Allowed

Canara Bank v. Mr. Prabhakar Venkappa Naik

DRT8 Mar 2024OA/221/2023

Case brief

AI extract

What is this about?

In an original application under the RDB Act, the Debts Recovery Tribunal allowed the bank's claim for recovery of a loan of approximately Rs.20 lakh advanced to the defendants, who were defaulted as per the sanction and hypothecation documents.

What did the court decide?

Recovery of Rs.20,09,758/- along with future interest at 9.55% p.a., enforceable via sale of schedule property or personal assets.

Canara Bank versus Mr. Prabhakar Venkappa Naik — Money Laundering | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 8^th Day of March, 2024

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

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OA. No.221/2023

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BETWEEN:

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Canara Bank Kulgod Branch, Gokak Road, Mudalgi Taluk, Dist. Belgavi. Through its Senior Manager, Mr. Harish Yamanappa Gadinaik.

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… APPLICANT

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AND:.

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Mr. Prabhakar Venkappa Naik S/o Venkappa Naik Aged about 39 years, R/at & Post Venkatapur, Gokak, Dist. Belgavi, Karnataka-591 227.

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Smt. Parvatevva Venkappa Naik D/o Venkappa Naik, Aged about 35 years, R/at & Post Venkatapur, Gokak, Dist. Belgavi, Karnataka-591 227. ...DEFENDANTS

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Counsel on record/appeared for: Applicant : Sri. Venu K.V. Defendant Nos.1 & 2 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 20.12.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.20,09,758/- (Rupees twenty lakh nine thousand seven hundred and fifty eight only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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OA. No. 221/2023

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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 as borrowers. The 1^st defendants had approached the applicant bank seeking for Kisan Credit Card Loan of Rs.12,75,000/- (Rupees twelve lakh seventy five thousand only) an Loan Application dated 11.01.2018 for the purpose of Agricultural. After considering the request of the defendants, the applicant bank sanctioned an Kisan Credit Card Loan of Rs.12,75,000/(Rupees twelve lakh seventy five thousand only) vide Sanction letter dated 11.01.2018 along with interest @ 10.60% p.a. in respect of the said loan.

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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 Defendants executed Agreement and Deed of Hypothecation for KCC Dated 11.01.2018 and Simple Mortgage Deed dated 22.12.2017 and Letter of Revival dated 19.02.2020 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) and the Applicant Bank issue a Notice dated 25.11.2022 calling

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OA. No. 221/2023

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upon the defendants to repay the entire outstanding loan amount. However, 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 the filing of the OA, summons was sent to the Defendant Nos.1

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to 2 Registered Post with Acknowledgment Due the same is duly served on 08.06.2023. Therefore, service held sufficient. When OA was taken up on 06.11.2023 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 to 2 were placed exparte on 06.11.2023.

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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, Sri. Harish Yamanappa

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Gadinaik S/o Yamanappa Gadinaik, Senior 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

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documents came to be marked as Ex.A3 to A10. 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

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OA. No. 221/2023

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final order on the following terms:

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: O R D E R:

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants jointly and severally to pay an amount of Rs.20,09,758/- (Rupees twenty lakh nine thousand seven hundred and fifty eight only) as on 31.03.2022 along with future interest @ 9.55% p.a. compounded half yearly with effect from 01.04.2022 till full and final payment and realization of the entire debt.

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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 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) 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

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amount together with interest, costs etc., to be paid by the defendants duly

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OA. No. 221/2023

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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 8^th Day of March 2024].

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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: Sri. Anil Kumar S/o Kamleshwar, Brach Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Applicant Evidence
A2	List of Documents.
A3	Loan application dated 11.01.2018

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OA. No. 221/2023

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A4	Sanction Letter dated 11.01.2018
A5	Deed of Hypothecation for KCC dated 11.01.2018
A6	Simple Mortgage dated 22.12.2017
A7	Letter of Revival dated 19.02.2020
A8	Notice dated 25.11.2022
A9	True extract of Statement of Accounts pertaining to the Defendants aforesaid Loan Accounts.
A10	Certified under Sec.2a of baker’s book evidence act, 1891.

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil -

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SCHEDULE PROPERTY

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All that piece parcel of the following Agricultural Lands belonging to Defendant No.1 (Prabhakar Venkappa Naik) situated at Venkatapur Taluk, Gokak, Dist. Belgavi:

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Item No.1

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Sy.No.1	Sy.No.	Measurement
1	19/3	1 acres 37 guntas 08 ana

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Boundary:

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East: Land of Sudharkar Naik West: Land of Shrikant Naik North: Road approaching to Yaragudri South: Road approaching to Tadawad.

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Item No.2

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Sy.No.1	Sy.No.	Measurement
1	24/2	4 acres 12 guntas

Boundary:

OA. No. 221/2023

East: Land of Ramappa Badakal West: Land of Ramesh Naik North: Road South: Road

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Item No.3

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Sy.No.1	Sy.No.	Measurement
1	26/3	1 acres 28 guntas

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Boundary:

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East: Land of Sujata Naik West: Land of Shrikant Naik North: Land approaching to Yadawad South: Land of Applicants.

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Item No.4

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Sy.No.1	Sy.No.	Measurement
1	27/3	3 acres 16 guntas

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Boundary:

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East: Land of Sujata Naik West: Land of Shrikant Naik North: Land of Applicants South: Road

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Item No.5

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Sy.No.1	Sy.No.	Measurement
1	98/1	4 acres 10 guntas

Boundary:

OA. No. 221/2023

East: Land of Sateppa Naik West: Land of Mallikarjuna Naik North: Road

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South: Road

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Item No.6

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Sy.No.1	Sy.No.	Measurement
1	99/1	2 acres 26 guntas

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Boundary:

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East: Land of Mahantesh Hosamani West: Land of Mallikarjun Naik North: Road

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South: Road

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

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OA. No. 221/2023

Canara Bank v. Mr. Prabhakar Venkappa Naik

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr. Prabhakar Venkappa Naik

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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