Allowed

Canara Bank v. Smt. Yallamma

DRT11 Oct 2023OA/1144/2022

Case brief

AI extract

What is this about?

The DRT-I Bengaluru allowed an application filed by Canara Bank under Section 19 of the RDB Act for recovery of loan dues totaling approximately 31.74 lakhs. The bank presented evidence regarding agricultural loans sanctioned to the respondents, which remained unpaid. The defendants did not appear or contest the petition, leading the tribunal to accept the bank's case by default and order recovery

What did the court decide?

Recovery of amount Rs.31,74,300 with interest and costs; liberty to sell schedule properties and proceed against other properties.

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

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IN THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA AT BENGALURU

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Dated this the 11th day of October, 2023

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Present: Sri Imtiaz Ali

Presiding Officer

OANo.L144l2022

BETWEEN:

canara Bank

Chitradurga Main Branch SJM Dental College Complex

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B.D. Road

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Chitradurga 577 501

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Represented by its Senior^{Manager and} Power of AttorneY Holder Sri K, Nagendra

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,. APPLICANT

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AND:

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Smt. Yellamma

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W/o. Late Thimmappa

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Aged about⁷³ Years

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Sri T, Kumar^SwamY S/o. Late ThimmaPPa Aged about 51 Years

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Sri T. Prakash S/o. Late ThimmapPa Aged about⁴⁵ Years

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AII residina at - Bedarashivanakere^Village Basavanashivanakere^Post Chitradurga^Taluk Chitradurga^District Karnataka-577⁵⁰¹

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.. DEFENDANTS

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counsels on^{re€ord/aDDearedfori}

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Applicant : sri H. s. Rukkoji^Rao Defendants I Ex'Parte

OA No.114412022

FINAL ORDER

The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of Rs,3,.,74,gOO/(Rupees thirty-one lakhs seventy-four thousand three hundred only) together with costs, interest, etc.

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The case of the Applicant Bank is that the Defendant No.1 is the mother of Defendants No. 2 & 3. The Defendants are agriculturists by occupation. The Defendants No.1 & 2 have approached the Applicant Bank seeking credit facilities. The Applicant Bank has considered the request of the Defendants and sanctioned a Minor Irrigation Loan of Rs.1,86,000/- on 01.12.2011, Farm Machinery Loan of Rs.5,50,000/- on 23.06.2012, Kisan Credit Card Scheme Loan of Rs.1,10,000/- on 23.72.2014 and Farm Development Loan of Rs.3,00,000/- on 24,02.2015, in terms of loan agreements, In order to secure the loans, the Defendants have executed documents viz., Agreements of hypothecation for agricultural loans, Simple mortgage deeds, particulars of vehicles,/equipment/livestock etc., Letters of revival etc.,

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OA No.1144/2022

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Further, the Defendants have agreed to repay the above loans with variable rate of interests, as applicable from time to time as per the directions of the Head Office/Central Office of the Applicant 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 Applicant Bank, as detailed in the OA by the Applicant Bank.

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The Defendants after utilising the said loans have failed and neglected to make the repayment of the loans due as agreed and Defendants have not serviced the interest thereon as per the terms and conditions agreed by the Defendants. The officials of the Applicant Bank have approached the Defendants on several occasions and demanded to regularise the loan accounts but the Defendants are^postponing the same on one or the other pretext. Thereafter, the Applicant Bank has sent notice to the Defendants on 27.O9.202L, calling upon them to repay the outstanding dues. In spite of receipt of notice,^the Defendants have failed and neglected to^pay the outstanding dues and hence the recovery^process is initiated to^recover the dues.

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OA No.l744/2022

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In the light of these factors, it is contended by the Applicant Bank that Defendants are liable to pay a total sum of Rs.3l,74,3OO/- (Rupees thirty-one lakhs seventyfour thousand three hundred only).

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After filing this OA, Summons were sent and served to the Defendants through RPAD. When the Defendants were called out, none represented and hence placed ex parte.

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To prove the case of the Applicant Bank, The Chief Manager, Smt, Valarmathi B. Shankar, has filed her affidavit by way of evidence the same was considered as evidence of AW.1 and marked at Ex.A1 and list of document came to be marked at Ex.A2 and 37 documents came to be marked at Ex.A3 to A39.

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No evidence on behalf of the Defendants.

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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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1. Whether Plaintiff/Applicant Bank proves its case as contended in the plaint/application?

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1. What Order?

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OA No.114412022

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For the following reasons, I answer the abovereferred points in the following manner:

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REASONS

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The Chief Manager of the Applicant Bank came to be examined as AW.1. Her affidavit by way of evidence reiterated the facts pleaded in the plaint and her affidavit is also corroborated by the above-referred Ex.A3 to A39 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this. the Defendants have remained absent, hence it is to be construed that Defendants have admitted the entire case pleaded by the Applicant Bank in the present oA.

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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 costs.

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In the event of failure of the Defendants to^pay the said oA amount, the Applicant Bank is at liberty to sell the

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OANo.1744/2022

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Schedule property in accordance with law as sought by the Applicant Bank in the OA.

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In spite of sale of the schedule property, if the OA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the persons and other properties of the Defendants 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 Defendants duly taking into account the amount/s, if any, paid by the Defendants and/or amount realised by sale of assets, etc., during the intervening period after filing the OA, to enable the office to prepare Recovery Certiflcate for the amount to be paid by the Defendants to the Applicant Bank.

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Office is directed to issue Recovery Certiflcate 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 issue, as far as possible, free

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copy of this order to the parties concerned.

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(Dictated to the Stenographer, after its transcripuon and necessary corrections, signed and pronounced by me in the Open Court on this the 1lth day of October, 2023)

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I 12

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(Imliaz Ali) Presiding Officer DRT-I, Bengaluru

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OANo.t7Ml2O22

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ANNEXURES

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Witness Examined for the Applicant Bank: AW-1 : Sri Valaramathi B. Shankar

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The Chief Manager of the Applicant Bank

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List of Documents Exhibited for the Aoolicant Bank:

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Ex.A-l : Affidavit of AW-1

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Ex.A-2 : List of Documents

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Ex.A-3 to A-39 : 37 documents

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Witness Examined for the Defendants:

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NiI -

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List of Documents Exhibited for the Defendants:

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Nit-

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(*" (ImtiFz Ali) Presiding Officer DRT-I, Bengaluru

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Canara Bank v. Smt. Yallamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Yallamma

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

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