DRT allowed the bank's OA for recovery against defaulted loan partners after Bank's Chief Manager testified and partners were absent. Order permits property sale and recovery certificate issuance.
Recovery Certificate to be issued for dues; liberty to sell Schedule properties 'A' to 'C' if recovery via sale fails; liberty to proceed against other assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA AT BENGALURU
Dated this the 15th day of November,2023
Present: Sri Imtiaz Ali
Presiding Officer
oA No.549/2O22
BETWEEN!
Canara Bank S.M.E. Branch
!lahadevapura Bangalore-560 048
.. APPLICANT
,ANDI
Sy. No.87, alok Plaza
Sadarmangala industrial Area Opposite ITPL, Whitefield Road
Bengaluru-560 017
Represented by its Partners
S/o Veeranna Shetty Partner of I4/s. Sri Udupi Park Residing at Shree Enclave 4th Floor, N4urugeshpalya Old Airport Road
Bengaluru-560 017
Bengaluru-560 048
V.
OA No.549/2022
..DEFENDANTS
counsels on record/aDpearedfor:
Applicant : Sri Ranganatha Gowda Defendants i Ex Parte
FINAL ORDER
u
OA No.549/2022
Defendants have executed the Documents viz., Sub_ Ordination Agreement, Tripartite, Agreement, Common Hypothecation Agreement, Letter of Undertaking, pro note, Supplemental Common Hypothecation etc.,
\
OA No-54912022
per the terms and condition agreed by the Defendants.. In spite of repeated requests andpersonal contacts made by the Applicant Bank. Thereafter, the Applicant Bank issued demand notice under Section 13(2) of Securitization Act, on 77.O1.2022 and legal notice on f4.O2.2O22 by recalling the Defendants to repay the outstanding dues. In spite of receipt of demand notice and legal notice, the Defendants have failed and neglected to repay the loan as agreed by them. Hence, the recoveryprocess is initiated to recover the dues.
7, AfteI filing this OA. Summonses were sent and served to the Defendants through RPAD. When the Defendants are cal,ed out, Defendants remained absent and placed ex parte.
\
OA No.54912022
marked at Ex.A1 and list of documents came to be marked at Ex.A2 and 46 documents came to be marked at Ex.A3 to A48.
REASONS
Y
oANo.549/2022
absent, hence it isto be construed thatDefendantshave admitted the entirecase pleaded by the Applicant Bank inthe present oA.
L4. Therefore, for thesereasons, present OA is to be allowed with costs assoughtby the Applicant Bank'
ORDER
Present oA stands allowedas prayed for with interest and costs.
In the event of failureof the Defendants to pay the said OA amount, the ApplicantBank is at liberty to sell the Scheduleproperty 'A' to 'C'in accordancewith law as sought by the Applicant Bankin the OA.
In spite of sale of theschedule properties, if the OA amount is not fully realised,then the Applicant Bank is at liberty toproceed againstthe persons and other properties of the Defendants in accordancewithlaw'
Applicant Bank shall filelatestMemo of Calculationof OA amount together withinterest, costs etc., to be paid by Defendants duly taking intoaccountthe amount/s, if any, paid by the Defendants and/or amountrealised by sale of assets, etc., during theintervening period after filing the OA,
Y
OA No.549/2022
to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendants to the Applicant Bank.
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.
The Office is directed to issue, as far as possible, free copy of this order to the parties concerned.
(Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 15th day of November, 2023)
Ltr (Imti{z Ati) Presiding' Officer DRT-I, Bengaluru
ANNEXURES
witness Examined for the Applicant Bank: AW-1 ; Smt. Alfa Essa Kindo The Chief Manager of Applicant Bank List of Documents Exhibited for theAoolicant Bank: Ex.A-1 : Affidavit of AW-1 Ex.A-2 : List of Documents
Ex.A-3 to A-48: 46 documents
Witness Examined for theDefendants:
.yb Ari) Presiding Officer DRT-I, Bengaluru
R
2 issues framed by the court
Whether the Applicant Bank proved its case to allow the Origin Application?
What Order should be passed on the Origin Application?
2 provisions across 2 enactments
Canara Bank S.M.E. Branch Ilahadevapura Bangalore-560 048
M/s. Sri Udupi Park
Sri Keradi Chandrasekhar Shetty
Sri Satish Shetty
Sri Ravidra Sheena Mogaveera
smt. Nagarathna G W/G. Krishnamurthy
Sri Imtiaz Ali
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
Sri Imtiaz Ali
Parties & counsel
