Allowed

Canara Bank v. Sri. Kodandaramaiah

DRT25 Jan 2024OA/1034/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed under Section 19 of RDB Act by Canara Bank to recover dues from Sri Kodandaramaiah, son of deceased borrower Jayamma. The Tribunal found a loan default and ordered immediate payment with interest or sale of mortgaged properties.

What did the court decide?

Recovery of sum of Rs.28,26,575.00 with interest at 10.75% p.a. compounded monthly plus overdue interest at 2% from 01.10.2021 till realization; liberty to recover by sale of mortgaged properties or p

Canara Bank versus Sri. Kodandaramaiah — 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 25^th Day of January, 2024

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Present: SMT. S. V. GOWRAMMA

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Hon`ble Presiding Officer

OA. No.1034/2022

BETWEEN:

CANARA BANK,

its Registered Head Office at # 112, J.C. Road, Bangalore -560002 and interalia it’s Branch Office at Pattanayakanahalli Branch , Sira Taluk - 572135, 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. Kodandaramaiah S/o Mudlappa, Aged about 52 years. Residing at, Veeraganahalli, Gowdagere Hobli, Sira Taluk, Tumakuru District.

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… Defendants

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Counsel on record/appeared for:

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Applicant : Mr. Mohamed Afroze Ahmaed Defendant : Exparte

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:FINAL ORDER:

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The Original Application (OA) is filed on 30.06.2022 by Applicant

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Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant to recover a sum Rs.28,26,575.00 with further interest thereon from the date of filing the Application till realization from the defendants.

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OA. 1034/2022

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BRIEF FACTS OF THE CASE :

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debt Due to Banks and Bankruptcy Act 1993, and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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The case of the Applicant Bank is that as per the information available to the Bank Smt.Jayamma died on 01.02.2017. The Legal Heir and the Son of the deceased borrower Jayamma is Mr. Kodandaramaiah and executed the Letter of Revival and agreed to repay the Balance Loan Amount availed by the Deceased Borrower Jayamma hence, Sri. Kodandaramaiah has made party to the Suit.

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It is submitted that the Deceased Borrower Smt. Jayamma availed a Farm Machinery Loan amount of Rs.3,75,000.00 for the purpose of Purchased Tractor and Trailer on 09.06.2005, agreeing to repay the same in 8 years in yearly Installment of Rs.46,875.00 along with interest at the rate of 10.75% p.a plus overdue interest at 2%. And the same is registered before the RTO, Tumakuru, Vide bearing Regn.No.KA-06-TA-1222 and 1223. And the defendant executed all the Loan Documents in favour of the Applicant’s Bank.

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The Deceased Borrower Smt. Jayamma submitted a Loan Application for Farm Machinery Loan to the Applicant Bank on

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OA. 1034/2022

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09.06.2005, the Loan Application dated 09.06.2005 is herewith produced as Annexure A-1. Sanction Memorandum dated 09.06.2005 is herewith produced as Annexure A-2. Memorandum of Agreement for Agricultural Loans executed by the Deceased Borrower Smt. Jayamma dated 09.06.2005 is herewith produced as Annexure A-3. Certificate of Loan Papers obtained dated 09.06.2005 is herewith produced as Annexure A-4. NF-373, Particulars of Equipments hypothecated dated 09.06.2005 is herewith produced as Annexure A-5.

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The Deceased Borrower Smt. Jayamma executed a Registered Simple Mortgage Deed of her immovable properties in respect to properties, bearing Sy.No.284/1 measuring 2 Acres 19 Guntas, Sy.No.284/3 measuring 2 Acres 20 Guntas, Sy.No.284/4 measuring 3 Acres 3 Guntas situated at Hemdore Village, Gowdagere Hobli, Sira Taluk and Tumakuru District. The Registered Mortgage Deed dated 03.06.2005 executed by the Deceased Borrower Smt. Jayamma is herewith produced as Annexure A-6. Particulars of Assets Standing in the name of the Applicant dated 09.06.2005 is herewith produced as Annexure A-7.

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The Copy of Quotation/Proforma Invoice issued by Karnataka Enterprises dated 09.06.2005 is herewith produced as Annexure A-8. The Copy of Quotation issued by Vijaya Farm

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OA. 1034/2022

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Equipments, Tumakuru dated 31.05.2005 is herewith produced as Annexure A-9. The Letter of Revival executed by the Deceased Borrower Smt. Jayamma on 08.06.2008 is herewith produced as Annexure A-10. The Letter of Revival executed by the Deceased Borrower Smt. Jayamma on 05.06.2011 is herewith produced as Annexure A-11. The Letter of Revival executed by the Deceased Borrower Smt. Jayamma on 28.01.2014 is herewith produced as Annexure A-12. The Letter of Revival executed by the Deceased Borrower Smt. Jayamma on 25.01.2017 is herewith produced as Annexure A-13. The Letter of Revival executed by the defendant on 28.08.2019 is herewith produced as Annexure A-14. The Letter of Revival executed by the defendant on 29.12.2020 is herewith produced as Annexure A-15.The Copy of the Death Certificate of the Deceased borrower Smt. Jayamma dated 08.03.2017 is herewith produced as Annexure A-16.

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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 various loan documents in respect of loans in favour of the applicant bank.

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The Applicant Bank submits that the Defendants, after availing the said facilities, failed to repay the loan amount and

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committed default. The loan account was classified as NPA on 01.01.2020. The default in repayment continued and there was no positive response from the defendants. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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After filing of this OA, summons sent to the Defendant by Registered Post with Acknowledgment Due, which is duly served on all the defendant and the service of summons was completed as per Regulation. Thereafter when the OA came up for hearing on 12.06.2023, even after giving sufficient time, there was no appearance or representation from the defendant nor have filed written statement. Hence, the defendant placed exparte on 12.06.2023.

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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, Mr. Pradeep Kumar, S/o Sri. Kumbi Rangaiah, Branch Manager, has filed his 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 A19. 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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OA. 1034/2022

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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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13. The OA is allowed with costs,

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a) The applicant bank is allowed to recover from defendants

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sum of Rs.28,26,575.00 (Rupees Twenty Eight Lakhs Twenty Six Thousand Five Hundred and Seventy Five Only) with current and future interest at 10.75% p.a. compounded monthly plus overdue interest at 2% from 01.10.2021 till 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 property in the OA;

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(d) If the sale proceeds of the schedule mentioned mortgaged/hypothecated 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) to recover the balance dues as required under law;

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OA. 1034/2022

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(e) The applicant bank shall file the latest memo of calculation

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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 defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days

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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 (PR), transcribed by her, corrected and signed by me on this the 25^th of January, of 2024]

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Sd/-

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(S.V. GOWRAMMA) 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: Mr. Pradeep Kumar, Branch Manager Officer of the applicant bank

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OA. 1034/2022

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Exhibits on the part of the Applicant:

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Annexure	Particulars	Date
A1	Applicant Evidence
A2	List of Documents
A3	Loan Application for Farm Machinery Loan	09.06.2005
A4	Sanction Memorandum	09.06.2005
A5	Memorandum of Agreement for Agricultural Loans	09.06.2005
A6	Certificate of Loan Papers obtained	09.06.2005
A7	NF-373, Particulars of Equipments hypothecated	09.06.2005
A8	Registered Simple Mortgage Deed	03.06.2005
A9	Particulars of Assets Standing in the name of the Applicant.	09.06.2005
A10	Copy of Quotation/Proforma Invoice issued by Karnataka Enterprises	09.06.2005
A11	Copy of Quotation issued by Vijaya Farm Equipments, Tumakuru	31.05.2005
A12	Letter of Revival	08.06.2008
A13	Letter of Revival	05.06.2011
A14	Letter of Revival	28.01.2014
A15	Letter of Revival	25.01.2017
A16	Letter of Revival	28.08.2019
A17	Letter of Revival	29.12.2020
A18	The Copy of the Death Certificate of the Deceased borrower Smt. Jayamma	08.03.2017

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OA. 1034/2022

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Statement of Account in Farm Machinery LoanA19 A/No. 0443856011055

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Witness Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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SCHEDULE ‘A’ OF THE PROPERTIES

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Hypothecation of Tractor and Trailer vide bearing Regn.No.KA06-TA-1222 and 1223 purchased out of the bank funds.

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SCHEDULE ‘B’ OF THE PROPERTIES

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The deceased borrower Smt.Jayamma is the Owners of the Schedule Properties.

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All the piece and parcel of the bearing Land Sy.No.284/1 measuring 2 Acres 19 Guntas , situated at Hemdore Village, Gowdagere Hobli, Sira Taluk, and bounded by:-

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East by: Land of Thimmanna West by: Land of Eranna North by: Land of Narasimhanna South by: Land of Puttamma.

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All the piece and parcel of the bearing Land Sy.No.284/3 measuring 2 Acres 20 Guntas , situated at Hemdore Village, Gowdagere Hobli, Sira Taluk, and bounded by:-

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East by: Land of Dyamajja West by: Land of Puttamma North by: Land of Puttamma South by: Land of Badeeranna.

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OA. 1034/2022

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All the piece and parcel of the bearing Land Sy.No.284/4 measuring 3 Acres 3 Guntas , situated at Hemdore Village, Gowdagere Hobli, Sira Taluk, and bounded by:-

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East by: Land of Puttamma West by: Land of Krishnappa North by: Land of Puttamma South by: Land of Eranna.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER DRT-II, BENGALURU

Canara Bank v. Sri. Kodandaramaiah

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Kodandaramaiah

Case brief

What is this about?

What did the court decide?

What the court decided

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