Allowed

City Union Bank Limited v. Sri Bhaskar Road Lines

DRT22 Nov 2023OA/401/2022

Case brief

AI extract

What is this about?

DrT allowed an original application filed by a bank under Section 19 of the RDB Act to recover outstanding dues from borrowers and a guarantor. The bank proved its case via affidavit and evidence; defendants were absent. The court approved the recovery claim and directed issuance of a recovery certificate.

What did the court decide?

Application allowed with interest and costs. Bank directed to sell properties and recover dues. Office directed to issue recovery certificate.

City Union Bank Limited versus Sri Bhaskar Road Lines — Specific Performance | 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 22nd day of November, 2023

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Presentr Sri rmtiaz Ali

Presiding officer

oA No.401l2022

BETWEEN:

City Union Bank Ltd,

R.T. Nagar Branch

No.590, HMT Layout

4th cross, R.T. Nagara Bangalore

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Represented by its Branch Manager Sri B. Sharath Babu

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.. APPLICANT

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AND:

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1.sri Bhaskar Road Lines

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Represented by its Prop:

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Mr.Shantha Kumar

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S/o Sri Devaraju

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No.49, znd Cross, Kalasipalyam

New Extension,

BENGALURU

2,Smt, Shivamma

w/o. Sri Devaraju

Both 2 and 3 R/at: No.104, ITI Layout,

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chandra Layout

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lst Stage, Nayandahalli, Bengaluru South Taluk

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BENGALURU - 560 O39

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3.Mr, Dhananjaya

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S/o Sri Shivalingaiah

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R/at No.104, ITI Layout

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Chandra LaYout

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, \ (.

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1"t Stage, Nayandahalli, Bengaluru

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south Taluk, Bengaluru - 560 o39 ., DEFENDANTS

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OA No.401/2022

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Counsels on record/appeared for: Applicant : Sri^prakash Hegde K. Defendants i Ex-parte

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FINAL ORDER

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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.1,3g,5O ,7gO.4S (Rupees One crore thirty-eight lakhs fifty thousand seven hundred eighty and paise forty five only) together with costs, interest, etc.

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The case of the Applicant Bank is that, the Defendants No.1 and 2 as borrowers and Defendant No.3 as Guarantor had approached the Applicant Bank for the various loan facilities such as; Overdraft facility of Rs.90,00,000/, ECLGS Loan facility of Rs.22,00,000/- and OSL Special Loan Facility of Rs.25,00,000/-. Accordingly, the Applicant Bank has considered the request of the Defendants and sanctioned the loans such as; 1) Overdraft Facility of Rs.90,00,000/ under Loan Account No.512120020019571 on 14.02.2018, 2)ECLGS Loan Facility of Rs.22,00,000/- under Loan Account No.501812080069815 on 19.06.2020 and 3)OSL Special

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OA No.401/2022

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Loan Facility of Rs.25,00,000/- under Loan Account No.501812080079857 on 05.07.2021, in terms of loan agreements, whereas, the Defendant No,3 stood as guarantor for the loans. In order to secure the loans, the Defendants have executed documents viz., On Demand promissory notes, Lette6 of continuity, Guarantee Agreement, Application Cum Undertakings for loans, Consent Letter of the Borrowers and Guarantors, Memorandum of Deposit of Title Deeds, Memorandum of Extension of Equitable Mortgage by way of Deposit of Title Deeds, Letter of Revival and the Confirmation of Balance etc.

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Further, the Applicant Bank submits that, the Defendants have agreed to repay the Overdraft Facility of Rs.90,00,000/along with interest at the rate of L2.250/o per annum at monthly rests, ELGS Loan Facility of Rs.22,00,000/- along with interest at the rate of 9.25o/o per monthly at monthly rests and OSL Special Loan Facility of Rs.25,00,000/- along with interest at the rate of L4.25o/o per annum at monthly rests.

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Further, the Defendants have agreed to repay the above loans with variable rate of interests, as applicable from

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oA No.401/2022

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time to time^{as per the directionsof the Headoffice/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^{OAby the ApplicantBank'}

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The Defendants after^{utilisingthe abovesaid loans} have failed and^{neglected to make the repayment of the loan} dues as agreed^{and Defendants have not serviced the} interest thereon^{as per the terms and condition agreedby} the Defendants.^{In spite of repeated requestsand reminders} made by the^{Applicant Bank, the Defendants have not repaid} the outstanding dues.^{The Defendants havefailedto} regularise the loan^{account and hencethe Applicant Bankhas} classified the loan^{accountas Non-performingAsset on} Lg.07.2027. Thereafter,^{The Applicant Bank has got issued} Legal Notice to the^{Defendantson 05 01.2022 and recalled} the entire outstanding^{dues, but the Defendantshave failed} to^pay the outstanding^{dues and hencethe recovery process} is initiated to recover the^dues.

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In the light of^{these factors, it ls contendedby the} Applicant Bank^{that, the Defendantsare liable to pay a total}

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OA No.407/2022

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sum of Rs.1,38,50,780.45 (Rupees One crore thirty-eight lakhs Rfty thousand seven hundred eighty and paise forty five only).

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

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To^prove the case of the Applicant Bank, The ManagerMr. Vinoth 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

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21 documents came to be marked at Ex.A3 to A23.

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No evidence on behalf of the Defendants.

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Arguments of Learned Counsel for the^plaintiff/

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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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1. What Order?

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OA No.401/2022

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f2. For the^{follo'Yingreasons, Ianswer the 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. His affidavit by way of evidence} reiterated the^{factspleaded in the plaint and his affidavitis} also corroborated^{by the above-referredEx A3 to A23 which} clearly establish^{the case of the ApplicantBankto allow the} present OA. Added to^{this, the Defendants have remained} absent,^{hencetheywereplaced ex parteTherefore'it is to} be construed that^{Defendantshave admitted the entlrecase} pleaded by the APplicant^{Bank in the presentOA'}

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!4. Therefore, for^{these reasons, present oA is to be} allowed with^{costs as soughtby the ApplicantBank'}

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9_LD_En

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

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In the event^{of failureof the Defendants to pay the said}

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OA amount, the^{ApplicantBank is at libertyto sell the}

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OA No.401/2022

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Scheduler?" and "8"^properties as mentioned In the main application of the OA, in accordance with law as sought by the Applicant Bank in the OA.

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In spite of sale of the ScheduleJA" and "8"^properties, as mentioned in the main application of the OA, if the OA amount is not fully realised, then the Applicant Bank is at libedy to^proceed against the^persons and other^properties 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

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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

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required under the law forthwith.

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OA No.401/2022

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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 necessary corrections, siqned and pronounced by me in the Open Court on this the 22nd day of November, 2023)

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\ \b (Imtihz Ati) Presiding Officer DRT-I, Bengaluru

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ANNEXURES

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Witness Examined for the Apolicant Bank: AW-1 : Mr, Vinoth Kumar

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The Manager of the Applicant Bank

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List of Documents Exhibited for the Aoolicant Bank:

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Ex.A-1 : Affidavit of AW-1

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Ex.A-2 : List of Documents

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Ex.A-3 to A-23 i 21 documents

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Witness Examined for the Defendants:

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Nil -

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List of Documents Exhibited for the Defendants:

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Nil -

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\ io""' (Imtlaz Ali) Presiding Officer DRT-I, Bengaluru

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City Union Bank Limited v. Sri Bhaskar Road Lines

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. Sri Bhaskar Road Lines

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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