Allowed

Union Bank of India v. Sri. Govindappa

DRT11 Oct 2023OA/986/2022

Case brief

AI extract

What is this about?

In OA No. 986/2022, the Debt Recovery Tribunal allowed the bank's application filed under Section 19 of the Recovery of Debts and Bankruptcy Act for recovery of dues totaling over Rs. 1.9 crore from the borrowers and guarantors who defaulted on a term loan, noting the respondents were absent in ex-parte proceedings.

What did the court decide?

Requests granted, including recovery of dues with interest and costs, and liberty to sell mortgaged properties; issuance of Recovery Certificate directed.

Union Bank of India versus Sri. Govindappa — Banking and Recovery | 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 11th day of October;2023

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Present: SRI IMTIAZ AtI

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Hon'ble Presiding Officer

oA9A6/2022

BETWEEN:

UNION BANK OF INDIA

(Erstwhih Corporation BankJ

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Interalia Branch at No.25 / 2, First Main, Dr. Rajkumar Road, "E" Bbck, Rajajinagar

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BENGALURU - 560 O10

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Represented by ib Assistant General Manager Sri K. Byregowda ..

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.. APPLICANT

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AND:

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Sri Govindappa

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Aged about 75 years S/o Late Venkatappa

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2.Sri Lakshmipathy S/o Sri Govindappa, Aged about 50 years

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3.Sri Ramachandra S/o Sri Govindappa, Aged about 48 years

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4.Sri Shivashankar S/o Sri Govindappa, Aged about 46 years

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S.SmL Venkatalakshmamma W/oLate Ramaiah, Aged about 78 years

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All are residents of

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OA.No.986/2022

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Chikkadibburahalli^Village

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Dibburahalli Post, Shidlaghatta^Taluk Chikkaballapura District^{- 562 705}

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6.Sri N. Dayakar

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S/o Sri T. Narayana SwamY,

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Aged 72 years

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No.82, First Main, Laggere^Bridge Near Ring Road, Narayana^{Swamy Layout} BENGALURU-560058

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.' DEFENDANTS

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Counsel on record/aoneared^for:

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Applicant : Sri Sathyanarayana Defendants No.1 to 6 :^Ex-Parte

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FINAL ORDER

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The present OA has been^{filed by the ApplicantBank under} Section 19 of the Recovery of^{Debs and Bankruptcy Act, 1993,} seeking recovery of money^{of Rs'1,90,18,203/- (Rupees One Crore} Ninety Lakh Eighteen Thousand^{Two Hundred ThreeonlyJ together} with cosb, interest, etc.

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The case of the Applicant^{Bank is that, the DefendanB are} the agriculnrrisb. The Defendans^{No.1 to 5 are the principal} borrowers and Defendans^{No.1,5 and 6 being the borrowers and} guarantor and owner of the^{properties owned by them have also} created mortgage in respect^{of the properties owned by them, by} registering Simple Mortgage deeds.^{The DefendanBNo.1 to 5 have}

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OA.No.986/2022

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approached for the Term Loan of Rs.2,00,00,000/- for the purpose of establishing Broibr Poultry Layer Breeding Farm by submitting loan application on 30.11.201L. Considering the request of the defendanB, on 10.01.2012 the Applicant Bank has sanctioned the above Term Loan of Rs.2,00,00,000/- under Loan Account No. AGTL/7/720001 (New Account No.560931000490855) to the defendants No.1 to 5. In order to secure the loan, the Defendanb have executed documenb viz., Agreement for Term Loans, Letter of Undertaking/Declaration, Letter of Consent, Common Deed of Hypothecation, Gobar Gas Hypothecation Agreement, Declaration and NOC letters, Guarantee Agreement, Letters of Consent/acceptance of the Guarantot, Simple Mortgage Deed, DPN & Take Delivery Letters and Debit Balance Confirmation etc.

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Furthel the Applicant Bank submitted that, the Defendanb have agreed to repay the Term Loan of Rs.2,00,00,000/- within 9 years in 30 quarterly installmenb with an initial repayment holiday of 18 months, together with interest at the rate of 10.65%o^per annum compounded quarterly or subject to the changes as directed by the RBI from time to time and also agreed to^pay overdue interest at the rate of 2o/o over and above the normal rate of

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OA.No.986/2022

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interest, in case of^default.

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Furtherl the Defendanb^{have agreed to repaythe TermLoan} with variable rate of interest,^{as applicablefrom 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 accounB} regular by paying installmenB^{as and whendue to the satisfaction of} the Applicant Bank, as detailed^{in the OA by the Applicant Bank.}

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The Defendanb after utilizing^{the saidloanhave faihd to} regularise the loan accounB^and to^{char the loan dues as agreed} despite taking sufficient time and^{acknowledgingthe debt from time} to time and as such on 04.03.2022,^{the Applicant was forcedto} issue a re-call notice and subsequently^{on 07 .05.2022 Bank has also} issued Demand Notice under Section-13(2) of^{SARFAESI Act, but} despite the same also, the defendans^{have failed} to^{clear the dues} and to regularize the loan account.

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In the light ofthese factors, it is contended by the Applicant Bank that Defendanb are liable to pay a total sum of^Rs. Rs.1,90,18,203/- (Rupees One Crore Ninety Lakh Eighteen Thousand Two Hundred Three only).

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OA.No.986/2022

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7, After filing this OA, Summons were sent and served to the

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Defendants through RPAD.^rWhen the DefendanB were called out,

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the DefendanB remained absent and hence placed ex parte.

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To prove the case ofthe Applicant Bank, its ChiefManager, Sri

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C. Bala Murugan has filed his affidavit by way of eyidence and same was considered as evidence of AW.1 and marked at Ex.A1 and List of Documents came to be marked at Ex.A2 and 38 documents came to be marked at Ex.A3 to 40.

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No evi&nce on behalf of the Defendanb.

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Arguments of Learned Counsel for the Plaintiff / Applicant

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Bank heard and perused the records ofthe case.

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Following 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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For the following reasons, I answer the above-referred poinb in the following manner:

OA.No.986/2022

REASONS

The Chief Manager^{of the Applicant Bank came to be} examined as AW.1.^{His affidavit by way of evidence reiteratedthe} facts pleaded in the^{plaint and his affidavit is also corroboratedby} the above-referred^{Ex.A3to A40 which clearly establishthe case of} the Applicant Bank to^{allow the presentOA' Addedto this,the} Defendants No.1 to^{6 have remainedabsentand henceplaced ex} parte, hence it is to be construed^{that Defendants have admitted the} entire case^{pleaded by the Applicant Bank in the presentOA.}

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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 prayedfor with interestand}

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costs.

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In the event of^{failure of the Defendantsto pay the saidOA} amount, the Applicant^{Bankis at liberty to sell the Schedule-ltem} Nos.1 to 3 of the^{immovable propertiesas mentionedin the main} application of^{the OriginalApplication in accordancewith law as} sought by the Applicant^{Bank in the OA'}

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In spite of sale of^{the Schedule-ltemNos.1to 3 immovable} properties as mentioned in^{the main applicationof the Original}

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OA.No.986/2022

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Application, 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 as required under law and also as advised.

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Applicant Bank shall file latest Memo of Calculation of 0A 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 Applicant Bank in the 0A and do the needful as 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 necessary corrections, signed and pronounced by me in the Open Court on this the tlth day ofpctober, 2023)

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\ n*"2 (rMTtaz Arr) Presiding Officer DRT-1, Bengaluru

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OA.No.986/2022

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ANNEXURES

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Witnesses examined for^{the Applicant Bank}

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AW-1 : Sri C. Bala Murugan,^the Chief Manager ofthe^{Applicant Bank}

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Documents marked on behalf^{of the Applicant:} Ex.A.1: : Affidavit Evidence of AW1

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Ex.AZ: : List of witnesses

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Ex.A3 to A40 : 38 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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Nit^-

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\vb Y'.r0' \ \" (IMTIAZhLI) Presiding Officer DRT-1, Bengaluru

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Union Bank of India v. Sri. Govindappa

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sri. Govindappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

Parties & counsel

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