Allowed

Canara Bank v. Smt. Akhila Begum

DRT12 Dec 2023OA/1062/2022

Case brief

AI extract

What is this about?

DRT-II, Bengaluru allowed the bank's Original Application for recovery of an agricultural term loan of Rs. 45.75 lakks+. The Tribunal granted permission to recover the sum by sale of schedule property or personal assets, issued a recovery certificate, and awarded costs.

What did the court decide?

Recovery of Rs.45,75,731/- with interest at 12.75% p.a. by sale of schedule property or personal assets; issuance of Recovery Certificate; costs awarded.

Canara Bank versus Smt. Akhila Begum — Banking and Recovery | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 12^th Day of December, 2023

¶3

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

¶4

OA. No.1062/2022

¶5

BETWEEN:

¶6

Canara Bank Adityanagar Branch, Malkhed, Near Sarveshwar Temple, Rajashree Cement Complex, Adityanagar, Malkhed, Kalburgi-585 292. Represented by Branch Senior Manager and P.A. Holder, Sri. Manju Eslavath.

¶7

… APPLICANT

¶8

AND:.

¶9

Mrs. Akhila Begum W/o Dawood Patel Aged about 53 years, R/o Miriyan Village, Chincholi Taluk, Kalaburgi District-585305.

¶10

... DEFENDANT

¶11

Counsel on record/appeared for:

¶12

Applicant : Sri. Naveen Tao, Defendant : Exparte.

¶13

FINAL ORDER

¶14

The present Original Application (OA) is filed on 30.04.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.45,75,731/- (Rupees forty five lakh seventy five thousand seven hundred and thirty one only) with further interest thereon from the date of filing the Application till realization from the Defendant.

¶15

¶16

OA. No. 1062/2022

¶17

The application filed is within the period of limitation as prescribed under Section 24 Recovery of the Debts Due to Banks and Financial Institutions 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 as borrower had approached the applicant bank seeking for Agricultural Term Loan of Rs.5,00,000/- (Rupees five lakh only) on 28.10.2004 in loan A/c No. 02718857001885 for purpose of purchase of tractor and trailer. The loan was availed at an interest @ 10.75% p.a. and penal interest @ 2% p.a. in case of default in repayment.

¶20

The defendant 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 executed memorandum of agreement for agricultural loan dated 28.10.2004 and Simple Mortgage is registered as document no. 792/2004-05 dated 21.10.2004 in the office of the subregistrar Chincholi and also executed letter of Revival dated 15.11.2006, 18.05.2009, 31.10.2010, 28.03.2012, 20.03.2015, 15.02.2018 and 14.10.2020 in favour of the applicant bank.

¶21

The Applicant Bank submits that the Defendant, after availing the said facilities, failed to repay the loan amount and committed default. The loan account of the Defendant had been classified as a Non Performing Asset

¶22

¶23

OA. No. 1062/2022

¶24

(NPA) 01.04.2016 and the Applicant bank issue a Demand Notice dated 14.02.2022 calling upon the defendant to repay the entire outstanding loan amount. However, there was no positive response from the Defendant. Hence, this Original Application (OA) has been filed to recover the dues from the Defendant.

¶25

After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due the same is duly served on 14.11.2022. Therefore, service held sufficient. When OA was taken up on 19.01.2023 even after giving sufficient time, there was no appearance or representation from the Defendant; hence, Defendant was placed exparte on 19.01.2023.

¶26

Heard the submissions of Applicant Bank and perused the records.

¶27

To prove the case of the Applicant Bank, Mr. J. Prabhakar Reddy S/o J. Govinda Reddy, 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 A19. 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.

¶28

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

¶29

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

¶30

¶31

OA. No. 1062/2022

¶32

final order on the following terms:

¶33

: O R D E R:

¶34

The OA is allowed with costs,

¶35

(a) The applicant bank is allowed to recover from Defendant to pay an amount of Rs.45,75,731/- (Rupees forty five lakh seventy five thousand seven hundred and thirty one only) and also future interest @ 10.75% p.a. plus 2.00% penal interest from the date of OA and till the date of realization.

¶36

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

¶37

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

¶38

¶39

order;

¶40

(d) If the sale proceeds of the schedule mentioned properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendant (both movable and immovable) respectively to recover the balance dues as required under law;

¶41

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

¶42

amount together with interest, costs etc., to be paid by the defendants duly

¶43

¶44

OA. No. 1062/2022

¶45

considering the amounts, if any, paid by the defendants and/or amount

¶46

realized by sale of assets etc., during the intervening period after the filing

¶47

of the OA, enabling the Registry to prepare Recovery Certificate for the

¶48

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

¶49

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

¶50

date of this final order.

¶51

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

¶52

Officer in terms of the final order.

¶53

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

¶54

[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 12th Day of December 2023].

¶55

Sd/-

¶56

PRESIDING OFFICER

¶57

DRT-II, BENGALURU

¶58

ANNEXURES

¶59

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶60

AW-1: Mr. J. Prabhakar Reddy S/o J. Govinda Reddy, Manager of Applicant Bank.

¶61

Exhibits on the part of the Applicant:

¶62

Exhibit Nos.	Particulars of Documents	Date
A1	Applicant Evidence
A2	List of Documents.
	Type Loan: Agricultural Term Loan Loan A/c No. 2718857001885.
A3	Application for Agricultural Term Loan	28.10.2004
A4	Specimen Signature Card	28.10.2004
A5	Memorandum of Agreement for Agriculture loan.	28.10.2004

¶63

¶64

OA. No. 1062/2022

¶65

A6	Appraisal Report for purchase of Tractor/ Tiller	28.10.2004
A7	Application for purchase of Tractor/Power Tiller	28.10.2004
A8	Simple Mortgage Deed 792/2004-05	21.10.2004
A9	Particulars of Vehicle Hypothecated	20.11.2004
A10	Letter of Revival	15.11.2006
A11	Letter of Revival	18.05.2009
A12	Letter of Revival	31.10.2010
A13	Letter of Revival	28.03.2012
A14	Letter of Revival	20.03.2015
A15	Letter of Revival	15.02.2018
A16	Letter of Revival	14.10.2020
A17	Legal Notice	14.02.2022
A18	Postal Acknowledgement card duly served
A19	Bank statement of A/c No. 27188857001885

¶66

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

¶67

Description of “SCHEDULE PROPERTY”

¶68

Agricultural lands measuring 10 acres 28 guntas in Sy.No.52, situated at Miriyan Village, Chincholi Taluk, Kalaburgi District-585305. Bounded on: East: Basuvaraj

¶69

West: Mogalumm North: Gundappa S/o Govinda Rao, South: Sheik Allauddin

¶70

Sd/DRT-II, BENGALURU

¶71

PRESIDING OFFICER

¶72

¶73

OA. No. 1062/2022

Canara Bank v. Smt. Akhila Begum

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Akhila Begum

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

Canara Bank versus Mr Bendanganshi

Uco Bank versus Jaarohi Lalhruaizela

Canara Bank versus Mr. Devdutt

Punjab National Bank versus Mr. Ramesh M. Kiresur

Manish Kumar Sahu versus Bank of Baroda

Hdfc Bank Ltd., versus Thumma Srinadh Babu