BANK OF BARODA Vs. DR. BAVAGUTHU RAGHURAM SHETTY

JUDGEMENT

(1.) The appellant, who is the plaintiff-Bank has filed a suit for specific performance of the undertaking with Negative Lien and Creation of Mortgage dated 21.4.2020 and for permanent injunction restraining the defendants from, in any manner, whatsoever, directly or indirectly, committing any breach of the Letter of Undertaking with Negative Lien and Creation of Mortgage dated 21.4.2020 and to further restrain the defendants, their agents, or any person acting under or through them from alienating, selling, transferring, encumbering, dissipating, mortgaging, pledging, creating a lien, creating any third-party rights or otherwise dealing with any of the assets of properties specified in the plaint schedule and restraining defendant No.1, his agents or any person acting under or through him from, in any manner, whatsoever directly or indirectly committing any breach of the Personal Guarantees dated 28.2.2010, 25.3.2016, 14.9.2017, 23.11.2017, 26.9.2017 and 19.6.2019 and also alienating, selling, transferring, encumbering, dissipating, mortgaging, pledging creating a lien, in favour of any third party otherwise dealing with any of his assets or properties.

(2.) It is the further case of the plaintiff that in the month of March, 2020 the 1st defendant travelled to India and the appellant's Officials met him at Bengaluru and then at Mangaluru. When the officials of the appellant-bank approached him regarding his dire financial position, a meeting was held at the appellant- bank on 18.3.2020. In the said meeting, the 1st defendant-respondent No.1 acknowledged his liability to the plaintiff and agreed to provide an 'all out comfort' and secure his liability by providing several immovable properties situated in the State of Karnataka and pursuant to the said meeting, he executed a letter of Undertaking dated 21.4.2020 with Negative Lien and Creation of Mortgage. He also undertook to handover all original Title Deeds in respect of immoveable properties specified therein and also to create a mortgage thereon. It is also contended that the 2nd respondent, who is the 2nd defendant is the wife of defendant No.1-respondent No.1 and is a medical doctor, who also holds leadership roles in many companies/entities promoted by respondent No.1- defendant No.1 and both are permanent residents of Bengaluru, etc.

(3.) Along with the plaint, the plaintiff also filed an application for temporary injunction restraining defendant No.1-respondent No.1, his agents, or any person acting under or through him, from, in any manner whatsoever, directly or indirectly, alienating, selling, transferring, encumbering, dissipating, mortgaging, pledging, creating a lien in favour of any third party or otherwise dealing with any of his assets or properties moveable or immovable, tangible or intangible, including without limitation, the immovable properties specified in the Schedule to the Letter of Undertaking with Negative Lien and Creation of Mortgage dated 21.4.2020 owned by defendant No.1 (morefully described to the schedule as item Nos.1 to 13 and 16) his shares, mutual funds, monies deposited in bank accounts and fixed deposits reiterating the plaint averments.