Allowed

Canara Bank v. Balappa

DRT21 Apr 2023OA/309/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Bengaluru, allowed an original application filed by Canara Bank seeking recovery of outstanding dues from borrowers and a guarantor. The bank proved its case via affidavit and documents while defendants remained absent. The court awarded the claimed amount, authorized asset sale, and ordered issuance of a recovery certificate.

What did the court decide?

The OA allowed with costs; Defendants to pay Rs. 21,86,465/-; liberty to sell schedule property; Office to issue Recovery Certificate.

Canara Bank versus Balappa — 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 28th day of April, 2023

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Present: Sri IMTIAZ ALI

Presiding Officer

OA No.3O9/2O22

BETWEEN:

Canara Bank Janakal Branch

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Hosadurga Taluk

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Chitradurga District 577 527

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Represented by its Senior Manager and Power of Attorney Holder Sri Vinit Kumar

.. APPLICANT

AND:

1.Sri Balappa

S/o Sri Hanumanthappa Aged about 44 years

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2.Sri Basavaraj B. R

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S/o Sri Rajanna

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Aged about 29 years

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Both are residing at: Nakikere Village Doddakittada halli Chitradurga 577 557

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.. DEFENDANTS

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Counsels on record /aooeared for:

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Applicant : M/s HSR & Associates

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Defendants : Ex-parte

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FINAL ORDER

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The present OA has been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of Rs.21,g6,465/-

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. \ g i

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OA No.309/2022

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(Rupees twenty-one lakhs eighty-six thousand four hundred and sixty-five only) together with costs, interest, etc.

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The case of the Applicant Bank is that the Defendant No.1 as a borrower had approached the Applicant Bank seeking MSME Loan. The Applicant Bank has considered the request of the Defendant No.1 and sanctioned the MSME Loan of Rs.16,00,000/- to purchase ACE (lCB) vehicte for his transportation business on 77.10.2077, in terms of the loan agreements, whereas the Defendant NO.2 stood as a guarantor. In order to secure the loan, the Defendants have executed documents viz., Deed of hypothecation, Guarantee covering letter, Guarantee agreement, Letters of Revival, Statement of accounts etc.,

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Further, the Defendants have agreed to repay the above loan with variable rate of interest, 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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\ L/

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OA No.309/2022

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The Defendants after utilising the said loan have failed and neglected to make the repayment of the loan dues as agreed and Defendants have not serviced the interest thereon as per the terms and condition agreed by the Defendants. In spite of repeated demands and personal approaches made by the Applicant Bank 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 Applicant Bank that Defendants are liable to pay a total sum of Rs.21,86,465/- (Rupees twenty-one takhs eighty-six thousand four hundred and sixty-five 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 remained absent and placed ex parte.

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To prove the case of the Applicant Bank, The Senior Manager, Sri Vinit Kumar. has filed his affidavit by way of evidence the same was considered as evidence of AW.1 and marked at Ex.Al and list of document came to be marked at Ex.A2 and 8 documents came to be marked at Ex.A3 to A10.

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OA No.309/2022

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No evidence on behalf of the Defendants.

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Arguments of Learned Counsel for the plaintiff/

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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 / Appltcant Bank proves its case as contended in the plaint / application?

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What Order?

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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 A10 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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OA No.309/2022

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Therefore, for these reasons, present OA is to be

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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.

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In the event of failure of the Defendants to pay the said OA amount, the Applicant Bank is at liberty to sell the Schedule property in accordance with law as sought by the Appllcant Bank in the OA.

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In spite of sale of the schedule property, if the OA amount is not fully realised, then the 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 file latest Memo of Calculation of OA amount together with interest, costs etc., to be paid by Defendants duly taking into account the amount/s, if any, paid by the Defendants and/or amount realised by sale of assets, etc., during the intervening period after filing the OA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendants to the Applicant Bank.

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OA No.309/2022

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Office is directed to issue Recovery Certificate as sought

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by the Applicant Bank in the OA and do the needful as

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required under the law forthwith.

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The Office is directed to issue, as far as possible, free copy of this order to the parties concerned.

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(Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 28th day of Aptil,2023)

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Y (rMTrAZ ALr) PRESIDING OFFICER DRT-I, Bengaluru

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ANNEXURES

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Witness Examined for the Aoolicant Bank: AW-1 : Sri Vinit Kumar

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The Senior Manager of the Applicant Bank List of Documents Exhibited for the Aoolicant Bank: Ex.A-1 : Affidavit of AW-1 Ex.A-2 : List of Documents

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Ex.A-3 to A-10 : B documents

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Witness Examined for the Defendants:

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Nil-

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List of Documents Exhibited for the Defendants:

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, ' .^Nir- \ n.\ Y ^g.Lrtn (rMrrA/iLr) PRESIDING OFFICER DRT-I, Bengaluru

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Canara Bank v. Balappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Balappa

Case brief

What is this about?

What did the court decide?

What the court decided

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