Allowed

Karnataka Bank Limited v. Sri. Siddaram Bisalappa Karajanagi

DRT21 Nov 2023OA/1614/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Karnataka Bank Ltd under Section 19 of the RDB Act, 1993, for recovery of outstanding dues from two agriculturist respondents who failed to repay secured loans, with interest and costs.

What did the court decide?

Recovery of Rs. 40,05,141.80 with interest and costs; liberty to set-attach schedule properties and proceed against other properties; direction to issue Recovery Certificate.

Karnataka Bank Limited versus Sri. Siddaram Bisalappa Karajanagi — 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 21st day November, 2023

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PTCSENt: Sri IMTIAZ ALI

Presiding Officer

oA No.16l4l2022

BETWEEN:

Karnataka Bank Ltd

Branches One called Bijapur Branch now Known as Vijayapura Main Branch Vijayapura Represented by its Senior Manager Sri c. Badari Prasad

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.. APPLICANT

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AND:

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l. Sri Siddaram Bisatappa Karajanagi

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S/o Sri Bisalappa Karajanagi

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Aged about 37 years

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Residing at: No.14 Baradol Village, Indi Taluk- 586 204 VUayapura Dist.

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Sri Bisalappa Karajanagi

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S/o Sri Amajeppa Karajanagi @ Annappa Aged about 63 years Residing at: No.441 Baradot Village Indi Taluk- 586 204 Vijayapura Dist.

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..DEFENDANTS

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Counsels on record/aDDeared foa:

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Applicant : SriTS Krishna i,turthy Defendants : Ex-pafte

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FINAL ORDER

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The present OA have been flled by the Applicant Bank

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under Section 19 of the Recovery of Debts and Bankruptcy

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\ V \

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OA No-7674/1022

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Act, 1993, seeking recovery of money of RS.4O,O5,141.8O (Rupees forty lakhs five thousand one hundred fortyone and paise eighty only) together with costs, interest, etc.

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The case of the Applicant Bank is that, the Defendant No.1 is an agriculturist and doing the agricultural activities. The Defendant No.2 is co-obligant/guarantor. The Defendant No.1 is the son of 2nd Defendant. The Defendants No.1 and 2 had approached the Applicant Bank for various fi'nancial facilities. The Applicant Bank has considered the request of the Defendants and sanctioned the 1) PSTL-I in a sum of Rs.3,86,000/- under A/c No.07770018110501 on 16.08.2005, 2) PSTL-II in a sum of Rs.90,000/- under A/c No.0777001800043601 on 24.10.2009,3) PSTL-UI in a sum of Rs.4,00,000/- under A/c No.0777OO18OOO54OO1 on 12.02.2OL7 4) KCOD/KCC-CaSh Credit Limit in a sum of Rs.2,10,000/- under Nc No.0777000800034001 on 06.03.2012 and s)PSTL-IV in a sum of Rs.1,75,000/- under A/c No.0777001800067901 on 28.O9.2012, in terms of the loan agreements, In order to secure the loans, the Defendants have executed documents, viz., Term Loan agreements, Hypothecation agreements, Letter of

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OA No.1614/2022

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mortgage' Declarations,^{Registereddeeds of} Acknowledgement^{of debts,Acknowledgement of Liabilities'} Composite^{agreements,Letter regarding restructureof} repayment^{of Loan amount, Consentletters etc} '

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Further,^{the Applicant Bank has furthersubmitsthat'} the defendants^{have agreed to repay the above said loansas} mentioned below:

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i) PSTL-I^{in a sum of RS.3,86,OOO/-with interestat the MCLR} rate of 10o/o^{P.A. with annually rests in 7 years'with a holiday} period of 2^{years and with additional Penal interest at the} rate of Zo/o^{P.A. in caseof default'}

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ii) PSTL-II^{in a sum of RS'9O,OOO/-with interestat the MCLR} rale of 13.75o/o^{P.A. with annually rests in 5 yearsand with} additional^{Penal interest at the rate of 2oloin case of default'} iii) PSTL-IIi^{in a sum of Rs 4,OO'OOO/-withinterest at the} MCLR rate of^{9olo P.A. with annually restsin 5 years and with} additional^{Penal interest at the rate of 2oloin case of default'} iv) KCOD/KCC-CaSh^{CreditLimit in a sum of Rs 2'10'000/-} with interest^{at the rate of 11 50% P'A with annuallyrests in} one^{yearand with additional Penal interestat the rate of 2olo} in case^{of default'}

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v) PSTL-IV^{in a sum of Rs 1,75'000/- with interest at the}

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OA No.1614/2022

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MCLR rate of L2.5Oo/o P.A. with annually rests in 5 years and with additional Penal interest at the rate of 2o/o in case of default.

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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 condition agreed by the Defendants. Thereafter, the Applicant Bank has sent Notice on 10.10.2022 to the Defendants. In spite of receipt of the Notice/repeated requests/demands, the Defendants have 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

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oA No.1614/2022

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Applicant Bank that Defendants are liable to^pay a total sum of RS.4O,O5,141.aO (Rupees forty lakhs five thousand one hundred forty-one and^paise eighty only).

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After filing this OA, Summons were sent and served to the Defendants through RPAD. When Defendants were called out, Defendants remalned absent and hence,^placed ex^parte.

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To prove the case of the Applicant Bank, The Senior Manager Sri C L Muddu Kumar, 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 document came to be^marked at Ex.A2 and 53 documents came to be marked at Ex.A3 to A55.

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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^provesits case as contended in the^plaint / application?

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OA No.7674/2022

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What Order

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L2, For the following reasons, I answer the abovereferred points in the following manner:

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REASONS

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The Senior 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 A55 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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t4. 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.

OA No.1614/2022

In the event of failure of^{the Defendants to pay the said} OA amount, the^{ApplicantBank is at liberty to setl the} Schedule^propertles in^{accordance with law as sought by the} Applicant Bank in the OA.

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In spite of sale of the^{schedule properties, if theOA} amount is not fully^{realised,thenthe 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 flle^{latestMemo of Calculation of} OA amount together^{with interest,costs etc., to be paid by} Defendants duly taking into^{accountthe amount/s, if any,} paid by the Defendants and/or amount^{realised by sale of} assets, etc., during^{the intervening period afterfiling the OA,} to enable the^{office to prepareRecoveryCertificate for the} amount to be^{paidby the Defendantsto 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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OANo.1674/2022

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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 transcription and necessary corrections, sjgned and pronounced by me in the Open Court on this the 21.r day November, 2023) \VI

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(IMTIA\Z ALI) PRESIDING OFFICER DRT-I, Bengaluru

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ANNEXURES

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Witness Examined for the Apolicant Bank: AW-1 : Sri CLMudduKumar

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The Senior Manager of the Applicant Bank

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List of Documents Exhibited for the Aoolicant Bank: Ex.A-l : Affidavit of AW-1 Ex.A-2 : List of Documents

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Ex.A-3 to A-55 : 53 documents

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Witness Examined for the Defendants:

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Ni! -

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List of Documents Exhibited for the Defendants:

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Nit-

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,rrr,*;:;I PRESIDING OFFICER DRT-I, Bengaluru

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Karnataka Bank Limited v. Sri. Siddaram Bisalappa Karajanagi

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Sri. Siddaram Bisalappa Karajanagi

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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