KARNATAKA BANK LIMITED vs Raju Monu Kharvi on 20 June 2020

FINAL ORDER

t. The present OA was filed in DRT-2, Bengaluru and later transferred to DRT-1, Bengaluru in the light ofjurisdiction and re- numbered 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.50,68,555/- besides future interest etc. The case of the aPPlicant principal borrower. The bank is that, the defen ?,, the nt No.1 stood defendants No.2 to

TA 9of2019 guarantors for the loan availed by the defendant No.1. The defendant No.1 had approached the applicant bank for sanction of Term Loan of Rs.50,00,000/- for purchasing second hand fishing boat and fishing net. Accordingly, the request ofthe defendant No.1 was considered and the applicant bank had sanctioned the Term Loan of Rs.50,00,000/- under Loan A/c No.4087001800030701 on Ls/07 /2077.

3. The defendants have executed necessary documents such as, Term Loan Agreement, Deed of Mortgage, Hypothecation Agreement and Guarantee Letters etc.

4. The defendants have agreed to repay the Term Loan of Rs.50,00,000 /- in 62 installments with interest.

5. Further, the defendants agreed to pay interest 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 account regular installments as and when due to the satisfaction of the appli bank, as detailed in the OA by the applicant bank.

6. The Defendants after utilizing the entire loan proceeds for the above said purpose have failed to make the repayments of the loan dues as agreed and they have not serviced the interest thereon as per the terms and conditions agreed by the defendants. The defendants have become chronic defaulters in the loan account and hence the account was classified as NPA on 20/03/201,9. Thereafter the applicant bank has issued Notice dated 1,6 /04 /2019 to the defendants and defendants did not take any steps to clear the dues and hence the recovery process is initiated to recover the dues.

7. In the light ofthese factors, it is contended by the applicant bank that, defendants are liable to pay a total sum of Rs.50,68,555 /-.

8. After filing the OA, summons were sent and served on the defendants through RPAD, and when the defendants were called out, the defendants remained absent and placed ex-parte.

9. To prove the case of the applicant bank, its Manager -Sri Padma Prasad Alva has filed his affidavit by way of ence same was considered as evidence of AW1 and marked Ex.A1

TA 9of20l9 list of documents came to be marked at Ex.AZ and 9 documents came to be marked at Exs.A3 to 411.

10. No evidence on behalfofthe defendants.

1.7. Arguments of Learned Counsel for the Plaintiff/applicant bank heard and perused the records of the case.

72. Following points arise for my consideration: 1J Whether Plaintiff/applicant bank proves its case as contended in the plaint/application? 2J What order?

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

REASONS

74. The Manager of the applicant bank came to be examined as AW1. His affidavit by way of evidence reiterated the facts pleaded in the plaint and his affidavit is also corroborated by the above referred ExA3 to A11 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 co they have admitted the entire case pleaded by the ap as sought in the present TA.

15. 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 of defendants to pay the said TA amount, the applicant bank is at liberty to sell the hypothecated assets and mortgaged property described in the Schedules-'A' and 'B' of the main petition according to law as sought by the applicant bank in the TA. In spite of sale of the hypothecated assets and mortgaged property described in the Schedules-'A' and 'B' of the main petition, if the TA amount is not fully realized, then the applicant bank is at liberty to proceed against the person and other properties of the defendants as required under law and also as advised. Applicant Bank shall file fresh Memo of calculati amount together with interest, costs etc., to be paid duly taking into account the amount/s if any paid by defendan e defen and/or amount realized by sale of assets, etc., during intervening period after filing the TA, to enable the office prepare Recovery Certificate for the amount to be paid by 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 law forthwith. (Dictated to the Steno, transcribed by him and after necessary signed and pronounced by me in the open Court on this the 20th day 2020). K.RAVINDRAN NAIR Presiding Officer DRT-I,Bengaluru ANNEXURES Witnesses Examined for the Applicant : AW1:Sri Padma Prasad Alva, Manager of the applicant bank. List of Documents Exhibited for the Applicant: the to the ), Ex.A1 Ex A2 Exhs.A3 to 411 : Affidavit of AW1 : List of Documents : 9 Documents K.RAVINDRAN NAIR Presiding Officer DRT-1, Bengaluru. Witness Examined for the Defendants :