Allowed

Bank of Baroda (Vijaya Bank) v. M/S Kalimata Extrusion

DRT23 Nov 2023OA/630/2022

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by Bank of Baroda to recover a debt of Rs. 44,29,140 from a partnership firm and its partners after proving the loan terms and default, as the defendants failed to file a written statement.

What did the court decide?

Application allowed with interest and costs; liberty granted to sell schedule property or proceed against other properties of the defendants.

Bank of Baroda (Vijaya Bank) versus M/S Kalimata… — Contract and Commercial Disputes | 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 23'd day of November, 2023

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Presentr Sri Imtiaz Ali

Presiding Officer

oa No.630/2O22

BETWEEN!

Bank of Baroda

(Erstwhile Vijaya Bank)

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Branch At: West of Chord Road No.12, 1"t Main Road, 2nd Stage West of Chord Road

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M a h ala ksh mipu ram

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Bangalore-560 086

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Represented by its Chief Manager And Authorised Holder Smt. Preeti Pandey

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,. APPLICANT

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ANDI

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M/s, Kalimata Extrusion

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A Partnership Firm,

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No.28, SLV Industrial Estate Bth [4ain Road

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Peenya 2nd Stage

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Bangalore-560 058

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Represented by its Partnersi (a) Sri Mohit .R Chaphekar (b) Sri Veerabhadra Swamy .B G @ Mrs. Bramaramba

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2. Sri Mohit R. Chaphekar

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Aged about 35 years S/o. Sri Rajendra D. Chaphekar Partner of M/s, Kalimata Extrusion R/a- Flat No.105, First Floor "SUBHODAYA RESIDENCY" Kenchanahalli Raja Rajeshwarinagar Bangalore-560 098

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<br>

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OA No.630/2022

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Sri Veerabhadra Swamy.B G Aged about 34 years S/o. Sri Guruprasad .K V Partner of M/s. Kalimata Extrusion R/a- No.52, 1't'C' Main Road Binny Layout, RPC Layout Near Vijayanagar Club Vijayanagar 2nd Stage Bangalore-550 040

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Smt. Bramaramba W/o. Sri Guruprasad .K V Aged about 57 years Partner of M/s. Kalimata Extrusion R/a- No.52, 1't'c' Main Road Binny Layout, RPC Layout Near Vijayanagar Club Vijayanagar 2nd Stage Bangalore-560 040 .. DEFENDANTS

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Counsels on record/aopeared for: Applicant : Sri Ragavendra Rao l\4anvi Defendants : Jayanth .S

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FINAL ORDER

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The present OA have been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of Rs.44,29,t4O/(Rupees forty-four lakhs twenty-nine thousand one hundred and forty only) together with costs, interest, etc.

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The case of the Applicant Bank is that, the Defendant No.1 is a partnership firm, of which, the Defendants No.2 to 4 are the partners represented on behalf of the 1.t defendant

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OA No.630/2022

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had approached the Applicant Bank for^{VariousLoans.The} Defendants No.2 and 3 are the^{borrowers as wellas} guarantors for the loans on behalf of the defendant No.L. Accordingly, the Applicant Bank has considered^{the requestof} the Defendants and sanctioned the^{Loans whichare as} follows:

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(1) cash Credit Limit of Rs.20,00,000/- under the loan account No.89960500000017^(Old account No.120106261000014) on 04.11.2015. Further, at^the request of Defendants, the Applicant Bank^{has enhancedthe} Cash Credit Loan from Rs.20,00,000/- to^{30,00,000/-on} 18.07.2018.

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(2) Term Loan Facility-I of Rs.8,77,000/- under the Loan account No.89960600000661(Old No.120109041000069) on 20.02.217 and

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(3) Term Loan Facility-Il of Rs.L,94,174/- under the loan account No.89960600000983 on 08.09.2020,^{in terms of} the loan agreements.

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In order to secure the loans, the Defendants have executed various documents viz., Demand Promissory Notes, Letters of Repayment, Loan Agreements cum Hypothecation deeds, Demand Promissory Note on Term Loan,^Partners

OA No.630/2022

Liability Letter, Letters of Guarantee, Demand Promissory Note on Enhancement of Cash Credit Facility, Acknowledgement of Liability etc.,

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Further, the Defendants have agreed to repay the above loans with variable rate of interest, 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 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 Defendants after utilising the said loans have failed and neglected to make the repayment of the loans due as agreed and Defendants have not serviced the interest thereon as per the terms and conditions agreed by the Defendants and they become defaulters. Thereafter, the Applicant classified the loan accounts in the name of the Defendants as Non-performing Asset on 31.03.2021. In spite of repeated requests and demands made by the Applicant Bank the Defendants failed to repay the outstanding dues. Further, the Applicant Bank issued legal notice on 06.72.202! calling upon the Defendants to pay the entire outstanding

oA No.630/2022

amounts. In spite of repeated requests and remalnders, 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 pay a total sum of Rs,44,29,14Ol- (Rupees forty-four lakhs twentynine thousand one hundred and forty only).

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6, After filing this OA, The summons were sent and served to the Defendants through RPAD. Sri S.Jayanth, counsel for the defendants No.1 to 4 has flled Vakalat. Thereafter, the Defendants have appeared through their counsel but failed to file the written statement within the prescribed time and hence the provision for flling the written statement is closed.

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fo^prove the case of the Applicant Bank, The Chief Manager-Sri lvl.Ramachandra Rao has flled his affidavit by way of evidence and 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 24 documents came to be marked at Ex.A3 to A26.

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oA No-630/2022

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No evidence on behalf of the Defendants,

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None represented for the Applicant Bank at the time of hearing when the matter was posted for arguments, Counsel for the Defendants present and submits written statement filed by them and the same was rejected as they have failed to flle the written statement within the prescribed time 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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For the following reasons, I answer the above_ referred points in the following manner:

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REASONS

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L2. The Chief 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 above-referred Ex.A3 to 426 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the Defendants have appeared

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oa No.630/2022

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through their Counsel, but failed to flle their^written statement within the^prescribed time and^{hencethe provision} for filing the written statement is closed.^Hence it^is to^be construed that Defendants have admitted the entire^case pleaded by the Applicant Bank in the^present OA.

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Therefore, for these reasons,^presentOA 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 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 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,

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OA No.530/2022

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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 RecoveryCertificatefor the} amount to be^paid by the^{Defendantsto the ApplicantBank.}

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The Office is directed to issue^{RecoveryCertificateas} 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 this order to the^parties concerned.

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(Dictated - pronounced by me in to the Stenographer, the after Open its transcription and Court on this the 23d necessary day of No\mber, corrections, signed 2023)^and

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v ? (Imtidz Ali) Presiding Officer DRT-I, Bengaluru

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ANNEXURES

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witness Examined for the Applicant Bank:

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AW-1 : Sri M.Ramachandra Rao The Chief Manager of the Applicant Bank List of Documents Exhibited for the Aoolicant Bank: Ex.A-1 : Affidavit of AW-1 Ex.A-2 : List of Documents

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Ex.A-3 to A-26 : 24 documents

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witness Examined for the Defendants! - Nitsb 1I) Presiding officer DRT-I, Bengaluru

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Bank of Baroda (Vijaya Bank) v. M/S Kalimata Extrusion

Case brief

What is this about?

What did the court decide?

Bank of Baroda (Vijaya Bank) v. M/S Kalimata Extrusion

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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