The DRT allowed the bank's application for recovery of a loan of Rs. 22,42,834/- along with future interest and charges from the borrower and guarantors under the Recovery of Debts and Bankruptcy Act 1993.
Recovery of Rs. 22,42,834/- with future interest from Defendants jointly and severally; liberty to sell mortgaged and personal assets for recovery.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 13th Day of March, 2024
Present: SMT. S. V. GOWRAMMA Hon’ble Presiding Officer
OA. No.204/2023
BETWEEN:
Karnataka Gramin Bank Uchangi Branch, Sakleshpur Taluk, Hassan District, Karnataka State-573137. Represented by its Branch Manager
… APPLICANT
AND:.
...DEFENDANTS
Counsel on record/appeared for:
Applicant : Sri. G. Lokesh Murthy Defendant Nos.1 to 3 : Exparte.
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FINAL ORDER
The present Original Application (OA) is filed on 14.12.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.22,42,834/- ( Rupees Twenty two lakhs forty two thousand eight hundred thirty four only) with further interest thereon from the date of filing the Application till realization from the Defendants.
Brief facts of the case:
3.1. The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost
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and charges, and Defendants executed Memorandum of Term Loan Agreement for Housing Loan and Registered Mortgage Deed dated 20.12.2013 and Defendant No.2 & 3 executed Guarantee Agreement dated 20.12.2013 and Defendant No.1 executed Simple Mortgage Deed dated 03.12.2013 which was registered as a document bearing No.SMP-101756/2013-14, CD No. SMPD51 dated 06.12.2013 and Defendant Nos.1 & 2 executed Simple Mortgage Deed dated 03.12.2013 which was registered as a document bearing No.SMP-1-0596/2013-14, CD No. SAKD76 dated 09.12.2013 and Letter of Revival dated 20.09.2016, 20.12.2018 & 20.12.2021 in favour of the Applicant Bank.
4.1. The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost
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and charges, and Defendant Nos.1& 2 executed the ACC terms and condition letter and Mortgage deed dated 08.07.2014 and Simple Mortgage Deed dated 23.06.2014 and which was duly registered as a document bearing No.SMP-1-00808/2014-15, CD No. SAKD89 dated 23.06.2014 and Letter of Revival dated 03.01.2017 & 30.12.2019 in favour of the Applicant Bank.
Heard the submissions of Applicant Bank and perused the records.
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Yogesh, Branch 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 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.
: O R D E R:
jointly and severally to pay an amount of Rs.22,42,834/- ( Rupees Twenty two lakhs forty two thousand eight hundred thirty four only) together with future interest @ 13.5% with penal interest @ 2% p.a. with half yearly
rests, and other charge from 1.12.2022 to till the date of realization.
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(b) In the event of failure of the Defendant to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;
(c) Schedule mentioned property in the OA shall be appended to this final order;
(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;
(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 defendant 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 the respective defendants to the applicant bank.
date of this final order.
Officer in terms of the final order.
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Order.
10. A copy of this order be communicated to the parties concerned.
[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 13th Day of March 2024].
Sd/-
PRESIDING OFFICER DRT-II, BENGALURU
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Smt. Sangeetha P W/o Yogesh, Branch Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Particulars of Documents |
|---|---|
| A1 | Applicant Evidence |
| A2 | List of Documents. |
| A3 | Copy of Loan Application dated 24.07.2013 |
| A4 | Copy of HO Loan sanction letter (Terms & Condition Letter) dated 28.11.2013 |
| A5 | Copy of Branch Loan Sanction Letter (Term & Condition Letter) dated 20.12.2013 |
| A6 | Copy of Memorandum of Term Loan Agreement for Housing Loan dated 20.12.2013. |
| A7 | Copy of Mortgage Deed and 2 guarantee deed dated 20.12.2013 |
| A8 | Copy of Simple Mortgage Deposit of Tile Deeds dated 06.12.2013 |
| A9 | Copy of Simple Mortgage Deposit of Title Deeds dated 09.12.2013 |
| A10 to 12 |
Copy of Letter of Revival dated 20.09.2016, 27.12.2018 & 20.12.2021 |
| A13 | Copy of Loan application dated 20.06.2014 |
| A14 | Copy of Branch loan sanction letter (Terms and Condition Letter) dated 08.07.2014 |
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| A15 | Copy of Mortgage Deed dated 23.06.2014 |
|---|---|
| A16 | Copy of Simple Mortgage Deed dated 23.06.2014 |
| A17 to A19 |
Copy of Revival Letter dated 03.01.2017, 03.01.2017 and 30.12.2019 |
| A20 to A26 |
Copy of 2 Legal Notice dated 01.06.2022 with RPAD postal receipts. |
| A27 & A-28 |
Certified copy of 2 Loan Account Statement. |
Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -
-: SCHEDULE ‘A’ PROPERTY:-
Hypothecation of Agri. equipment, power tiller, and other capital investment and other movables available in schedule ‘B ’ & ‘C’ landed properties.
-: SCHEDULE ‘B’ PROPERTY:-
Details of Property held in the name of Sri. M.S. Rajegowda
Agricultural Property situated at Dundalli Village, Kodlipet Hobli, Somwarpet Taluk, Kodagu District.
| Sy.No. | Extent | East | West | North | South |
|---|---|---|---|---|---|
| 4 | 1 acre 20 | Govt. | Govt. Road | M.D. | Dharmappa |
| cents | Road | Manjunatha |
-: SCHEDULE ‘C’ PROPERTY:-
Details of Property held in the name of Sri. M.S. Rajegowda & K.E. Ponnappa
Agricultural Property situated at Mathuru Village, Yasaluru Hobli, Sakleshpur Taluk, Hassan District.
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| Sy.No. | Extent | East | West | North | South |
|---|---|---|---|---|---|
| 81 | 2 acre 12 guntas |
Ekambar a Murthy |
Siddego wda |
Raje Gowda | Kumarappa |
| 46 | 1 Acre 14 Guntas |
Bhuvanesh | Kumara swamy |
Manje Gowda | Rudre Gowda |
| 43/2 | 31guntas | Bhuvanesh | Kumara swamy |
Manje Gowda | Rudre Gowda |
| 42/8 | 8 Guntas | Bhuvanesh | Kumara swamy |
Manje Gowda | Rudre Gowda |
Sd/-
PRESIDING OFFICER
DRT-II, BENGALURU
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2 issues framed by the court
Whether the Deputy Director (Writ) has jurisdiction to entertain the Original Application for recovery of dues under RD&BA.
Whether the Defendants are liable to pay the principal amount along with interest and future interest.
2 provisions across 1 enactments
Karnataka Gramin Bank Uchangi Branch
Smt. S. V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
