Allowed

Canara Bank v. Bava Infrastructure Developers Pvt. Ltd.

DRT18 Sept 2023OA/1615/2022

Case brief

AI extract

What is this about?

The Deats Recovery Tribunal allowed an interlocutory application filed by Canara Bank seeking attachment before judgment of specific properties owned by the respondents to secure recovery of a large outstanding sum, directing the respondents to furnish equivalent security.

What did the court decide?

Interim relief allowing attachment before judgment of schedule properties if respondents fail to furnish security equivalent to the claim amount by the next hearing.

Canara Bank versus Bava Infrastructure Developers Pvt. Ltd. — Banking and Recovery | DRT (2023)

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IN THE DEATS RECOVERY TRIBUNAL-I, KARNATAKA

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AT BENGALURU

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Dated this the 18th day of September 2023

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PTESENI: Sri IMTIAZ ALI

presiding Officer

IA No.1962/2O23

o.A. No.t6tS/2022

BETWEEN:

CANARA BANK

I4id Corporate Branch,

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Hampankatta, Mangaluru

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AND:

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.. PETITIONER/ APPLICANT BANK

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BAVA INFRASTRUCTURE DEVELOPERS PVT. LTD

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Registered Office at:

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Door No.113/21, Ground Floor,

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Commerce Centre,

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Airport Road, Kulur,

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Mangalore, Karnataka-575 013

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Represented by its Managing Director MEHASHOOF AHMED BAVA

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2, Mr MEHASHOOF AHMED BAVA

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Aged about 27 years

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Son of B. Ahmed Mohiuddin Bava

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Mrs NAGEENA MOHIUDDIN BAVA

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Aged about 52 years

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Wife of B. Ahmed Mohiuddin Bava

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MT B. AHMED MOHIUDDIN BAVA

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Aged about 58 years Son of Late Haji Baikampady lvt. Ahmed alias Ahmed Bava

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Defendant Nos.02 to 04 are residing at: House No.9-38/1, Mehshoof, Chokkabettu, Katipalla via Surathkal, l.4angaluru - 575 Of4

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1.A.No.1962/2023ⁱⁿ o.A.No.1515/2022

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5. MrS ZAREENA

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Wife of H. B. Mohammed Aged about 48^years Residing at: Flat No.901, Retreat Apartment, S. L. Mathias Road, Kapri Gudda, Attavara, Mangaluru-575 002

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Smt. RIYANA

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Aged about 40^years Wife of B. M. Mumtaz Ali Residing at: No.8-118, Block^{No. 08,} Krishnapura, Surathkal, Mangaluru-575 014.

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MT. B. M. SHOUKATH^ALI Aged about 40^years Son of Late Haji Baikampady^{M. Ahmed} alias Ahmed Bava Residing at: No.8-112,^BlockNo.0B, Chokkabattu, KatiPalla, Krishnapura, .. RESPONDENTS/ Mangaluru-575 014 DEFENDANTS

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The present OA is filed^{by the ApplicantBank against} the Defendants for issuance^{of recovery certificate and other} reliefs for recovery of a^{sum of Rs.41,50,36,8O7/- together} with agreed rate of^{interest,costs, charges etc.}

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The above Interlocutory^{Application is filed by the} Applicant Bank with^{alfidavit of its ManagerSri Manjuraj C,} seeking to^pass an^{order of attachment before judgmentof} the item Nos.1 to^{12 of the scheduleidentifiedproperty} against Defendants^{No.3, 4 and 7 and further to direct the} Defendants No.3, 4 and^{7 not to transfer, alienate or}

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1.A.No.1962/2023 in o.A.No.7675/2022

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otherwise dealing with or disposing of any property and assets belonging to them without the prior permission of this Tribunal with direction to the District Registrar, Mangalore not to entertain any registration and to allow the application to meet the ends of justice. In the affidavit, inter alia, it is submitted that Defendant No.3 is the owner of^property No.1 and 3; Defendant No.2 is the owner of^property No.2 and he gifted the said property to his mother i.e. Defendant No.3 by executing Gift Deed dated 14.02.2022; Defendant No.4 is the owner of Property Nos.3, 5 and 6; and Defendant No.7 is the joint owner of Property Nos.7, 8, 9 and 10 along with his wife Mrs Zubeida Shoukath. It is submitted that Defendant No.7 who has got 50o/o share in Property Nos.7 and g, in order to deprive the legitimate claim of the Applicant Bank has fraudulently released his 50o/o share in the said properties in favour of his wife Mrs Zubeida Shoukath by executing two separate Release Deeds dated 09.06.2022 which are stated to be sham transactions in order to defeat the claim of the Applicant Bank. It is further submitted that Defendants No.3 and 4 are the owners of property Nos.ll and 12 (2 cars) of the schedule property which are stated to have been acquired by diverting the funds of the Applicant Bank which are valued around Rs.18 - 20 lakhs and are not hypothecated to any financial institution and the same are free to be attached. Applicant Bank further submitted that the mortgaged

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r.4.No.1962/2023 in o.A.No.1615/2022

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properties are inadequate to realize the present liability of the Defendants and the Applicant Bank has identified the^Property Nos.1 to 12 of the schedule^property. The^{Applicant Bankhas} reliably learnt that the Defendants No.3, 4 and 7 are^planning to create third-party interest on the schedule^identified properties and also sell the properties owned by them for throwaway price to defeat the legitimate claim of^the Applicant Bank. It is further submitted that Defendants^No.3, 4 and 7 will flee away from the^jurisdiction of this^Tribunal and are^planning to settle down in unknown^{place. In such an} event, it is very difficult to trace the Defendants^{No.3, 4 and7} and recover the huge outstanding amount.^{Hence, the} Applicant Bank has sought to allow the^{presentI.A. as prayed} for.

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It appears that the Applicant Bank has^{flled the IA on} the^premise that the Defendant No.3,^{4 and 7 may alienateor} encumber Items No.1 to 12 of^{the schedule property in favour} of any other agency or third^party. It^{cannot be disputedthat} the amount in^question is increasing^{by addinginterestand} admittedly the amount involved is a^{very large sum.} Considering the very large sum of^{OA involvedin thiscase,} and balance of convenience,^{the presentIA is to be allowed,if} the Defendants fail to^{furnish security equivalentto ctaim} amount, by keeping open^{the meritsof the case and without}

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1.A.No.1962/2023 in O.A.No.1615/2022

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prejudice to the rights of both the parties. By doing so, no prejudice, nor harm nor loss will be caused to the Defendants. As the Applicant Bank has prima facie established the essential ingredients for granting an ex parte ad interint order, I proceed to pass following:

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ORDER

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Defendants are hereby directed to furnish security equivalent to OA claim amount on or before the next date of hearing or to appear and show cause why the Defendants should not furnish security, failing which interim relief sought in IA No.1962/2023 will stand a llowed.

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Serve notice to the Defendants/Respondents on IA by RPAD. Applicant Bank is directed to produce a copy of this order before the District Registrar, Mangalore seeking not to entertain any registration in respect of concerned schedule properties.

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Propertv No1: The Defendant No. 3 is the owner of all that part and parcel of the non-Agriculture property Western North Portion bea ring Sy. No. 55-2 (Part), measuring O-5O.OO

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1.A.No.1962/2023 in O.A.No.1615/2022

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Cents situated at Kilpadi Village, Mulki Hobli and Mulki Taluk, Dakshina Kannada District and bounded on:

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East by	Portionof same Sy.Subdivision &Road
Westby	SurveyLine
North by	SurveyLineandRoad;
South by	Portion of same Sy.Subdivision &ProDertvofMr.Vinobanath

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Propertv No 2: The Defendant No. 3 is the owner of all that part and parcel of the non-Agriculture land property situated at Katipalla Village, Surathakal Hobli and Mangaluru Taluk, Dakshina Kannada District.

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Survey No.	ExtentA-C	CommonBoundaries
t9/2P8 OldSy. No. LO7/2 79/2P4	0-08.00	Eastby:Portion of sameSy.No. Westby:24 feetwideRoadin the sameSub Division; Northby:PortionofsameSy.No. Southby:PortionofsameSy.No.
oldSy. No. 707/2	0-02.00
Total	0-10.00 Cents

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Propertv No 3: The Defendant No. 4 is the owner of all that piece and parcel of the non-Agriculture property bearing Sy. No. 34l2AP1, measuring 1 Acre 15 Cents with Door no. 5/3Tsituated at Katipalla Village, SurathkalHobli and Mangaluru Taluk, Dakshina Kannada Districtand bounded on:

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1A.No.1962/2023 in O.A.No.t615l2022

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East by	Road
Westby	Road
Northby	SurveyLineand PortionofSy. No.1;
Southby	Portion of sameSy.No.2A1.

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Property No 4: The Defendant No. 4 is the owner of all that piece and parcel of the non-Agriculture land propefty bearing Sy. No. 39/2APt, measuring 0-18.00 Cents situated at Katipalla Village, Surathkal Hobli and Mangaluru Taluk, Dakshina Kannada District and bounded on:

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East by	SurveyLone
Westby	PortionofsameSy.No.
Northby	SurveyLine
Southby	PortionofsameSy.No.

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Prooerty No 5: The Defendant No. 4 and his Family Member's are the owners of all that piece and parcel of the non-Agriculture land propefty in katipalla village, surathkal Hobli and Mangaluru Taluk, Dakshina Kannada District.

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SurveyNo.	ExtentA-C
2/3AP6	o-50.oo
Total	O-5O.OOCents

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Above said property is the family property of the Defendant Nos. 4, 7, Mr. B.M. Farooq, Mr. B. M. Mumtaz Ali, Mr. B. M. Hyder Ali, Mr. B. M. Haneef, Mrs. Zeenath Beguam, and Mrs. Shahanaaz.

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1.A.No.1962/2023 in O.A.No.1615/2022

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Prooertv No 6: The Defendant No. 4 is the owner of all the piece of land known as Plot No. 143-8 of Baikampady Industrial Area, situated in Sy.No. 128-Portion and 130Portion of Baikampady Village, Surathkal Hobli, Mangaluru Taluk, within Mangaluru City Corporation, within the Subregistration, Sub-District of Mangaluru Taluk, Dakshina Kannada, measuring 994 Sq.Mtrs (24.55 Cents), together with and Industrial Shed measuring 600 Sq.Ft and all other contents appuftenant thereto and bounded on:

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East by	PlotNo.143-A;
Westby	PIotNo.143-C;
Northby	KIADBRoad
South by	PlotNo.144

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Propertv No 7: The Defendant No. 7 is the owner of 50o/o share in the Two bed room residential Apartment No. 9O2, bearing Mangaluru City Corporation D. No. L8-2-25195, measuring 1325 Sq,ft super built up area, 9th floor, in the apartment building known as "MAK THE ADDRESS" constructed in below said^property together with undivided 0.50o/o rights for each flat, title and interest in the said properties together with two covered parking space bearing No. 139 on the first basement floor, together with common rights and facility as stated in the Deed of Declaration.

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1.A.No.1962/2023 in O.A.No.1615/2022

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The non-agriculture immovable property held on warg right situated at Attavara Village of Mangaluru Taluk, within Flanir & Milagres ward of Mangaluru City Corporation and within Jurisdiction of Sub-register of Magaluru City, DakshinaKannada District and comprised in: -

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Survey No.	T.SNo	ExtentA-C	Ward
La7/2BP	30lZBPL	o-30.50	Falnir
!a7/2BP	30l2BP	o-o9.oo	Falnir
L89/t	32lLP	1-32.OO	Milagres
tag/L	32ltP	o-15.OO	Milagres
LAg/1	32/LP	o-06.oo	Milagres
	Total	1-e2.so(A-	c)

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The Defendant No. 7 and Mrs. Zubeida Shoukath Ali jointly purchased said property from M/s Darvesh Construction Private Limited on 31.03.2018.

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Prooertv No 8: The Defendant No. 7 is the owner of50o/o share in the Two bed room residential Apartment No. 9O3, bearing Mangaluru City Corporation D. No. 1g-225l96,measuring 1340 Sq.ft super built up area, 9th floor, in the apartment building known as "MAK THE ADDRESS" constructed in below said property together with undivided 0.50o/o rights for each flat, tifle and interest in the said properties together with two covered parking space bearing No. 14O on the first basement floor, together with common rights and facility as stated in the Deed of Declaration.

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1.A.No.1962/2023 in o.A.No.1615/2022

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The non-agriculture immovable^property held on warg right situated at Attavara Village of Mangaluru Taluk, within Flanir& Milagres ward of Mangaluru City Corporation and within Jurisdiction of Sub-register of Magaluru City, Dakshina-

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Kannada District and comprised in: -

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SurveyNo.	T.SNo	ExtentA- C	Ward
ta7l2BP	3fJlzBPt	o-30.50	Falnir
LA7lzBP	3.Jl2BP	o-o9.oo	Falnir
reg/L	32/lP	1-32.OO	Milagres
tee/L	32/LP	o-15.OO	Milagres
lA9lL	32lLP	o-o6.oo	Milagres
	Total	1-e2.s	o(A-c)

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Mr. B M Shoukath Ali and Mrs. Zubeida Shoukath Ali Jointly purchased said property from M/s Darvesh Construction Private Limited on 31.03.2018.

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Propertv No 9: The Defendant No. 7 is the owner ofthree bed room residential Apartment No.912, bearing Mangaluru City Corporation D. No. 1a-2-25/tOs, Measuring 165osq.ft super built up area, 9th floor, in the apartment building known as "MAK THE ADDRESS" constructed in below said property together with undivided 0.620/o rights for each flat, title and interest in the said properties together with two covered parking space bearing No. 185 on the Second basement floor, together with common rights and facility as stated in the Deed of Declaration. Built in the non-agriculture immovable

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1.A.No.1962/2023 in O.A.No.1615/2022

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property held on warg right situated at Attavara Village of Mangaluru Taluk, within Flanir & Milagres ward of Mangaluru city corporation and within Jurisdiction of Sub-register of Magaluru city, Dakshina-Kannada District and comprised in: -

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Survey No.	T.SNo	Extent A-C	Ward
1A7/2BP	30/ZBPL	o-30.50	Falnir
L87lzBP	30lzBP	o-o9.oo	Falnir
t89/L	32/LP	1-32.OO	Milagres
189/t	321LP	o-15.OO	Milagres
L89/L	321tP	o-o6.oo	Milagres
	Total	1-e2.s	o(A-c)

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Mr. B M shoukath Ali and Mrs. Zubeida shoukath Ali Joinily purchased said property from M/s Darvesh construction Private Limited on 02.09.2022.

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Property No 1o: The Defendant No. 7 is the owner of the non-agriculture immovable property held on warg right situated at Kasaba Bazar of Mangaluru Taluk, within Market ward of Mangaluru city corporation and within Jurisdiction of sub-register of Magaluru city, Dakshina-Kannada District and

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comprised in: -

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SurveyNo.	T.SNo	ExtentA-C	Ward
t94/rv- LI/P3	594	o-o1.80	Market
t96lrv- ILIIAPS	s94/tA	o-o2.10	Market
	Total	o-3.so(A-	c)

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1.A.No.1952/2023 in O.A.No.161s/2022

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Mr. B M Shoukath Ali and Mrs. Zubeida Shoukath Ali Jointly purchased said property from Mr. Abdul Raheem and Others on 14.08.2009.

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Propertv No. 11: The Defendant No. 3 is the owner of Maruti Suzuki 2015 Model Baleno Delta Petrol BSIV car^(Pearl White Color) bearing Reg. No. KAl9MGl222, Chassis^No. MA3EWB22SKF101384, Engine No. K12MN4117958.

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Propertv No. 12: The Defendant No. 4 is the owner of Toyota 2016 Model Innova Crysta 2.82 car^(Attitude Black Color) bearing Reg. No. KA19MG4155, Chassis No. M BJAA3EM7007 5 147 4oS t6, En^gine No. 1GDA006 1 1 3.

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For compliance/steps/further proceedings before Registrar call

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on 27.O9.2O23.

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*'n' (IMTIAZ ALI) PRESIDING OFFICER DRT-I, BENGALURU

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l}ash+

Canara Bank v. Bava Infrastructure Developers Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Canara Bank v. Bava Infrastructure Developers Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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