Allowed

Karnataka Bank Limited v. Bhujang Vitta Shinde

DRT21 Nov 2023OA/1491/2022

Case brief

AI extract

What is this about?

The Drt allowed the Applicant Bank's recovery application under Section 19 of the RD&BA, 1993, against two absent respondents who failed to repay loans and interest, directing the office to issue a Recovery Certificate and allow the sale of properties.

What did the court decide?

OA allowed with interest and costs; office to issue Recovery Certificate and allow sale of Schedule A/B properties; liberty to proceed against other properties if dues not realised.

Karnataka Bank Limited versus Bhujang Vitta Shinde — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA

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AT BENGALURU

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Dated this the 21st day of November, 2023

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present: Sri Imtiaz Ali

Presiding Officer

OA No.149tl2O22

BETWEEN;

KARNATAKA BANK LTD.,

Buapur Branch, Now known as VUayapura Main Branch, VIJAYAPURA

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Represented by its Authorized Representative Sri G. Badari^prasad

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., APPLICANT

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AND:

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Sri Bhujang Vittal Shinde Aged about 52 years S/o Sri Vittal Shinde

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Residing at Bardol Viltage Indi Tatuk - 586 204 Vijayapura District.

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Sri Shripathi c. Shinde Major S/o Sri G. Shinde

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Residing at Bardot Village rndi Tatuk - 586 204 Vijayapura District.

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.. DEFENDANTS

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Counsels on reaord/aopeared fori Appticant : Sri T.S.Krtshnamurthy Defendants No.1 &2 i Ex parte

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FINAL ORDER

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The present OA has been filed by the Applicant Bank

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under Section 19 of the Recovery of Debts and Bankruptcy

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. \ v I

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oA No.749712022

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Act, 1993, seeking recovery of money of Rs.44,39,239.92 (Rupees Forty four lakhs thirty nine thousand two Hundred thirty nine and^paise ninety two only) together with costs, interest, etc.

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2, The case of the Applicant Bank is that, the Defendant No.1 is an agriculturist and doing the agricultural activities. The Defendant No.2 is co-o bligant/g uaranto r. The Defendant No.1 is the son of 2nd Defendant. The Defendants No.1 and² had approached the Applicant Bank for various^financial facilities. The Applicant Bank has considered the^{request of} the Defendants and sanctioned the 1) PSTL in a sum^of Rs.4,95,000/- on 16.08.2005, 2) PSTL-II in a sum^of Rs.3,5,000/- on 30.07.2009 and KCOD/KCC Cash Credit^Limit of a sum of Rs.3,30,000/- on 29.05.2013. In order to secure the loans, the Defendants have executed documents,^viz., Term Loan agreements, Hypothecation agreements, Consent Letter/ClBIL Letters, Registered deeds of mortgage, Acknowledgement of debt/Confirmation of Balance of Liabilities, Declarations, Composite agreements, Letter regarding restructure of repayment of Loan amount, Consent letters etc.,

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OA No.1491/2022

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Further, the Applicant Bank has further submits that, the defendants have agreed to repay the above said loans as mentioned below:

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i) PSTL in a sum of Rs.4,95,000/- with interest at the rate of 10o/o P.A. with annually rests in 7 years, with a holiday period of 2^years and with additional Penal interest at the rate of 2o/o P.A. in case of default.

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ii) PSTL-II in a sum of Rs.3,50,000/- with interest at the rate of 73.75o/o P.A. with annually rests in 60 months, yearly a sum of Rs.70,000/- Plus lnterersts and with additional^penal interest at the rale of 2o/o in case of default.

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iii) KCOD/KCC-CaSh Credit Limit in a sum of Rs.3,3O,OOO/with interest at the rate of 11.50o/o P.A. with annually rests in one year and with additional Penal interest at the rate of ZVo in case of default.

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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

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OA No.1491/2022

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as and when due to the satisfaction^{of the Appllcant Bank,as} detailed in the^{OAby the ApplicantBank.}

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The Defendants after utilising the said^{loans have} failed and neglected to make the^{repayment of the loans due} as agreed and Defendants^{havenot servicedthe interest} thereon as^per the terms and^{condltion agreed by the} Defendants. Thereafter, the^{Applicant Bank hassentNotice} on 27.O1.2O2L to the Defendants. In^spite of^{receiptof the} Notice, the Defendants have failed to^pay the^outstanding dues and hence the recovery^{process is initiated to recover} the dues.

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In the light of these factors, it is contended^{by the} Applicant Bank that Defendants are liable to^{paya totalsum} of Rs.44,39,239.92^(Rupees Forty four^lakhs thirty^nine thousand two Hundred thirty nine and^paise ninety two^only),

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7 After filing this OA, Summons were sent to the Defendants No.1 and 2 through RPAD. Summons sent to Defendants No.1 and 2 refused and hence deemed service

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OA No.1497/2022

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against Defendants No.1 and 2. When the Defendants No.1 and 2 were called out, they were remained absent and hence placed ex parte on 24.05.2023.

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To prove the case of the Applicant Bank, The Senior l''lanager Sri C L Muddu Kumar, has filed his affidavit by way of evidence the same was considered as evidence of AW.1 and marked at Ex.A1 and list of document came to be marked at Ex.A2 and 35 documents came to be marked at Ex.A3 to A37.

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9. No evidence on behalf of the Defendants

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

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Following points arise for my consideration:

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

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What Order?

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For the following reasons, I answer the above_ referred points in the following manner:

oA No.1491/2022

REASONS

The Senior lYanager of the Applicant Bank came to be examined as AW.1. His affidavit by way of evidence reiterated the facts^pleaded in the^plaint and his affldavit is also corroborated by the above-referred Ex.A3 to A37 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 ln the^present OA.

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

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ORDER

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

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In the event of failure of the Defendants to pay the said OA amount, the Applicant Bank is at liberty to sell the ScheduleJA" and "B" properties in accordance with law as sought by the Applicant Bank in the OA.

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OA No.7497/2022

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In spite of sale of the Schedule-.?,, and ',B,, properties, if the OA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the persons and other propefties of the Defendants in accordance with law

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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.

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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.

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

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copy of this order to the pafties concerned.

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(Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 2l.tday November,2023)

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\^ V\ (rMTrAz ALr) PRESIDING OFFICER DRT-I, Bengaluru

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OANo.7497/2022

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ANNEXURES

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witness Examined for the Applicant Bank: AW-1 : Sri CLMudduKumar

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The Senior Manager of the Applicant Bank

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List of Documents Exhibited for the Apolicant Bank:

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Ex.A-1 : Affidavit of AW-1 Ex.A-2 : List of Documents Ex.A-3 to A-37 : 35 documents

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Witness Examined for the Defendants:

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Ni! -

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List of Documents Exhibited for the Defendants:

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NiI -

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\u**' (IMTIAZ AtI) PRESIDING OFFICER DRT-I, Bengaluru

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Karnataka Bank Limited v. Bhujang Vitta Shinde

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Bhujang Vitta Shinde

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

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Case details

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