Allowed

Canara Bank v. Randeep Kanchan

DRT11 Oct 2023OA/1012/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Canara Bank against a defendant for recovery of loan dues. The bank proved its case via affidavit and documents while the defendant was absent. The tribunal directed the issue of a recovery certificate. The judgment was delivered after hearing the bank's Senior Manager as the sole witness.

What did the court decide?

Original Application allowed with interest and costs; Recovery Certificate to be issued.

Canara Bank versus Randeep Kanchan — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA

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AT BENGALURU

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Dated this the Llth day of October, 2023

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Present SRI IMTIAZ ALI

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H on'ble Presiding Officer

oAtoLz/2022

BETWEEN:

CANARA BANK

Hampanakafta Branch Light House Hill Road Hampanakath

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MANGALORE.575 OO1

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Represented by iE Senior Manager Sri Devesh Pratap Singh

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.,.APPLICANT

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AND:

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Sri Randeep Kanchan S/o Sri B. Sadhu Karkera

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Prop. M/s Kavoor Digitals Aged about 50 years Residing at No.3-46 Pavithra Sadana Gandhinagara Kavoor

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MANGALORE^.575 015

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Also

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Prop. M/s Kavoor Digitals Having registered 0ffice at No.2-527 Basement Floor

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Suvarna Arcade Bajpe Post and Village MANGALORE - 574I42

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Also

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No.4-95/10 1, Veda Towers Kavoor function

OA.No.1012/2022

Kavoor,

MANGALORE - 575 015

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DEFENDANT

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Counsel on record/aooeared for: Applicant : Sri M. Mohan Rao Defendant : Ex-parte

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FINAL ORDER

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The present OA has been fihd by the Applicant Bank under Section 19 of the Recovery of Debs and Bankruptq Act, 7993, seeking recovery of money of Rs.23,2L,640.65 (Rupees Twenty Three Lakhs Twenty One Thousand Six Hundred Forty and paise Sixty Five only) together with cosb, interest, etc.

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The case of the Applicant Bank is that, the Defendant has approached the Applicant Bank on 05.11.2019 for grant of various bans as mentioned bebw:

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iJ Term Loan Facilityof Rs.19,00,000/- for the purpose of purchase of machinery and also to establish business of Digitial printing, Banner making and other producB under the name and style^,,M/s Kavoor Digitals". Accordingly, the Applicant Bank sanctioned a Term Loan of Rs.19,00,000/- on 08.11.2019 under Loan Account No.0100/9a5l017under CGTMSE Scheme.

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ii)Overdraft Loan Facility of Rs.4,75,000/- for Working Capital requirement and aho for establishment of his new business i.e.

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OA.No.7072l2022

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Digital Printing, Banner making and other producB under the name and styh M/s Kavoor Digitials. Accordingly, the Applicant Bank sanctioned Loan of Rs.4,75,000/- under Loan Account No.0100/1a0l133 1 on 07.17.20L9.

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iii) Covid FITL Loan Facility of Rs.25,23L/-. Accordingly, the Applicant sanctioned the FITL Loan Facility on 26.02.2020 un&r Account No.0 100/710l185.

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In order to secure the loans, the Defendant have executed various documents such as; Consideration ReceipB, Composite Hypothecation AgreemenB, Undertaking Letter and Request for opening Overdraft Facility etc.

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Further; the Applicant Bank submitted that, i) the Defendant has agreed to repay the Term Loan Facility of Rs.19,00,000/- in 84 equated monthly installmenB together with agreed rate of interest i.e. tl.l\o/o per annum. ii)the Defendant has agreed to repay the Overdraft Loan Facility of Rs.4,75,000/- with interest at the rate of ll.l,o/o per annum. within a period of 5 years subject to yearly renewal Furthec the Defendanb No.1 and 2 was also agreed to pay interest on the above said loan amount at the rate of 74.7 5o/o per

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OA.No.1012/2022

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annum iii)The^{Covid FITL Loan of k.25,231'/-, this loan facility} avaibd by defendant^{in order to repaythe accrued interest on the} existing ban.^{This FITL loan facilitywas newly intoducedby RBI in} order to tackb^{the growingNPA burdenand also for extending} further facility under^{covlD-19Pandemic.This loan facility is likea} moratorium^{periodin order to repay the existingloanfacility' This} loan facility shall be^{repayabh by the Defendant in 6 equated} monthly installmenB^{on or before 31.03.2021'}

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Further, the Defendant^{has agreedto repaythe Loanswith} variabb rate of interest,^{as applicabb from time to timeas per the} directions ofthe Head Office /Cental^{Officeofthe ApplicantBank} and penal interest^{in caseof defaultand keep the accounb regular} by paying installmenb^{as and when due to the satisfaction of the} Applicant Bank, as detailed^{in the 0A by the Applicant Bank.}

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The Defendant after utilizing^{the said loans,he did not repay} the principal amount as^{well as the interest and the ApplicantBank} several times demanded the^{repayment of the loans and hence the} loan accounb of the defendanb^{became overdueand NPA in terms} of RBI guidelines. Therefore, on^{L5.04.2021the ApplicantBankgot}

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OA.No.1012/2022

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issued Recall Notice to the Defendant, but the defendant has failed to repay the hans.

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In the light ofthese factors, it is contended by the Applicant Bank that Defendanb are liable to pay a totrl sum of Rs.23,2!,640.65 (Rupees Twenty Three Lakhs Twenty One Thousand Six Hundred Forty and Paise Sixty Five only).

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After filing this OA, Summons were sent through RPAD and the same was served to the Defendant. When the Defendant was calbd out, the Defendant remained absent and hence placed ex parte.

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To prove the case of the Applicant Bank, its Senior ManagerSri Devesh Pratap Singh has filed his affidavit by way of evidence and same was considered as evidence of AW.1 and marked at Ex.A1 and List of Documents came to be marked at Ex.A2 and 13 documents came to be marked at Ex.A3 to Ex.A15.

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No evidence on behalf ofthe Defendant.

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Argumenb of Learned Counsel for the Plaintiff / Applicant

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Bank heard and perused the records ofthe case.

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oA.No.1072/2022

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t2. Following^{poinbarisefor my consideration:}

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Whether^Plaintiff /^{ApplicantBank provesib case} as contended^{in the plaint} /^application?

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What Order?

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For the following^reasons, I answer the above-referred poinb in the folbwing^manner:

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REASONS

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The Senior^{Managerof the Applicant Bank cameto be} examined as AW.1.^{His affidavit by way of evidence reiteratedthe} facts pteaded in the^{plaint and his affidavit is also corroboratedby} the above-referred^{Ex.A3to A15 which clearly establishthe case of} the Applicant Bank to^{allow the presentOA. Addedto this, the} Defendant has remained^{absentand henceplaced ex parte'} Therefore, it is to be^{construed that Defendanthas admittedthe} entire case^pleaded by^{the Applicant Bankin the presentOA.}

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Therefore, for^{these reasons, presentOA is to be allowed} with costs as sought by^{the Applicant Bank.}

OA.No.7072/2022

ORDER

Present OA stands allowed as prayed for with interest and

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costs.

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In the event of failure of the Defendant to pay the said OA amount, the Applicant Bank is at liberty to sell the Schedule movable properties as mentioned in the main application in accordance with law as sought by the Applicant Bank in the OA.

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In spite of sale of the Schedule movable properties as mentioned in the main application, if the OA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the person and other property of the Defendant as required under law and also as advised.

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Applicant Bank shall file latest Memo of Calculation of OA amount together with interest, costs etc., to be paid by Defendant duly taking into account the amount/s, if any, paid by the Defendant and/or amount realised by sale of assets, etc., during the intervening period after filing the OA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendant to the Applicant Bank.

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OA.No.7072/2022

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Office is directed to issue^{Recovery Certificate as sought by}

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the Applicant Bank in the^{OA and do the needfulas required under} the law forthwith.

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The Office is directed to issue,^{as far as possible, free copy of}

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this order to the^parties concerned.

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(Dictated to the Stenographer, after its transcription^{and necessarycorrections, signed and} pronounced by me in the Open Court on this the 11th^{dayof0ctober, 2023)}

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Y OMTIAEALI) Presiding Officer DRT-1, Bengaluru

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ANNEXURES

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Witnesses examined for the Applicant^Bank

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AW-1 : Sri Devesh Pratap Singh, the Senior^Manager ofthe Applicant Bank Documents marked on behalf of the^{ApplicantBank:} Ex.A.1: : Affidavit Evidence of AW1 Ex.A2: : List of witnesses

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Ex.A3 to A15 : 13 documents.

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Witness Exanined for the Defendant:

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Nil^-

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Nit.,r.12 \ r'

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(IMTIAE ALI) Presiding Officer DRT-1, Bengaluru

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Canara Bank v. Randeep Kanchan

Case brief

What is this about?

What did the court decide?

Canara Bank v. Randeep Kanchan

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

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Case details

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