Allowed

Punjab National Bank v. Sri. Praveen Mark Bethapudi

DRT26 Mar 2024OA/89/2022

Case brief

AI extract

What is this about?

The Tribunal considered an Original Application filed by Punjab National Bank for recovery of a defaulted housing loan of approx. Rs. 78.79 Lakrs. With defendants appearing ex-parte, the Tribunal allowed the claim, ordering the bank to recover the principal, penal interest, and costs from the defendants or via sale of mortgaged properties.

What did the court decide?

Recovery of Rs.78,79,590/- with penal interest @ 9.50% p.a. compounded monthly; liberty to recover via sale of schedule property or personal assets.

Punjab National Bank versus Sri. Praveen Mark… — Contract and Commercial Disputes | DRT (2024)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 26^th Day of March, 2024

¶3

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

¶4

OA. No.89/2022

¶5

BETWEEN:

¶6

Punjab National Bank HSR Layout Branch, Bangalore. Represented through its Recovery Division at Circle SASTRA Bangalore East by Mr. V.S. Sundar Raman Chief Manager. … APPLICANT

¶7

AND:.

¶8

Mr. Praveen Mark Bethapudi S/o Mr. Kelipanandam Bethapudi # 872, T 1 HA Arcade, 17^th E Main, Koramangala 6^th Block, Bangalore-560095.

¶9

Sri. Vijaya Kumara W/o Mr. Keipanandam Bethapudi D.No.1 & 2 are R/at. of Plot No.122, Kaveri Hills opposite to Madhapur Police station, Hyderabad-500 033, Telengana State.

¶10

M/s. Milestone Builders, Sy.No.98/2, Mile Stone Palms Layout, Haragadde Jigni, Bangaluru-562 106. ...DEFENDANTS

¶11

Counsel on record/appeared for:

¶12

Applicant : Sri. Sushree Priya Mohanty Defendant Nos.1 to 3 : Exparte.

OA. No. 89/2022

FINAL ORDER

The present Original Application (OA) is filed on 08.12.2021 under section 19 of Recovery of Debts Due to Banks and Financial Institution Act 1993 for recovery of a sum of Rs.78,79,590/- (Rupees seventy eight lakh seventy nine thousand five hundred and ninety Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶17

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

¶18

Brief facts of the case:

¶19

It is the case of the applicant bank where in the Defendant Nos. 1 &

¶20

2 are borrowers had approached the applicant bank seeking for Housing Loan of Rs.73,35,000/- (Rupees seventy three lakh thirty five thousand Only) for the purpose of purchase of Flat. After considering the proposal of the Defendant No. 1 & 2 applicant bank sanctioned the for Housing Loan of Rs.73,35,000/- (Rupees seventy three lakh thirty five thousand Only) vide Sanction Letter dated 12.10.2017. The loan was repayable in 345 EMI including moratorium of 15 months along with interest 8.40% (MCLR 8.15% + 0.25%) in respect of the said loan.

¶21

¶22

OA. No. 89/2022

¶23

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 Defendant No. 1 & 2 executed Agreement for Housing Loan dated 13.10.2017 and Agreement for Sale and Construction dated 12.09.2017 and Tripartite Agreement dated 23.07.2021 and Defendant No.1 executed Letter of Acknowledgement of the Balance and Security Confirmation dated 03.03.2020 in favour of the Applicant Bank.

¶24

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) on 20.05.2021 and the Applicant bank issue a Demand Notice dated 24.04.2020 calling upon the defendants to repay the entire outstanding loan amount.in respect of both loans. However, there was no positive response from the Defendants. Hence, this Original Application (OA) has been filed to recover the dues from the Defendants.

¶25

After the filing of the OA, summons was sent to the Defendant No.1 to 3 through Registered Post with Acknowledgment Due the same is duly returned unserved with postal shara “Addressee Left Without Instruction” Hence, summons through substitute service was taken and the Applicant Bank published on 09.05.2023 in two daily leading newspapers, “The New

¶26

Indian Express” in English Newspaper and “Kannada Prabha” in Kannada Newspaper. When OA was taken up on 11.09.2023 even after giving sufficient time, there was no appearance or representation from the

¶27

¶28

OA. No. 89/2022

¶29

Defendants; hence, Defendant Nos.1 to 3 were placed exparte on 11.09.2023.

¶30

Heard the submissions of Applicant Bank and perused the records.

¶31

To prove the case of the Applicant Bank, Smt. E. Shivakumari D/o

¶32

M. Eswaran, Chief 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 A12. As the Defendant remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

¶33

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

¶34

conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled to a

¶35

final order on the following terms:

¶36

: O R D E R:

¶37

9. The OA is allowed with costs,

¶38

(a) The applicant bank is allowed to recover from Defendants to pay an

¶39

amount of Rs.78,79,590/- (Rupees seventy eight lakh seventy nine thousand five hundred and ninety Only) as on 07.12.2021 together with

¶40

¶41

OA. No. 89/2022

¶42

penal interest @ 9.50% p.a. compounded monthly rest from the date of OA application and till the date of realization.

¶43

(b) In the event of failure of the Defendants to pay the aforesaid amount,

¶44

the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

¶45

¶46

order;

¶47

(d) If the sale proceeds of the schedule mentioned properties are not

¶48

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

¶49

immovable) respectively to recover the balance dues as required under law;

¶50

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

¶51

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

¶52

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

¶53

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

¶54

date of this final order.

¶55

¶56

OA. No. 89/2022

¶57

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

¶58

Officer in terms of the final order.

¶59

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

¶60

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

¶61

[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 26^th Day of March 2024].

¶62

Sd/-

¶63

PRESIDING OFFICER

¶64

DRT-II, BENGALURU

¶65

ANNEXURES

¶66

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶67

AW-1: Smt. E. Shivakumari D/o M. Eswaran, Chief Manager, of Applicant Bank.

¶68

Exhibits on the part of the Applicant:

¶69

Exhibit Nos.	Particulars of Documents
A1	Applicant Evidence
A2	List of Documents.
A3	Copy of 3 sets of loan application
A4	Copy of Sanction Letter dated 12.10.2017
A5	Copy of Loan Agreement for Housing 13.10.2017
A6	Copy of Loan Agreement for Sale and Construction 12.9.2017
A7	Copy of the Tripartite Agreement dated 17.10.2017
A8	Copy of Demand Notice dated 27.04.2020
A9	Copy of Lawyer’s Notice dated 29.06.2021
A10	Copy of invoking Tripartite Agreement dated 23.07.2021
A11	Copy of Balance and Security Confirmation Letter dated 03.03.2020
A12	Copy of Accounts Statement.

¶70

¶71

OA. No. 89/2022

¶72

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

¶73

SCHEDULE A

¶74

All that piece and parcel of immovable property of land area after deduction of the BMRDA Road, carved out of the original 0 acer and 27.834 guntas equivalent to 2816 sq.mt. in Sy.No.98/2 of Haragadde, Jigani Hobli, Anekal Taluk, Bangalore and bounded on the

¶75

East by: Land in Sy.No.99,

¶76

West by: Land in Sy.No.96

¶77

North by: Land in Sy.No.97,

¶78

South by: 18.29 M Roads.

¶79

SCHEDULE B

¶80

a. 1.76% of undivided right and interest in the Schedule A Property equivalent to 533 sq.ft. Flat No.A101.

¶81

b. 1.68% of undivided right and interest in the Schedule A Property equivalent to 508 sq.ft. Flat No.B101.

¶82

SCHEDULE C

¶83

c. The apartment bearing No.A-101 on the 2^nd floor, Block ‘APPLE’ of building known as “Milestone Grand” being constructed on the Schedule A Property, measuring Super built up area of 1491 sq.ft. with 3 bedrooms, 3 bathroom cum toilets, living cum dining room, a Kitchen inclusive of proportionate share of common areas along with one car parking space bearing No. A-101 on the basement of the building.

¶84

¶85

OA. No. 89/2022

¶86

d. The Apartment bearing No.B-101 on the 2^nd floor, Block, ‘APPLE’ of building known as “Milestone Grand” being constructed on the Schedule A Property, measuring Super build up area of 1420 sq.ft. with 3 bedrooms, 3 bathrooms cum toilets, living cum dining room, a kitchen inclusive of proportionate share of common areas along with one car parking space bearing No.B101 on the basement of the building.

¶87

Sd/-

¶88

PRESIDING OFFICER

¶89

DRT-II, BENGALURU

¶90

¶91

OA. No. 89/2022

Punjab National Bank v. Sri. Praveen Mark Bethapudi

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sri. Praveen Mark Bethapudi

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

Similar cases

State Bank of India versus Lekh Raj Sharma

Icici Bank Limited versus Manjunataha Milk Diary

Bank of Maharashtra versus Preetheesh

Canara Bank versus Sri.Paramanagouda. S. Biradar

Canara Bank versus Balasubramanyam. M.K

Punjab National Bank versus M/S Sowmya Export Garment