CANARA BANK (SYNDICATE BANK) vs Ms Shreya Die Casting Industries on 29 October 2020

FINAL ORDER

1,. The present OA was filed in DRT-ll, Bengaluru and later transferred to DRT-I, Bengaluru, in the light of jurisd on and applica renumbered as TA. The applicant bank has filed th TAs/2Or9 under Section 19 of The Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of Rs.14,30,323.17 [Rupees fourteen lakhs thirty thousand three hundred and twenty-three and paise seventeen only) besides future interest etc.

2. The case of the applicant bank is that the defendant is a Proprietor engaged in the Die Casting business, running under the name Shreya Die Casting Industries and had approached the applicant bank for financial assistance under Term Loan account classified as OSL/TL MSE Loan. The applicant bank considered the request and sanctioned loan of Rs.19,75,000/- in A/c No.04507910000501 for smooth running of the business' Defendant agreed to repay the loan with interest at the rate of l3o/o p.a. and agreed to pay overdue interest @ 2o/o. As primary security defendant hypothecated stock in trade in favour of applicant bank. Defendant had accepted the terms and conditions of the sanction letter. Defendant has executed Loan Application, Process Communication Letter, Form ASD4, Composite Hypothecation Agreement, OG 28A & B etc.

3. Further, defendant agreed to repay the abo e loan wi variable rate of interest, as applicable from time to eas TA S/ZOr9 directions of the Head Office/Central Office of the applicant bank and penal interest in case of default and keep the account regular by paying installments as and when due to the satisfaction of the applicant bank, as detailed in the TA by the applicant bank.

4. The defendant after utilizing said loan failed to make repayment of the loan dues as agreed and defendant has not serviced the interest thereon as per the terms and conditions agreed by the defendant. The loan account became NPA on 13.09.2018. The applicant bank has issued Legal Notice dated 70.04.2079 to the defendant to clear the dues, for which the defendant has not taken any steps to clear the dues and hence the recovery process is initiated to recover the dues.

5. In the light ofthese factors, it is contended by the applicant bank that, defendant is liable to pay a total sum of Rs.14,30,323.17 (Rupees fourteen lakhs thirty thousand three hundred and twenty-three and paise seventeen only).

6. After filing this OA, summons was sent to the through RPAD, same has been returned un-served. S published through Paper Publication on 18.03.2020 NS WAS 'The N

TA s/2019 Indian Express' and 'Kannada Prabha' Newspapers. When defendant was called out, defendant remained absent and placed as ex parte. 7 . To prove the case of the applicant bank, its Manager-Sri. D. Srinivasulu 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 atEx.A2 and 8 documents came to be marked at Ex.A3 to A10.

8. No evidence on behalfofthe defendant.

9. Arguments of Learned Counsel for the plaintiff/ applicant bank heard and perused the records of the case. Following points arise for my consideration:

1) Whether Plaintiff/applicant bank proves its case as contended in the plaint/application? 2J What order?

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

REASONS

10.

12. The AW1. His Manager of the applicant bank came to be affidavit by way of evidence reiterates th T A 5 /20t9 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 OA. Added to this, the defendant has remained absent hence it is to be construed that defendant has 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 defendant to pay the said TA amount, the applicant bank is at liberty to sell the schedule property described in schedule of the main petition according to law as sought by the applicant bank in the 0A. In spite of sale of the schedule property mentioned schedule, if the TA amount is not fully realized, then the in licant bank is at liberty to proceed against the person and TA 5lzotg properties of the 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 defendant duly taking into account the amount/s if any paid by the defendant and/or amount realized by sale of assets, etc., during the intervening period after filing the 0A, to enable the office to prepare Recovery Certificate for the amount to be paid by the defendant 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. (Dictated to the Stenographer, after its transcription and necessary corrections, pronounced by me in the open Court on this the 29ft day of October 2020). (K.RAVTNDRAN NArR) Presiding Officer DRT-I, Bengaluru

11 : Affidavit of AW-1 : List of Documents TAS/ZOtg (K.RAVINDRAN NAIR) Presiding Officer DRT-I, Bengaluru ANNEXURES Witness Examined for the Applicant : AW1: Sri. D. Srinivasulu, Manager, Applicant Bank List of Documents Exhibited for the Anplicant : Ex.A-1 Ex.A-2 Ex.A-3 to A-10 : B Documents Witness Examined for the Defendant:

- Nil- List of Documents Exhibited for the Defendant:

- NiI-