STATE BANK OF INDIA vs SRI. BASAVARAJ on 27 November 2020

FINAL ORDER

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 1993, seeking recovery ofmoney ofRs.41,00,083/- fRupees DEFENDANT one lakh eighty-three only) besides future interest etc. Act,

TArT/2020 Z. The case of the applicant bank is that the defendant had approached applicant bank for sanction of Agricultural Cash Credit Ioan for Agriculture of Paddy crop with its allied activities' The applicant bank considered the request and sanctioned following Loans as detailed below: Agricultural Cash Credit Loan of Rs'1,20,000/- sanctioned on 15.06.2009. Defendant agreed to repay the loan within 3 years, subject to renewal every year' Defendant hypothecated crops cultivated in the schedule'B' property' Agricultural Term Loan viz. Consumption Loan of Rs.4,75,000/- sanctioned on 19.06.2009' Defendant agreed to repay the loan within 10 half yearly installments of Rs.47,500/- plus interest towards Consumption Loan' Agricultural Term Loan of Rs.4,75,000/- sanctioned on tg.O6.2OOg. Defendant agreed to repay the loan with installments of Rs.47,500/- plus interest towards ATL with interest at the rate of 13.25o/o. Defendant hypothecated crops cultivated in the schedule'B' property'

iv) Agricultural Cash Credit was rephased for Rs'1,20,000/- (A/c No.52098997871) with outstanding Rs.Z,04,285/- on 29.03.201'3. Accordingly account had been opened for a new Iimit of B's'2,16,000 ii) iiD : No. 62277666974, *t".9{n t/ amount of

TALU2O20 outstanding amount of the Agricultural Cash Credit account had been closed. vl Agricultural Term Loans (A/c No.62103517803 and 62099403389J rephased on 11.06.2013 with one rephased account with a limit of Rs.8,15,000/- with A/c No.62285586597. Defendant had accepted the terms and conditions of the sanction letter. Defendant has executed Loan Applications, Sanction Letters for Agricultural Cash Credi! Hypothecation Agreements for Agricultural Cash Credi! Mortgage Deed, Revival Letters, Request Letters for Rephasement etc.

3. Further, defendant agreed to repay the above loans 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 bank, as detailed in the TA by the applicant bank.

4. The defendant after utilizing said loans failed repayment of the loan dues as agreed and d to serviced the interest thereon as per the terms TAtll2O2O agreed by the defendant. Even after rephasement of the Agricultural Cash Credit and Agricultural Term Loans defendant failed to remit the periodical installments and interest charged to the accounts with monthly rests' The applicant bank has issued Demand Notice dated 03.04.2015 to the defendant to clear the dues, for which the defendant has not taken any steps to clear the duesandhencetherecoveryprocessiSinitiatedtorecoverthe 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'41'00'083/- [Rupees forty-one lakh eighty-three only)'

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

7. To prove the case of the applicant banh its Chief Manager- Sri. S N Murthy has filed his affidavit by way of evidence and same was considered as evidence of AW'1 and marked at of Documents came to be marked at Ex'A2 an came to be marked at Ex.A3 to AZ4' 22 docum

8. No evidence on behalfofthe defendant. TA1,1/2O2O

9. Arguments of Learned Counsel for the plaintiff/ applicant bank heard and perused the records of the case.

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

2) What order?

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

REASONS

72. The Chief 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 A24 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 with costs as sought by the applicant bank. to be all

TAtu2020

ORDER

Present TA stands allowed as prayed for with interest and costs. IntheeventoffailureofthedefendanttopaythesaidTA amount, the applicant bank is at liberty to sell the schedule properties described in schedules of the main petition according to law as sought by the applicant bank in the TA' 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 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 enabl to prepare Recovery Certificate for the amount to be defendant to the aPPlicant bank' paid the

TArT/2O2O 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, pronounced by me in the open Court on this the 27th day of November, 2020). (K.RAVINDRAN NAIR) Presiding Officer DRT-I, Bengaluru ANNEXURES Witness Examined for the Applicant: AW1: Sri. S N Murthy, Chief Manager, Applicant Bank List of Documents Exhibited for the Applicant : Ex.A-1 : Ex.A-2 : Ex.A-3 to A-24 : Affidavit of AW-1 List of Documents 22 Documents Witness Examined for the Defendant:

- Nil- List of Documents Exhibited for the Defendant:

- Nil- (r(RAVTNDRAN NArR) Presiding Officer DRT-I, Bengaluru