CANARA BANK (SYNDICATE BANK) vs MS SHREYA DIE CASTING INDUSTRIES on 29 October 2020

FINAL ORDER

TA6/2019

1. 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 Bankruptry Act, 1993, seeking recovery of money of Rs.1.4,99,241.43 (Rupees fourteen lakhs ninety-nine thousand two hundred and forty-one and paise forty-three only) besides future interest etc.

2. The case of the applicant bank is that the defendant No.1 is a Proprietor engaged in the Die Casting business, running under the name Shreya Die Casting Industries and had approached the applicant bank for Working Capital Loan account classified as S0D/SyndMSE Loan. The applicant bank considered the request and sanctioned loan of Rs.13,00,000/- in A/c No, 045014000000184 on 31.03.2019 for smooth running of the business. Defendants agreed to repay the loan with interest at the rate of 13o/o p.a. and agreed to pay overdue interest @ 2o/o. As primary security defendants hypothecated stock in favour of applicant bank. Defendants had accepted conditions of the sanction letter. Defendants have TA 6/2OL9 Application, ADV B0 A dated 08.1.1.201.6 Assets and Liabiliries Statement, Process Letter, Form ASD 4, ASD-6, Government of Karnataka, Directorate of Industries and Commerce Letter 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 ofthe Head Office/Central Office ofthe 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 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 73.09.2018. The applicant bank has issued Legal Notice dated 70.04.2079 to the defendants to clear the dues, for which the defendants has not taken any steps to clear the dues and hence the recovery process is initiated to recover the dues.

5. In the light of these factors, it is contended by applicant bank that, defendants are liable to pay a TA6/2Ot9 Rs.L4,99,247.43 (Rupees fourteen lakhs ninety-nine thousand two hundred and forty-one and paise forty-three onlyJ'

6. After filing this OA, summons was sent to the defendants through RPAD, same has been returned un-served' Summons was published through Paper Publication on L8'03'2020 in 'The New Indian Express' and 'Kannada Prabha' Newspapers' When defendants were called out, defendants remained absent and placed asexParte. 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 at Ex'A2 and !2 documents came to be marked at Ex'A3 to A14'

8. No evidence on behalfofthe defendants' g,ArgumentsofLearnedCounselfortheplaintiff/applicant bank heard and perused the records of the case'

10. Following points arise for my consideration: 1'l Whether Plaintiff/applicant bank prov contended in the plaint/application? ,' 2J What order? its case

TA 6 /2019

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

REASONS

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 A14 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 of the defendants to paythe said TA amount, the applicant bank is at liberty to sell the properties described in schedule of the main petition law as sought by the applicant bank in the OA.

TA 6/20t9 In spite of sale of the schedule properties mentioned in the schedule, 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 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 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 TA and do the needful as required under the law forthwith. (Dictated to the Stenographer, after its transcription and necessary corrections, signed pronounced by me in the Open Court on this the 29th day of October 20ZO). - -,-- Presiding Officer DRT-I, Bengaluru

ANNEXURES Witness Examined for the Applicant : AW1: Sri. D. Srinivasulu, Manager, Applicant Bank List of Documents Exhibited for the Applicant : : Affidavit of AW-1 : List of Documents TA6/2019 (K.RAVINDRAN NAIR) Presiding Officer DRT-I, Bengaluru Ex.A-1 Ex.A-2 Ex.A-3 to A-1,4 : 1,2 Documents Witness Examined for the Defendants:

- NiI . List of Documents Exhibited for the Defendants:

- Nil-