Allowed

Union Bank of India (Andhra Bank) v. Narayanaswamy a

DRT9 Nov 2023OA/835/2022

Case brief

AI extract

What is this about?

In an Original Application under RDB Act, applicant Bank sought recovery of dues totaling over Rs. 1.62 crore from borrowers and guarantors. Since defendants did not appear, the Tribunal examined the bank's evidence, found it uncontradicted, and allowed the application, permitting the sale of properties and issuance of a recovery certificate.

What did the court decide?

OA allowed with interest and costs; Applicant Bank permitted to sell schedule property and issue Recovery Certificate.

Union Bank of India (Andhra Bank) versus… — Contract and Commercial Disputes | DRT (2023)

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It{ THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA

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AT BENGALURU

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Dated this the Ogth day of Novembet,2023

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PTesent: Sri IMTIAZ ALI

Presiding Officer

OA No,83S/2O22

BETWEEN:

Union Bank of India

Dasarahalli Branch

No.1478, DRLS Plaza

Ground Floor, Tumkur Road T. Dasarahalli

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Bangalore- 550 O57 Represented by its Branch manager Sri Prabhat Moharana

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., APPLICANT

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ANDr

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1.Sri Narayanaswamy A

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S/o Sri Appayanna

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Aged about 47 years No.114, Jettipalya

Kadabagere post

Tavarekere Hobli

Bangalore- 562 13O

2.Smt Chandrakala T R

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w/o Sri Narayanaswamy Aged about 45 years No.114, Jettipalya Kadabagere post Tavarekere Hobli

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Bangalore- 562 13O

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3.M/s Shivani Enterprises

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Sy.No.2611Al1, Khatha No.63 Magadi Main Road, Channenahalli Jettipalya, Yelechaguppe lYain Road Tavarekere Hobli, Kadabagere Post Bangalore- 562 130 Represented by its Partners Sri Narayanaswamy A Smt Chand, akala T R

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\ 4L I

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OA No.835/2022

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sri Narayanaswamy A S/o Sri Appayanna Aged about 47^yearc No.114, Jettipalya Kadabagere^post Tavarekere Hobli Bangalore- 562 130

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Smt Chandrakala T R Wo^{Sri NarayanaswamY} Aged about 45^years No.114, Jettipalya Kadabagere^post Tavarekere Hobli Bangalore- 562 13O

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.. DEFENDANTS

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Counsels on record /aDpeared for: Applicant : Sri Shivashankara A. Defendants : 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.1,62,48,575.69 (Rupees one crore sixty-two lakhs forty-eight thousand five hundred seventy-five and paise sixty-nine only) together with costs, interest, etc.

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The case of the Applicant Bank is that, the Defendant No.1 and Defendant No.2 had approached the Applicant Bank for Property Term Loan and Term Loan. Accordingly, the Applicant Bank has considered the request of the Defendants

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OA No.835/2022

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and sanctioned Property Term Loan of Rs.99,00,000/- on 23.12.2019 under Account No.166030100045268. The Defendant No.2 stood as^guarantor for the said loan. Again, the Applicant Bank submits that Sri. Narayanaswamy A and Smt. Chandrakala T R, the Partners of the third Defendant has availed Term Loan-UNION MSME SUVIDHA of Rs.65,00,000/- on 15.05.2020 under Account No.166030100046948, in terms of the loan agreements, whereas the Defendants No.4 and 5 stood as^{guarantorsfor} the said loan. In order to secure the loans, the^Defendants have executed documents viz., Composite agreement, Memorandum of deposit of title deeds, General^{Term Loan} Agreements, Term Loan Agreement^{(Hypothecationof} movables), Letter of Undertaking and^{GeneralFormof} guarantee etc.,

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Further, the Applicant^{Bank has furthersubmitsthat,} the defendants have^{agreed to repay the Term Loan of} Rs.99,OO,OOO/- with interest^{at the rate of 10.65olo P.A.and} also liabte to^{pay overdueinterest at the rate 2olo P.A. in 180} Equated Monthly^{Installmentof Rs.1,10,357l-each and Term} Loan-UNIoN MSME SUVIDHA^{of Rs 65,00,000/-withinterest} at the rate of^{7O,?Oo/oP.A. and also liable to pay overdue}

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OA No.835/2022

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interest at the rate of 2o/o P.A. in 84^{Equated Monthly} Installments of Rs.77,380.95 each^.

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Further, the Defendants have agreed to^repaythe above loans with variable rate of interests, as applicable^from time to time as^per the directions of the Head Office/Central Omce 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 condition agreed by the Defendants. The Defendants are the chronic defaulters and said both loan accounts have been classified as the NPA on 17.O4.2021,. Thereafter, The Applicant Bank has issued Section 13(2) Demand Notice on 15.09.2021 under SARFAESI Act, 2002 to the Defendants. In spite of receipt of Demand Notice, repeated request and demands of the Applicant Bank, the Defendants have failed to repay and clear the outstanding dues and hence the recovery process is initiated to recover the dues.

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oA No.835/2022

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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.1,62,48,575.69 (Rupees one crore sixty-two lakhs forty-eight thousand five hundred seventy-five and paise sixty-nine only).

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

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To prove the case of the Applicant Bank, The Senior Manager, Sri Prabhat Moharana, 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 17 documents came to be marked at Ex.A3 to A19.

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No evidence on behalf of the Defendants.

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None appeared at the time of hearing when the matter was^posted for arguments and^perused the records of the case.

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OA No.835/2022

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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 abovereferred points in the following manner:

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REASONS

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The Senior 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 A19 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the Defendants have remained absent, 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, present OA is to be allowed with costs as sought by the Applicant Bank.

OA No.835/2022

ORDER

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 immovable^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 immovable 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 flle latest lvlemo 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 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 Appticant Bank in the OA and do the needful as required under the law forthwith.

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OANo.835l2O22

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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, signed and pronounced by me in the Open Court on this the 09rh day of November, 2023)

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\ (rmtiaz hta) Presiding Officer DRT-I, Bengaluru

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ANNEXURES

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WitnessExam	inedforthe ApplicantBank:
AW-1	:Sri PrabhatMoharana,
	TheSeniorManageroftheApplicantBank
ListofDocum	ents ExhibitedfortheApplicantBank:
Ex.A-1	:Affidavitof AW-1
Ex.A-2	:ListofDocuments
Ex.A-3toA-19	:17documents

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Witness Examined for the Defendants:

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NiI - List of Documents Exhibited for the Defendantsi - Nil-

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\0,,"? (rmtazhii) Presiding Officer DRT-I, Bengaluru

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Union Bank of India (Andhra Bank) v. Narayanaswamy a

Case brief

What is this about?

What did the court decide?

Union Bank of India (Andhra Bank) v. Narayanaswamy a

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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