Allowed

Canara Bank v. Sri. Girish P.N.

DRT13 Oct 2023OA/1327/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunalallowed an Original Application filed by Canara Bank for recovery of dues amounting to approximately Rs. 1.04 crore from three individuals. The courtfound the bank's evidence satisfactory and the defendants absent, granting the recovery with a liberty to sell collateral.

What did the court decide?

OA allowed with interest and costs. Liberty granted to sell schedule immovable properties and proceed against other assets if recovery is incomplete.

Canara Bank versus Sri. Girish P.N. — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERYTRIBUNAL^- I, KARNATAKA

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AT BENGALURU

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Dated this the 13th day of October, 2023

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Present: SRI IMTIAZ ALI

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Hon'ble Presiding Officer

oAL327 /2022

BETWEEN:

CANARA BANK

Chiradurga Main Branch SfM Denal College Comphx

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B.D. Road

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CHITRADURGA -577 SOI

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Represented by ib Senior Manager and PA Holder - Sri K. Nagendra

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... APPLICANT

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AND:

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SRI GIRISH P.N.

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S/o Late Nagappa S.G. Aged about 47 years

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SRr P.IYOTHI LINGAPPA

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S/o Late Nagappa S.G. Aged about 51 years

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SRI P.N.SHATHIKUMAR S/o Late Nagappa S.G. Aged about 49 years

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All residing at: Bedarashivanakere Village Basavanashivanakere post Chitradurga Taluk and District.

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,. DEFENDANTS

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Counsel on record/appeared for; Applicant : Sri H.S.Rukkoji Rao Defendants No.1 to 3 i Ex-parte

OA.No.7327 /2022

FINAL ORDER

The present OA has been filed by the^{ApplicantBank under} Section 19 of the Recovery of^{Debs and BankruptcyAct, 1993,} seeking recovery of money of Rs.1,04,11,267/- [Rupees^{One Crore} Four Lakh Ebven Thousand Two Hundred Sixty^{Sevenonly) together} with cosB, interest, etc.

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The case of the Applicant Bank is that, one^{Sri S.GNagappa} and the Defendant No.1 are^{Agriculturiss by occupation.The said} Sri S.GNagappa died intestate^{duringApril, 2008 having behind the} Defendants as his legal^{heirs to inherit his estate. The DefendanB} are Co-Mortgagors along^{with the said Sri S.G Nagappa. Thesaid} S.GNagappa and the^{DefendantNo.L had approached the Appllcant} Bank for grant of various^{loans as mentionedbelow:}

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D^{KCCS Limit of upto Rs'2,00,000/- for the purpose of crop} cultivation vide loan application^{dated 10.05'2005. Accordingly, the} Applicant Bank sanctioned a^{KCCS Limit of Rs.2,00,000/- on} 10.05.2005 in favour of said S.GNagappa^{and DefendantNo.1.}

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ii)Farm Development Loan of^{Rs.5,00,000/- vide loan application} Mted 23.05.2005 for the^purpose of^{constructionof farm house,} storage tank, fencing and drip^{irrigantion' Accordingly,the}

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OA.No.1327l2022

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Applicant Bank sanctioned a Farm Development Loan of Rs.5,00,000/- on 23.05.2005 in favour of said S.GNagappa and Defendants.

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iiilFarm Machinery Loan of Rs.5,10,000/- for the purpose of purchasing Tractor and Traihr vide loan application dated 07.72.2005. Accordingly, the Applicant Bank sanctioned a Farm Machinery Loan of Rs.5,10,000/- on 06.12.2005 in favour of said S.GNagappa and Defendant No.1.

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In order to secure the loans, the Defendanb have executed various documenB such as; Agreement and Deed of Hypothecation for KCCS Loans, Simpb Mortgage deeds, Letters of Reviva| Memorandum of Agreemenb for Agricultural Loans and Particulars of Vehicles/EquipmenB Hypothecated etc.

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Furthe4 the Applicant Bank submitted that, i)the KCCS limit is tenable for 12 months in case of short term crops and 18 months in case of annual yielding crops or marketing of the produce, whichever is the earlier. The said S.G.Nagappa and Defendant No.l. have agreed to pay interest at the rate of 9.500/o per annum compounded half yearly and penal interest of 2o/o per annum on the overdue amount. ii)the said S.GNagappa and defendanB have

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OA.No.1327l2O22

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agreed to repay the Farm^{Development loan within 7 yearly} installrnents of Rs.72,000/- each in^{the first six installmenband} Rs.68,000/- in the last installment^{and to pay interest and other} charges separately. Furthec the said^{S.G.Nagappa and the} Defendans have agreed to^{pay interest at the rate of 1'1.250/oper} annum compounded half^{yearly and penal interestof 2o/o pet} annum on the overdue amount. iii)^{the saidS'GNagappa and} defendants have agreed^{to repay the Farm machinery loan within9} yearly installmenb of Rs.57,000/- each^{alongwith interest and} other charges and they^{have agreed to pay interest at the rate of} L2.7 Oo/o per annum compounded^{half yearly and penal interest of} 2olo per annum on the overdue^amount.

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Further, the Defendans^{haveagreed to repay the Loanswith} variable rate of interest, as^{applicabh from time to timeas per the} directions of the Head Office / Central^{Officeof the ApplicantBank} and penal interest in case of default^{and keep the accounB regular} by paying installmenb 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 Defendanb after utilizing the said loans,^{they did not}

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OA.No.7327 /2022

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repay the principal amount as well as the interest and the Applicant Bank several times demanded the repayment of the^{loans and hence} the ban accounts of the defendanb became overdue and^{NPA in} terms of RBI guidelines. Therefore, on 27.09.2021 the Applicant Bank got issued Legal Notice to the Defendanb.^Though the said Legal Notice were served on them, but the defendanb have failed to repay the loans.

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In the light ofthese factors, it is contended by the Applicant Bank that Defendanb are liable to pay a total sum of Rs.7,O4,ll,26U- (Rupees One Crore Four Lakh Eleven Thousand Two Hundred Sixty Seven only).

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B. After filing this OA, Summons were sent through RPAD and the same were served to the Defendanb No.1 to 3. When the Defendanb No.1 to 3 were called out, the Defendans No.1 to 3 remained absent and hence placed ex parte.

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To prove the case of the Applicant Bank, its Chief ManagerSmt.Valarmathi B. Shankar has filed his affidavit by way of evidence and same was considered as evidence of AW.1 and marked at Ex.A1

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oA.No.732712022

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and List of Documents came to be^{marked at Ex.A2 and 36}

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documents came to be marked at^{Ex.A3 to Ex'A38.}

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No evidence on behalfofthe Defendans'

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ArgumenB of Learned^{Counselfor the Plaintiff} /^Applicant

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Bank heard and^perused the^{records ofthecase.}

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Folbwing^poinB arise for^{my consideration:}

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Whether Plaintiff / Applicant^{Bank prove ib 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 following manner:

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REASONS

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r \v'

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The Chief Manager of the Applicant^{Bank came to be} examined as AW.1. Her affidavit by^{way of evidence reiteratedthe} facts pleaded in the plaint and his affidavit is also corroborated^by the above-referred Ex.A3 to A3B which clearly^{establish the case of} the Applicant Bank to allow the^present 0A.^Added to^this,the Defendants No.1 to 3 have remained absent and hence^{placed ex}

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OA.No.7327 /2022

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parte. Therefore, it is to be construed that Defendants No.1 to 3 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

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costs.

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In the event of failure of the DefendantsNo.l to 3 to pay the said OA amoun! the Applicant Bank is at liberty to sell the Schedule immovable properties as mentioned in the main application in accordance with law as sought bythe Applicant Bank in the OA,

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In spite of sale of the Schedule immovable 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 persons and other properties of the Defendants as required under law and also as advised.

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OA.No.7327/2022

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Applicant Bank shall^{file latestMemoof Calculationof OA} amount together^{with interest,costsetc., to be paid by Defendants} No.L to 3 duly taking^{into account the amount/s,if any, paid by the} Defendants No.L to^{3 and/or amount realisedby sale of assets, etc',} during the intervening^{period after filing the OA, to enable the office} to prepare Recovery^{Certificatefor the amountto be paid by the} Defendants No.1 to^{3 to the Applicant Bank.}

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Office is directed to^{issue RecoveryCertificate 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 copy of}

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this order to the^{parties concerned.}

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(Dictated to the Stenographer,^{after its transcriptionand necessarycorrections, signed and} pronouncedbyme in the open court^{on this the 13th day of october, 2023)}

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\ t\r lrrrahraz^artl Presiding Officer DRT-1, Bengaluru

OA.No.7327/2022

ANNEXURES

Witnesses examined for the Applicant Bank AW-1 : Smt. Valarmathi B. Shankaf, the Chief Manager of the Applicant Bank

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Documents marked on behalf of the Applicant Bank: Ex.A.1: :Affidavit Evidence of AW1 Ex.A2: : List of witnessesList of witnessesof witnesseswitnesses

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: List of witnessesList of witnessesof witnesseswitnesses

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Ex.A3 to 43B : 36 documents.

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Witness Examined for the Defendants:

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_ Nil_

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List of Documents Exhibited for the Defendants:

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Nil^-

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,,,,,h,'j", Presiding Officer DRT-1, Bengaluru

Canara Bank v. Sri. Girish P.N.

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Girish P.N.

Case brief

What is this about?

What did the court decide?

What the court decided

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