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SMT. VEENA GOPINATH – Appellant
Versus
KARNATAKA STATE FINANCIAL CORPORATION – Respondent
MFA 1722/2016
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 28TH DAY OF JULY, 2021
PRESENT
THE HON9BLE MRS. JUSTICE S. SUJATHA
AND
THE HON9BLE MR. JUSTICE RAVI V. HOSMANI
M.F.A.No. 1722/2016 (SFC)
BETWEEN:
1.
SMT. VEENA GOPINATH
W/O. H.A. GOPINATH
AGED ABOUT 61 YEARS
2.
SRI. H.A. GOPINATH
S/O. H.N. ANANTHARAM
AGED ABOUT 62 YEARS
BOTH RESIDING AT NO.9
CHEZ LEILA APARTMENT
MOYEN VILLE ROAD
LANGFORD GARDENS/TOWN
BENGALURU - 560 025. ... APPELLANTS
[BY SRI. A. DHARMESH, ADVOCATE]
AND:
1.
KARNATAKA STATE FINANCIAL CORPORATION
RAJAJINAGAR BRANCH
NO.197, 1ST AND 2ND FLOOR
WEST OF CHORD ROAD
2ND STAGE, RAJAJINAGAR
BENGALURU - 560 086.
2.
MS. CARPATHIA DESIGNS (PVT.) LTD.,
OFFICE AT NO.163/1,
2
LINGESH BUILDING
1ST MAIN ROAD, SESHADRIPURAM
BENGALURU - 560 020
REPRESENTED BY ITS MANAGING DIRECTOR
(NOW A DEFUNCT COMPANY)
3.
SMT. RAMANI N. ARUNKUMAR
W/O. LATE ARUNKUMAR
AGED ABOUT 55 YEARS
R/AT NO.40/3, 1ST A CROSS
RMV EXTENSION, NEAR MEKHRI CIRCLE
BENGALURU - 560 080.
... RESPONDENTS
[BY SRI. JAGADISH D. HIREMATH, ADV. FOR R1; VIDE ORDER DATED
25.01.2021, NOTICE TO R2 IS DISPENSED WITH; R3 SERVED]
THIS MFA IS FILED UNDER SECTION 32(9) OF THE STATE
FINANCIAL CORPORATIONS ACT, AGAINST THE ORDER DATED
17.11.2015 PASSED IN MISC.NO.225/2005 ON THE FILE OF THE
XXXVI ADDITIONAL CITY CIVIL JUDGE, BENGALURU, ALLOWING
THE PETITION FILED UNDER SECTION 31(1)(aa) AND 32(1) OF
STATE FINANCIAL CORPORATIONS ACT.
THIS
MFA
COMING
ON
FOR
ORDERS
THIS
DAY,
S.SUJATHA J., DELIVERED THE FOLLOWING:
J U D G M E N T
This appeal is directed against the order dated 17.11.2015
passed in Misc.No.225/2005 by the Court of XXXVII Additional
City Civil & Sessions Judge in CCH-38, Bengaluru City ( 8trial
Court9 for short) whereby petition filed by the Karnataka State
Financial Corporation (8corporation9 for short) under Section
31(1)(aa) and 32(1) of the State Financial Corporation Act (8Act9
for short) against the respondent therein has been allowed
3
holding that the corporation is entitled for recovery of total sum
of Rs.43,67,150.25 together with future interest at 17.5% p.a.
on sum of Rs.26,22,117.25 and 21% p.a. on a sum of
Rs.7,77,354/- and at 19.5% p.a. on a sum of Rs.2,88,695/- and
at 21% p.a. on a sum of Rs.6,43,031/- and at 3.5% p.a. on a
sum of Rs.35,953/-. The respondents No.2 to 4 therein are held
to be jointly and severally liable to discharge the dues of the
company.
2.
For the sake of convenience, the parties are referred
to as per their status before the trial Court.
3.
Succinctly stated the facts are that the petitioner-
corporation instituted the petition contending that respondent
No.1 -company has sought for financial assistance to engage
itself in the business of manufacture of readymade silk garments
at its factory situated at No.F-61, Industrial Estate, Rajajinagar,
Bengaluru - 560 044, and the petitioner sanctioned term loan of
Rs.4.65 lakhs and soft loan of Rs.1.05 lakhs on 07.06.1990, and
necessary documents came to be executed by the respondents in
favour of the petitioner corporation and the respondent were
required to pay the loan of Rs.4.65 lakhs in 23 quarterly
4
installments and Rs.1.05 lakhs in 15 quarterly installments with
accrued rate of interest. Further additional loan of Rs.12.00 lakhs
was sanctioned on 21.02.1991 as per the terms and conditions of
the sanction. Subsequently, an additional term loan of Rs.4.20
lakhs was sanctioned on 05.01.1995 to import four new
machineries. Respondents No.2 to 4 stood as guarantors for
respondent No.1-company in respect of repayment of loan
availed by it. For the default said to have been committed by the
respondents, exercising the powers under the provisions of the
Act, the assets of the first respondent-company were taken over
with a view to safeguard the public funds and recovery
proceedings were initiated. Sinc
