KARNATAKA BANK LIMITED vs VICTOR on 29 October 2026

: - FINAL ORDER- :

1. This Original Application is filed on 06.08.2021 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.1,20,75,875.21p (Rupees One Crore Twenty

Lakh Seventy Five Thousand Eight Hundred and Seventy Five and Twenty One Paise only) as follows: i. A sum of Rs.1,01,34,872.19 due in respect of Term Loan (A/c No.4637001600830301) repayable together with further interest @ 9.1% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs.19,41,003.02p due in respect of Term loan (A/c No.4637001600830601) repayable together with further interest @ 10.2% p.a. with monthly rests from the date of Application till the date of realization in full; for sale of schedule mentioned immovable property and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.31 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.31 of 2022 stood transferred to this Tribunal and renumbered as TA No.341 of 2023. Brief Facts of the case:

3. The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

4. It is the case of the applicant bank that the 1st defendant had approached the applicant bank for Housing Loan for purchasing the

schedule mentioned property. Considering the said request, the applicant granted Term Loan of Rs.81,00,000/- on the terms and conditions stipulated in applicant’s sanction letter Ref: AGMS/R500/29291/2018-19 dated 26.10.2018. Such terms interalia required that the 2nd defendant be the guarantor in respect of repayment of such facility. The mode of repayment will be in 240 Equated Monthly Instalments of Rs.72,878/- together with interest @9.00%p.a. The rate of interest is rising or falling with the MCLR as fixed by the bank from time to time. The defendants have agreed to repay the loan amount together with interest @0.45% above the Karnataka Bank’s MCLR revised from time to time. In case of default in the making the repayment, the defendants agreed to pay the 5% penal interest on the defaulted sum.

5. The applicant bank submits that accepting the said terms and conditions, the 1st defendant had availed the aforesaid Housing Loan and purchased the schedule mentioned property being Residential Flat No. C in the 1st floor measuring 2043sq.ft of super built up area (inclusive of common area and covered car parking in stilt floor) of the apartment known as KRISH CROCUS morefully described in the OA schedule. In consideration therefore and towards securing the due repayment, the defendants executed the following documents in favour of applicant bank: i. Term Loan Agreement executed by 1st & 2nd defendants dated 08.11.2018 ii. Letter of declaration executed by 1st defendant dated 08.11.2018

iii. Letter of declaration executed by 2nd defendant dated 08.11.2018 iv. Consent letter executed by 1st defendant dated 08.11.2018 v. Consent letter executed by 2nd defendant dated 08.11.2018

6. The applicant submits that under the Term Loan Agreement dated 08.11.2018, the 1st defendant undertook to effect repayment of the above facility in 240 equated monthly instalments of Rs.72,878/- together with interest thereon @9.00% p.a. compounded monthly and the 2nd defendant had guaranteed the repayment. The rate of interest is rising or falling with the MCLR as fixed by the bank from time to time. Towards securing the repayment, the 1st defendant had executed equitable mortgage of the schedule mentioned property in favour of the applicant under Memorandum of Deposit of Title Deeds dated 15.11.2018 registered as Doc.No.12202 of 2018.

7. It is the further case of the applicant bank that the 1st defendant had availed another Term Loan of Rs.15,75,000/- under A/c No.4637001600830601 sanctioned vide Ref No. CMRS/RLPC/500/ 35062/2018-19 dated 03.12.2018 for the purpose of Home Interior works in the schedule mentioned property. The 2nd defendant stood as the guarantor in respect of repayment of such facility. The mode of repayment will be in 120 equated monthly instalments of Rs.21,033/- together with interest thereon @10.25% p.a. compounded monthly. In case of default in making the repayment the defendants had agreed to pay 5% penal interest on the defaulted sum.

8. It is submitted by the applicant bank that towards securing the repayment the defendants have executed the following documents: i. Term loan agreement executed by 1st & 2nd defendants dated 05.12.2018 ii. Letter of authority executed by 1st defendant dated 05.12.2018

9. The applicant submits that under the Term Loan agreement dated 05.12.2018, the 1st defendant undertook to effect repayment of the above facility in 120 equated monthly instalments of Rs.21,033/- together with interest thereon @10.25% p.a. compounded monthly and the 2nd defendant had guaranteed the repayment. The rate of interest is rising or falling with the MCLR as fixed by the bank from time to time. Towards securing the repayment the 1st defendant had executed Letter of Authority dated 05.12.2018 ensuring the aforesaid mortgage by deposit of title deeds dated 15.11.2018 registered as Doc.No.12202 of 2018

10. It is submitted by the applicant bank that subsequent to availing of the above credit facilities, the 1st defendant was most irregular in effecting repayment and both the defendants have failed to set right the matter despite repeated requests and reminders. Consequently, both the loan accounts slipped into Non-Performing Asset (NPA) on 07.08.2019. The applicant caused Legal Notice dated 13.02.2020 calling upon the defendants to effect repayment of the entire outstanding balance as on date. Although notice has been served on both the defendants, they failed

to comply with the terms of such notice.

11. The applicant submits that as on 03.08.2021, the 1st defendant as the borrower and the 2nd defendant as the guarantor are liable to pay a sum of Rs.1,01,34,872.19p under Term Loan account no. 4637001600830301 together with interest @9.1% p.a. compounded monthly and a sum of Rs.19,41,003.02/- under the term loan account No.4637001600830601 together with interest @10.2% p.a. compounded monthly. Despite repeated requests and demands, as defendants did not come forward to repay the dues, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

12. After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served in respect of D-1, while summons to D-2 returned with postal endorsement as ‘No such person’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 06.02.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 06.02.2024. Heard the submissions of Applicant Bank and perused the records.

13. To prove the case of the Applicant Bank, Mr. Fiyaz Ahmed, Chief Manager of the Applicant Bank, filed Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to

be marked as Ex A-1 to A-17.

14. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-17 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

15. The defendants were set ex-parte on 06.02.2024, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

16. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.65,53,800/- by way of sale of Schedule immovable property A & B under SARFAESI Act on 23.08.2024. Accordingly, part satisfaction of sum of Rs.65,53,800/- was duly recorded vide proceedings dated 30.06.2025 and documents marked as Ex A-12, A- 14 and A-15 were returned to applicant bank on 07.07.2025 under proper acknowledgement.

17. With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

: O R D E R :

18. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, a total sum of Rs.1,20,75,875.21p (Rupees One Crore Twenty Lakh Seventy Five Thousand Eight Hundred and Seventy Five and Twenty One Paise only) as follows: i. A sum of Rs.1,01,34,872.19 due in respect of Term Loan (A/c No.4637001600830301) repayable together with further interest @ 9.1% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs.19,41,003.02p due in respect of Term loan (A/c No.4637001600830601) repayable together with further interest @ 10.2% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this OA.

(b) The sum of Rs.65,53,800/- realized by way of sale of mortgaged property is directed to be given credit to the borrower’s

loan account as on date of realization.

(c) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

(d) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

(e) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

19. A copy of this order be communicated to the parties concerned.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 29th day of October, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr.Fiyaz Ahmed, Chief Manager of the Applicant Bank

Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 26.10.2018 Sanction order (T/L 8303) A-1

2. 08.11.2018 Term loan agreement A-2

3. 08.11.2018 Letter of declaration A-3

4. 08.11.2018 Letter of declaration A-4

5. 08.11.2018 Consent letter A-5

6. 08.11.2018 Consent letter A-6

7. 03.12.2018 Sanction order (T/L 83066) A-7

8. 05.12.2018 Term loan agreement A-8

9. 13.02.2020 Legal notice A-9

10. - Acknowledgement card A-10

11. - Acknowledgement card A-11

12. 15.11.2018 Memorandum of deposit of title deeds (Doc.No.12202 of 2018) A-12

13. 05.12.2018 Letter of authority A-13

14. 03.10.2018 Sale deed in favour of C.V Victor executed by R.Vasanthi A-14

15. 21.08.2018 Construction agreement between C.V.Victor and M/s Krish Homes (Doc.No.11388 of 2018) A-15

16. - Account statement with certificates (T/L

A-16

17. - Account statement with certificates (T/L

A-17

Witness Examined for the Defendants: -Nil- List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE-: The mortgaged property has been sold under the SARFAESI Act

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI