Allowed

Karnataka Bank Limited v. K M Monu

DRT18 Dec 2023OA/263/2023

Case brief

AI extract

What is this about?

Dr. Tribunal allowed an Original Application filed by Karnataka Bank Ltd. for recovery of dues from two borrowers who failed to repay sanctioned term loans. The bank proved its case via affidavits and documents. Respondents appeared but filed no written statement, leading to a default judgment.

What did the court decide?

Principal and interest amount to be recovered; liberty to sell schedule properties; duty to file latest calculation memo; issuance of recovery certificate.

Karnataka Bank Limited versus K M Monu — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA AT BENGALURU

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Dated this the 18th day December,2023

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Present: Sri IMTIAZ ALI

Presiding Officer

OA No.263l2O23

BETWEEN:

KARNATAKA BANK LTD.,

Branches One called P.M.Rao Road Branch 1tt Floor, Kelle Court,

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Near Post Office

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MANGALORE - 575 OOT

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Represented by its Branch Manager

Sri B. Ajay Pai

.. APPLICANT

AND:

Sri K.M.MONU

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Aged about 68 years S/o Sri Moidin Kunhi

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D.No.44A

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Bismillah Compound At Madeena Manzil Badaje, Hosangadi MANJESHWAR - 671 323 Kerala

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2.SRr ABDUL RAHTMAN MUSHATAQ

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Aged about 39 years S/O Sri K.M. Monu D.No.44A Bismillah Compound At Madeena Manzil Badaje, Hosangadi MANJESHWAR - 671 323 Kerala

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..DEFENDANTS

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Counsels on record/aooeared for:

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Applicant : sri TS Krishna l\4urthy Defendants : Mrs.Lisa P. Cheriyan

oA No.253/2023

FINAL^ORDER

The^{presentoA havebeen filed by the Applicant Bank} under Section^{19 of theRecovery of Debts and Bankruptcy} Act, 1993,^{seeking recoveryof money of Rs'21'85'429'34} (Rupees twenty-one^{lakhs eighty-fivethousand four} hundred^{twenty-nineand paise thirty-four only)} together^{with costs,interest,etc'}

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The case^{of the Applicant Bank is that' the Defendant} No.1 is the^{borrower and Defendant No 2 is the co-} obligant/guarantor.^{The DefendantsNo 1and 2had} approached^{the ApplicantBank for various financialfacilities} viz., Term^{Loan/PsTl/MortgageLoan of asumof} Rs.10,OO,OOO/-^{and another Term Loan/PSTVMortgageLoan} of sum of^{Rs.5,o5,OOO/-vide their applicationdated on} 07.o3.2077^{and 04.08.2017"Accordingly TheApplicant Bank} has considered^{the request of the Defendants and sanctioned} the 1)Term^{Loan/PsTL/Mortgage Loan-I in asum of} Rs.1O,oO,oOO/-^{under A/cNo 4957001600050801on} 15.03.2017,2)Term^{Loan/PsTuMortgage Loan-IIin a sum of} Rs.5,O5,OOO/-^{under AlcNo 4957001600052601 on} 10.08.2017. In^{order to secure the loans, the Defendants} have executed^{documents,viz, Term Loan agreements'}

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OA No.263/2023

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Declarations executed by the Defendants in respect of NonLitigation/Non-Pending cases, Memorandum of Deposit of Title Deeds, ConFirmation of Balance /Acknowledgment of Debts and Letter of Authority etc.

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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) Term Loan/PsTvl4ortgage Loan-I in a sum of Rs.10,00,000/- with interest at the rate of 13.20olo P.A. compounded monthly in 105 equated monthly installments of a sum of Rs.16,107l- each. The Defendants have also agreed to^pay the^{penal/additional} interest at the rate of 3olo per annum in the event of default. The Defendants are liable to^pay the rate of interest raising or falling with the base rate as fixed by the Bank from time to time.

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Another Term Loan/PsTvl"lortgage Loan-II in a sum of Rs.05,05,000/- with interest at the rate of 13.00o/o P.A. compounded monthly in 101 equated monthly installments of

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a sum of Rs.8,250/- each. The Defendants have also agreed to^pay the^{penal/additional} interest at the rate of 3olo per annum in the event of default. The Defendants are liable to pay the rate of interest raising or falling with the base rate as

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oA No.263/2023

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fixed by the^{Bank from time to time'}

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Further, the^{Defendantshave agreed to repaythe} above loans^{with variable rate of interests, as applicablefrom} time to time^{as per the directions of the Head Offlce/Central} Office of the^{Applicant Bank and penal interest in caseof} defautt and keep^{the accountsregular by paying installments} as and when^{due to the satisfactionof the Applicant Bank'as} detailed in^{the OAby the Applicant Bank'}

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The Defendants after^{utilisingthe abovesaid loans} have not adhered^{to the terms of sanction and have not} repaid the^{loan amounts as agreedupon by themFurtheri} the defendants^{haverequested/soughtsome more time to} repay the loan^{amounts.ln spite of timebeinggranted, the} defendants have^{not kept up their promise /wordThereafter'} the Applicant^{Bank has sent Demand Notice under section-} 13(2) of the SARFAESI^{Act on 16/07l2O2Oto the defendants,} but the Defendants^{havefailedto pay the outstandingdues} and hence the recovery^{process is initiatedto recover the} dues.

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In the light of these^{factors, it is contendedby the}

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OA No.253l2023

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Applicant Bank that Defendants are liable to pay a total sum of Rs.21,85,429.34 (Rupees twenty-one lakhs eighty-five thousand four hundred twenty-nine and paise thirty-four on ly),

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After filing this OA, Summons were sent and served to the Defendants through RPAD. After receipt of summons, though the Defendants have appeared through their counsel, but they failed to file the written statement.

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To prove the case of the Applicant Bank, The ManagerSri B.Ajaya Pai, 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

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19 documents came to be marked at Ex.A3 to 421.

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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 arlse 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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1. What order?

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OA No.253/2023

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For the followlng^{reasons, Ianswerthe above-} referred^{points in the following manner:}

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REASONS

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The^{Manager of the Applicant Bank came to be} examined as^{AW.1. Hisaffidavitby way of evidence reiterated} the facts^pleaded in^{the plaintand his affidavit is also} corroborated by^{the above-referredEx.A3 to A21 which} clearly establish^{the case of the ApplicantBankto allow the} present OA. Added to this, after receipt^{of summons, thoughthe} Defendants have appeared^{through their counsel,but they failed to} file the written statement.^{Therefore, it is to be construed that} Defendants have^{admittedthe entirecase pleaded by the} Applicant Bank^{in the} Present^OA.

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f4. Therefore, for these^{reasons, present oA ls to be} allowed with costs^{as sought by the ApplicantBank.}

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ORDER

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Present OA stands allowed^{as prayedfor withinterest} and costs.

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In the event of failure of the^{Defendants to pay the said} OA amount, the^{ApplicantBank is at libertyto sell the}

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\ Y

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OA No.263/2023

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Schedule^{properties-ItemsNo.1and 2 as mentionedin the} main application of^{the OA., in accordancewith law as sought} by the Applicant^{Bank in the OA.}

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In spite of sale of the^{Scheduleproperties-Items No.1} and 2 as mentioned^{in the main appllcationof 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 in^{accordancewith law}

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Applicant Bank shall file^{latest Memo of Calculation of} OA amount together^{withinterest,costs etc., to be paid by} Defendants duly taking into^{accountthe amount/s, if any,} paid by the Defendants and/or amount^{realisedby sale of} assets, etc., during^{the intervening period afterfiling the OA,} to enable the office to^{prepareRecoveryCertiflcatefor the} amount to be^paid by^{the Defendantsto the ApplicantBank.}

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

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OA No.263/2023

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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 parties concerned.}

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(Dictated to the Stenographer, after^{its transcription and necessarycorrections, signed and} pronounced by me in the Open Court^{on thisthe 18th day December, 2023)}

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\,{

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(IMTIAZIALI)

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PRESIDING bTTTCCN DRT-I, Bengaluru

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ANNEXURES

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Witness Examined^{foq the ADDlicant Bank:}

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AW-1 : Sri B. Ajaya^Pai

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The Manager of the APPlicant^Bank

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Ex.A-1 : Affidavit of AW-1 Ex.A-2 : List of Documents

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Ex.A-3 to A-21 : 19 documents

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Witness Examined for the^Defendants:

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NiI -

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List of Documents Exhibited for the^Defendants:

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Ni! - \ ..".yu Y$"

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(IMTIAZ ALI) PRESIDING OFFICER DRT-I, Bengaluru

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Karnataka Bank Limited v. K M Monu

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. K M Monu

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

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