Allowed

Canara Bank v. Smt. Ashalatha Shetty

DRT8 Nov 2023OA/940/2022

Case brief

AI extract

What is this about?

In an ex parte Order under Section 19 of the RDB Act, 1993, the DRT-I, Bengaluru allowed the Applicant Bank's petition for recovery of dues against a defaulting Defendant who failed to repay housing and insurance loans. The court allowed the claim with interest and costs and directed the issuance of a Recovery Certificate permits sale of mortgaged property if dues remain unpaid. Both the Defendant

What did the court decide?

OA allowed with interest and costs; liberty to sell mortgaged property if dues not realized; Recovery Certificate directed to be issued.

Canara Bank versus Smt. Ashalatha Shetty — Contract and Commercial Disputes | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL^. I, KARNATAKA AT BENGALURU

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Dated this the 8th day of November, 2023

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Presentr Sri Imtiaz Ali

Presiding Officer

oA No.94Ol2022

BETWEENI

CANARA BANK

Branch Offices called

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Pumpwell Branch At: Mangalore City - 575 OO2

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Dakshina Kannada District Represented by its Senior Manager Sri Kishore l4ane

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.. APPLICANT

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ANDr

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Smt. Ashalatha Shetty Wo.^{Late Kishan Kumar} Aged about 45 years Residing at: Door No.2-283/3 Sri Devi Krupa House, Kenjar, Mangalore - 574 142

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Dakshina Kannada District

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And Also At: lvl/s John Tailors & Textiles P.[4. Rao Road Mangalore - 575 OO1

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,. DEFENDANT

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Counsels on record/aooeared for: Sri Haridas Bhat V. Applicant : Defendant : Ex parte

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FINAL ORDER

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The^present OA has been filed by the Applicant Bank

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under Section 19 of the Recovery of Debts and Bankruptcy

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OA No.940/2022

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Act, 1993, seeking recovery of money of Rs.45,71,095/(Rupees Forty Five Lakhs Seventy One thousand and Ninety Five only) together with costs, interest, etc.

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The case of the Applicant Bank is that, the Defendant had approached the Applicant Bank for Housing Loan of Rs.40,00,000/- for the purpose of purchasing a House Property and also she has applied for an Insurance Loan of Rs.1,63,503/- for paying the insurance premium for the house property to be purchased by her. Accordingly, the Applicant Bank has considered the application of the Defendant favourably and sanctioned both the Housing Loan of Rs.40,00,000/- and Insurance Loan of Rs.1,63,503/- on 27.O9.2020.

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In order to secure the loans, the Defendant has executed the various documents viz., Housing Loan Agreement, On Demand Promissory Note with Take Delivery Letter, Letter of Undertaking, Declaration submitted by the Defendant, Application for rescheduling the loan, Debt Restructuring Agreement and Memorandum of Deposit of Title Deeds, Sale Deed etc.

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The Applicant Bank has further submits that,

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OA No.940/2022

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Defendant has agreed to repay the Housing Loan of Rs.40,00,000/- in 360 equated monthly installments of Rs.26,478/- with interest at the rate ot 6.950/o^per annum compounded monthly. Further, the Defendant has agreed to pay overdue interest at the rate of 2olo per annum , over and above the rate of interest charged on advance, from the date of default till regularizing or clearing the account in full as the case may be. The Insurance Loan of Rs.1,63,503/- in 60 EMIS of Rs.3,238/- with interest at the rate of 7o/o^pet annum with overdue interest at the rate of 2o/o^per annum in case of default.

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Further, the Defendant has agreed to repay the above loans with variable rate of interests, as applicable from time to time as per the directions of the Head Office/Central Offlce 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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The Defendant after utilising the said loans has failed to operate and regularize the aforesaid facilities satisfactorily in spite of^providing relief measures and have committed

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OA No.94.0/2022

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breach of various terms^{of sanction and the loan documents,} as a result the^{LoanAccountsand rephasedaccounts have} become irregular and the^{Defendant has become defaulter'} In spite of repeated^{demandsand requests madeby the} Applicant Bank, the^{Defendant has not regularised theloan} account with the Applicant^{Bank and hencethe loan account} was classified as^{Non-performingAsset on 06.01.2022'} Thereafter, the Applicant^{Bank has issued Notice on} 06.O1.2022 calling^{upon the Defendant to dischargehis} liability, the Defendant^{has failed to paythe outstanding dues} and hence the^{recovery processis initiatedto recover the} dues.

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ln the light of these facto6,^{it is contendedby the} Applicant Bank that Defendant^{is liable to pay a total sum of} Rs.45,7L,O95/-^(Rupees Forty^{Five Lakhs SeventyOne} thousand and Ninety Five^onlY).

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After filing this OA. Summons^{was sent and served to} the Defendant through^{RPAD.When the Defendant is called} out, the Defendant remained absent^{and placedex parte.}

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To^prove the case of the^{Applicant Bank,The Senior} lvlanager, Sri Ranjan V^{Prabhu hasfiledhis affidavitby way of}

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OA No.940/2022

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evidence the same was considered as evidence of AW.1 and marked at Ex.A1 and list of documents came to be marked at Ex.A2 and 14 documents came to be marked at Ex.A3 to A16.

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10. No evidence on behalf of the Defendant.

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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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f2. Following points arise for my consideration:

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1. Whether Plaintiff/Applicant Bank proves its case as contended in the plaint/application?

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1. 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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L4. 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 alfidavit is also corroborated by the above-referred Ex.A3 to 416 which clearly establish the case of the Applicant Bank to allow the present OA. Added to this, the Defendant has remained absent, and hence she was placed ex parte. Therefore, it is to

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OANo.940l2022

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be construed that^{Defendanthas admittedthe entire case} pleaded by the Applicant Bank^{in the presentOA.}

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Therefore, for these^{reasons, present OA is to be} allowed with costs^{as soughtby the ApplicantBank.}

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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 Defendantto pay the said} OA amount, the^{Applicant Bank is at liberty to sell the} Schedule Immovable^{Mortgaged Property as mentioned in the} main application in^{accordance with law as sought by the} Applicant Bank in the^OA.

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In spite of sale of the Schedule^{Immovable Mortgaged} Property as mentioned in^{the main application, if theOA} amount is not fully^{realised,then the Applicant Bank is at} liberty to^proceed against^{the personand other properties of} the Defendant in accordance^{with law.}

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Applicant Bank shall file latest^{Memoof Calculation of} OA amount together with^{interest,costs etc., to be paid by} Defendant duly taking^{into account the amount/s,if any,paid} by the Defendant and/or^{amount realised by sale of assets,}

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OA No.940/2022

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etc., during the^{interveningperiod after filing the OA, to} enable the office to^{prepare RecoveryCertificate for the} amount to be^{paid by the Defendant to the Applicant Bank'}

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Office is directed to^{issue RecoveryCertificate as sought} by the Applicant^{Bank in the OA and do the needful as} 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^{partiesconcerned.}

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(Dictated to the Stenographer, after^{its transcription and necessarycorrections,signed and} pronounced by me in the Open Court^{on thisthe 8th day of N\ember,2023)}

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Lt\

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(Imta{z Ali) Presiding Officer DRT-I, Bengaluru

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ANNEXURES

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AW.1 : Sri Vinaya Bhat The Chief Manager of the Applicant Bank List of Documents Exhibited for the^{ADDlicant Bank:} Ex.A-1 : Affidavit of AW-1 Ex.A-2 : List of Docu ments

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Ex.A-3 to A-19 : 17 documents

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Witness Examined for the Defendant:

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Nil - - NiI-

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b.rr& Presiding Officer DRT-I, Bengaluru

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Canara Bank v. Smt. Ashalatha Shetty

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Ashalatha Shetty

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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Case details

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