Allowed

Punjab National Bank v. K v Venkata Reddy

DRT10 Oct 2023OA/1320/2022

Case brief

AI extract

What is this about?

In this origination application under Section 19 of the RDBA, 1993, the Debts Recovery Tribunal allowed the bank's prayer for recovery of over Rs. 42 lakhs advanced to a deceased debtor and his legal heirs after they remained absent in person.

What did the court decide?

OA allowed with interest and costs; liberty to sell schedule properties and proceed against other properties of the defendants including inherited properties of the deceased debtor.

Punjab National Bank versus K v Venkata Reddy — Banking and Recovery | DRT (2023)

¶1

IN THE DEBTS RECOVERY^{TRIBUNAL - I, KARNATAKA}

¶2

AT BENGALURU

¶3

Dated this the lOth day^{of October,2023}

¶4

Present: Sri Imtiaz Ali

Presiding Officer

OA No.1320l2022

BETWEEN:

Punjab National Bank

Stressed Assets^{TargetedResolution & Action}

¶10

(SASTRA Vertical). Bengaluru

¶11

Raheja Towers,^{First Floor} No.26-27, M.G.^Road Bengaluru 560 001 Repiesented by its Chief Manager

¶12

.. APPLICANT

¶13

4Ne!

¶14

Sri K.V. venkata^ReddY

¶15

S/o. Sri Yara VenkataryaPPa

¶16

Since dead by^{Legal heirs} -

¶17

1 (a). Smt. Venkatamma

¶18

w/o. Late K.V.^VenkataReddy

¶19

Aged about 58 Years

¶20

No.27, KariyaPPanahalli E. Thimmasandra Post^{563 125} Shidlaghatta^Taluk

¶21

1 (b). Sri Byra^Reddy

¶22

S/o. Sri K.V.^venkataReddy Aged about 43 Years

¶23

No.27, KariYaPPanahalli

¶24

E. Thimmasandra^{Post 563 125} Shidlaghatta^Taluk

¶25

2. Sri Byra^ReddY

¶26

S/o. Late K.V.^{Venkata Reddy}

¶27

Aged about 43 Years

¶28

¶29

No.27, Ka riYa PPa^{na ha lli} E. Thimmasandra^{Post 563 125} Shidlaghatta Taluk

¶30

"^DEFENDANTS

¶31

OA No.1320/2022

¶32

Counsels on record/appeared for: Applicant : Sri M.K. Venkatramana Defendants i Ex parte

¶33

FINAL ORDER

¶34

The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of Rs.42r58,961-l(Rupees forty-two lakhs fifty-eight thousand nine hundred sixty-one only) together with costs, interest, etc.

¶35

The case of the Applicant Bank is that, Sri K.V. Venkata Reddy had borrowed various credit facilities. Since Sri K.V. Venkata Reddy is deceased, their LR's Defendants No.1(a) & 1(b) and Defendant No.2 are made party to the OA as they have succeeded to the estate of deceased Sri K.V. Venkata Reddy.

¶36

The Defendant No.1 deceased Sri K.V. Venkata Reddy and the Defendant No.2 have approached the Applicant Bank for various credit facilities. The Applicant Bank has considered the request of the Defendant and sanctioned the Agricultural Term Loan of Rs.12,00,000/- and Agricultural

¶37

oA No.1320l2022

¶38

Cash Credit of Rs.6,00,000/- on 29.03.2016.^Againthe Defendant No.1 deceased Sri K.v.^VenkataReddy and^the Defendant No.2 have approached the Applicant^{Bank for} Agriculture Term Loan-II. The Applicant^{Bank has considered} the request of the Defendants and^{sanctionedthe Agriculture} Term Loan-II facillty of Rs.3,50,000/- on 05.05.2018.^Again the Defendants have approached the Applicant Bank^for enhancement of the loan for the^purpose of^{improvement of} agriculture activities. The Applicant Bank has enhanced^the Kissan Cash Credit facility of from Rs.6,00,000/- to Rs.14,00,000/- on 05.07.2018, in terms of the loan agreements. In order to secure the loans, the Defendants have executed documents viz., Term Loan agreements, Hypothecation agreements, Letters of Undertaken, Registered mortgage deeds etc,,

¶39

Further, the Defendants have agreed to repay the above loans with variable rate of interests. 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 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 Applicant Bank.

¶40

OA No.132012022

¶41

The Defendants after utilising the said loans have failed and neglected to make the repayment of the loans due as agreed and Defendants have not serviced the interest thereon as per the terms and condition agreed by the Defendants. In spite of repeated requests and reminders made by the Applicant Bank, the Defendants have failed to repay the amount due as agreed upon by them. Subsequently, The Defendants No.1 & 2 have failed to regularise the accounts by discharging their liabilities. Hence the loan accounts were classified as Non-performing Assets on 30.03.2019. Thereafter. the Applicant Bank has sent legal notice to the Defendants on 18.10.2021 calling upon them to repay the outstanding dues. The notice sent to the Defendants No.1 had remained unserved and returned with postal endorsement of Defendant No.1 was "Dead". However notice sent to the Defendant No.2 had duly served. Again the Applicant Bank has sent legal notice to the Defendants on 03.L2,2O2f to the legal heirs of the Defendant No.1 calling upon them to repay the outstanding dues. In spite of receipt of legal notices, the Defendants have failed to^pay the entire outstanding amounts and hence the recovery^processis initiated to recover the dues.

¶42

¶43

OA No.132012022

¶44

In the light of these factors, it is contended by the Applicant Bank that Defendants are liable to pay a total sum of Rs.42,58,961/- (Rupees forty-two takhs fifty-eight thousand nine hundred sixty-one only) as on 76.09.2022.

¶45

After filing this OA, Summons were sent and served to the Defendants through RPAD. When the Defendants were called out, Defendants remained absent and placed ex parte.

¶46

To prove the case of the Applicant Bank, its ManagerLaw, Smt. Veena J. Bahuleyan, has filed her affidavit by way of evidence the 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 30 documents came to be marked at Ex.A3 to A32.

¶47

No evidence on behalf of the Defendants.

¶48

Arguments of Learned Counsel for the Plaintiff/ Applicant Bank heard and perused the records of the case.

¶49

Following^points arise for my consideration:

¶50

¶51

1. Whether Plaintiff/Applicant Bank proves its case as contended in the plaint/application?

¶52

OA No.1320/2022

¶53

What Order?

¶54

t2. For the following reasons, I answer the abovereferred points in the following manner:

¶55

REASONS

¶56

The Manager-Law of the Applicant Bank came to be examined as AW.1. Her amdavit by way of evidence reiterated the facts pleaded in the plaint and her affidavit is also corroborated by the above-referred Ex.A3 to A32 which clearly establish the case of the Applicant Bank to allow the present OA. 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 in the present oA.

¶57

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

¶58

ORDER

¶59

Present OA stands allowed as prayed for with interest

and costs.

OA No.1320/2022

In the event of failure of the Defendants to pay the said OA amount. the Applicant Bank is at liberty to sell the Schedule^properties in accordance with law as sought by the Applicant Bank in the OA.

¶64

In spite of sale of the schedule properties, 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 and the properties of deceased Sri K.V. Venkata Reddy if any, inherited by their Legal heirs i.e., Defendants No.1 (a) & 1(b) and the Defendant No,2 in accordance with law.

¶65

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 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.

¶66

Offrce 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.

oA No .1320/2022

The Office is directed to issue, as far as possible, free

¶71

copy of this order to the parties concerned.

¶72

(Dictated to the Stenographer, after its transcription and necessary corrections, sigoed and pronounced by me in the Open Court on this the 10s day of October, 2023)

¶73

¶74

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

¶75

ANNEXURES

¶76

Witness Examined for the Aoolicant Bank: AW-1 : Smt. Veena J. Bahuleyan

¶77

The Manager-Law of Applicant Bank

¶78

List of Documents Exhibited for the Aoolicant Bank: Ex.A-l : Affidavit of AW-1

¶79

Ex.A-2 : List of Documents

¶80

Ex.A-3 to A-32 : 30 documents

¶81

Witness Examined for the Defendants:

¶82

Nit-

¶83

List of Documents Exhibited for the Defendants:

¶84

Nit-

¶85

,0^{''0 "'} (Imtiat Ali) Presiding Officer DRT-f, Bengaluru

¶86

Punjab National Bank v. K v Venkata Reddy

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. K v Venkata Reddy

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

Sandeep versus South Indian Bank

Muhammed Samjad K S versus Idbi Bank

Indian Bank versus Sh. Pardeep Kumar

Karnataka Gramin Bank versus Sri. Halemane Umapathi

Canara Bank versus Sri. Sharanappa

Central Bank of India versus H M Mynoodin