Allowed

Canara Bank v. Sri. Ravi. K

DRT24 Apr 2024OA/1275/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's Original Application filed under section 19 of the RBI Act for recovery of Rs. 39.54 Lakhs. The defendants failed to appear, and the claim was unchallenged. The order authorized recovery of principal, interest, and penal interest via the mortgaged schedule property or personal assets.

What did the court decide?

Recovery of Rs.39,54,585 with interest @14.70% p.a. and penal interest; liberty to recover via sale of schedule property and personal assets.

Canara Bank versus Sri. Ravi. K — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of April, 2024

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Present: SMT. S. V. GOWRAMMA

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Hon’ble Presiding Officer

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OA. No.1275/2022

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BETWEEN:

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Canara bank Branch office at Aavathi, Devanahalli Taluk, Bengaluru Rural District-562 164. Represented by its Manager and Constituted Attorney Mrs. P.K. Bhavya.

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… APPLICANT

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AND:.

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Sri. Ravi K. S/o late. Krishnappa Aged about 48 years

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Sri. K. Nagesh S/o Late. Krishnappa Aged about 44 years

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Sri. K. Prakash S/o Late. Krishnappa Aged about 41 years,

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Sri. K. Anand Kumar S/o Late. Krishnappa Aged about 40 years,

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Defendant No.1 to 4 are R/at. Koramangala Village, Aavathi Post, Devanahalli Taluk, Bengaluru Rural District-562164. Karnataka- INDIA.

...DEFENDANTS

OA. No. 1275/2022

Counsel on record/appeared for:

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Applicant : Smt. D.Shashiprabha Ramesh Defendant Nos.1 to 4 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 01.09.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.39,54,585/- (Rupees thirty nine lakh fifty four thousand five hundred and eighty five Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The application filed is within the period of limitation as prescribed under Section 24 Recovery of the Debts and Bankruptcy Act 1993 and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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Brief facts of the case:

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It is the case of the applicant bank where in the Defendant No.1 had approached the applicant bank seeking for Horticulture Plantation Loan of Rs.7,61,000/- (Rupees seven lakh sixty one thousand Only) for the purpose

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of Grape Crop development and other Activities. After considering the request of the Defendant No.1 applicant bank sanctioned the Horticulture Plantation Loan of Rs.7,61,000/- (Rupees seven lakh sixty one thousand Only) vide sanction memorandum dated 29.12.2008 in Loan A/c No.0427882009655. On Securing the below referred documents, the applicant bank has disbursed the said credit facility of Rs.7,61,000/-

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OA. No. 1275/2022

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(Rupees seven lakh sixty one thousand Only). The 1^st defendant has agreed to repay the loan in 120 months in 14 half yearly instalments of Rs.55,000/- with interest @ 13.75% p.a. + interest and when due with effect from 24.12.2011, provided interest payable shall be subject to the changes in the interest rates made by the RBI/ the Bank from time to time. The Defendant No.1 shall be liable to pay penal interest @ 2% p.a. on the overdue amount form the date of such default or irregularity till regularizing or clearing the account in full.

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The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendant Nos.1 executed Memorandum of Agreement for Agricultural Loans dated 29.12.2008 and Simple Mortgage Deed dated 12.12.2008 which was registered Document No-DNH-1-09093-2015-16 and stored in C.D. No-DNH-1-04784-2008-09 and stored in CD No-DNHD 166 in the office of the Sub-Registrar, Devanahalli, Bengaluru Rural District and Letter of Revival date 11.02.2011, 23.02.2013, 20.01.2015, 09.01.2018 and 07.01.2021 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 committed default. The loan account of the Defendants had been classified as a Non Performing Asset (NPA) on 16.09.2019 and the Applicant Bank issue a Recall Notice dated 01.07.2022 and Legal Notice dated 22.08.2021 calling upon the defendant to repay the entire outstanding loan amount. However, there

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OA. No. 1275/2022

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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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After the filing of the OA, summons was sent to the Defendant Nos.1 to 4 Registered Post with Acknowledgment Due the same is duly served on 14.02.2023. Therefore, service held sufficient. When OA was taken up on 05.04.2023 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 to 4 were placed exparte on 05.04.2023.

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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, Mrs. P.K. Bhavya W/o

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Praveen Kumar P.T., Manager has filed 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

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marked as Ex.A3 to A16. As the Defendant 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, 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:

OA. No. 1275/2022

: O R D E R:

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants to pay an amount of Rs.39,54,585/- (Rupees thirty nine lakh fifty four thousand five hundred and eighty five Only) under the Horticulture Plantation Loan A/c No.0427882009655 along with current and future interest @ 14.70% p.a. compounded half yearly + 2% penal interest and other charges from the date of OA application and 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 property in the OA;

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order;

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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 defendant (both movable and immovable) respectively 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

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OA. No. 1275/2022

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considering the amounts, if any, paid by the defendant and/or amount

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realized by sale of assets etc., during the intervening period after the filing

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of the OA, enabling the Registry to prepare Recovery Certificate for the

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amount to be paid by the respective defendants to the applicant bank.

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

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date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery

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Officer in terms of the final order.

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(h) Interim Application pending if any, stands disposed of with this Final Order.

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A copy of this order be communicated to the parties concerned.

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[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 24^th Day of April 2024].

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(S.V. Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mrs. P.K. Bhavya W/o Praveen Kumar P.T., Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents	Date
Nos.
A1	Applicant Evidence
A2	List of Documents.

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OA. No. 1275/2022

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	Documents executed in respect of Horticulture Plantation Loan A/c No.0427882009655.
A3	Common Application cum Appraisal form for credit facilities of Agricultural Loan above Rs.2 lakh and up to Rs.10 lakhs.	23.12.2008
A4	Sanction Memorandum	29.12.2008
A5	Memorandum of Agreement for Agricultural Loans.	29.12.2008
A6	Simple Mortgage Deed executed by the Defendants registered as Doc. No-DNH-1-04784- 208-09	12.12.2008
A7	Letter of Revival	11.02.2011
A8	Letter of Revival	23.02.2013
A9	Letter of Revival	20.01.2015
A10	Letter of Revival	09.01.2018
A11	Letter of Revival	07.01.2021
A12	Statement of Account Extract pertaining to the Loan A/c No. 04278820009655	20.08.2022
A13	Office copy of the Recall Notice	01.07.2022
A14	Office copy of the Legal Notice issued to the 1^st Defendant.	22.08.2022
A15	RPAD Receipt
A16	Returned RPAD Cover
Witnes	s Examined for the Defendants: -	Nil -
List of	Documents Exhibited for the Defendants: -	Nil -

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DESCRIPTION OF THE MORTGAGED SCHEDULE PROPERTY

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a. All that piece and parcel of immovable property bearing Sy.No.219 measuring 2 acres of land situated at Koramangala village, Vijayapura Hobli, Devanahalli Taluk, Bengaluru Rural District and bounded on the :

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East by: Land of Hanumappa West by: Land of Anjinappa North by: Land of Karagadamma South by: Land of Hanumappa.

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b. All that piece and parcel of immovable property bearing Sy.No.55/B-3 measuring 1 acre 25 guntas of land situated at Koramangala village,

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OA. No. 1275/2022

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Vijayapura Hobli, Devanahalli Taluk, Bengaluru Rural District and bounded on the :

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East by: Kharab Halla West by: kharab Halla North by: Land of Ramanjinappa South by: Land of Applicant.

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c. All that piece and parcel of immovable property bearing Sy.No.102/P-10 measuring 4 acres of land situated at Koramangala village, Vijayapura Hobli, Devanahalli Taluk, Bengaluru Rural District and bounded on the :

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East by: Land of Arjunappa West by: Land of Narasimhappa North by: Land of Venkatappa

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South by: Land of Narayanappa Standing in the name of the Borrower/ First Defendant K. Ravi.

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PRESIDING OFFICER

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DRT-II, BENGALURU

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Sd/-

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OA. No. 1275/2022

Canara Bank v. Sri. Ravi. K

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Ravi. K

Case brief

What is this about?

What did the court decide?

What the court decided

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