Allowed

Karnataka Vikas Grameena Bank v. Sri Vishwachetana Vidya Samathe

DRT9 Nov 2023OA/1061/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by a bank for recovery of Rs. 2.01 crore principal, interest, and costs from a society and its officials for a defaulted educational loan facility, in their absence.

What did the court decide?

The OA is allowed with interest and costs; Applicant Bank permitted to sell schedule properties, realize remaining dues from other properties, and obtain a Recovery Certificate.

Karnataka Vikas Grameena Bank versus Sri… — Contract and Commercial Disputes | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA

¶2

AT BENGALURU

¶3

Dated this the 9th day of November, 2023

¶4

Presentr Sri Imtiaz Ali

Presiding Officer

OA No,1O61/2022

BETWEEN!

KARNATAKA VIKAS GRAMEENA BANK

Tippaikoppa Branch

Chalageri Building

Rattihalli Taluk

Haveri District - 581 210

¶13

Represented by its Branch llanager

¶14

Sri Vamsi Kiran Godavari

¶15

.. APPLICANT

¶16

ANDI

¶17

SRI VISHWACHETANA VIDYA SAMSTHE @ Having its Registered Office at; MASUR VILLAGE

¶18

Rattihalli Taluk

¶19

Haveri District - 581 210

¶20

Represented by its Chairman and Secretary,,

¶21

Sri Lachamappa Ramappa Lamani

¶22

Smt. Suma Lachamappa L

¶23

Sri Lachamappa Ramappa Lamani S/o Sri Ramappa Lamani Major by Age Residing at C/o Vishwachetana Vidya Samsthe Siddeshwar Nagar Masur village Rattihalli Taluk

¶24

Haveri District - 581 210

¶25

Presently residing at: No.23l 1 Vaagdana Nilaya,

¶26

¶27

oA No.1061/2022

¶28

Somashettihalli YeshwanthaPura^Hobli Bengaluru^{North Taluk} BENGALURU -^{560 O9O}

¶29

3.smt.Suma^{LachamaPPaLamani} W/o Sri LachamaPpa^Lamani Maior by^Age Reiiding at:^{C/o Vishwachethana} Vidya Samsthe Siddeshwar^Nagar Masur Village Rattihalli Taluk Haveri District -⁵⁸¹²¹⁰

¶30

PresentlY^residingat: No.23l1 Vaagdana^NilaYa, Somashettihalli YeshwanthaPura^Hobli Bengaluru^{North Taluk} BENGALURU -^{550 O9O}

¶31

4.Sri Gopalnaik^{Ramanaik Lamani} S/o Sri Ramanaik Aged about⁶¹ Years Residing at :Bannihatti^Village Hirekerur Taluk Haveri District^{- 581 210}

¶32

' DEFENDANTS

¶33

counsels on^{record/aDoearedforl} Applicant : Sri M Mohan^Rao Defendants^{No.1and 2} : Ex-Pafte

¶34

FINAL ORDER

¶35

The^{presentOA has been filed by the ApplicantBank} under Section^{19 of the Recoveryof Debtsand Bankruptcy} Act, 1993, seeking^{recovery of money of Rs'2'O1'O7A99l-} (Rupees two crore^{one lakh seven thousandfour}

¶36

¶37

oA No.1061/2022

¶38

hundred ninety^{nine only) togetherwithcosts,interest,} etc.

¶39

The case of the^{Applicant Bank is that, the Defendant} No.1 is a registered^{Associationregistered underthe} Karnataka Societies^{Registration Act. It isrunning} Educational Institution.^{The DefendantsNo.2 and 3 are its} chairman and Secretary^{respectively and theyhave} approached the^{Applicant Bank on 07.01.2016 for grant of} Term Loan^{FacilityRs.1,20,00,000/-for the purpose of} t. development of^{EducationalInstitutionand also to purchase} Tata School Bus.^{Accordingly, the Applicant Bank had} sanctioned a^Loan of^{Rs.1,00,00,000/-on 29.01.2016.The} Defendants No,2 and 3^{are borrowersand stood as} Guarantors in their^{individual capacity and the Defendant} No.4 also stood as Guarantor^{to the aforesaid credit facility.}

¶40

In order to secure the^{loan, the Defendants have} executed documents viz.,^{Notificationof Governmentof} India, General Agreement,^{Guarantee Agreements,} Composite Hypothecation Agreement,^{Simple Mortgage} Deed, On Demand Promissory^{Note alongwith Revival Letter} for time barred debt^etc.

¶41

¶42

OA No.1061/2022

¶43

The Applicant^{Bank further submitsthat, the Defendants} have agreed to repay^{the TermLoan facility of} Rs.1,OO,OO,OOO/- in 7^{yearly installmentscommencingfrom} 31.08.2016 and^{the last installment shall be repayableon or} before 31.08.2023 and^{further the Defendantshave also} agreed to repay the^{loan amount with interestat the rate of} 13olo^per annum^{with monthly rests.}

¶44

Further, the Defendants^{have agreed to repaythe} above loan with variable^{rate of interest, as applicablefrom} time to time as^{per the directionsof the Head Offlce/Central} office of the Applicant^{Bank and penal interest in case of} default and keep^{the accounts regular by paying installments} as and when due^{to the satisfaction of the Applicant Bank, as} detailed in the OA^{by the ApplicantBank.}

¶45

The Defendants after^{utilizingthe said loanfacility} granted by the Applicant Bank, they^{are very irregular in} repayment of the^{loan installments and the Defendantshave} acknowledged their^{liabilityon 26.06.2019. Thereafter the} Applicant Bank classified^{this loan account as NPA and issued} Legal Notice Dated^{28.f2.2OL7and anotherLegalNotice}

¶46

¶47

oA No.1061/2022

¶48

Dated 01.12.2020 to the^{Defendantscalling upon them to} repay the entlre loan^{amountin one lump sum. In spite of} receipt of notice, the^{Defendantshave failed to paythe} outstanding dues and^{hencethe recovery process is initiated} to recover the dues,

¶49

ln the light of these^factors, it^{is contendedby the} Applicant Bank that, the^{Defendants are liable to paya total} sum of RS.2,O1,O7,499,/-^{(Rupeestwo crore one lakh} seven thousand four^hundred ninety^{nine only).}

¶50

After filing this oA, Summons were sent to^the Defendants No.1 to 4 through RPAD.^Summons sent^to Defendants No.1 to 4 refused and hence deemed^servlce against Defendants No.1 to 4. When the^{DefendantsNo.1to} 4 were called out, they were remained absent^{and hence} placed ex parte on 13.02.2023.

¶51

To prove the case of the Applicant Bank, The Senior Manager- Sri Godavari Vamsi Kiran has filed his affidavit^by way of evidence and the same was considered as^evidenceof AW.1 and marked at Ex.A1 and list of^{document came} to^be marked at Ex.A2 and 14 documents^came to be^{marked at} Ex.A3 to A16.

¶52

¶53

6 OA No.1061/2022

¶54

No evidence on behalf of the^Defendants.

¶55

Arguments of Learned counsel for the^Plaintiff/ Applicant Bank heard and^{perusedthe recordsof the case.}

¶56

Following^points arise for^{my consideration:}

¶57

1. Whether Plaintiff/Applicant^{Bank provesits case} as contended in the^{plaint/application?}

¶58

1. What Order?

¶59

For the followinq^reasons, I^{answerthe above-} referred^points in the following^manner:

¶60

REASONS

¶61

The Senior Manager of the^{Applicant Bank cameto 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^Ex.A3 to^{A16 which} clearly establish the case of the Applicant^Bank to^{allow the} present OA. Added to this, the Defendants have remained absent and hence they were^placed ex^{parte.Therefore,it is} to be construed that Defendants have admitted the entire case pleaded by the Applicant Bank in the^present OA.

¶62

¶63

OA No.1061/2022

¶64

Therefore, for these reasons, present OA is to be allowed with costs as sought by the Applicant Bank.

¶65

ORDER

¶66

Present OA stands allowed, as prayed for, with interest and costs.

¶67

In the event of failure of the Defendants to pay the said OA amount, the Applicant Bank is at liberty to sell the Schedule-"A" and "B" Properties as mentioned in the main application of the OA in accordance with law as sought by the Applicant Bank in the OA.

¶68

In spite ofsale ofthe Schedule-"A" and "B" Properties as mentioned in the main application of the OA, if the OA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the persons and other properties of the Defendants as required under law and also as advised.

¶69

Applicant Bank shall file latest Memo of Calculation of OA 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 realised by sale of

¶70

¶71

OA No.106U2022

¶72

assets, etc., during^{the intervening period after filing the OA,} to enable the^{office to prepareRecoveryCertificatefor the} amount to be^{paid by the Defendantsto the ApplicantBank'}

¶73

Office is directed^{to issue RecoveryCertificate as sought} by the Applicant^{Bank in the OA and do the needful as} required under^{the law fothwith.}

¶74

The Office is directed^{to issue, as far as possible, free}

¶75

copy of this order^{to the parties concerned'}

¶76

(Dictated to the Stenographer,^{after its transcription and necessarycorrections' signed and} pronounced by me in the^{Opencourton this the9th day of Nove{nber' 2023)}

¶77

Y (rmtiai Ali) Presiding Officer DRT-I, Bengaluru

¶78

ANNEXURES AW-1 : Sri Godavari^{Vamsi Kiran.,} The Senior Manager^{of the ApplicantBank} Ex.A-1 : Affidavit of^AW-1 Ex.A-2 : List of Documents

¶79

Ex.A-3 to A-16 :^{14 documents}

¶80

witness Examined^{for the Defendants:} - Nal-

¶81

,,.Q Ari) Presiding Officer DRT-I, Bengaluru

¶82

Karnataka Vikas Grameena Bank v. Sri Vishwachetana Vidya Samathe

Case brief

What is this about?

What did the court decide?

Karnataka Vikas Grameena Bank v. Sri Vishwachetana Vidya Samathe

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Mr Vijaykumar Sarvaiya versus Sbfc Finance Private Limited

Karnataka Bank Limited versus Adarsh Chaudhary

Punjab National Bank versus Ramesh Chand Rawat

Hdfc Bank versus Kanchan Singh

Canara Bank versus M/S Yogender Aggarwal

Hdfc Bank versus Tirumalsetty Lakshmi Kiran