Allowed

Canara Bank v. M/s Sree Kamakshi Traders Rep by its Prop Sri.R.Rajgopal.K.

DRT25 May 2023OA/9/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's Original Application to recover Rs. 29.5 lakhs with interest. The court found the defendants, a proprietorship and its guarantor, failed to repay an overdraft loan of Rs. 13.8 lakhs secured by hypothecation and title deeds. The claim was unchallenged as defendants appeared ex parte.

What did the court decide?

The applicant bank is allowed to recover Rs. 29,50,000 with interest at 13.75% p.a. from defendants jointly and severally, including sale of mortgaged and personal assets.

Canara Bank versus M/s Sree Kamakshi Traders Rep by its Prop… — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of May, 2023

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Present: SMT. S. V. GOWRAMMA

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Hon`ble Presiding Officer

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OA. No.09/2022

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BETWEEN:

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Canara Bank (eastwhile Syndicate Bank), KGF Branch, B.M. Road, Robertsonpet, KGF, Kolar District-563 122.

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… APPLICANT

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AND:.

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M/s. Sree Kamakshi Traders Represented by its Proprietor, Sri. R. Vinayagam, S/o Sri. Rajgopal K Aged about 32 years

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Sri. R. Prem S/o Sri. Rajgopal K Aged about 27 years

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Both the Defendants are R/at. No. 606, Ramakuppa Road, South, Kamakshi Oil Mill, Compound, Viveknagar, KGF-563 115.

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... DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Ramanand Achar, Defendant Nos.1 & 2 : Exparte

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FINAL ORDER

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The present Original Application (OA) is filed on 30.12.2021 under

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section 19 of Recovery of Debts Due to banks and Financial Institution Act

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OA. 09/2022

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1993 for recovery of a sum of Rs.29,50,000/- (Rupees twenty nine lakh fifty thousand Only) with further interest thereon from the date of filing the Application till realization from the defendants.

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The application filed is within the period of limitation as prescribed under Section 24 of the Recovery Debts Due to banks and Financial Institution Act 1993 and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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Brief facts of the case:

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The present OA is filed by Erstwhile Syndicate Bank has been amalgamated with Canara Bank as per notification bearing no. CG-DL-E04032020-21635 dated 04.03.2020. Accordingly, the Erstwhile Syndicate Bank has been amalgamated with Canara Bank.

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In the case of the applicant bank the Defendant No.1 as a proprietary concern represented by its proprietor and The Defendant No.2 Guarantor. The Defendants approached the applicant bank for Overdraft Loan of Rs.13,80,000/- an application dated 25.05.2014 for the purpose of Credit Facility. Considering the request of the defendant, the applicant bank granted Over Draft Facility sum of Rs.13,80,000/- (thirteen lakh eight thousand only) vide sanction letter dated 25.07.2014. The Defendants agreed to repay the interest @ 11.75% p.a. compounded monthly and also agreed to pay overdue interest @ 2% p.a. in case of defaults in payment of Overdraft facility as agreed. The Overdraft facility

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OA. 09/2022

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is tenable for a period of 2 years from date of availing the loan and interest to be paid as and when due.

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The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendants executed composite Hypothecation Agreement dated 26.07.2014 and Regd. Memorandum of Deposit of Title Deeds dated 25.07.2014 and Defendant No.2 executed Guarantee Agreement dated 26.07.2014 in favour of the applicant bank.

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The Applicant Bank submits that the Defendants, after availing

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the said facilities, failed to repay the loan amount and committed default. The Applicant bank issued a Legal Notice on 10.12.2015 and Securitiasation Notice dated 16.09.2015 calling upon the defendants to repay the entire outstanding loan amount. The default in repayment continued and there was no positive response from the defendant. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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After the filing of the OA, summons was sent to the Defendants through RPAD, the same was duly served, the summons was served on 29.04.2022. Therefore, service held sufficient. When OA was taken up on 18.01.2023, even after giving sufficient time, there was no

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OA. 09/2022

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appearance or representation from the defendants; hence, Defendant Nos. 1 & 2 was placed exparte on 18.01.2023.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sri. Sri. C. Prabhanjan Reddy S/o Sri. C. Shankar Reddy, Manager, has filed his Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, the list of Document came to be marked as Ex.A2 and documents came to be marked as Ex.A3 to A10. As the defendant remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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Having regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled to a final order on the following terms

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: O R D E R:

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendant Nos.1 & 2

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jointly and severally to pay the amount of Rs.29,50,000/- (Rupees twenty nine lakh fifty thousand Only) along with current & future interest

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OA. 09/2022

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@ 13.75% p.a. compounded monthly rest from 30.12.2021 till the date of realization.

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(b) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

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(d) If the sale proceeds of the schedule mentioned mortgaged properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) to recover the balance dues as required under law;

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(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the defendants duly considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate

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for the amount to be paid by defendants to the applicant bank.

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OA. 09/2022

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(f) The applicant bank shall file memo of costs within ten days from the

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date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the

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Recovery Officer in terms of the final order.

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10. A copy of this order be communicated to the parties concerned.

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[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 25^th Day of May 2023].

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. C. Prabhanjan Reddy S/o Sri. C. Shankar Reddy, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents	Date
A1	Applicant Evidence
A2	List of Documents.
A3	Loan Application	25.06.2014
A4	Sanction Letter	25.07.2014
A5	Composite Hypothecation Agreement	26.07.2014
A6	Guarantee Agreement	26.07.2014
A7	Regd. Memorandum of Deposit of Title Deeds	25.07.2014
A8	Securitization Notice	16.09.2015
A9	Legal Notice	10.12.2015
A10	Account Extract

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Witness Examined for the Defendants:

-Nil -

OA. 09/2022

List of Documents Exhibited for the Defendants: -Nil -

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Schedule-A

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Stock and Book Debts belonging to the 1^st Defendant –M/s. Sree Kamakshi Traders, Represented by its Proprietor Sri. R. Vinayagam R/at. No. 606, Ramakuppam Road South, Kamakshi Oil Mill Compound, VIiveknagar, KGF-563 115.

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Schedule-B

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All that part and parcel of land and residential vacant site situated at Dasarahosahalli Village, Rebertsonpet Hobli, Bangarapet Taluk, on the part of alienated land in Sy.NO. 130/5, within D.K. Halli Village Panchayat limit bearing V. Katha No. 982/1, measuring East to West 30 feet and North to South 30 feet and bounded on the:

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East by: Private Property, West by: Private Site, 1N0orth by: Private Site, South by: Road.

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The property belongs to the 1^st Defendant –M/s. Sree Kamakshi Traders, Represented by its Proprietor Sri. R. Vinayagam R/at. No. 606, Ramakuppam Road South, Kamakshi Oil Mill Compound, Veveknagar, KGF-563 115.

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

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OA. 09/2022

Canara Bank v. M/s Sree Kamakshi Traders Rep by its Prop Sri.R.Rajgopal.K.

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s Sree Kamakshi Traders Rep by its Prop Sri.R.Rajgopal.K.

Case brief

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What did the court decide?

What the court decided

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