Allowed

Canara Bank v. Smt. H. S. Prathima

DRT15 Dec 2023OA/261/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Bank's Original Application for recovery of Rs. 1.90 crore and interest. The Defendants appeared ex parte, leaving the claim unchallenged. An order was passed for recovery from the mortgaged schedule properties and personal assets.

What did the court decide?

Recovery of Rs. 1,90,50,000/- and interest @ 18.15% p.a. from Defendants jointly and severally, including sale of schedule and personal assets.

Canara Bank versus Smt. H. S. Prathima — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 15^th Day of December, 2023

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

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OA. No.261/2022

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BETWEEN:

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Canara Bank Hassan Main Branch, No.45, Near Narasihmaraj Circle, Malnad House, Hassan-573 201.

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… APPLICANT

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AND:.

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Smt. H.S. Prathima W/o Sri. Vijay Kumar Aged about 45 years,

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Sri. M. Vijay Kumar C.P S/o Sri. C.Y. Panduranga Rao, Aged about 50 years,

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Both are R/at. No.43,44,45, The Dream, Opp: Nanda Residency, 1^st Main Prashanth Nagar Extension, ISRO Layout, Bangalore-560 078.

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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 09.02.2022 under section 19 of Recovery of the Debts Due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.1,90,50,000/- (Rupees one crore ninety lakh fifty thousand only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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OA. No. 261/2022

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The application filed is within the period of limitation as prescribed

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under Section 24 Recovery of the Debts Due to Banks and Financial Institutions 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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It is the case of the applicant bank where in the Defendant Nos.1 & 2 are borrowers. The Defendant No.1 & 2 approached the applicant bank seeking for Term Loan of Rs.46,00,000/- (Rupees forty six lakh only) an Loan Application dated 20.06.2007 for the purpose of purchase of Arecanut Garden. After, considered the proposal of the Defendants applicant bank sanctioned an Term Loan of Rs.46,00,000/- (Rupees forty six lakh only) vide sanction memorandum dated 23.06.2007. The term loan is repayable in 10 yearly installments with repayment holiday of 1 year commencing from 30.06.2016 and interest and when due. The defendants agreed to repay the term loan along with interest @ 15.25% p.a. compounded half yearly and also agreed to pay interest varied rates from time to time and also agreed to pay overdue interest @ 2% p.a. in case of defaults in payment.

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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 Memorandum of Agreement for Agricultural loans dated 07.09.2007 and Letter Evidencing Deposit of

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OA. No. 261/2022

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Title Deeds dated 07.09.2007 and Regd. Simple Mortgage Deed dated 27.06.2007 and Letter of Revival dated 06.02.2010, 01.02.2013, 23.12.2014, 07.12.2017, 13.09.2019 & 13.09.2019 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 Legal Notice dated 19.01.2011, 19.07.2018 & 22.05.2021 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 Defendant Nos.1 & 2 through Registered Post with Acknowledgment Due the same is duly served on 01.08.2022. Therefore, service held sufficient. When OA was taken up on 28.11.2023 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 & 2 were placed exparte on 28.11.2023.

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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. Hanumanthappa S/o

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late. H. Siddappa, Senior Manager has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, the

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list of Document came to be marked as Ex.A2 and documents came to be

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OA. No. 261/2022

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marked as Ex.A3 to A18. As the Defendants remained ex-parte, the OA

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claim remains unchallenged. There is no contra evidence available on

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record to repudiate the claim of the Applicant Bank.

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Having regard to the amount advanced, the interest applied, the

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conduct and operations in the account and the default committed, this

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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 &

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2 jointly and severally to pay an amount of Rs.1,90,50,000/- (Rupees

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one crore ninety lakh fifty thousand only) along with current and future interest @ 18.15% p.a. compounded half yearly from the date of application till the date of realization.

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(b) In the event of failure of the Defendants to pay the aforesaid

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amount, the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

OA. No. 261/2022

order;

(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

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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 for the

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amount to be paid by the respective defendants 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 15^th Day of December 2023].

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

OA. No. 261/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Hanumanthappa S/o late. H. Siddappa, Senior 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	20.06.2007
A4	Sanction Letter	23.06.2007
A5	Memorandum of Agreement	07.09.2007
A6	Letter Evidencing Deposit of Title Deeds	27.06.2007
A7	Letter of Revival	06.02.2010
A8	Letter of Revival	01.02.2013
A9	Letter of Revival	23.12.2014
A10	Letter of Revival	07.12.2017
A11	Letter of Revival	07.12.2017
A12	Letter of Revival	07.12.2017
A13	Letter of Revival	13.09.2019
A14	Letter of Revival	13.09.2019
A15	Legal Notice	19.01.2011
A16	Legal Notice	19.07.2018
A17	Legal Notice	22.05.2021
A18	Account Extract

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

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SCHEDULE “A”

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Coconut & Arecanut crops belongs to the Defendant No.1 & 2 Smt. H.S. Prathima & Sri. Vijay Kumar, C.P. R/at. No. 43,44,45, the Dream, Opp: Nanda Residency, 1^st Main, Prashanth Nagar Extension, ISRO Layout, Bangalore-560 078.

OA. No. 261/2022

Item No.1:

Sy.No.80, measuring 4.72 acres and bounded on the:

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East by: Sy.No.54

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West by: Sy.No.57 North by: Sy.No.81/1 South by: Sy.No.55

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Item No.2:

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Sy.No.81/1, measuring 4.67 acres and bounded on the:

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East by: Lakshminarayana’s Land

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West by: D. Lakshmamma’s Land

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North by: Lakshminarayana’s Land

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South by: Beregowda’s Land.

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Item No.1 & 2 properties belongs to Defendant No.1- Smt. H.S. Prathima R/at. No. 43,44,45, The Dream, Opp: Nanda Residency, 1^st Main, Prashanth Nagar Extension, ISRO Layout, Bangalore-560 078.

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

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OA. No. 261/2022

Canara Bank v. Smt. H. S. Prathima

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. H. S. Prathima

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Case details

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