Allowed

Canara Bank v. Subhash

DRT5 Oct 2024OA/1034/2022

Case brief

AI extract

What is this about?

In an ex-parte debt recovery application, the Debts Recovery Tribunal allowed the Applicant Bank's claim for recovery of Rs. 27,41,424/- plus future interest. The court reduced the total claim by Rs. 25,000/- as other charges and adjusted the future interest rate from 11.85% to 9% per annum. The loan was secured by a mortgage on agricultural land, and the bank was granted the right to sell the property and issue a recovery certificate.

What did the court decide?

The applicants were directed to pay Rs. 27,16,424/- (original claim minus Rs. 25,000/- other charges) along with future interest @9% p.a. from 18.07.2022. A recovery certificate was issued, and the bank was granted the right to sell the mortgaged property.

Canara Bank versus Subhash — Banking and Recovery | DRT (2024)

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Presented on : 18.07.2022 Registered on : 03.09.2022 Decided on : 05.10.2024 Duration : Y M D 02 02 17

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1034/2022.

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Canara Bank,

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A Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its head office at 112 JC Road, Bangalore - 2 and branch office at 3^rd Floor, Red Cross Building, M.G. Road, Camp, Pune 411 001.

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.. Applicant

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Versus

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1 Mr. Subhash Dadabhau Vetal, Age 52 years, Occ. Agriculturist,

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2 Mrs. Aruna Subhash Vetal, Age 49 years, Occ. Agriculturist,

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3 Mr. Ashish Subhash Vetal, Age 22 years, Occ. Service, All R/at : Alegaon Paga, Taluka Shirur, District Pune 412 211.

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.. Defendants

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APPEARANCES

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For Applicant Advocate Veena Kori. For Defendants Ex parte.

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TOTAL CLAIM AMOUNT –Rs.27,41,424/-

(OA No. 1034/2022)

Page 1 of 5

Sanap

JUDGMENT (Delivered on 05^th October, 2024)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.27,41,424/- together with future interest @11.85% per annum from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :

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As per the loan application dated 19.12.2018 of defendant Nos.1 and 2, the applicant Bank sanctioned the Term Loan of Rs.20,00,000/- to defendant Nos.1 and 2 vide Sanction Letter dated 19.12.2019. Defendant No.3 stood guarantor for the repayment of loan availed by defendant Nos.1 and 2.

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In order to secure the aforesaid loan facility, the defendants executed necessary loan and security documents in favour of the applicant Bank along with deed of mortgage of agricultural land and ground bearing new Gat No. 56/1 admeasuring 2H 30R situated at village Alegaon Paga, Taluka Shirur, District Pune, in favour of the applicant Bank. Further, on 01.07.2021, the defendants have executed Acknowledgment of Debt and Security and thereby acknowledged balance due payable to the applicant Bank.

(OA No. 1034/2022)

Page 2 of 5

Sanap

The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 11.01.2022, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 11.02.2022, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank.

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Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as per Order dated 15.05.2024 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Vinod Digambar Daund, Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-13, 15, 16 and 18 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

(OA No. 1034/2022)

Page 3 of 5

Sanap

Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed other charges of Rs.25,000/-, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.27,41,424/- is reduced to Rs.27,16,424/-.

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The applicant Bank has claimed future interest @11.85% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order :-

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ORDER

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(A) Original Application No. 1034/2022 is allowed with proportionate costs.

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(B) Defendant Nos. 1 to 3 either jointly or severally shall pay to the applicant Bank the sum of Rs.27,16,424/(Rupees Twenty Seven Lakhs Sixteen Thousand Four Hundred Twenty Four only) along with future interest @9% per annum from the date of filing of the

(OA No. 1034/2022)

Page 4 of 5

Sanap

Original Application i.e. 18.07.2022 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of agricultural land and ground bearing new Gat No. 56/1 admeasuring 2H 30R situated at village Alegaon Paga, Taluka Shirur, District Pune, more particularly described in the Para Nos. 5.4.1 (a) and (b) of the Original Application.

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(D) The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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(E) Issue Recovery Certificate.

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(F) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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Place : Pune Date : 05.10.2024

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Sd/(Dilip G. Murumkar) Presiding Officer Debts Recovery Tribunal, Pune.

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(OA No. 1034/2022)

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Page 5 of 5

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Sanap

Canara Bank v. Subhash

Case brief

What is this about?

What did the court decide?

Canara Bank v. Subhash

Case brief

What is this about?

What did the court decide?

What the court decided

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