Allowed

Idfc First Bank Ltd. v. M v R Gas Rep by Its Prop Sri.Munireddy

DRT25 Apr 2024OA/630/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by IDFC First Bank Limited for recovery of a business loan dues of Rs. 54,11,618 plus interest from three defendants, who defaulted on their loan agreement executed in January 2017, after hearing the applicant and finding the defendants appeared exparte.

What did the court decide?

Recovery of Rs. 54,11,618 with future interest at 24% p.a.; liberty to attach personal assets; issuance of Recovery Certificate.

Idfc First Bank Ltd. versus M v R Gas Rep by Its Prop… — 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.630/2022

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BETWEEN:

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IDFC First Bank Limited, Branch Office at C-1, R.P’s Pride, 1^st Floor, 20^th Main Road, KHB 5^th Block, Opposite to Shri Ganesh Temple, Koramangala, Bengaluru-560 095. Represented by its Authorized Representative Sri. Suresh Mingal Siddi.

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… APPLICANT

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AND:.

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Sri. M V R Gas Represented by its Proprietor B.V. Sadanand No.801, 9^th Main, 3^rd Block, Koramangala, Bangalore-560 034.

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Sri. B.V. Sadanand S/o Sri. Muni Reddy Venkataswamy Aged about 62 years, No.801, 9^th Main, 3^rd Block, Koramangala, Bangalore-560 034.

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Smt. S.L. Manjula D/o Sri. Sanikam Rama Reddy, Aged about 57 years, No.801, 9^th Main, 3^rd Block, Koramangala, Bangalore-560 034.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. S.A. Associates

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OA. No. 630/2022

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Defendant Nos.1 to 3 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 19.05.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.54,11,618/- (Rupees fifty four lakh eleven thousand six hundred and eighteen Only) with further 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 is the borrower and Defendant Nos.2 & 3 are Co-Borrowers. The Defendants had approached the applicant bank seeking for Business Loan of Rs.75,75,000/- (Rupees seventy five lakh seventy five thousand Only) an loan application dated 11.01.2017 for the purpose of purchase of Business. After considering the request of the Defendants the applicant bank sanctioned and disbursed Business Loan of Rs.75,75,000/- (Rupees seventy five lakh seventy five thousand Only) on 28.01.2017. The said loan initially was repayable with interest @ 18% p.a. (monthly reducing rate) with monthly installment of Rs.2,22,516/- at tenure of 48 months. The tenure period is commenced form 05.03.2017 to 05.02.2021 in respect of the said loan.

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OA. No. 630/2022

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The defendants 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 Business Loan Agreement dated 28.01.2017 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 Applicant Bank issue a Recall Notice dated 04.04.2022 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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1. 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 15.09.2022 & 09.02.2023. Therefore, service held sufficient.

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When OA was taken up on 27.03.2023 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 to 3 were placed exparte on 27.03.2023.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sri. Raghavendra B S/o

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Basavaiah, Legal 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 marked as Ex.A3 to A10. As the Defendant remained ex-parte, the OA

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OA. No. 630/2022

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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 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

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amount of Rs.54,11,618/- (Rupees fifty four lakh eleven thousand six hundred and eighteen Only) together with future interest @ 24% p.a. from the date of OA application and till the date of realization.

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(b) In the event of failure of the Defendants to pay the loan dues as ordered above, the applicant bank is at liberty to proceed against the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law;

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(c) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly

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considering the amounts, if any, paid by the Defendants and/or amount

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OA. No. 630/2022

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realized by sale of assets etc., during the intervening period after the filing

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of the OA, enabling the Registry to prepare Recovery Certificate for the

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amount to be paid by Defendants to the applicant bank.

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(d) 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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(e) 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].

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Sd/-

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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. Raghavendra B S/o Basavaiah, Legal Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Applicant Evidence
A2	List of Documents.
A3 to A5	Application Forms dated 11.01.2017
A6	Business Loan Agreement dated 28.01.2017

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OA. No. 630/2022

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A7	Foreclosure and Statement dated 28.01.2017
A8	Legal Notice dated 04.04.2022
A9	Postal receipts dated 04.04.2022
A10	Returned postal status dated 05.04.2022

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

-Nil -

-Nil -

Sd/-

PRESIDING OFFICER

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DRT-II, BENGALURU

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OA. No. 630/2022

Idfc First Bank Ltd. v. M v R Gas Rep by Its Prop Sri.Munireddy

Case brief

What is this about?

What did the court decide?

Idfc First Bank Ltd. v. M v R Gas Rep by Its Prop Sri.Munireddy

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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