Allowed

Canara Bank v. M/S. Sree Lakshmee Homes Infrastructure Rep. by Proprietor Sri. Amrith Shenoy

DRT3 May 2024OA/361/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs.4.39 crore loan dues and future interest against defaulting borrowers and guarantor, permitting sale of mortgaged and personal assets.

What did the court decide?

Recovery of Rs.4,39,68,186 with future interest at 12.80% p.a. plus 2% penal interest; liberty to sell schedule property and personal assets for balance dues.

Canara Bank versus M/S. Sree Lakshmee Homes… — 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 3^rd Day of May, 2024

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Present: SMT. S. V. GOWRAMMA

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Hon’ble Presiding Officer

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OA. No.361/2022

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BETWEEN:

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Canara Bank, KMC Branch , Kasturba Medical Campus, Manipal -576104 Represented by it’s Senior Manager, Sri H.Prahallad

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AND:.

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Sree Lakshmee Homes & Infrastructure Rep by Proprietor Sri Amrith Shenoy D.No 6.2-137a3, Ground Floor Ananth Commercial Complex , PPC Road, Udupi -576101

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… APPLICANT

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Sri Amrith Shenoy. P S/o Late Dr.P. Ananth Shenoy Aged About 46 Years R/At D.No 6-2-137b Ranganath Shenoy Compound , PPC Road ,Volakadu , Udupi -576101.

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Mr. Alan Rohan Vaz S/o Walerian Vaz Aged About 50 Years R/At Kolalagiri Road , Uppoor Thenkabettu, Udupi. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. C. Vinay Swamy Defendant Nos.1 & 2 : Exparte.

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OA. No. 361/2022

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Defendant No.3 : Sri. K. Prasad Hedge

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FINAL ORDER

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The present Original Application (OA) is filed on 03.03.2022 under section 19 of Recovery of Debts Due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.4,39,68,186/- (Rupees Four crore Thirty Nine Lakhs Sixty Eight Thousand One Hundred & Eighty Six 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 Due to Banks and Financial Institutions 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^st defendant is a proprietary concern represented by 2^nd defendant are borrowers and Defendant No.3 as guarantor. During the year 2015, the Defendant Nos.1 & 2 had approached the applicant bank seeking for Term Loan of Rs.6,00,00,000/- (Rupees six crore only) an loan application dated 21.09.2015 for the purpose of construction of a residential apartment. After considering the request of the Defendant Nos.1 & 2, the applicant bank sanctioned an Term Loan of Rs.6,00,00,000/- (Rupees six crore only) vide sanction memorandum dated 09.10.2015. The loan was repayable in 33 months with a 16 months repayment holiday in 6 quarterly installments

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OA. No. 361/2022

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of Rs.100 lakhs each plus interest @ 13.70% floating ROI p.a. also liable to pay an additional 2% interest over & above the normal interest in case of default.

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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 General loan agreement dated 14.10.2015 and Registered Memorandum of Deposit of Title Deeds dated 14.10.2015 and Defendant No.3 executed Guarantee Agreement dated 14.10.2015 in favour of the Applicant Bank.

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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) 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 & 2 Registered Post with Acknowledgment Due the same is duly served on 16.02.2023 and Defendant No.3 entered appearance through counsel Sri. K. Prasad Hegde by filling Vakalath, but did not file the written statement in spite of opportunity, hence Written Statement of Defendant

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No.3 was closed on 21.03.2024. When OA was taken up on 09.11.2023

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even after giving sufficient time, there was no appearance or

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OA. No. 361/2022

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representation from the Defendants; hence, Defendant Nos.1 & 2 were placed exparte on 09.11.2023.

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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. Kiran N, Senior

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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 A8. As the Defendant remained ex-parte, the OA claim remains unchallenged.

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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

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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

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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 to pay an

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amount of Rs.4,39,68,186/- (Rupees Four crore Thirty Nine Lakhs Sixty Eight Thousand One Hundred & Eighty Six only) being the amount claimed

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OA. No. 361/2022

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in the application together with future interest at 12.80% p.a. plus 2% penal interest with monthly rests from the date of application till 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 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 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

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date of this final order.

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OA. No. 361/2022

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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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10. 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 3^rd Day of May 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. Kiran N, 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.
	Term Loan Of Rs.600 Lakhs In A/C No 02327890000593 Sanctioned On 09.10.2015
A3	Application form by all defendants	21.09.2015
A4	Sanction memorandum by applicant	09.10.2015
A5	General loan agreement by 1st & 2nd defendants	14.10.2015
A6	Registered memorandum of deposit of title deeds executed by 2nd defendant	14.10.2015
A7	Guarantee agreement by 3rd defendant	14.10.2015
A8	Statement of accounts
Witness	Examined for the Defendants:	-Nil -
List of D	ocuments Exhibited for the Defendants:	-Nil -

OA. No. 361/2022

SCHEDULE A

I.Converted Land belonging to 2^nd defendant bearing Sy No.87A-11A measuring 9 cents, situated at Moodanidamboor Village , Ajjarkad Ward, Udupi Taluk & District.

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II.Converted Land belonging to 2^nd defendant bearing Sy No.87A-11A measuring 9 cents, situated at Moodanidamboor Village , Ajjarkad Ward, Udupi Taluk & District.

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III.Converted Land belonging to 2^nd defendant bearing Sy.No. 87A-11B2 measuring 12.22 cents, situated at Moodanidamboor Village , Ajjarkad Ward, Udupi Taluk & District.

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IV.Converted Land belonging to 2^nd defendant bearing Sy. No. 87A-11B2 measuring 12.54 cents, situated at Moodanidamboor Village , Ajjarkad Ward, Udupi Taluk & District.

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Common boundaries of I to IV above are :

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East by : Sy No. 128-4 West by : Sy No.87A 11B1 North by : Sy No.128-4 South by : Road

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Sd/DRT-II, BENGALURU

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OA. No. 361/2022

Canara Bank v. M/S. Sree Lakshmee Homes Infrastructure Rep. by Proprietor Sri. Amrith Shenoy

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Sree Lakshmee Homes Infrastructure Rep. by Proprietor Sri. Amrith Shenoy

Case brief

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What did the court decide?

What the court decided

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Statutes considered

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