Allowed

Rbl Bank Limited v. Sri. R. Shivaraj

DRT16 Jan 2024OA/349/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by RBL Bank Limited for the recovery of a secured term loan of over Rs. 30 lakhs from two borrowers who had defaulted. The Tribunal observed that the claim was covered under the RBI Act and was admissible under Section 24. The respondents were served via summons but remained in ex-parte status. The Tribunal accepted the bank's evid

What did the court decide?

Recovery of Rs. 30,50,158/- with future interest at 18% p.a. or through sale of the schedule mentioned properties and the respondents' personal assets if sale proceeds were insufficient.

Rbl Bank Limited versus Sri. R. Shivaraj — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 16^th Day of January 2024

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

OA NO.349/2022

BETWEEN:

RBL Bank Limited

Registered office at 1^st Lane,

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Shahupuri, Kolhapur – 416 001, Branch office at Prestige Tower, Ground Floor, 99 and 100, Residency Road,

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Bangalore – 560 025

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Represented by its Vice President &

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Authorized Representative

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Sri.Rajesh Kumar A … APPLICANT

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AND

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1. Sri. R. Shivaraj,

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S/o Late Sri. Ramaiah,

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Aged about 52 years,

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R/of No.50, Lakshmidevipura Village, Hadonahalli Post, Doddaballapur Taluka, Bangalore Rural District - 561 203

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2. Sri. Tammannappa,

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S/o Sri. Sanjeevappa, Aged about 58 years,

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No.27, Laksmidevipura Village,

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OA No.349/2022

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TubugereHobli, Doddaballapura Taluk,

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Bangalore Rural – 561 203. … DEFENDANTS

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Counsel on record/appeared for:

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Applicant : S.A. Associates

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Defendants Nos.1 & 2 : Ex-parte

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FINAL ORDER

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The present Original Application (OA) is filed on 18-02-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.30,50,158/- (Rupees Thirty Lakhs Fifty Thousand One Hundred and Fifty Eight Only) with further interest thereon from the date of filing till realization from defendants.

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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 submits that the Defendants are the customer of the Applicant Bank. During the course of its business transactions, the Defendants approached the Applicant Bank for Secured Term Loan facility for the purpose of cultivation of colour capsicum under poly house. The Applicant Bank submits that the Term Loan Facility for amount of Rs.32,17,000/- (Rupees Thirty Two Lakhs Seventeen Thousand only) vide

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OA No.349/2022

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arrangement cum sanction letter Dated 14.02.2014 in A/c No. 809000199473. For credit facility availed the defendants as primary security hypothecated the poly house and all other assets created out of agricultural land.

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The Applicant Bank as per the request of Defendants sanctioned the Secured Term Loan facility for amount of Rs.32,17,000/- Arrangement cum Sanction Letter dated 14.02.2014. The Defendants agreed to repay the Term Loan facility of Rs.32,17,000/- in quarterly period with applicable interest at the rate of 13.50% p.a. on or before 30^th of every quarterly succeeding month for a period of 83 months including moratorium period of 5 months and penal interest at 2% thereon. Along with Credit Facility Agreement, the Defendants also executed Agreement of Hypothecation for Agricultural advances, Demand Promissory note and Letter of Lien etc.

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The Applicant Bank submits that, the Defendant No.2 as Guarantor to the Term Loan availed by Defendant No.1 entered into Personal Guarantee dated 14.02.2014. The Defendant No.2 as Guarantor is jointly and severally liable towards repayment of cash credit facility with that of Defendant No.1.

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The Defendant No.1 executed Agreement of Hypothecation for Agricultural Advances dated 14.02.2014 with hypothecation of standing and future crops on leased agri land. On acceptance of terms of Sanction Letter the Defendants as Collateral Security mortgaged the immovable

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OA No.349/2022

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properties. For mortgaging the properties, the Defendants executed registered Composite Deed of Mortgage dated 14.02.2014 The Applicant Bank further submits that as per the request of the Defendants the Applicant Bank has sanctioned the Secured Term Loan Facility of Rs.32,17,000/- and the said facility was repayable with interest rate @ 13.50% per annum. Interest is periodically charged in quarterly basis and for a period of 60 months.

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The Applicant Bank submits that the Defendants, after availing the said loans, failed to repay the loan amount and committed default. When the Notice was issued on 31.12.2021, calling upon the Defendants to pay the 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 Defendants No.1 and 2 by RPAD, on 03.08.2022, duly served, Acknowledgement produced. When OA was taken up on 13.03.2023, even after giving sufficient time, there was no appearance or representation from the defendants, hence, Defendants No.1 and 2 was placed ex-parte on 13.03.2023.

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Heard the submissions of Counsels and perused the records.

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To prove the case, the Vice President and Authorized Representative of the Applicant Bank. Sri. Rajesh Kumar A, S/o. Sri. K.

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OA No.349/2022

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Aravindakshan, aged about 43 years, has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, the list of Documents came to be marked as A1 to A11. 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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11. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from defendant a sum of A sum of Rs.30,50,158/-(Rupees Thirty Lakh Fifty Thousand One Hundred Fifty Eight Only) being the amount claimed in the application together with future interest at the rate of 18% p.a. till the date of realization of the entire amount to the Applicant Bank.

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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;

OA No.349/2022

(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

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and immovables) 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

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defendants 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

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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 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 her, corrected and signed by me on this the 16^th day of January 2024].

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Sd/-

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PRESIDING OFFICER DRT-II, BENGALURU

OA No.349/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Its Manager, Sri. Parashuram L.Bharamoji about 27 years, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl.Nos.	Particulars	Exhibits
1.	Evidence Affidavit	A1
2.	List of Documents	A2
	Application for Agricultural Credit at Annexure – A1	A3
3.
4.	Arrangement cum Sanction Letter dated 14.02.2014 at Annexure – A2	A4
5.	Credit Facility Agreement dated 14.02.2014 at Annexure – A3	A5
6.	Demand Promissory Note dated 14.02.2014 at Annexure – A4	A6
7.	Letter of Lien dated 22.02.2014 at Annexure – A5	A7
8.	Personal Guarantee dated 14.02.2014 at Annexure – A6	A8
9	Agreement of Hypothecation for Agricultural Advanced dated 14.02.2014 at Annexure – A7	A9
10.	Composite Deed of Mortgage dated 14.02.2014 at Annexure – A8	A10
11.	Foreclosure Simulation Term Loan at Annexure – A9	A11

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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:

-Nil –

OA No.349/2022

SCHEDULE ‘A’ PROPERTY

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MORTGAGED PROPERTY BELONGING TO DEFENDANT NO.1

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All that piece and parcel of agricultural land measuring 36 guntas in Sy.No.48/2 situated at Lakshmidevipura Village, TubagereHobli, Doddaballapur Taluk, Bangalore Rural District and bounded on the:

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East by : R Chandrappa’s Property; West by : Narasimharaju’s Property; North by : Road; South by : Muddukrishnappa’sProperty;

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SCHEDULE ‘B’ PROPERTY

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MORTGAGED PROPERTY BELONGING TO DEFENDANT NO.1

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All that piece and parcel of agricultural land measuring 1 acre 25 guntas in Sy.No.73/3 situated at Lakshmidevipura Village, TubagereHobli, Doddaballapur Taluk, Bangalore Rural District and bounded on the:

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East by : Road; West by : Narasimharaju’s Property; North by : Subramani’s property; South by : T Nagaraj’s Property;

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OA No.349/2022

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SCHEDULE ‘C’ PROPERTY

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MORTGAGED PROPERTY BELONGING TO DEFENDANT NO.1

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All that piece and parcel of agricultural land measuring 20 guntas in Sy.No.77/2 situated at Lakshmidevipura Village, TubagereHobli, Doddaballapur Taluk, Bangalore Rural District and bounded on the:

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East by : M Narayanappa’s property; West by : Road; North by : Muddukrishnappa’s property; South by : M. Narayanappa’s Property;

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

Rbl Bank Limited v. Sri. R. Shivaraj

Case brief

What is this about?

What did the court decide?

Rbl Bank Limited v. Sri. R. Shivaraj

Case brief

What is this about?

What did the court decide?

What the court decided

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Case details

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