Allowed

Canara Bank v. Sri. Somegowda

DRT12 Mar 2024OA/259/2023

Case brief

AI extract

What is this about?

This Order allowed an Original Application filed under Section 19 of the RDB Act by Canara Bank for recovery of dues amounting to Rs. 49,98,289/- along with interest from defendant Sri. Somegowda who failed to repay two agricultural loans. The defendant appeared exparte.

What did the court decide?

Allowed OA for recovery of Rs.49,98,289/- with interest on two loan accounts from 01.04.2022. Bank authorized to recover via sale of schedule properties or personal assets if not paid. Recovery Certif

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 12^th Day of March, 2024

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

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OA. No.259/2023

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BETWEEN:

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Canara Bank Hassan Main Branch, Po. No.45, Near Narashimharaja Circle, Malnad House, Hassan H.O, Hassan,Karnataka-573201 Through its Senior Manager Mr. Hanumantha H

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… APPLICANT

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AND:.

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Sri. Somegowda S/o. PutaswamyGowda, Aged about 38 years R/o, Rayapura Village, Salagame Hobli, HassanTaluk, Hassan Dist., Karnataka

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Vignesh Shetty Defendant : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 09.11.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.49,98,289/- (Rupees forty nine lakh ninety eight thousand two hundred and eight nine Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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The application filed is within the period of limitation as prescribed

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OA. No. 259/2023

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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 borrower had approached the applicant bank seeking for Agricultural Loan of Rs.5,00,000/- (Rupees five lakh only) an loan application dated 24.09.2005 for the purpose of Agricultural. After due diligence, of the defendant, the applicant bank sanctioned an Agricultural Loan of Rs.5,00,000/- (Rupees five lakh only) vide Sanction letter dated 24.09.2005 in Loan account no. 0531856008583 along with interest @ 16.55% p.a. in respect of the said loan.

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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 and charges, and Defendant executed Simple Mortgage Deed dated 22.09.2005 and Memorandum of Agreement for Agricultural Loans dated

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26.09.2005 and Letter of Undertaking re: Loans/ Advances dated 26.09.2005 and Letter of Revival dated 20.09.2008, 15.09.2011, 13.09.2014, 23.08.2017 and 03.01.2020 in favour of the Applicant Bank.

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Further, the defendant had approached the applicant bank seeking for Agricultural Loan of Rs.50,000/- (Rupees fifty lakh only) an loan application dated 18.10.2005 for the purpose of Agricultural. After due diligence, of the defendant, the applicant bank sanctioned an Agricultural

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OA. No. 259/2023

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Loan of Rs.50,000/- (Rupees fifty lakh only) vide Sanction letter dated 18.10.2005 in Loan account no. 0531847013433 along with interest @ 10.65% p.a. in respect of the said loan.

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4.1. 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 Defendant executed Deed of Hypothecation for Kisan Credit Card dated 18.10.2005 and Letter of Revival dated 07.10.2008, 01.10.2011, 29.03.2014, 28.12.2015 and 26.11.2019 in favour of the Applicant Bank

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The Applicant Bank submits that the Defendant, after availing the said facilities, failed to repay the loan amount and committed default. The loan account of the Defendant had been classified as a Non Performing Asset (NPA) and the Applicant Bank issue a Legal Notice dated 01.10.2022 calling upon the defendant to repay the entire outstanding loan amount. However, there 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 Registered Post with Acknowledgment Due the same is duly served on 08.06.2023. Therefore, service held sufficient. When OA was taken up on 21.02.2024 even after giving sufficient time, there was no appearance or representation from the Defendant; hence, Defendant was placed exparte

OA. No. 259/2023

on 21.02.2024.

Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sri. Hanumanthappa H

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S/o Late. H. Siddappa, 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 documents

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came to be marked as Ex.A3 to A12. As the Defendant remained exparte, 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:

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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 Defendant to pay an amount of Rs.49,98,289/- (Rupees forty nine lakh ninety eight thousand two hundred and eight nine Only) consisting of:

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i. The Defendant to pay an amount of Rs.45,17,372 (Rupees Forty five

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lakhs seventeen thousand three hundred seventy two only) as on

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OA. No. 259/2023

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31.03.2022 along with further interest @16.55% compounded half yearly with effect from 01.04.2022till full and final payment and/or realization of the entire debt in respect of Loan Account No.0531856008583.

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ii. The Defendant to pay an amount of Rs.4,80,917 (Rupees four lakhs eighty thousand nine hundred seventeen only) as on 31.03.2022 along with further interest @10.65% compounded half yearly with effect from

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01.04.2022 till full and final payment and/or realization of the entire debt in respect of Loan Account No.0531847013433.

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(b) In the event of failure of the Defendant to pay the aforesaid amount,

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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. 259/2023

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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 12^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. Hanumanthappa H S/o Late. H. Siddappa, Senior 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 24.09.2005 alongwith sanction letter

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OA. No. 259/2023

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A4	Simple Mortgage Deed dated 22.09.2005
A5	Memorandum of Agreement for Agricultural Loan dated 26.09.2005
A6	Letter of Undertaking Re: Loans/Advances dated 26.09.2005
A7	Letter of Revival dated 20.09.2008, 15.09.2011, 13.09.2014, 23.08.2017 and 03.01.2020
A8	Loan application dated 18.10.2005 and sanction letter
A9	Deed of Hypothecation for Kissan Crdit Card dated 18.10.2005
A10	Letter of Revival 07.10.2008, 01.10.2011, 29.03.2014, 28.12.2015 and 26.11.2019
A11	Legal Notice dated 01.10.2022
A12	True Extract of Statement of Accounts pertaining to the Defendant’s Loan Accounts-0531856008583/ 0531847013433

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Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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SCHEDULE PROPERTY

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All that piece and parcel of immovable property in Sy.Nos mentioned as under situated at Rayapura Village, Hassan Taluk, Hassan Dist. bounded on:

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Sy No	Exten t	East by	West by	North by	South by
54	00.36	Govt. Road	Gowdegoda	Govt.Road	Nagamma
2/16P	03.26	Govt. Tank	Road	Doddarangaiah	KEmpegowda
195	00.30	Chatrapathi	Govt. Road	Gowdegowda	Rangaswamygowda

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Sd/-

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PRESIDING OFFICER DRT-II, BENGALURU

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OA. No. 259/2023

Canara Bank v. Sri. Somegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Somegowda

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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