Allowed

Canara Bank v. Sri. Kariyanna

DRT26 Mar 2024OA/1030/2022

Case brief

AI extract

What is this about?

This Debts Recovery Tribunal allowed an Original Application filed by Canara Bank against three respondents for recovery of a farm development loan and interest. The claim, supported by a diary and the absence of defending evidence, was accepted as unchallenged.

What did the court decide?

Recovery of Rs. 37,66,587 plus interest from 01.10.2021 till realization; liberty to sell schedule and personal assets.

Canara Bank versus Sri. Kariyanna — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 26^th day of March 2024

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

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OA NO.1030/2022

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BETWEEN:

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Canara Bank Pattanayakanahalli Branch , Sira Taluk - 572136, Tumakuru District. Represented by its Senior Manager, Sri. Rajanna B.N

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…APPLICANT

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AND:

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Sri.Kariyanna S/o Late Narasappa,

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Aged about 70 years.

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Sri.K.Narasimhaiah S/o Kariyanna

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Aged about 50 years.

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Sri.K.Nagaraju S/o Kariyanna

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Aged about 43 years.

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All are Residing at ,

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Hosahalli Village, Hulikunte Hobli, Sira Taluk, Tumakuru District. ... DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Mohammed Afroze Ahmed Defendants Nos 1 to 3 : Ex-parte.

OA NO.1030/2022

FINAL ORDER

The present Original Application (OA) is filed on 30-06-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.37,66,587/-(Rupees Thirty Seven Lakhs Sixty Six Thousand Five Hundred and Eighty Seven Only) with further interest thereon from the date of filing till realization from defendants.

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The Application filed is within the period of limitation as prescribed under Section 24 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 and the subject recovery claim falls within the jurisdiction of this Tribunal.

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Brief facts of the case:

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The Applicant bank submits that, the 1^st ,2^nd and 3^rd Defendants availed a Farm Development Loan of Rs.5,00,000.00 for the purpose of leveling, bunding, Silt Application, Pipelines, Fencing, Labour House and packing house, Drip System, Power Sprayer, Water Tank, fertilizer Tank and Working Capital etc. on 18.03.2005, agreeing to repay the same in 8 yearly Installment of Rs. 85,000.00, along with interest at the rate of 11.25% p.a plus overdue interest at 2% and the Defendants are executed all the Loan Documents in favour of the Applicants Bank. 4. All the Defendants submitted a Loan Application for Farm Development Loan to the Applicant Bank on 14.03.2005. Sanction

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OA NO.1030/2022

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Memorandum dated 18.03.2005. Memorandum of Agreement for Agricultural Loan dated 18.03.2005 executed by the all the defendants. Certificate of Loan papers Obtained dated 18.03.2005. NF-373, Particulars of hypothecation dated 24.03.2005.

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The 1^st , 2nd and 3^rd Defendants executed a Registered Simple Mortgage Deed of their immovable properties in respect to properties. The Registered Mortgage Deed dated 23.02.2005 executed by the 1^st , 2^nd and 3^rd defendants. Particulars of Assets Standing in the Name of the Applicant dated 18.03.2005. The Quotation issued by Nanjudeshwar Enterprises dated 05.06.2017. The Quotation for Drip Irrigation issued by Jayamangali Agro Links dated 09.03.2005.

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All the Defendants executed Letter of Revival on 04.10.2007, 02.10.2010, 10.5.2016, 05.05.2019, 8.10.2020, Letter of Revival executed by the 1^st and 2^nd defendants on 16.06.2013. As the defendant has failed to adhere the terms and conditions of the loan, the applicant has classified all the loan accounts of the defendants as a Non- Performing Asset (NPA) on 01.01.2020. The Applicant is entitled to recover the accrued interest from 01.10.2021 towards Farm Development Loan, upto date of full realization by the applicant. The Applicant Bank submits that the Defendants, after availing the loans, failed to repay the loan amount and committed default. 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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OA NO.1030/2022

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After the filing of the OA, summons was sent to the Defendants Nos 1 to 3, summons served to D1 and D3 on 07/11/2022 and summons served to D2 on 09.08.2023 returned with postal cover with shara ” Party Refused”, When OA was taken up on 27.09.2023, even after giving sufficient time, there was no appearance or representation from the defendant Nos.1 to 3, hence, Defendants was placed ex-parte on 27.09.2023.

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Heard the submissions of Counsels and perused the records.

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To prove the case, Sri. Rajanna.B.N S/o. Narsimhaiah, aged about 49 years, Senior Manager, of the Applicant Bank, has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, and documents came to be marked as Ex.A3 to A18. As the defendants 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, documents executed, the conduct and operations in the loan 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:-

OA NO.1030/2022

: O R D E R:

The OA is allowed with costs,

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(a) The Applicant Bank is allowed to recover from defendant Nos.1 to 3 jointly or severally to pay a sum of Rs.37,66,587.00 (Rupees Thirty Seven Lakhs Sixty Six Thousand Five Hundred Eighty Seven Only) with current and future interest at 13% p.a. compounded monthly plus over due interest at 2% from 01.10.2021 from the date of the filing of the OA till the date of realization.

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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 properties in the OA;

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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 defendants (both movables and immovables) 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

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OA NO.1030/2022

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prepare Recovery Certificate for the amount to be paid by defendants

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to the applicant bank.

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(f) The Applicant Bank shall file memo of costs within ten days from the date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery 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 (GS), transcribed by him, corrected and signed by me on this the 26^th day March 2024].

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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.Pradeep Kumar S/o. Kumbi Rangaiah, Manager of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No	Date	Particulars	Exhibits
1.	14.03.2005	Loan Application	A3
2.	18.03.2005	Sanction Memorandum	A4
3.	18.03.2005	Memorandum of Agreement for Agricultural	A5
		Loan
4.	18.03.2005	Certificate of Loan papers Obtained	A6

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OA NO.1030/2022

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5.	24.03.2005	NF-373, Particulars of hypothecation	A7
6.	16.02.2005	The Registered Mortgage Deed	A8
7.	18.03.2005	Particulars of Assets Standing in the Name of the Applicant	A9
8.	05.06.2007	The Copy of the Quotation issued by Nanjudeshwara Enterprises	A10
9.	09.03.2005	The Copy of the Quotation for Drip Irrigation issued byJayamangali Agro	A11
10	04.10.2007	Letter of Revival	A12
11	02.10.2010	Letter of Revival	A13
12	16.06.2013	Letter of Revival	A14
13	10.05.2016	Letter of Revival	A15
14	05.05.2019	Letter of Revival	A16
15.	08.10.2020	Letter of Revival	A17
16		Statement of Account in A/No.0443883010451	A18

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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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-Nil –

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SCHEDULE OF THE PROPERTIES

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All that piece and parcel of the Land bearing Sy.No.149(portion), measuring 1 Acre situated at, Hosahalli Village, Hulikunte Hobli, SiraTaluk, Tumakuru District and bounded on:

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East by : Land in Sy.No.96, West by : Land in Sy.No.42/1, North by : Land of Thipperudraiah, South by : Land of Narasimhaiah.

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OA NO.1030/2022

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All that piece and parcel of the Land bearing Sy.No.96(portion), measuring 4 Acres situated at, Hosahalli Village, Hulikunte Hobli, SiraTaluk, Tumakuru District and bounded on:

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East by : Land of Lakshmanappa, West by : Land of Umadevi, North by : Land of Putteerappa, South by : Land in Sy.No.149.

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Sd/PRESIDING OFFICER

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DRT-II, BENGALURU

Canara Bank v. Sri. Kariyanna

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Kariyanna

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

Parties & counsel

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