Allowed

Union Bank of India (Corporation Bank) v. Girimallayya Swami

DRT23 Nov 2023OA/60/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant Bank's original application for recovery of dues totaling over Rs. 71 lakhs against four respondents, who failed to appear. The Tribunal standardized future interest at 9% per annum and directed the sale of mortgaged agricultural properties if dues remain unpaid.

What did the court decide?

Defendants ordered to pay principal amounts with future interest at 9% p.a.; recovery certificate issued; mortgage declared valid; authority to sell mortgaged property conferred.

Union Bank of India (Corporation Bank) versus Girimallayya Swami — Specific Performance | DRT (2023)

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Presented on : 18.06.2021 Registered on : 18.12.2021 Decided on : 23.11.2023 Duration : Y M D 02 05 05

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 60/2022.

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Union Bank of India, (Erstwhile known as Corporation Bank) A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980, having its head office at Mangala Devi Temple Road, Mangalore 575001, Karnataka State and Branch Office at Solapur, H.No. 1777/3-4, Adishwar Building, Opp. Roopam Photo Studio, Jodbhavi Peth, Solapur 413002.

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.. Applicant

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Versus

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1 Mr. Girimallayya Panchayya Swami,

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Age Adult, Occ. : Service/Business,

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2 Mr. Shrishail Panchayya Swami, Age Adult, Occ. : Service/Business,

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3 Mr. Shambhulingayya Panchayya Swami, Age Adult, Occ. : Service/Business,

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4 Mr. Sangayya Gurulingayya Swami, Age Adult, Occ. : Service/Business, All R/o Alage, Post Ankalge, Taluka Akkalkot, District Solapur 413219.

.. Defendants

(OA No.60/2022)

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APPEARANCES

For Applicant	Mr. Srinivas Yelery- Advocate
For Defendants	Exparte.

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TOTAL CLAIM AMOUNT –Rs.71,61,471/-

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JUDGMENT

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(Delivered on 23^rd November, 2023)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.71,61,471/- together with future interest @11.15 and 10.65% per annum with monthly rests from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :

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Defendant Nos.1 to 3 are the borrowers and defendant No. 4 is the guarantor. As per the loan application of defendant Nos.1 and 2, the applicant Bank sanctioned and disbursed the Agricultural Term Loan of Rs.8,00,000/- for purchase of tractor and Cash Credit Facility of Rs.3,00,000/- for the purpose of working Capital Requirement, vide sanction letter dated 03.02.2011.

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In order to secure the aforesaid Agricultural Term Loan and Cash Credit facility, defendant Nos.1 and 2 executed necessary loan and security documents in favour of the

(OA No.60/2022)

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applicant Bank along with deed of simple mortgage of Agricultural Land Gat No. 125/1 and 125/2 situated at village Kalkarjal, Taluka Akkalkot, District Solapur in favour of the applicant Bank. The defendants acknowledged outstanding amount in Agricultural Term Loan on 01.02.2014, 21.12.2016 and 05.07.2019 and in Cash Credit Account on 10.01.2014, 29.12.2018 and 01.01.2019.

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Thereafter, defendant Nos.1 and 3 approached the applicant Bank for Agicultural Term Loan of Rs.18,75,000/- for land development, drip irrigation for cultivation sugarcane. Defendant No.4 agreed to stand guarantor for the said loan. Accordingly, the applicant Bank sanctioned and disbursed the Agricultural Term Loan of Rs.18,75,000/- to defendant Nos.1 and 3 vide sanction letter dated 05.05.2011.

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In order to secure the aforesaid Agricultural Term Loan and Cash Credit facility, defendant Nos. 1, 3 and 4 executed necessary loan and security documents in favour of the applicant Bank along with deed of simple mortgage of Agricultural Land Gat No. 81/3A and 81/3B situated at village Alagi, Taluka Akkalkot, District Solapur in favour of the applicant Bank. The defendants acknowledged outstanding

(OA No.60/2022)

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amount in Agricultural Term Loan on 05.05.2014, 04.01.2017 and 06.05.2019.

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Thereafter, again defendant Nos.1 and 3 approached the applicant Bank for Kisan Credit Card facility of Rs.3,00,000/for cultivation of sugarcane. Defendant No.4 agreed to stand guarantor for the said loan. Accordingly, the applicant Bank sanctioned and disbursed the Kisan Credict Card facility of Rs.3,00,000/- to defendant Nos.1 and 3 vide sanction letter dated 25.08.2011.

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In order to secure the aforesaid Agricultural Term Loan and Cash Credit facility, defendant Nos. 1, 3 and 4 executed necessary loan and security documents in favour of the applicant. The defendants also executed acknowledgment letters in respect of outstanding amount in the said loan on 11.07.2014, 20.04.2016, 02.06.2017 and 05.07.2019.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Therefore, on 28.09.2020, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

(OA No.60/2022)

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 10.01.2023 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of G. Veerendar Goud, Chief Manager and Power of Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW1 to AW-42 along with list (Exhibit 9), which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed future interest @11.25 and 10.65% per annum with monthly rests. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order :-

(OA No.60/2022)

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ORDER

(A) Original Application No. 60/2022 is allowed with costs.

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(B) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.15,66,891/(Rupees Fifteen Lakhs Sixty Six Thousand Eight Hundred Ninety One only) towards Agricultural Term Loan along with future interest @9% per annum from the date of filing of Original Application i.e. 18.06.2021 till full payment/realization of the amount mentioned in this operative order.

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(C) Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.5,54,494/(Rupees Five Lakhs Fifty Four Thousand Four Hundred Ninety Four only) towards Cash Credit Facility along with future interest @9% per annum from the date of filing of Original Application i.e. 18.06.2021 till full payment/realization of the amount mentioned in this operative order.

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(D) Defendant Nos. 1, 3 and 4 either jointly or severally shall pay to the applicant Bank the sum of

(OA No.60/2022)

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Rs.44,66,287/- (Rupees Forty Four Lakhs Sixty Six Thousand Two Hundred Eighty Six only) towards Agricultural Term Loan facility along with future interest @9% per annum from the date of filing of Original Application i.e. 18.06.2021 till full payment/realization of the amount mentioned in this operative order.

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(E) Defendant Nos. 1, 3 and 4 either jointly or severally shall pay to the applicant Bank the sum of Rs.5,73,799/- (Rupees Five Lakhs Seventy Three Thousand Seven Hundred Ninety Nine only) towards Cash Credit facility along with future interest @9% per annum from the date of filing of Original Application i.e. 18.06.2021 till full payment/realization of the amount mentioned in this operative order.

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(F) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable properties i.e. Agricultural Land Gat Nos. 125/1 and 125/2 situated at village Kalkarjal, Taluka Akkalkot, District Solapur and Agricultural Land Gat Nos.

(OA No.60/2022)

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81/3A and 81/3B situated at village Alagi, Taluka Akkalkot, District Solapur; more particularly described in para 5.4.5 and 5.5.5 of the Original Application.

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(G) The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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(H) Issue Recovery Certificate.

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(I) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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Sd/(Dilip G Murumkar) Place : Pune Presiding Officer Date : 23.11.2023 Debts Recovery Tribunal, Pune.

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(OA No.60/2022)

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Union Bank of India (Corporation Bank) v. Girimallayya Swami

Case brief

What is this about?

What did the court decide?

Union Bank of India (Corporation Bank) v. Girimallayya Swami

Case brief

What is this about?

What did the court decide?

What the court decided

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