Allowed

Canara Bank v. Sri. Jayaramaiah

DRT19 Apr 2024OA/269/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed Canara Bank's Original Application for recovery of Rs. 34,93,200 plus interest against seven defendants. The defendants failed to appear, and the Tribunal confirmed the bank's claim based on loan agreements and mortgage deeds on file.

What did the court decide?

Recovery of Rs. 34,93,200 plus interest at 9%, 10%, and 13% with 2% overdue component from 01.04.2022/07.04.2022, jointly and severally from defendants 1 to 7.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th day of April 2024

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

OA NO.269/2023

BETWEEN:

Canara Bank,

Pattanayakanahalli Branch ,

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Sira Taluk - 572135,

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Tumakuru District.

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Represented by its Branch Manager, Sri. Suresha Naika.

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...APPLICANT

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AND:

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Sri. Jayaramaiah

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S/o Late Poojar Katappa, Aged about 63 years.

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Sri. Poojar Katappa,

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S/o Late Poojar Katappa,

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Aged about 72 years.

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Sri.Nijalingappa

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S/o Poojar Katappa,

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Aged about 44 years.

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Sri.Shivalingappa

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S/o Jayaramaiah,

Aged about 38 years.

OA No.269/2023

Sri.Poojari S/o Jayaramaiah, Aged about 36 years.

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Sri.Devaraju S/o Jayaramaiah, Aged about 30 years.

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Sri.Poojari S/o Nijalingappa,

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Aged about 24 years

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All are Residing at, Karekallahatti,

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Yenjalagere Post, Gowdagere Hobli,

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Sira Taluk, Tumakuru District. …DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri.Mohamed Afroze Ahmed

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Defendant Nos.1 to 7 : Ex-parte.

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FINAL ORDER

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The present Original Application (OA) is filed on 07-12-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.34,93,200/-(Rupees Thirty Four Lakhs Ninety Three Thousand Two Hundred Only) with further interest thereon from the date of filing till realization from defendants.

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OA No.269/2023

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The Application filed is within the period of limitation as prescribed

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under Section 24 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 and the subject recovery claim falls within the jurisdiction of this Tribunal.

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Brief facts of the case:

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The Applicant bank submits that, the 1st and 2nd Defendants availed a KCCS loan amount of Rs.90,000.00 for purpose of Crop Production on 03.01.2009, agreeing the repay the same in 20 months, along with interest at the rate of 9% p.a, plus overdue interest at 2%. And also the Defendant borrowed a Canara Kisan OD Loan amount of Rs.4,00,000.00 for the purpose of working capital on 19.08.2010, agreeing the repay the same in 36 monthly Installment, along with interest at the rate of 10% p.a

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, plus over due interest at 2%. And also the Defendants borrowed a Sheep Rearing Loan amount of Rs.3,00,000.00 for the purpose of Purchase of 168 Sheep for Sheep Rearing on 19.02.2011, agreeing the repay the same in 60 Months with half yearly installment of Rs.37,500.00, along with interest at the rate of 13% p.a , plus over due interest at 2%. In total

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Aggregate the Defendants borrowed the Loan amount of Rs.7,90,000.00

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and the Defendant has hypothecated the Stocks purchased out of Bank funds and executed all the Loan Documents in favour of the Applicants Bank.

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OA No.269/2023

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The 1st and 2nd Defendants submitted a Loan Application for KCCS

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Loan to the Applicant Bank on 03.01.2009, the Loan Application dated 03.01.2009. Sanction Memorandum dated 03.01.2009. Agreement of Hypothecation for Agricultural Loans executed by the 1st and 2nd Defendants dated 03.01.2009. Certificate of Loan Papers Obtained dated 03.01.2009. All the defendants executed Simple Registered Mortgage Deed for Kisan Credit Card Scheme facility to Agriculturists of their immovable properties in respect to properties, measuring Comprised two bits. The Registered Mortgage Deed dated 30.12.2008 executed by all the Defendants. Letter of Revival executed by the 1st and 2nd Defendant dated 01.01.2012, 30.12.2014, 20.12.2017, 24.12.2020, 30.06.2022

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The 1st and 2nd Defendants submitted a Loan Application for Canara

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Kisan OD Loan to the Applicant Bank on 19.08.2010. Sanction Memorandum dated 19.08.2010. Agreement and Deed for Kisan OD Loans executed by the 1st , 2nd , 3rd ,4th and 5th Defendants dated 19.08.2010. The Registered Mortgage Deed dated 20.08.2010. Certificate of Loan Papers Obtained dated 19.08.2010. Letter of Revival executed by the Defendants dated 10.08.2013 Letter of Revival executed by the Defendants dated 04.08.2016, 16.08.2018 Letter of Revival executed by the 1st Defendant dated 01.01.2021.

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OA No.269/2023

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The 1st and 2nd Defendants submitted a Loan Application for Sheep Rearing Loan to the Applicant Bank on 19.02.2011, the Loan Application dated 19.02.2011, Sanction Memorandum dated 19.02.2011. Memorandum of Agreement for Agricultural Loans executed by the 1st and 2nd Defendants dated 19.02.2011. The defendant No. 1 to 6 executed

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Simple Registered Mortgage Deed, dated 17.01.2011. Letter of Revival executed by the 1st and 2nd, Defendants dated 17.02.2014, 16.03.2016, 15.02.2019, 26.05.2021, 30.06.2022.

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The Defendants have failed to adhere the terms and conditions of the loan, the applicant has classified the loan accounts of the defendants as a Non-Performing Asset on 30.11.2019 towards all the Loans. However, the applicant is entitled to recover the accrued interest from on 01.4.2022 towards KCCS Loan, and from on 07.04.2022 towards Canara Kissan OD loan. The Applicant Bank submits that the Defendants, after availing the loans, failed to repay the loan amount and committed default. 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 Defendants No.1 to 7 by RPAD, on 03.03.2023 duly served, Acknowledgment produced. When OA was taken up on 15.11.2023, even after giving

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OA No.269/2023

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sufficient time, there was no appearance or representation from the defendants, hence, Defendants No.1 to 7 was placed ex-parte on 15.11.2023.

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Heard the submissions of Counsels and perused the records.

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To prove the case, Sri.Suresh Naika S/o. Peethya Naika, aged

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about 34 years, Manager of the Applicant Bank, has filed Affidavit by way

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of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, and documents came to be marked as Ex.A3 to A33. As the defendants 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, documents executed, the conduct and operations in the loan 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 Nos.1 to 7

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jointly or severally, a sum of Rs. Rs.34,93,200.00 (Rupees Thirty

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OA No.269/2023

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Four Lakhs Ninety Three Thousand Two Hundred Only) with current and future interest at 9 % towards KCCS Loan, 10% towards Canara Kisan OD Loan and 13% towards Sheep Rearing Loan, compounded monthly plus over due interest at 2% p.a., from on 01.4.2022 towards KCCS Loan, and from on 07.04.2022 towards

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Canara Kissan OD loan and Sheep Rearing Loan, outstanding loan amount Rs.34,93,200.00 (Rupees Thirty Four Lakhs Ninety Three Thousand Two Hundred Only) in the loan account of the 1st Defendant. From the date of Application till the date 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 properties 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 movables and immovables) to recover the balance dues as required under law;

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OA No.269/2023

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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 considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to

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prepare Recovery Certificate for the amount to be paid by defendants to the applicant bank.

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(f) The Applicant Bank shall file memo of costs within ten days from

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the date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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

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[Dictated to the (GS), transcribed by him, corrected and signed by me on this the 19^th day April 2024].

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Sd/-

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PRESIDING OFFICER 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. Pradeep Kumar, Manager of the Applicant Bank.

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OA No.269/2023

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Exhibits on the part of the Applicant:

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SL. NO	DATE	PARTICULARS	EXHIBITS
1.	03.01.2009	Loan Application For KCCS Loan	A3
2.	03.01.2009	Sanction Memorandum	A4
3.	03.01.2009	Agreement of Hypothecation for Agricultural Loans	A5
4.	03.01.2009	Certificate of Loan Papers	A6
5.	30.12.2008	Registered Simple Mortgage Deed	A7
6.	01.01.2012	Letter of Revival	A8
7.	30.12.2014	Letter of Revival	A9
8.	20.12.2017	Letter of Revival	A10
9	24.12.2020	Letter of Revival	A11
10	30.06.2022	Letter of Revival	A12
11	19.08.2010	Loan Application for Canara Kisan OD Loan	A13
12	19.08.2010	Sanction Memorandum	A14
13	19.08.2010	Agreement and Deed For KISAN OD	A15
14	20.08.2010	The Registered Mortgage Deed	A16
15	19.08.2010	Certificate of Loan papers	A17
16	10.08.2013	Letter of Revival	A18
17	04.08.2016	Letter of Revival	A19
18	16.08.2018	Letter of Revival	A20
19	01.01.2021	Letter of Revival	A21

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OA No.269/2023

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20	19.02.2011	Loan Application for Sheep Rearing Loan	A22
21	19.02.2011	Sanction Memorandum	A23
22	19.02.2011	Memorandum of Agreement For Agricultural Loans.	A24
23	17.01.2011	The Registered Mortgage Deed	A25
24	17.02.2014	Letter of Revival	A26
25	16.03.2016	Letter of Revival	A27
26	15.02.2019	Letter of Revival	A28
27	26.05.2021	Letter of Revival	A29
28	30.06.2022	Letter of Revival	A30
29		Statement of Account in Kisan Credit Card Scheme Loan - A/No.0443840019703.	A31
30		Statement of Account in Canara Kisan OD Loan - A/No.0443897005037.	A32
31		Statement of Account in Sheep Rearing Loan - A/No.0443861024414.	A33

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Witness Examined for the Defendants:

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-Nil –

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List of Documents Exhibited for the Defendants:

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-Nil –

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SCHEDULE ‘A’

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Hypothecation of Sheeps purchased out of Bank Funds

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OA No.269/2023

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SCHEDULE ‘B’ OF THE PROPERTIES

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All the defendants are the Owners of the Schedule Properties.

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All the piece and parcel of the Land bearing Sy.No.50 measuring 7.20 Acres, assessed at Rs.10=20, situated at Musakaloti Village, Hulikunte Hobli Sira Taluk, and bounded by:-

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East by : Land of Jayamma

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West by : Government Land North by : Land of Ugrappa

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South by : Land of Jayanna.

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All the piece and parcel of the Land bearing Sy.No.55/11 measuring Comprised two bits: A bit of land measuring 0.27.08 acres and A bit of land measuring 0.27.08 acres, situated at Musakaloti Village, Hulikunte Hobli , Sira Taluk, and having common boundaries :-

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East by : Land of Katappa West by : Land of Ningappa North by : Land of Ugrappa South by : Land of Katappa

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All the piece and parcel of the Land bearing Sy.No.57/4 measuring 2-16 Acres, assessed at Rs.0=92 out of which 1.08 acres, situated at Musakaloti Village, Hulikunte Hobli , Sira Taluk, and bounded by:-

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OA No.269/2023

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East by : Land of Ningappa West by : Land of Devarajappa North by : Land of Jogannaa South by : Land of Ningappa.

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

Canara Bank v. Sri. Jayaramaiah

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Jayaramaiah

Case brief

What is this about?

What did the court decide?

What the court decided

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