Allowed

Canara Bank v. Sri. Girish Subhas Dhawaleshwar

DRT13 Dec 2023OA/241/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's Original Application for recovery of dues from borrower and guarantors who defaulted on agricultural loans. The Defendants were placed ex parte, and the Tribunal ordered joint and several recovery of principal and interest along with liberty to sell mortgaged properties.

What did the court decide?

Allowed the OA for recovery of Rs. 28,25,614/- plus interest; granted liberty to realize from sale of schedule properties and personal assets; ordered issuance of Recovery Certificate.

Canara Bank versus Sri. Girish Subhas Dhawaleshwar — Insolvency and Bankruptcy | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 13^th Day of December, 2023

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Present: SMT. S. V. GOWRAMMA Hon`ble Presiding Officer

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OA. No.241/2023

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BETWEEN:

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Canara Bank (Erstwhile Syndicate Bank) Mudalgi Branch, No.880, Mallikarjuna Nilya, Mudalagi, Gokak Taluk, Belgaum District-591 312. Represented by its Chief Manager, Sri. Sandeep Suresh Dhawas. … APPLICANT

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AND:.

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Sri. Girish Subhas Dhawaleshwar S/o Subhash Aged about 38 years, R/at. No.1690, Vidyanagar, Mudalagi, Gokak Taluk, Belagavi District-591 312.

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Sri. Shreyansh G Boli S/o Sri. Gundappa Major by age R/at. 874/d, Channamma Circle, Mudalagi, Gokak Taluk, Belagavi District.

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... DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Veeresh Kumar Javali Defendant Nos.1 & 2 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 04.01.2023 under section 19 of Recovery of Debts Due to Banks and Bankruptcy Act 1993

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OA. No. 241/2023

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for recovery of a sum of Rs.28,25,614/- (Rupees twenty eight lakh twenty five thousand six hundred and fourteen 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 Recovery of the Debts Due to Banks and Bankruptcy 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 Syndicate Bank and in view of amalgamation with Canara as per the Government Notification, the claim of Syndicate Bank is continued by Canara Bank.

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It is the case of the applicant bank where in the Defendant No.1 as borrower and Defendant No.2 as Guarantors. The Defendant No.1 approached the applicant bank seeking for KCCS Loan of Rs.8,95,000/(Rupees eight lakh ninety five thousand only) an loan application dated 22.07.2016 for the purpose of raising crops. After, considering the proposal of the Defendant No.1 the applicant bank sanctioned KCCS Loan of Rs.8,95,000/- (Rupees eight lakh ninety five thousand only) vide

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sanction memorandum of dated 30.07.2016 in Loan A/c No. 0518010020217. The applicant bank totally disbursed Rs.22,22,379/(Rupees twenty two lakh twenty two thousand three hundred and seventy nine only). The KCCS limit was tenable for five years subject to annual review. The defendant has agreed to repay the loan amount within twelve

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OA. No. 241/2023

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months from the date of disbursement or eighteen months in case of annual yielding crops or marketing of the produce, whoever is earlier. The Defendant No.1 has agreed to pay interest @ 12.40% p.a. compounded half yearly and penal interest of 2% p.a. on the overdue amount.

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4.1. 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 Agreement for Agricultural Advances for KCC dated 30.07.2016 and Defendant No.2 executed Guarantee Agreement dated 30.09.2016 and Defendants have executed Letter for Time Barred Debts and Demand Promissory Note dated 20.02.2020 and letter of Revival dated 19.07.2022 in favour of the applicant bank.

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Further, the Defendant No.1 as borrower and Defendant No.2 as Guarantors. The Defendant No.1 approached the applicant bank seeking for Farm Development Loan of Rs.14,50,000/- (Rupees fourteen lakh fifty thousand only) an loan application dated 25.07.2017 for the purpose of farm development. After, considering the proposal of the Defendant No.1 the applicant bank sanctioned Farm Development Loan of Rs.14,50,000/(Rupees fourteen lakh fifty thousand only) in Loan A/c No. 05108230001398. The Defendant No.1 agreed to repay the loan in 10 yearly installments of Rs.1,45,000/- each and 1^st installments commences on 30.08.2018 and to pay interest and other charges separately along with the installments as and when due. The Defendant No.1 agreed to pay

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OA. No. 241/2023

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interest @ 12.40% p.a. compounded half yearly and penal interest of 2% p.a. on the over due amount.

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5.1. 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 Agreement for Agricultural Advances dated 02.08.2017 and consideration receipt for rs.730000 on 26.09.2017 and consideration for Rs.72000 dated 02.08.2017 and Defendant No.2 executed Guarantee Agreement dated 30.09.2016 and Simple Mortgage Deed dated 25.07.2017 registered as Document No. 5475/17-18, Book-I stored in CD No. GKKD386 in the office of sub registrar gokak in favour of the applicant bank.

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The Applicant Bank submits that the Defendants, after availing the said facilities, failed to repay the loan amount and committed default. The Applicant bank issue a Legal Notice dated 25.07.2022 calling upon the defendants to repay the entire outstanding loan amount. However, there was no positive response from the Defendants. 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 Registered Post with Acknowledgment Due the same is duly served on 08.06.2023 Therefore, service held sufficient. When OA was taken up on 31.07.2023 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendants

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OA. No. 241/2023

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were placed exparte on 31.07.2023.

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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. Gangesh Nath Tiwari

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S/o Sri. A.N. Tiwari, Chief Manager has filed 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 A20. As the Defendants 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 Defendants jointly and

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severally an amount of Rs.28,25,614/- (Rupees twenty eight lakh twenty

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five thousand six hundred and fourteen only) consisting of:

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i. Defendants to pay the amount of Rs.12,50,161/- (Rupees twelve lakh

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fifty thousand one hundred and sixty one only) together current and future

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OA. No. 241/2023

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interest @ 12.25% p.a. compounded half yearly in respect of SKCC Loan A/c No. 05108010020217 from the date of OA application and till the date of realization.

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ii. Defendants to pay the amount of Rs.15,75,453/- (Rupees fifteen lakh seventy five thousand four hundred and fifty three only) together current and future interest @ 10.75% p.a. compounded half yearly in respect of Farm Development Loan A/c No. 05108230001398 from the date of OA application and 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 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) respectively 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

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OA. No. 241/2023

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considering the amounts, if any, paid by the defendants and/or amount

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realized by sale of assets etc., during the intervening period after the filing

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of the OA, enabling the Registry to prepare Recovery Certificate for the

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amount to be paid by the respective defendant to the applicant bank.

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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 Recovery

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Officer in terms of the final order.

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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 13^th Day of December 2023].

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Sd/-

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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. Gangesh Nath Tiwari S/o Sri. A.N. Tiwari, Chief 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	Application for Agricultural Credit (KCCS)	22.07.2016
A4	Sanction Letter	30.07.2016
A5	Agreement for Agricultural Advances executed by Defendant.	30.07.2016
A6	Deed of Guarantee for Agricultural advances executed by Defendant No.2	30.07.2016

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OA. No. 241/2023

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A7	Letter of time barred debt executed by Defendants	20.02.2020
A8	Demand Promissory Note executed by Defendant.	20.02.2020
A9	Letter of Revival executed by the Defendant.	19.07.2022
A10	Copy of the Legal Notice issued to the Defendants.	25.07.2022
A11	Postal receipts and postal acknowledgements	19.07.2022
A12	Statement of Account
A13	Application for Agricultural credit loan application	25.07.2017
A14	Process note for land development	01.08.2017
A15	Agreement for Agricultural advances executed by Defendant.	02.08.2017
A16	Consideration receipt for rs.73,0000/- dated 29.09.2017 executed the by the Defendant No.1 and said	26.09.2017
A17	Consideration receipt for Rs.72,0000/- dated 02.08.2017 executed by the Defendant No.1 and said Usman.	02.08.2017
A18	Deed of Guarantee for Agricultural Advances executed by Defendant No.2	02.08.2017
A19	Simple Mortgage Deed dated 25.07.2017 executed by the said defendant favour of the Applicant Bank Registered as Document No. GKK- 1-05475-2017-2018, STORED IN THE cd No. GKKD 386 office of the Sub Registrar.	25.07.2017
A20	Statement of account
Witness	Examined for the Defendants: -	Nil -
List of D	ocuments Exhibited for the Defendants: -	Nil -

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SCHEDULE A PROPERTY

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(Description of mortgaged immovable property belonging to the

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Defendants)

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Land bearing Sy.No.	Extent of land in guntas	Property situated at
361/14	6 acre 05	Mudalagi
365/5	1 acre 11 guntas	Mudalagi
366/1A+1B/1	3 acre 30 guntas	Mudalagi

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PRESIDING OFFICER

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Sd/-

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DRT-II, BENGALURU

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OA. No. 241/2023

Canara Bank v. Sri. Girish Subhas Dhawaleshwar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Girish Subhas Dhawaleshwar

Case brief

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