Allowed

Union Bank of India v. Sri. Pundalik Hanamanth Gavasekar

DRT25 Apr 2024OA/339/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Union Bank of India for recovery of Rs. 1,00,68,911.04 from the borrower and guarantors. The claim, based on five loans, was admitted as unchallenged due to ex-parte prosecution. An interim recovery schedule was appended.

What did the court decide?

Defendants directed to pay Rs. 1,00,68,911.04 with future interest at 12% per annum. Liberty to recover balance by sale of schedule property or personal assets.

Union Bank of India versus Sri. Pundalik Hanamanth Gavasekar — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of April, 2024

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Present: SMT. S. V. GOWRAMMA Hon’ble Presiding Officer

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OA. No.339/2022

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BETWEEN:

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Union Bank of India Samadevi Galli Branch, Parvati complex, Samadevi Galli, Belgaum, Karnataka-590 002. Through its Chief Manager, Mr. Nagabhushan G.R.

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… APPLICANT

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AND:.

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Mr. Pundalik Hanamanth Gavasekar Prop: of M/s. Dhanalaxmi Cashew Industries R/at. R.S. No. 107/1A, Shiroli B.K. Tal: Chandgad, Dist. Kolhapur.

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Mr. Vinayak V Gavasekar R/o. Ramghat Road, Shiroli B.K. Tal: Chandgad, Dist. Kolhapur.

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Mr. Hanmanth Yallappa Gavade R/o. 2447, Vengurla Road, Srinath Nagar, Hindalga, Belgavi.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Vignesh Shetty Defendant Nos.1 to 3 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 03.03.2022 under section 19 of Recovery of Debts Due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.1,00,68,911.04 (Rupees one crore sixty eight lakh nine hundred and eleven and Paise four only) with further

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OA. No. 339/2022

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interest thereon from the date of filing the Application till realization from the Defendants.

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The application filed is within the period of limitation as prescribed under Section 24 Recovery of the Debts and Bankruptcy Act 1993 and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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Brief facts of the case:

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It is the case of the applicant bank where in the Defendant No.1 as borrower and Defendant No.2 & 3 are Guarantors. The Defendant No.1 had approached the applicant bank seeking for Agricultural Loan of Rs.50,00,000/- (Rupees fifty lakh only) for the purpose of purchase of plant and machinery. After due diligence, of the Defendant No.1, the applicant bank sanctioned an Agricultural Loan of Rs.50,00,000/- (Rupees fifty lakh only) vide sanction letter dated 17.07.2017 in Loan account no. 560101000079737 and Term Loan Rs.41,47,000/- (Rupees forty one lakh forty seven thousand only) vide sanction letter dated 21.07.2017 in Loan account no. 560821000142610 with interest as per loan application terms and conditions.

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3.1. The defendant executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendants executed Demand Promissory Note along with Take Delivery Note to DPN dated 17.07.2017 & 21.07.2017 and Common Deed of Hypothecation of Movable Assets/Debts in dated 17.07.2017 and Agreement for Term Loan dated 21.07.2017 and Memorandum of Deposit

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OA. No. 339/2022

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of Title Deed dated 24.07.2017 and Guarantee Agreement dated 17.07.2017 in favour of the Applicant Bank.

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Further, the Defendant No.1 had approached the applicant bank seeking for CELC Loan of Rs.5,00,000/- (Rupees five lakh only) for the purpose of purchase of plant and machinery. After due diligence, of the Defendant No.1, the applicant bank sanctioned an CELC Loan of Rs.5,00,000/- (Rupees five lakh only) vide sanction letter dated 05.06.2020 in Loan account no. 560716000136283 with interest as per loan application terms and conditions.

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4.1. The defendant executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendants executed Demand Promissory Note along with along with letter of continuity dated 05.06.2020 and Undertaking and Acceptance dated 05.06.2020 and Term Loans Agreement dated 01.07.2020 and Interest Agreement dated 01.07.2020 and Memorandum of Entry dated 01.07.2020 and Guarantee Agreement dated 01.07.2020 in favour of the Applicant Bank.

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Further, the Defendant No.1 had approached the applicant bank seeking for UCELC Loan of Rs.10,00,000/- (Rupees ten lakh only) for the purpose of meet liquidity crunch ands cash flow mismatch. After due diligence, of the Defendant No.1, the applicant bank sanctioned an UCELC Loan of Rs.10,00,000/- (Rupees ten lakh only) vide sanction letter dated

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OA. No. 339/2022

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01.07.2020 in Loan account no. 560716000481123 with interest as per loan application terms and conditions.

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5.1. The defendant executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendants executed Demand Promissory Note along with along with letter of continuity dated 01.07.2020 and Undertaking and Acceptance dated 01.07.2020 and Term Loans Agreement dated 01.07.2020 and Interest Agreement dated 01.07.2020 and Memorandum of Entry dated 01.07.2020 and Guarantee Agreement dated 01.07.2020 in favour of the Applicant Bank.

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Further, the Defendant No.1 had approached the applicant bank seeking for Term Loan of Rs.25,00,000/- (Rupees twenty five lakh only) for the purpose of purchase of plant and machinery. After due diligence, of the Defendant No.1, the applicant bank sanctioned an Term Loan of Rs.25,00,000/- (Rupees twenty five lakh only) vide sanction letter dated 25.03.2021 in Loan account no. 00592630000001 with interest as per loan application terms and conditions.

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6.1. The defendant executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendants executed Demand Promissory Note along with along with letter of continuity dated 25.03.2021 and Term Loans Agreement (Hypothecation of Movables) dated 25.03.2021 and Letter of

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OA. No. 339/2022

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Undertaking dated 25.03.2021 not to alienate hypothecated goods dated 25.03.2021 and Guarantee Agreement dated 25.03.2021 in favour of the Applicant Bank.

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The Applicant Bank submits that the Defendants, after availing the said facilities, failed to repay the loan amount and committed default. The loan account of the Defendants had been classified as a Non Performing Asset (NPA) and the Applicant Bank issue a Demand Notice dated 16.09.2021 calling upon the defendants to repay the entire outstanding loan amount. However, there was no positive response from the Defendants. Hence, this Original Application (OA) has been filed to recover the dues from the Defendants.

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After the filing of the OA, summons was sent to the Defendant Nos.1 to 3 Registered Post with Acknowledgment Due the same is duly served on 21.07.2022 and 09.11.2022. Therefore, service held sufficient. When

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OA was taken up on 29.05.2023 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 & 2 were placed exparte on 29.05.2023.

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Heard the submissions of Applicant Bank and perused the records. 9. To prove the case of the Applicant Bank, Sri. Raghavendra Nayak

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S/o Basavaraj, Branch Manager, has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, the list of Document came to be marked as Ex.A2 and documents came to be

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OA. No. 339/2022

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marked as Ex.A3 to A28. As the Defendant remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on

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record to repudiate the claim of the Applicant Bank.

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Having regard to the amount advanced, the interest applied, the

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conduct and operations in the account and the default committed, this

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Tribunal comes to the conclusion that the applicant bank is entitled to a final order on the following terms:

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: O R D E R:

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants to pay an amount of Rs.1,00,68,911.04 (Rupees one crore sixty eight lakh nine hundred and eleven and Paise four only)consisting of :

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i. The defendant to pay an sum of Rs.25,16,138.04 (Rupees twenty five

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lakh sixteen thousand one hundred and thirty eight and Paise four only) on 31.07.2021 in respect of Loan A/c No.560101000079737 along with current

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and future interest @ 12% for the vehicle loan with effect from 01.08.2021 till full and final payment and/ or realization.

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ii. The defendant to pay an sum of Rs.3,04,773.00 (Rupees three lakh

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four thousand seven hundred and seventy three only) on 03.08.2021in

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OA. No. 339/2022

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respect of Loan A/c No.560716000136283 along with current and future interest @ 12% for the vehicle loan with effect from 04.08.2021 till full and final payment and/ or realization.

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iii. The defendant to pay an sum of Rs.10,00,000/- (Rupees ten lakh only) on 03.08.2021 in respect of Loan A/c No.560716000481123 along with current and future interest @ 12% for the vehicle loan with effect from 04.08.2021 till full and final payment and/ or realization.

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iv. The defendant to pay an sum of Rs.37,48,000/- (Rupees thirty seven lakh forty eight thousand only) on 30.11.2021 in respect of Loan A/c No.560821000142610 along with current and future interest @ 12% for the vehicle loan with effect from 01.12.2021 till full and final payment and/ or realization.

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v. The defendant to pay an sum of Rs.25,00,000/- (Rupees twenty five lakh only) on 03.08.2021 in respect of Loan A/c No.00592630000001 along with current and future interest @ 12% for the vehicle loan with effect from 04.08.2021 till full and final payment and/ or realization.

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(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule

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mentioned property in the OA;

OA. No. 339/2022

order;

(d) If the sale proceeds of the schedule mentioned properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) respectively to recover the balance dues as required under law;

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(e) The applicant bank shall file the latest memo of calculation of OA

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amount together with interest, costs etc., to be paid by the defendants duly considering the amounts, if any, paid by the defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the

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amount to be paid by the respective defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from the

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date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery

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Officer in terms of the final order.

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(h) Interim Application pending if any, stands disposed of with this Final Order.

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A copy of this order be communicated to the parties concerned.

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[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 25^th Day of April 2024].

OA. No. 339/2022

Sd/-

PRESIDING OFFICER

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DRT-II, BENGALURU

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Sri. Raghavendra Nayak S/o Basavaraj, Branch Manager,of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Applicant Evidence
A2	List of Documents.
A3	Sanction Letter dated 17.07.2017
A4	Demand Promissory Note for Rs.50 lakh dated 17.07.2017 alongwith Take Delivery Note to DPN dated 17.07.2017
A5	Common Deed of Hypothecation of Movable Assets/ Debts in security the Cash Credit of Rs.50 lakhs and Term Loan of Rs.41.47 lakhs.
A6	Agreement for term Loans dated 21.07.2017
A7	Demand Promissory Note dated 21.07.2017 for Rs.41,47,000/- along with Take Delivery Letter to DPN dated 21.07.2017
A8	Memorandum of Deposit of Title dated 24.07.2017
A9	Guarantee Agreement dated 17.07.2017
A10	Sanction Letter dated 05.06.2020
A11	Demand Promissory Note for Rs.5 lakhs dated 05.06.2020 along with Letter of Continuity.
A12	Undertaking and Acceptance dated 05.06.2020
A13	Term Loans Agreement dated 01.07.2020 with regard to availing Rs.5 lakhs.
A14	Interest Agreement dated 01.07.2020 with regard to availing Rs.5 lakhs.
A15	Memorandum of entry dated 01.07.2020
A16	Guarantee Agreement dated 01.07.2020
A17	Sanction Letter dated 01.07.2020

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OA. No. 339/2022

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A18	Demand Promissory Note dated 01.07.2020 executed by Defendant No.1 for a sum of Rs.10 lakhs along with letter of Continuity.
A19	Term Loan Agreement dated 01.07.2020 executed by Defendant No.1 executed by Defendant No.1 in favour of the Applicant Bank.
A20	Interest Agreement executed by Defendant No.1 dated 01.07.2020
A21	Undertaking and Acceptance dated 01.07.2020
A22	Guarantee Agreement dated 01.07.2020
A23	Demand Promissory Note dated 25.03.2021 for Rs.25 lakhs along with Letter of Continuity
A24	Term Loan Agreement (Hypothecation of Movables) dated 25.03.2021
A25	Letter of Undertaking dated 2503.2021 not to alienate hypothecated goods dated 25.03.2021
A26	Guarantee Agreement dated 25.03.2021
A27	Demand Notice dated 16.09.2021
A28	True Extract of Statement of Accounts pertaining to the Defendant five loan accounts.

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

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SCHEDULE PROPERTY

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^{Non- Agricultural Industrial Land measuring 8.5R i.e., 852 sq. mtrs} out of RS No.107/1A with parameters EW-35 and NS 264’ 48’ consisting of a shed measuring 39” 29” with Village Panchayat No.658 situated at Shinoli BK Village, Tal. Chandgad, Dist. Kolhapur and bounded by:

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East: Road West: Property of Tangawda North: Property of Tangawde South: Govt. Land.

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

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OA. No. 339/2022

Union Bank of India v. Sri. Pundalik Hanamanth Gavasekar

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sri. Pundalik Hanamanth Gavasekar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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