Allowed

Canara Bank v. C K Karigowda

DRT20 Nov 2023OA/950/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Canara Bank for recovery of dues, including principal, interest, and costs, from two defendants who defaulted on agricultural and KCC loans. The court held the ex parte evidence sufficient to admit the bank's case and ordered the issuance of a recovery certificate.

What did the court decide?

OA allowed with costs and interest; Recovery Certificate directed to be issued; liberty granted to sell schedule properties.

Canara Bank versus C K Karigowda — Execution and Attachment | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I, KARNATAKA

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AT BENGALURU

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Dated this the 20th day of November,2023

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Present: Sri Imtiaz Ali

Presiding Officer

OA No.95O/2022

BETWEEN:

CANARABANK

Branch Offices calbd BASATAIU BTANCh At BASARALU ULIIIGE Mandya District. Represented by ib Manager Sri Dibep Kumar H.P.

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...APPLICANT

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AND:

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Sri C.K. Karigowda S/o Sri Kullegowda Aged about 5l years

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Sri C.ICVenkatesh S/o Sri Kullegowda Aged about 53 years

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Both are R/at; Cheekanahalli Village Halebeedu Post Melukote Hobli Pandavapura Taluk Mandya District. .. DEFENDANTS

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Counsel on record/appeared for: : SriV. Haridas Bhat Applicant Defendants No.1 &2 z 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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oA No.950/2022

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under Section 19 of the Recovery of^{Debs and Bankruptcy Act,} 1993, seeking recovery of money of^{Rs.32,77,845/-(Rupees} Thirty two lakhs seventy seven^{thousand eight hundredforty} five only) together with cosb, interest, etc.

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The case of the Applicant Bank is that, in^{the year} 2005, the Defendanb have approached the^{ApplicantBankfor} a Loan of Rs.5,00,000/- for the^purpose of^purchasinga Tractor and Trailer and 1't Defendant^{has approachedthe} Applicant Bank for a Kissan Credit Card Loan of Rs.1,00,000/-. Accordingly, the Applicant Bank has considered the application of the Defendants and sanctioned Tractor Loan^of Rs.5,00,000/- under Loan Account No.1297856003477^on 15.03.2005 for purchasing the Tractor and the Trailer and also the Applicant Bank has sanctioned the^{KCC Loan of} Rs.1,00,000/- under Loan Account No.1297840006335 on 23.08.2008 in favour ofthe 1s defendant.

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In order to secure the hans, the Defendans have executed various documenb such as; Memorandum of Agreement for Agricultural Loans, Simple Mortgage Deed, Letters of Revival,

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OA No.950/2022

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Agreement and Deed of Hypothecation for Kissan Credit Card etc.

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Furthe4, the Applicant Bank submitted that, i)the DefendanB No.1 and 2 have agreed to repay the Tractor and Trailer Loan of Rs.5,00,000/- in B yearly installmenb of Rs.62,500/- with interest at the rate of 1,O.7So/o per annum compounded half yearly. Furthef, the Defendanb have agreed to pay overdue interest at the rate of 2o/o per annum over and above the normal rate of interest in case of their default in payment of any one installrnent or in regularizing or in clearing the amounb as per the terms stipulated. The KCC Loan of Rs.1,00,000/- was valid for a period of 12 months and 1,t defendant has agreed to pay interest on the amounB ouBtrnding in the Ioan account at the rate of 9o/o per annum compounded half yearly, or at such other rates as may be revised by the Bank from time to time and the also 1st defendant has agreed to pay overdue/additional interest at 2%o per annum in case of default.

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Furthe4 the DefendanB have agreed to repay the Loans

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oA No.950/2022

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with variable rate of interest,^{as applicabhfrom time to timeas} per the directions of the Head Office /^{CentralOffice of the} Applicant Bank and^{penalinterest in case of default andkeep} the accounB regular by^{paying installmenbas and when due to} the satisfaction of the^{ApplicantBank,as detailedin the OA by} the Applicant Bank.

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The Defendanb after utilizing^{the said bans, they did} not repay the^principal amount^{as well as the interestand the} Applicant Bank several^{times demandedthe repayment of the} Ioans and hence the loan accounB^{of the defendanB became} overdue and NPA in terms^{of RBI guidelines. Therefore, on} 25.04.2022 the Applicant^{Bank got issued LegalNoticeto the} DefendanB. Though the said^{Legal Notice was served on them,} but the defendanb have failed to^{repay the loans.}

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In the light of these factors, it is^contended by the Applicant Bank that Defendanb^{are liableto pay a total} sum of seven k.32,77,845/-^(Rupees Thirty two^{lakhs seventy} thousand eight hundred forty five only).

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After filing this OA, Summons were sent^throughRPAD

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OA No.9s0/2022

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to the defendanb and the same were seryed^{to the Defendanb.} When the Defendanb were called out, they remained^absent

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and hence^placed ex^parte.

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To prove the case of the Applicant Bank, its Manager- Sri Dileep Kumar H.P. has filed his affidavit by^{way of evidenceand} 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 19} documents came to be marked at Ex.A3 to Ex.A21.

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No evidence on behalfofthe Defendans.

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ArgumenB of Learned Counsel for the Plaintiff / Applicant Bank heard and^perused the records ofthe^case.

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Folbwing poins arise for my consideration:

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1. Whether Phintitr / Applicant Bank^proves iB case as contended in the plaint / application?

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What Order?

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For the following reasons, I answer the above-referred points in the following manner:

oA No.950/2022

REASONS

\4. The Manager^{of the Applicant Bank came to be} examined^{as AW.1. His affidavitby way of evidence reiterated} the facts^{pleadedin the plaint and his affidavitis also} corroborated^{by the above-referredEx'A3 to A21 which clearly} establish the^{case of the ApplicantBank to allow the present} OA. Added^{to this, the Defendantshave remained absent and} hence^{placedex parte. Therefore, it is to be construedthat} Defendants^{have admitted the entire case pleaded by the} Applicant Bank^{in the} Present^OA.

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Therefore,^{for these reasons,present OA is to be} allowed with costs^{as sought by the Applicant Bank'}

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ORDER

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Present OA stands^{allowed as prayedfor with interest}

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and costs.

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In the event of^{failure of the DefendantsNo.l to 3 to pay} the said OA amount,^{the ApplicantBank is at liberty to sell the} Schedule-Item Nos.1^{to 8 immovable propertiesas mentioned}

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OA No.9s0/2022

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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-ltem Nos.1 to B immovable properties as mentioned in the main application, if the OA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the persons and other properties ofthe Defendants as required under law and also as advised.

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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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Office is directed to issue Recovery Certificate as sought by the Applicant Bank in the OA and do the needful as required under the law forthwith.

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OA No.950/2022

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The Office is directed to issue, as far as possible, free

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copy ofthis 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 2oth day of November, 20 2 3)

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,, v \ (rMTraz ALr) Presiding Officer DRT-1, Bengaluru

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ANNEXURES

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Witnesses examined for the Applicant Bank AW-1 : Sri Dibep Kumar H.P. the Manager of the Applicant Bank

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Documents marked on behalf of the Applicant Bank: Ex.A.l: : Affidavit Evidence of AW1 Ex.A2: : List of witnesses

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Ex.A3 to A21 : 19 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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Nit^-

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\ ^a Y .'^^.r' ' <sup>,," (rMrrAaALr) Presiding Officer DRT-1, Bengaluru

Canara Bank v. C K Karigowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. C K Karigowda

Case brief

What is this about?

What did the court decide?

What the court decided

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