Allowed

Canara Bank v. Sri. Rangaswamy

DRT11 Mar 2024OA/260/2023

Case brief

AI extract

What is this about?

In OA No.260/2023, the DRT-II Bengaluru, in the absence of the defendant, allowed the original application filed by Canara Bank to recover dues amounting to Rs.58,63,831/- along with interest from the defendant regarding two agricultural loans.

What did the court decide?

Recovery of Rs. 58,63,831/- with interest on two agricultural loan accounts and permission to sell schedule properties or personal assets for recovery.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 11^th Day of March, 2024

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Present: SMT. S. V. GOWRAMMA

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Hon’ble Presiding Officer

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OA. No.260/2023

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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. Rangaswamy, S/o Thimmappaiah Aged about 65 years, R/at. Nagarahalli Village, Arsekere Taluk, Hassan Dist., Karnataka. ...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 23.11.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.58,63,831/- (Rupees fifty eight lakh sixty three thousand eight hundred and thirty one 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 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.5,14,500/-

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OA. No. 260/2023

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(Rupees five lakh fourteen thousand five hundred only) an loan application dated 22.09.2005 for the purpose of Agricultural. After due diligence, of the defendants, the applicant bank sanctioned an Agricultural Loan of Rs.5,14,500/- (Rupees five lakh fourteen thousand five hundred only) vide Sanction letter dated 22.09.2005 in Loan account no. 0531856008562 along with interest @ 10% 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 Defendants executed Memorandum of Agreement for Agricultural Loans dated 22.09.2005 and Letter of Undertaking re: Loans/ Advances dated 22.09.2005 and Letter evidencing Mortgage by Deposit of Title Deed dated 22.09.2005 in favour of the Applicant Bank.

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Further, the defendant had approached the applicant bank seeking for Agricultural Loan of Rs.4,47,000/- (Rupees four lakh forty seven thousand only) an loan application dated 18.10.2005 for the purpose of Agricultural. After due diligence, of the defendants, the applicant bank sanctioned an Agricultural Loan of Rs.4,47,000/- (Rupees four lakh forty seven thousand only) vide Sanction letter dated 19.10.2005 in Loan account no. 0531883008712 along with interest @ 11.25% 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 Memorandum of Agreement for Agricultural Loans dated 19.10.2005 and Link Letter when additional loan is granted within the maximum limit dated 18.10.2005 and Acknowledgement of Debt dated 20.10.2007, 30.06.2009, 05.06.2012, 22.12.2014, 16.11.2017, 31.12.2019 and for the consecutive account dated 20.10.2007, 02.05.2009, 16.04.2012, 22.12.2014, 16.11.2017, 23.01.2020 and 16.08.2022 in favour of the Applicant Bank

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OA. No. 260/2023

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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 12.10.2022 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 on 21.02.2024.

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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 Hanumanthappa H 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 came to be marked as Ex.A3 to A13. 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:

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: O R D E R:

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The OA is allowed with costs,

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OA. No. 260/2023

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(a) The applicant bank is allowed to recover from Defendant to pay an amount of Rs.58,63,831/- (Rupees fifty eight lakh sixty three thousand eight hundred and thirty one Only) consisting of:

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i. The Defendant to pay an amount of Rs.29,00,528.00 (Rupees twenty nine lakh five hundred and twenty eight only) as on 31.03.2022 along with further interest @16.55% compounded half yearly with effect from 01.04.2022 till full and final payment and/or realization of the entire debt in respect of Loan Account No.0531856008562.

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ii. The Defendant to pay an amount of Rs.29,63,303.00 (Rupees twenty nine lakh sixty three thousand three hundred and three only) as on 31.03.2022 along with further interest @10.50 compounded half yearly with effect from 01.04.2022 till full and final payment and/or realization of the entire debt in respect of Loan Account No.0531883008712.

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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;

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

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OA. No. 260/2023

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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.

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(f) The applicant bank shall file memo of costs within ten days from the 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 11^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 Nos.	Particulars of Documents
A1	Applicant Evidence
A2	List of Documents.
A3	Application and Sanction Letter dated 22.09.2005
A4	Application dated 18.10.2005 and Sanction Letter dated 19.10.2005
A5	Memorandum of Agreement for Agricultural Loans executed by Defendant in favour of the Applicant Bank dated 22.09.2005
A6	Letter of Undertaking re: Loans/ Advances executed by Defendant in favour of the Applicant Bank dated 22.09.2005
A7	Memorandum of Agreement for Agricultural Loans executed by Defendant in favour of the Applicant Bank dated 19.10.2005

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OA. No. 260/2023

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A8	Link Letter when additiona loan is granted within the maximum limit executed by Defendant in favour of the Applicant Bank dated 18.10.2005
A9	Mortgage by Deposit of Title Deeds executed by Defendant in favour of Applicant dated 22.09.2005
A10	Letter of Acknowledgement of Debt dated 20.10.2007, 30.06.2009, 05.06.2012, 22.12.2014, 16.11.2017, 31.12.2019 and for the consecutive account 20.10.2017, 02.05.2009, 16.04.2012, 22.12.2014, 16.11.2017, 23.01.2020, 16.08.2022.
A11	Legal Notice dated 12.10.2022
A12	True Extract of Statement of Accounts pertaining to the Defendant’s Loan Accounts-0531856008562
A13	True Extract of Statement of Accounts pertaining to the Defendant’s Loan Accounts-0531883008712
A14	Certificate under section 2a of banker’s book evidence act, 1891.
Witness	Examined for the Defendants: -Nil -
List of D	ocuments Exhibited for the Defendants: -Nil -

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“SCHEDULE PROPERTIES”

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All that piece and parcel of immovable property in Sy.No mentioned as under situated at Nagarahalli Village, Arsekere Taluk, Hassan Dist., bounded on:

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Sl. No.	Extent	Boundary
144	14.07	East: Grama Thana
		West : Property of Chikke Gowda
		North : Road
		South : Property of Iyyanna

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

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OA. No. 260/2023

Canara Bank v. Sri. Rangaswamy

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Rangaswamy

Case brief

What is this about?

What did the court decide?

What the court decided

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