Allowed

Canara Bank v. Smt. Jayamma K.V.

DRT15 Nov 2023OA/1531/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Canara Bank under Section 19 of the RDB Act for recovery of dues from a defendant who failed to repay agricultural loans. The defendant was present ex parte, and the bank's evidence was accepted.

What did the court decide?

Application allowed with costs; liberty to sell mortgaged properties and proceed against defendant for balance; Recovery Certificate directed to be issued.

Canara Bank versus Smt. Jayamma K.V. — 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 15th day of November, 2023

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Present: Sri Imtiaz Ali

Presiding Officer

OA No.153U2022

BETWEEN:

CANARA BANK

Branch At: Davanagere Mandipet Main Branch, K.R.Road, Mandipet DAVANAGERE - 577 OOI Represented by its Senior Manager Mr. Gireesha G.

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.. APPLICANT

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AND:

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Smt. Jayamma X.V. W/o. Sri K.V.Rajappa Aged about 65 years Residing at: Kogganur Vi[a9e Anagodu Post Davanagere Taluk Davanagere District - 577 556

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.. DEFENDANT

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Couns6ls on recordlaop€ared for:

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Applicant : Sri K. Raveendran Defendant : 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 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money ot RS.34,ZS,36U_ (Rupees thirty four lakhs twenty flve thousand three hundred sixty one only) together with costs, interest, etc.

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\ Y- \

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OA No.1531/2022

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The case of the Applicant Bank is that, the Defendant

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had approached the Applicant Bank for sanction of Credit Facility for FD Loan and KCCS Loan in Land Development and Crop cultivation purpose. Accordingly, the Applicant Bank after considering the request of the defendant sanctioned both the FD Loan of Rs.5,00,0OO/- on 12.07.2OO5 and KCCS Loan of Rs.75,000/- on 25.08.2005.

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In order to secure the loans, the Defendant has executed the various documents viz,, Memorandum oF Agreement for Agricultural Loans, Particulars of Vehicle/machinery/equipment, Letters of Revival, Agreement and Deed of Hypothecation for Kisan Credit Card and Undertaking Letters etc.

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The Applicant Bank has further submits that, the Defendant has agreed to repay the FD Loan of Rs.5,00,000/with interest at the rate ol lO,75o/o^per annum compounded half yearly rests and KCCS Loan of Rs.75,000/- in lumpsum with interest at the rate of 8.500/o per annum compounded half yearly rests. As per the loan agreement, the defendant had agreed to repay the said credit facility in 48 months along with agreed rate of interest.

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OA No.1531/2022

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5, Further, the Defendant has agreed to repay the above loans with variable rate of interests, as applicable from time to time as per the directions of the Head Omce/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 Defendant after utilising the said loans has failed to adhere to the terms and conditions of the sanction of the above said credit facility, Further, the Defendant was not regular in repayment and failed to remit the installments as and when due in respect of the said credit facilities in spite of several demands and requests by the Applicant Bank and the Defendant has utterly failed to clear the outstanding dues in respect of the above said loan.

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ln the light of these factors, it is contended by the Applicant Bank that Defendant is liable to pay a total sum of Rs.34,25,361/- (Rupees thirty four takhs twenty five thousand three hundred sixty one only ).

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B. After filing this OA. Summons was sent and served to

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oA No.1531/2022

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the Defendant through RPAD. When the Defendant is called out, she remained absent and^placed ex^parte.

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To^prove the case of the Applicant Bank, The ManagerMr. K. Guruprasad has filed his affidavit by way of evidence and 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 24 documents came to be marked at Ex.A3 to A26.

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

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What Order?

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For the following reasons, 1 answer the abovereferred^points ln the following manner:

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REASONS

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!4. 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

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OA No.1531/2022

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also corroborated by the above-referred Ex.A3 to 426 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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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 Defendant to pay the said OA amount, the Applicant Bank is at liberty to sell the Scheduler?" and "B" Propertles as mentioned in the maln application of the OA in accordance with law as sought by the Applicant Bank in the OA.

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In spite of sale of the Scheduler A" and "8" Properties as mentioned in the main application of the OA, if the OA amount is not fully realised, then the Applicant Bank is at

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OA No.1531/2022

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liberty to proceed against the person and other propefties 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.

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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 issue, as far as possible, free copy of this order to the parties concerned.

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(Dictated to the Stenographer, after its transcription and necessary corrections, slgned and pronounced by me in the Open Court on this the 1sth day o[ November, 2023)

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t,1'. (Iiltiaz I Ali) Presiding Officer DRT-I, Bengaluru

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OA No.1531/2022

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ANNEXURES

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Witneqs Examined for the Aoolicant^Bank:

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AW-1 : Mr. K.Guruprasad The Manager of the Applicant Bank

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List of Documents Exhibited for the AoDlicant^Bank:

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Ex.A-1 : Affidavit of AW-1

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Ex.A-2 : List of Docu ments

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Ex.A-3 to A-26 : 24 documents

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',,,^,t''? (rmtia)lf,ri) Presiding officer DRT-I, Bengaluru

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Canara Bank v. Smt. Jayamma K.V.

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Jayamma K.V.

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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