Allowed

Union Bank of India v. Mrs.Kukalakntakavitha

DRT28 May 2024OA/321/2023

Case brief

AI extract

What is this about?

In OA No.321 of 2023, the Debts Recovery Tribunal allowed the Union Bank of India's application for recovery of outstanding loans totaling Rs.22,93,461/- with future interest from five respondents who failed to repay agriculture and tobacco loans, ordering the sale of mortgaged assets and issue of a Recovery Certificate.

What did the court decide?

Defendants ordered to pay Rs.22,93,461/- with future interest; Recovery Certificate issued; Bank entitled to proceed against mortgaged assets.

Union Bank of India versus Mrs.Kukalakntakavitha — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS THE 28TH DAY OF MAY' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFICER

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OA.No.321 ol 2O23

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Between:

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Union Bank of India, (E- Andhra Bank), Vadlagudem, Mustibanda(pO) Dammapetamandal, Bhadradri, Kothagudem district -507 306. Tela nga na.

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Represented by its Branch Head

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Applicant

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VERSUS

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Mrs. KukalakuntaKavitha, w/o Ramesh, 40 years, female, R/o Mustibanda village, Dammapeta Mandal, Bhadradri, Kothagudem

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District - 507 306, T.S.

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Mr. Kukalakunta Ramesh, s/o ven kateswa ra rao, major, male, R/o Mustibanda village, Dammapeta Mandal, Bhadradri, Kothagudem District - 507 306, T.S.

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Mr. Kuka lakuntaven kateswara Rao, s/o LaxmiNarasaia h, major, male, R/o Mustibanda village, Dammapeta Mandal, Bhadradri, Kothagudem District - 507 306, T.S.

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#$\

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Mrs. PalanatiVijayalakshmi, Major, female,

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w/o Venkateswara Rao,

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(oA. No.321l2023)

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R/o Mustibanda village, Dammapeta Mandal, Bhadradri, Kothagudem District - 507 306, T.S.

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Mr. Neerukonda Naga Kishore, Major, male, S/o Subba Rao, R/o SayannaraoPalem village, Dammapetamandal, Bhadradri, Kothagudem district - 507 306.

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Defendants

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Counsel for the Parties: For the Applicant Sri Srinivasa Rao Chakrala For the Defendants Ex^pa rte

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ORDER

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The Applicant Bank filed the present OA against Defendants^for recovery of a total sum of Rs.22,93,461/-^(Rupees Twenty^Two Lakhs Ninety Three thousand four hundred and Sixty^one only)i.e.,

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a) Defendants 1, 2 and 3 are^jointly and severally^{liable for a sum of} Rs.13,57,578/- in Tobacco Barn loan with future^interest @ 9.75o/o p.a with monthly rests from 04.11.2023 till the^{date of} realization;

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b) Defendants 1, 2 and 3 are^jointly and^{severally liable for a sum of}

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Rs.5,70,3521- in KCC Cro interest @ 7. B5olo P. a iffi;W;; with monthly rests of rea lizatio n;

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(oA. No.321l2023)

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c) Defendant No.1 is tiable for a sum of Rs.34,9I7/_ in Agriculture term loan account with future interest @ 8.75olo p.a with monthly rests from 04.t1.2023 till the date of realization;

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d) Defendant No.1 is riabre for a sum of Rs.23,778/- in Agricurture Term roan with future interest @ g.g00lo p.a with monthry rests from 04.17.2023 till the date of realization;

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e) Defendants 1, 2 and 4 are jointly and severally liable for a sum of Rs.2,43,060/- in Agriculture term loan- land development account with future interest @ 9.45olo p.a with monthly rests from 04.I7.2023 till the date of realization;

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f) Defendants 1, 2 and 5 are jointly and severally liable for a sum of Rs.63,776/- in agriculture term loan agreement with future interest @ 8.75olo p.a with monthly rests from 04.11.2023 till the date of realization;

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and in default for sale of mortgaged immovable property and hypothecated movables as described in the schedules A &B to oA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 to 3 availed agriculture credit loan of Rs.9.00 lakhs on 06.06.201,9, paddy production loan of Rs.5.00 lakhs and executed demand promisso Fposite^{agreementetc.} On 10.03.2016,m the land development and irrigation loan of secu rity of

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(OA. No.321l2023)

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application schedule mentioned property and with personar guarantee of defendants no.1,2 and 4, the defendants executed Dp note and composite agreement dated 01.03.2016. On 20.11.2015, defendant no' 1 avaired roan of Rs.1.00 rakh with a personar guarantee by defendants 1 to 3 and executed Dp note and composite agreement. On 20.11,2015, the defendants 1 to 3 availed Tobacco barn of Rs.1.00 lakh on 20.11.2015. On 07.11.2016, the defendants I, 2 and 5 availed agriculture credit loan of Rs.1.00 lakh and executed necessary documents, After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NpA and issued legal notice dated 16.05.2022. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.1 to 5 called absent and set exparte on 22.04.2024.

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Shri G. Venkanna, Branch Head of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.42.

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Heard the Ld. Counsel For the Applicant Bank.

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7 g ML't ?t!il

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(oA. No.321l2023 )

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The point that arise for consideration is whether the Applicant Bank is entitled for the claim made in the OA against the Defendants as prayed for?

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Defendants called absent and set exparte. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant^{Bank was} examined and he exhibited relevant documents^{as Ex.A1to A.42. In} view of the above, I hold that the^{Applicant Bank has established} their claim made in the OA against^{the Defendantsand hence the} Applicant Bank is entitled to^{recover the claim madein the OA with} future interest and costs.

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U. In the result, the^present OA^{is allowed with costs, as under:}

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The Defendants are^{jointly and severallyliable to pay to the} Applicant Bank a total^{sum of Rs.22,93A6Ll- (Rupees Twenty} Two Lakhs Ninety^{Three thousand four hundred and Sixty one} only)i.e.,

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a) Defendants^{1, 2 and 3 are jointlyand severally liable for a sum} of Rs.13,57,578/-^{in TobaccoBarn loan with future interest@} 9.75o/o^p.a from^{04.71.2023 tlll the date of realization;}

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b) Defendants^{1, 2 and 3 are jointlyand severally liable for a sum}

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(oA.No.321l2023 )

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c) Defendant No.1 is liable for a sum of Rs.34,917/- in Agriculture term loan account with future interest @ 8.75olo^p.a from 04.LL.2023 till the date of realization;

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d) Defendant No.1 is liable for a sum of Rs.23,778/- in Agriculture Term loan with future interest @ 9.90%^p.a from 04.LL.2023 till the date of realization;

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e) Defendants 1, 2 and 4 are^jointly and severally liable for a sum of Rs.2,43,060/- in Agriculture term loan- land development account with future interest @ 9.45olo^{p.a from 04.11.2023till} the date of realization;

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f) Defendants 1, 2 and 5 are^jointly and^{severally liable for a sum} of Rs.63,776l- in agriculture term^loan agreement^{with future} interest @ 8.750lo p.a from 04.11.2023 till^{the date of} rea lizatio n ;

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The Applicant bank is entitled to^{proceed against the mortgaged} property and hypothecated assets as described in schedule^{A & B to} OA towards realization of the debt due.

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The Applicant Bank is also entitled to^proceed against the^person and properties of defendants towards realization of the debt due.

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The Applicant Bank is of the oA.
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(oA. No.321l2023)

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1J. The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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Issue Recovery certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 28th day of May'2024)

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sd/(G. GOPTCHAND) PRESIDING OFFICER

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tr'fw

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,#ri!;gi:{e",

Union Bank of India v. Mrs.Kukalakntakavitha

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mrs.Kukalakntakavitha

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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