Allowed

State Bank of India v. Sri. Shiva Shankar

DRT9 Oct 2023OA/603/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by State Bank of India for recovery of Rs. 45,76,682/- along with costs and interest. The respondent defendant remained absent, leading to an ex parte order in favor of the bank to recover dues and realize the same through sale of properties or arrest.

What did the court decide?

Recovery of Rs. 45,76,682/- with interest/costs; liberty to sell schedule property; liberty to proceed against person/other property; direction to issue Recovery Certificate.

State Bank of India versus Sri. Shiva Shankar — Execution and Attachment | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL^. I, KARNATAKA AT BENGALURU

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Dated this the 09th day of October; 2023

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Present SRI IMTIAZALI

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\ Lr5 Presiding Officer A.

oA603/2022

BETWEEN:

STATE BANK OF INDIA

Branches interalia at RASMEC Hosur Branch

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At Sri Vaari BuiHing, PIot No.2, SIPCOT industial estate

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Phase-1, Zuzuvadi, HOSUR - 635 L26

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(Represented by iB Manager Sri P. Muralikanthan

.. APPLICANT

AND:

SRI SHIVA SHANKAR

Aged about 43 years

S/o. Sri Muniraju

R/at Flat No.E-3, Akash Villa Apartment' 'No.2 and 3, 3.d Floor, 12tt A'Cross J.P.Nagar^{1st Phase} BENGAIURU- 560 079 Counsel on record/apoeared for:

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.. DEFENDANT

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Applicant : SMT. Vachana G.K. Defendant i Ex-parte

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FINAL ORDER

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The present OA has been fihd by the Applicant Bank under

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Section 19 of the Recovery of Debs and Bankruptcy Act, 1993,

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seeking recovery of money of Rs.45,76,682/- (Rupees Forty Five

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OA.No.603/2022

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lakhs Seventy Six Thousand Six Hundred Eighty Two^{only) together} with cosb, interest, etc.

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The case of the Applicant Bank is.that,^{the Defendant has} made an application on 07.05.2018 before the^{Applicant for} sanction of Home Loan for^purchase of^{Flat. Accordingly,the} Applicant has sanctioned the said Home Loan Facility^of Rs.40,00,000/- in favour of the Defendant^{as per Arrangement} Letter Dated 07.05.2018. In order to secure^{the loan,the Defendant} has executed documenb viz., Memorandum^{of LoanAgreementfor} Home Loan, Sab Deed Memorandum^relating to^{Deposit of title} deeds, Encumbrance Certifi cate etc.

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Furthet the ApPlicant Bank submitted that, the Defendant has agreed to repay the Home Loan of Rs.40,00,000/- in Equated Monthly Installment of k.32,344/each together with interest thereon @ 8.55o/o per annum with monthly resB revised by the Bank from time to time.

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FurtheX, the Defendant has agreed to repay the Home^Loan with variable rate of interest, as applicable^{from time to time as per} the directions of the Head Office / Cental Office of the^Applicant

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OA.No.603/2022

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Bank and penal interest in case of default and keep the accounb regular by payrng installmens as and when due to the satisfaction of the Applicant Bank, as detailed in the OA by the Applicant Bank.

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The Defendant after utilising the said loan has faihd and defaulted in making paymenb as and when due to the Applicant. Furthe[ the Defendant has neither responded nor attempted to clear the oubtanding amount in spite of repeated requesB and demands made by the Applicant and Defendant has not serviced the interest thereon as per the terms and condition agreed by the Defendant. Accordingly, the loan account of Defendant has been declared as NPA by the Applicant on 07.05.202L as per the RBI guidelines. Thereafter, the Applicant Bank has initiated SARFAESI proceedings under SARFAESI Act., but Defendant has failed to pay the oubtanding dues and hence the recovery process is initiated to recover the dues.

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In the light ofthese factors, it is contended by the Applicant Bank that Defendant is liable to pay a total sum of Rs.45,76,682/(Rupees Forty Five lakhs Seventy Six Thousand Six Hundred Eighty Two onlyJ.

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oA.No.6o3/2022

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After filing this OA, Summons^{was sentand served to the} Defendant through RPAD^{on 23.02.2023. When the Defendantwas} called out, the Defendant^{remained absent and hence phced ex} parte on 03.04.2023.

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B. To prove the case of^{the Applicant Bank, its Manager, Sri P.} Muralikanthan has filed^{his affidavitby way of evidence and same} was considered as evidence^{of AW.1 and markedat Ex.A1and List of} Documents came to be marked^{at Ex.A2 and B documents came to} be marked at Ex.A3 to^10.

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No evi&nce on behalf of the Defendant.

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Argumenb of Learned^{Counselfor the Plaintiff} /^Applicant

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Bank heard and perused the recor&^ofthecase.

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Folbwing^poinB arise for^{my consideration:}

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Whether Plaintiff / Applicant Bank^proves ib case as contended in the^plaint / application?

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What Order?

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L2. For the following reasons, I answer the above-referred points in the folbwing manner:

OA.No.503/2022

REASONS

The Manager 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 affidavit is also corroborated by the abovereferred Ex.A3 to A10 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the Defendant has remained absent and hence placed ex parte, hence it is to be construed that Defendant has admitted the entire case pleaded by the Applicant Bank in the present OA.

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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 Defendant to pay the said OA amount, the Applicant Bank is at liberty to sell the Schedule property in accordance with law as sought by the Applicant Bank in the OA.

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In spite of sale of the schedule property, if the OA amount is not fully realised, then the Applicant Bank is at liberty to proceed

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oA.No.603/2022

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against the person and^{other propertyof the Defendant as required} under law and also^{as advised.}

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Applicant Bank shall^{file latest Memo of Calculationof OA} amount together with^{interest,costs etc., to be paid by Defendant} duly taking into account^{the amount/s, if any,paid by the Defendant} and/or amount realised^{by sale of assets, etc., during the} intervening period after^{filingthe OA,to enable the office to prepare} Recovery Certificate for the^{amountto be paid by the Defendant to} the Applicant Bank.

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

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The Office is directed to issue,^{as far as possible, free copy of}

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this order to the^parties concerned.

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(Dictated to the Stenographer, after its transcription and^{necessarycorrections,signedand} pronounced by me in the Open Court on this the^{9th day of October, 2023J}

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\, \ Y\ (IMTIAZ ALI) Presiding Officer DRT-1, Bengaluru

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OA.No.603/2022

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ANNEXURES

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Witnesses examined for the Apolicant Bank AW-1 : Sri P.Muralikanthan, the

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Manager of Applicant Bank

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Documents marked on behalf of the Applicant: Ex.A.1: :Affidavit Evidence of AW1 Ex.A2: : List of witnesses

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Ex.A3 to A10 : B documents.

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Witness Examined for the Defendant:

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Nil^-

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List of Documents Exhibited for the Defendant:

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Nil^-

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,p \or.to' (rMTrAZslr) Presiding Oflicer DRT-1, Bengaluru

State Bank of India v. Sri. Shiva Shankar

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri. Shiva Shankar

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Case details

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