Allowed

Canara Bank v. Smt. M. Kavitha

DRT21 Dec 2023OA/1017/2022

Case brief

AI extract

What is this about?

An Origination Application filed by Canara Bank under the RDDB Act for recovering dues of over Rs.38 lakhs from the defendant Smt M Kavitha. The defendant defaulted on two term loans. Being an ex-parte proceeding, the Tribunal allowed the application, granted recovery, and directed the issuance of a Recovery Certificate.

What did the court decide?

OA allowed with interest and costs; liberty granted to proceed against person and properties; Recovery Certificate issued.

Canara Bank versus Smt. M. Kavitha — Banking and Recovery | DRT (2023)

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OA No.1017 /2022

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IN THE DEATS RECOVERY TRIBUNAL - I, KARNATAKA

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AT BENGALURU

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Dated this the 21st day of December, 2023

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Present: Sri Imtiaz Ali

Presiding Officer

OA No.LOlT / 2022

BETWEEN:

Canara Bank

Bagalaqunte Branch No. 18,'Shivaganga;, Bagalagunte Bengaluru-560073

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Represented by it's Branch Manager Sri Ankit Pramod Somkuwar S/o. Sri Pramod Somkuwar

Aged about 33 years

.., APPLICANT

AND:

Smt M Kavitha

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W/o. Sri N. Madhu Aged about 35^years

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Residino at - No. 7, 20th Cross

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Pipeline Road, Mini Bhel Colony Mallasandra, T. Dasarahalli Bengaluru - 560057

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... DEFENDANT

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Counsels on record/aopeared for: Applicant : Manjunath Murtugudde Defendant i Ex-parte

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FINAL ORDER

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The present OA has been filed by the Applicant Bank under Section 19 (25) of the Recovery of Debts and Bankruptcy A.t, 1993, seeking recovery of money of Rs,38,19,121.46 /-(Rupees

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\ f

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OA No.1017 /2022

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Thirty Eight Lakhs Nineteen Thousand One Hundred Twenty One and Forty Six Paise only) together with costs, interest, etc.,

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The case of the Applicant Bank is that, the Defendant had approached the Applicant Bank for grant of (PMDGp) (MSEs) Term Loan of Rs.23,75,000/- on 12.03.2019. Considering the request. the Appticant Bank sanctioned Term Loan of Rs. 23,75,000 repayable with interest at the rate of L0.75o/o p,a,, and in case of default, additional interest at the rate of 2o/o p.a., for financial assistance for business purpose. The entire loan amount of Rs,23,75,00/- has been paid to the Defendant. The entire loan amount has been utilized under Loan account No. 2891768000071 maintained with the Applicant Bank.

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Further, Defendant had borrowed a loan of Rs.4,00,000/- on 29.06.2020 under GECL (Guaranteed Emergency Credit Line) Loan Scheme repayable with interest @ 7,650/o p.a., and in case of default additional interest @ 2^o/o p.o. The entire loan amount of Rs.4,00,000/has been paid to the Defendant. The entire loan amount has been utilized under Loan A,/c No. 2891755000018 maintained with the Applicant Bank.

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Further, the Defendant have agreed to repay the above loans with variable rate of interests, as applicable from time to time as per the

OA No.1017 /2022

directions of the Head Office / Central Office of the Appticant Bank and penal interest in case of default and keep the accounts regular by paying installments as and when due to the satisfaction of the Appltcant Bank, as detailed in the OA by the Applicant Bank.

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The Defendant after utilising the said loans have failed and neglected to make the repayment of the loans due as agreed and Defendant has not serviced the interest thereon as per the terms and condition agreed by the Defendant. Thereafter, the Applicant Bank has sent Legal Notice on 02,02.2022 to the Defendant. In spite of receipt of the Legal Notice, the Defendant has failed to pay the outstanding dues and hence the recovery process is initiated to recover the dues.

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In the light of these factors, it is contended by the Applicant Bank that Defendant is liable to pay a total sum of Rs.38,19,t21,46 /- (Rupees Thirty Eight Lakhs Nineteen Thousand One Hundred Twenty One and Forty Six Paise only)

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After filing this OA, Summons were sent and served to the Defendant through RPAD to her Two addresses on 27.08.2022. When Defendant was called out, Defendant remained absent and placed ex pa rte.

OA No.1O17 12022

To prove the case of the Applicant Bank, it,s Officer, Sri Ashwin Kumar, S/o Vinod Kumar Aged about 33 years, has filed his affidavit by way of evidence the 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 A15.

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No evidence on behalf of the Defendant.

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Arguments of Learned Counsel for the Plaintiff/ Applicant Bank heard and perused the records of the case.

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Following points arise for my consideration:

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Whether^{plaintiff/Applicant} Bank proves its case contended in the ptaint/application?

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What Order?

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For the following reasons, I answer the above-referred points tn the following manner:

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REASONS

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The Manager of the Applicant Bank came to be examined as AW.1. His affidavit by way of evidence reiterated the facts pleaded in the plaint and his affidavit is also corroborated by the above-referred Ex.A3 to A15

t Y

OA No.1017 /2022

which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the Defendant has remained absent and hence she was placed ex-parte. Therefore, it is to be construed that Defendant has admitted the entire case pleaded by the Applicant Bank in the present OA.

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L4. Therefore, for these reasons, present OA is to be allowed with costs as sought by the Applicant Bank.

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ORDER

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Present OA stands allowed as prayed for with interest and

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costs.

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On failure to^pay the above O.A amount, the Applicant Bank is liberty to proceed against person and properties of the Defendant in accordance with law.

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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.

OANo.tlL7 /2022

Office is directed to issue Recovery Certificate as sought by the Applicant Bank in the OA and do the needful as required under the law forthwith.

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The Office is directed to lssue, as far as possible, free copy of this order to the parties concerned.

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(Dictated to the stenographer, after rts transcription and necessary corrections, signed and pronounced byme in the Open Court on this the 21i day of December, ,Oi

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Y (rmtiai I Ati) Presiding Officer DRT-I, Bengaluru

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ANNEXURES

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licant Bank: AW-1 ; Sri, Ashwini Kumar Officer of Applicant Bank Ex.A-1 Affidavit of AW- 1 Ex.A-2 List of Documents Ex.A-3 to A-1s : 13 documents Witness Examined for the Defendant:

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Nit-

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Nit-

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(Imtiaz Ati) Presiding Officer DRT-f, Bengaluru

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.aa.

Canara Bank v. Smt. M. Kavitha

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. M. Kavitha

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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