BANK vs B.K. GARMENTS on 30 August 2021

FINAL ORDER

1. The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of Debe and Bankruptry Act, 1993, seeking recovery of money of Rs.23,33,176.40 [Rupees Twenty Three Lakh Thirty Three Thousand One Hundred Seventy Six and Paise Forty only) together with cosE, interest, etc.

2. The case of the Applicant Bank is that the Defendant No.1 which is a Proprietary Concern under the name and style of "B.K. Garmenb" represented by iE Proprietrix- Smt. Kavitha as Defendant No.1 and Defendant No.2 as guaranto4 had approached the Applicant Bank for the OSL/MSME Loan for the purpose of sab and manufachrre of readymade garmenB. The Applicant Bank considered the request and sanctioned OSL/MSME Loan of Rs.21,85,000/- on 10.05.2017 in terms of the ban agreemenB. In order to secure the ban, the DefendanB has executed documents, viz., Process Lettel Form ASD 4, Composite Hypothecation 28 A&B, ASD 6 Guarantee Agreement, Party's Le

3. Further, the DefendanB have agreed to repay the above ban with variable rate of interest, as applicable from time to time as per the directions of the Head Office / Cental Offlce of the Applicant Bank and penal interest in case of default and keep the accounB regular by paying installments as and when due to the satisfaction of the Applicant Bank, as deailed in the OA by the Applicant Bank.

4. The Defendans after utilising the said ban have failed and neglected to make the repayment of the loan due as agreed and Defendanb have not serviced the interest thereon as per the terms and condition agreed by the DefendanB' In view of the continued default, the loan account was classified as Non- Performing Asset on 28.08.2018. The Applicant Bank has sent Vakil Notice on26.03.2079 to the Defendans' Inspite of receipt of Vakil Notice, the Defendants have failed to pay the ouBtanding dues and hence the recovery process is initiated to recover the dues.

5. In the light of these factors, it is Applicant Bank that DefendanB are liabb to le of con pay totrl by

TA.No.1/2021 Rs.23,33,1.76.40 (Rupees Twenty Three Lakh Thirty Three Thousand One Hundred Seventy Six and Paise Forty only).

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

7. To prove the case of the Applicant Banh its Manager, Smt. Mytreyi has filed her 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 11 documents came to be marked at Ex.A3 to 13. B. No evidence on behalfofthe DefendanB.

9. ArgumenB of Applicant Bank heard Learned Counsel for the Plaintitr / and perused the records of the case.

10. Following points arise for my consideration:

1) Whether Plaintiff / Applicant Bank p as contended in the plaint / applicati

2) What Order?

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

REASONS

72. The Manager of the Applicant Bank came to be examined as AW.1. Her affidavit by way of evidence reiterated the facts pleaded in the plaint and her affidavit is also corroborated by the above-referred Ex.A3 to A13 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 OA amount, the Applicant Bank is at liberty to sell Schedul property in accordance with law as sought by Bank in the OA. eAp

Inspite of sale of the schedule property, 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 Defendants as required under law and also as advised. 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,for 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 30th day ofAugust, 2021) (K. RAVINDRAN Presiding Officer DRT-I, Bengaluru

ANNEXURES : SmL MytreYi Manager of APPlicant Bank

(K. RAVINDRAN NAIR Presiding Officer DRT-I, Bengaluru AW-1 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-13 : 11 documents Witness Examined for the Defendants:

- Nil- List of Documents Exhibited for the Defendants:

- Nil- SG Witness Examine