Allowed

Canara Bank v. Faratabad Saibanna

DRT13 Oct 2023OA/635/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal, Bengaluru allowed an Original Application filed by Canara Bank against an agriculturist to recover Rs. 45.43 lakhs representing an outstanding agricultural term loan with interest and costs, in the defendant's absence.

What did the court decide?

Recovery of Rs. 45,43,562/- with future interest at 10.75% p.a. plus 2% penal interest; liberty to recover via sale of schedule and personal properties.

Canara Bank versus Faratabad Saibanna — Banking and Recovery | 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 October, 2023

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

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OA. No.635/2022

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BETWEEN:

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Canara Bank Kalaburgi Main 1 Branch, Janata Bazar Building, Super Market, Gulbarga, Kalburgi-585101. Represented by it Chief Manager Sri. Somana Gowda Ainapur

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… APPLICANT

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AND:.

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Mr. Faratabad Saibanna S/o Dharmanna Aged about 66 years, R/at. Mavanoor Village, Jewargi Taluk, Gulbarga, Kalaburgi District-585 310.

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... DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendant : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 06.05.2022 under section 19 of Recovery of Debts Due to Bankruptcy Act 1993 for recovery of a sum of Rs.45,43,562/- (Rupees forty five lakh forty three thousand five hundred and sixty two only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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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

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OA. No. 1071/2021

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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 as borrower approached the Applicant Bank seeking for Agricultural Term Loan of Rs.4,86,000/- (Rupees four lakh eighty six thousand only) on 26.04.2005 in loan A/c No. 0513856006693 for the purpose of purchase of tractor and trailer. The Defendants agreed to repay the interest @ 10.75% p.a. and penal interest @ 2% p.a. in case of default in repayment. 4 The defendant executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendant executed Memorandum of agreement for agriculture loan dated 26.04.2005 and simple mortgaged deed dated 19.04.2005 which was registered as document No.84/2005-06 dated 19.04.2005 in the office of the Sub-Registrar Gulbarga and also executed Letter of Revival dated 14.02.2008, 14.12.2010, 11.01.2013, 20.11.2015, 15.03.2017 and 10.03.2020 in favour of the applicant bank.

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The Applicant Bank submits that the Defendant, after availing the said facilities, failed to repay the loan amount and committed default. The loan account of the Defendant had been classified as a Non Performing Asset (NPA) 01.04.2016 and the Applicant Bank issued Demand Notice dated 18.02.2022 calling upon the defendant to repay the entire outstanding loan amount. However, there was no positive response from

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OA. No. 1071/2021

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the Defendant. Hence, this Original Application (OA) has been filed to recover the dues from the Defendant.

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After the filing of the OA, Summons was sent to the Defendant through Registered Post with Acknowledgment Due, the same was duly served on 27.06.2022 When OA was taken up on 01.09.2023, in spite of giving sufficient time, there was no appearance or representation from the Defendant; hence, Defendant was placed exparte on 01.09.2023.

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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. Satwant Singh S/o Gurcharan Singh, 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 marked as Ex.A3 to A15. 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

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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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OA. No. 1071/2021

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(a) The applicant bank is allowed to recover from Defendant to pay an

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amount of Rs.45,43,562/- (Rupees forty five lakh forty three thousand five hundred and sixty two only) with future interest @ 10.75% p.a. plus 2% p.a. penal interest from the OA application till the date of realization of the

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entire amount to the applicant bank.

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(b) In the event of failure of the Defendant 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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order;

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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 defendant (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 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

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OA. No. 1071/2021

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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 October 2023].

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Sd/-

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PRESIDING OFFICER DRT-II, BENGALURU ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Satwant Singh S/o Gurcharan Singh, 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	Application for Agricultural Term Loan	26.04.2005
A4	Application for Purchase of tractor/ Power tiller	26.04.2005
A5	Appraisal Report- Purchase of Tractor/ Power Tiller	26.04.2005
A6	Simple Mortgage Deed registered as Doc. 84/2005-06 dated 19.04.2005.	19.04.2005
A7	Memorandum of Agreement for Agricultural loan.	26.04.2005
A8	Letter of Revival	14.02.2008
A9	Letter of Revival	14.12.2010
A10	Letter of Revival	20.11.2015

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OA. No. 1071/2021

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A11	Letter of Revival	15.03.2017
A12	Letter of Revival	10.03.2020
A13	Legal Notice	18.02.2022
A14	Postal Acknowledgment card duly served.	24.02.2022
A15	Bank Statement of A/c. 0513856006693
Witnes	s Examined for the Defendant:	-Nil -
List of	Documents Exhibited for the Defendant:	-Nil -

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Description of “Schedule Property”

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Agricultural Land Properties in

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Sy.No. 7/4 measuring 4 Acres- 8 Guntas

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East: Land of Siddappa; West: land of Givivallah; North: Land of Malleshi;

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South: Land of Laxmiputra.

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Sy.No. 7/E measuring 1 Acre- 9 Guntas

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East: Land of Siddappa; West: land of Givinalla; North: Land of Malleshi;

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South: Land of Laxmiputra.

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Sy.No. 7/O measuring 2 Acres- 16 Guntas

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East: Land of Siddappa; West: land of Givi Malleshi; North: Land Malleshi; South: Land of Laxmiputra.

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Sy.No. 135/E measuring 4 Acres- 0 Guntas East: Land of Dharmanna; West: land of Halldiya; North: Land Ferth;

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OA. No. 1071/2021

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South: Land of Shivappa Gowda.

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Situated at Heroor B Village, Gulbarga Taluk, Gulbarga District-585265.

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

Canara Bank v. Faratabad Saibanna

Case brief

What is this about?

What did the court decide?

Canara Bank v. Faratabad Saibanna

Case brief

What is this about?

What did the court decide?

What the court decided

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