KARNATAKA BANK LIMITED vs Ashok Ganapati Tandel on 20 June 2020

FINAL ORDER

7. The present OA was filed in DRT-ll' Bengaluru and later transferred to DRT-I, Bengaluru, in the light of jurisdiction and renumbered as TA. The applicant bank has filed this application under section 19 of The Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of Rs'20'93'280/- (Rupees twenty lakhs ninety-three thousand two hundred eighty only) besides future interest etc.

2. The case of the applicant bank is that the defendant No'1 had approached the applicant bank for credit facility in the form of Term Loan for purchasing fish net' The applicant bank considered the request and sanctioned loan of Rs'24'00'000/- on

07. t1.2076 in A/c No.4087001800029001' Defendan agreed to pay interest at the rate of 70'70o/o p'a' interest 5o/o p.a. and agreed to pay loan in 60 d penal

rA8/2Ot9 Defendants No.2 to 5 stood as guarantor for the said loan. Defendants have accepted the terms and conditions of the sanction letter. Defendants have executed Loan Application, Sanction Letter, Term Loan Agreement, Deed of Mortgage, Hypothecation Agreement Guarantee Letters etc.

3. Further, defendants agreed to repay the above loan 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 ofdefault and keep the account regular by paying installments as and when due to the satisfaction of the applicant banh as detailed in the TA by the applicant bank.

4. The defendants after utilizing said loan failed to make repayment of the loan dues as agreed and defendants have not serviced the interest thereon as per the terms and conditions agreed by the defendants. The loan account became NpA on 28.72.2078. The applicant bank has issued Notice dated 05.03.2019 to the defendants to clear the dues, for defendants have not taken any steps to clear the du the recovery process is initiated to recover the dues. and hen

5. In the light ofthese factors, it is contended by the applicant bank that, defendants are liable to pay a total sum of Rs.20,93,280/- fRupees twenty lakhs ninety-three thousand two hundred eightY onlYJ'

6. After filing this TA, summons were sent and served on the defendants through RPAD, and when defendants were called out' defendants remained absent and placed as ex parte'

7. To prove the case of the applicant banh its Manager-Sri' Padma Prasad Alva 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 8 documents came to be marked at Ex'A3 to A10'

8. No evidence on behalfofthe defendants' g. Arguments of Learned Counsel for the plaintiff/ applicant bank heard and perused the records of the case'

10. Following points arise for my consideration:

1) Whether Plaintiff/applicant bank proves contended in the plaint/application?

2) What order?

LL. For the following reasons, I answer the points in the following manner: "t

REASONS

TAA/2019

12. The Manager of the applicant bank came to be examined as AW1. His affidavit by way of evidence reiterates the facts pleaded in the plaint and his affidavit is also corroborated by the above referred Ex.A3 to A10 which clearly establish the case of the applicant bank to allow the present TA. 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 as sought in the present TA.

13. Therefore, for these reasons, present TA is to be allowed with costs as sought by the applicant bank.

ORDER

Present TA stands allowed as prayed for with interest and costs. In the event of failure ofthe defendants to pay the said amount, the applicant bank is at liberty to sell the TA ule properties described in the schedules of the according to law as sought by the applicant bank in peti e TA.

TAA/2Ot9 In spite of sale of the schedule properties mentioned in the schedules, if the TA amount is not fully realized, then the applicant bank is at liberty to proceed against the person and other properties ofthe defendant as required under law and also as advised. Applicant Bank shall file latest Memo of calculation of TA 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 realized by sale of assets, etc', during the intervening period after filing the TA, 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 TA and do the needful as required under the law forthwith. fDictated to the Stenographer, after its transcription and necessary corrections' ;;;;;H ;;;1"1i" 5p", c"," on rhis th; 2o'l' dav or lune'zozo) ,/! Presiding Oflicer DRT-I, Bengaluru (K.RAVINDRAN

ANNEXURES Witness Examined for the Applicant : AW1: Sri. Padma Prasad Alva, Manager, Applicant Bank List of Documents Exhibited for the Applicant : : Affidavit of AW-1 : List of Documents

(K.RAVINDRAN NAIR) Presiding Officer DRT-I, Bengaluru Ex.A-1 Ex.A-2 Ex.A-3 to A-10 : 8 Documents Witness Examined for the Defendants:

- Nil- List of Documents Exhibited for the Defendants:

- NiI-