Allowed

Canara Bank v. Sri K R Nagaraju

DRT27 Dec 2023OA/741/2022

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by Canara Bank against a borrower for recovery of a defaulted farm development loan. The defendant appeared ex parte, and the court approved the claimed amount with interest and authorized recovery from schedule properties or personal assets.

What did the court decide?

To recover Rs.55,97,364/- plus interest from the defendant's properties or personal assets via sale if sufficient sale proceeds are not realized.

Canara Bank versus Sri K R Nagaraju — Execution and Attachment | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of December, 2023

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

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OA. No.741/2022

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BETWEEN:

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Canara Bank Sira Branch, Sira Taluk-572137, Tumakuru District. Represented by its Chief Manager, Sri. Dasharatham K

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… APPLICANT

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AND:.

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Sri. K.R. Nagaraju S/o K.L. Ramakrishnegowda, Aged about 41 years, R/at. Kaluvarahalli Village, Gowdaere Hobli, Sira Taluk, Tumakuru District-572139.

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... DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Mohamed Afroze Ahamed Defendant : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 21.03.2022 under section 19 of Recovery of Debts Due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.55,97,364/- (Rupees fifty five lakh ninety seven thousand three hundred and sixty four 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 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 Borrower

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OA. No. 741/2022

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had approached the Applicant Bank seeking for Farm Development Loan of Rs.40,00,000/- (Rupees forty thousand only) an Loan Application and Sanction Letter dated 22.04.2015 for purpose of purchase of Construction of Poly House. The loan was agreeing to repay the same, along with interest @ 13.20% p.a. plus overdue interest @ 2% p.a. in case of default in the repayment.

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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 Agricultural Loan and Letter of Evidencing Execution dated 22.04.2015 and NF-373, Particulars of Hypothecation dated 22.05.2016 and Registered Mortgage Deed dated 10.04.2015 which was registered in the office of SubRegistrar, Sira, vide bearing Reg. No. SRA-1-00123/2015-16, Vide C.D. No. SRAD 247 dated 10.04.2015 and Letter of Revival dated 25.03.2018 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) on 01.07.2019 calling upon the defendant to repay the entire outstanding loan amount. However, there was no positive response from 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 is duly served on 22.02.2023. Therefore, service held sufficient. When OA was taken up on 19.04.2023 even after giving sufficient time, there was no appearance or representation from the Defendant; hence, Defendant was placed exparte on 19.04.2023.

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OA. No. 741/2022

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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. Sathya Madhav T S/o

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late. Jayaram Shetty T.V., 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 A16. As the Defendants remained exparte, 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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9. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants an amount of Rs.55,97,364/- (Rupees fifty five lakh ninety seven thousand three hundred and sixty four only) with current and future interest @ 13.20% per annum compounded monthly plus overdue interest @ 2% p.a. from 01.10.2021 till date of realization in full.

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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;

OA. No. 741/2022

(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 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 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 27^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. Sathya Madhav T S/o late. Jayaram Shetty T.V., Chief Manager of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents	Date
Nos.
A1	Applicant Evidence
A2	List of Documents.
A3	Loan Application for Farm Development Loan	22.04.2015

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OA. No. 741/2022

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A4	Sanction Letter	22.04.2015
A5	Memorandum of Agreement for Agricultural Loan	22.04.2015
A6	Letter of Evidencing Execution of Documents	22.04.2015
A7	NF-373, Particulars of Hypothecation executed by the Defendant.	22.05.2016
A8	Certificate of Loan Papers	22.04.2015
A9	The copy of the quotation issued by D.V. INNOVATORS	09.04.2015
A10	The copy of the Payment Receipt of Rs.9,75,800	22.04.2015
A11	The copy of the payment Receipt of Rs.12,20,165.00	25.04.2015
A12	The copy of the Payment Receipt of Rs.22,86,160.00	06.05.2015
A13	The copy of the Payment Receipt of Rs.5,17,720.00	27.05.2015
A14	The Registered Mortgage Deed	10.04.2015
A15	Letter of Revival executed by the defendant.	25.03.2018
A16	Statement of Account in Farm Development Loan A/c No.0587883013034

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

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-Nil -

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SCHEDULE OF THE PROPERTIES

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All the piece and parcel of the Land bearing Sy.No.90/2A (Part of Old Sy.No.90/2), measuring 2.05 acres situated at Kaluvarahalli Village, Gowdagere Hobli, Sira Taluk, Tumakuru District and bounded on:

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East by	:	Land of Ugrappa
West by	:	Land of Ugrappa
North by	:	Land of Ramashetty
South by	:	Road.

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All the piece and parcel of the Land bearing Sy.No.90/2C, (Part of Old Sy.No.90/2), measuring 1.04 acres situated at Kaluvarahalli Village, Gowdagere Hobli, Sira Taluk, Tumakuru District and bounded on:

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East by	:	Land of Jayamma
West by	:	Land of Junjanna
North by	:	Land of Jayamma
South by	:	Kere.

Sd/-

OA. No. 741/2022

DRT-II, BENGALURU

Canara Bank v. Sri K R Nagaraju

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri K R Nagaraju

Case brief

What is this about?

What did the court decide?

What the court decided

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