Allowed

Canara Bank v. Sri. Subhash

DRT8 Mar 2024OA/279/2023

Case brief

AI extract

What is this about?

DRT allowed the bank's application for recovery of dues of approximately Rs. 47 lakhs from three defendants who failed to repay agricultural loans, adjudging the bank privileged to recover the amount with interest through sale of secured and personal assets.

What did the court decide?

Recovery of Rs.47,71,842.03 with future interest at 12.50% p.a. plus 2.00% penal interest, sale of schedule properties and personal assets.

Canara Bank versus Sri. Subhash — Banking and Recovery | 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

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Hon’ble Presiding Officer

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OA. No.279/2023

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BETWEEN:

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Canara Bank Janata Bazar building, Super Market Complex, Kalburgi – 585101 Represented by Senior Manager Mr. Satwant Singh.

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… APPLICANT

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AND:.

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Mr. Subhash S/o Malkajappa Yankanchi Aged about 50 years

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Mr. Shivayogi S/o Malkajappa Yankanchi Aged about 53 years

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Mr. Gurappa S/o Malkajappa Yankanchi Aged about 48 years

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All the above are: R/o. Aralagundagi village, Kalaburgi Taluk Kalaburgi District - 585325 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendant Nos.1 to 3 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 17.11.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery

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OA. No. 279/2023

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of a sum of Rs.47,71,842.03 (Rupees Forty Seven Lakhs Seventy One Thousand Eight Hundred Forty Two and Paise Three Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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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 Nos.1 to 3 are borrowers. The defendants had approached the applicant bank seeking for Kisan Credit Card Loan of Rs.2,00,000/- (Rupees two lakh only) on 07.04.2007 for the purpose of Agricultural. After considering the request of the defendants, the applicant bank sanctioned an Kisan Credit Card Loan of Rs.2,00,000/- (Rupees two lakh only) vide Sanction letter dated 07.04.2007 in Loan account no. 0513840009189. The said loan was repayable in 12 term months. The loan was availed at a variable rate of interest rate and the present ROI being 10.00% per annum, and penal interest @ 2% p.a. in case of default in repayment.

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3.1. The defendants executed necessary loan documents in favour of

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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 07.04.2007 and registered Simple

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OA. No. 279/2023

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Mortgage Deed dated 21.03.2007 which was registered as Document No. 03726/2006-07, in the office of Sub-registrar Jewargi and Letters of Revival dated 08.09.2008, 02.02.2010, 06.09.2012, 01.03.2015, 20.02.2017, 17.02.2020 and 18.02.2020 in favour of the Applicant Bank.

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Further, the defendants had approached the applicant bank seeking for Canara Kissan OD Loan of Rs.3,00,000/- (Rupees three lakh only) on 18.09.2008 for the purpose of Agricultural. After considering the request of the defendants, the applicant bank sanctioned an Canara Kissan OD Loan of Rs.3,00,000/- (Rupees three lakh only) vide Sanction letter dated 23.09.2008 in Loan account no. 0513256007562. The loan was availed at a variable rate of interest rate being 12.50% per annum, and penal interest @ 2% p.a. in case of default in repayment.

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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 and charges, and Defendants executed agreements, Memorandum of Agreement for Agricultural Loan dated 23.09.2008 and Registered Simple Mortgage Deed dated 18.09.2008 which was Registered as No. 02163/2008-09, in the office of Sub-registrar, Jewargi and Letters of Revival dated 20.09.2011, 16.09.2014, 15.09.2017 and 16.08.2020 in favour of the Applicant Bank.

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OA. No. 279/2023

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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) on 29.09.2010 and the Applicant Bank issue a Legal Notice dated 21.02.2022 calling 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 to 3 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 3 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. Satwant Singh S/o Gurcharan Singh, 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

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marked as Ex.A3 to A28. As the Defendant remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on

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OA. No. 279/2023

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record to repudiate the claim of the Applicant Bank.

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Having regard to the amount advanced, the interest applied, the

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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 Defendants jointly and severally to pay an amount of Rs.47,71,842.03 (Rupees Forty Seven Lakhs Seventy One Thousand Eight Hundred Forty Two and Paise Three Only) due and also future interest thereon at rate of interest 12.50% p.a., plus 2.00% penal interest till the date of realization of the entire amount.

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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;

final order;

OA. No. 279/2023

(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 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

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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 8^th Day of March 2024].

OA. No. 279/2023

Sd/-

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. Satwant Singh S/o Gurcharan Singh, 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	Date
A1	Applicant Evidence
A2	List of Documents.
A3	Common application cum appraisal for agricultural Loan A/c. 0513840009189	07.04.2007
A4	Agreement and Deed of Hypothecation for Kisan Credit Card	07.04.2007
A5	Sanction Memorandum	07.04.2007
A6	Simple mortgage deed registered as Doc. 03726/2006-07 dated 27.03.2007, Sub-registrar Jewargi.	21.03.2007
A7	Letter of Revival	08.09.2008
A8	Letter of Revival	02.02.2010
A9	Letter of Revival	06.09.2012
A10	Letter of Revival	01.03.2015
11	Letter of Revival	20.02.2017
A12	Letter of Revival	17.02.2020
A13	Letter of Revival	17.02.2020
A14	Letter of Revival	18.02.2020
A15	Bank statement of A/c. 0513840009189
A16	Common application cum appraisal for agricultural Loan A/c. 0513256007562	18.09.2008
A17	Agreement and Deed for Kisan OD	23.09.2008
A18	Sanction Memorandum	23.09.2008
A19	Simple mortgage deed registered as Doc. 02163/2008-09 dated 18.09.2008, Sub-registrar Jewargi.	18.09.2008

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OA. No. 279/2023

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A20	Letter of Revival	20.09.2011
A21	Letter of Revival	16.09.2014
A22	Letter of Revival	15.09.2017
A23	Letter of Revival	16.08.2020
A24	Legal notice	21.02.2022
A25	Three Postal receipts
A26	Letter from Department of Post for having served.
A27	Three Postal Acknowledgement Cards
A28	Bank statement of A/c. 0513256007562

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

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“SCHEDULE PROPERTIES”

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Agricultural land in Sy.no. 10/Aa having 4 acres and 10 guntas, situated at Konasirasgi village, Jewargi taluk, Gulbarga District, bounded on:

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East : Land of Salbai Telga bai West : Land of Basavana gouda North : Road South : Mahanthgouda Patil

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Agricultural land in Sy.no. 10/e and 10/Aa having 3 acres 15 guntas and 1 acres 10 guntas respectively, situated at Konasirasgi village, Jewargi taluk, Gulbarga District, bounded on:

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East : Land of Salbai West : Land of Basangouda Patil North : Land of Shivayogi Swamy South : Mahanthgouda Patil

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Agricultural land in Sy.no. 10/e having 3 acres and 15 guntas, situated at Konasirasgi village, Jewargi taluk, Gulbarga District, bounded on;

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OA. No. 279/2023

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East : Land of Salbai West : Land of Basangouda North : Land of Subhash South : Land of Mahanthgouda Patil

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Sd/DRT-II, BENGALURU

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OA. No. 279/2023

Canara Bank v. Sri. Subhash

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Subhash

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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