Allowed

Karnataka Vikas Grameena Bank v. Venkappa Bhimappa Lamani (Since deceased by his legal Representatives)

DRT16 Mar 2024OA/390/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application to recover an agricultural loan of Rs. 47 lakh plus interest. The loan was serviced by deceased borrowers and guarantors. The defaults were proven via documentary evidence including mortgage deeds and acknowledgment of debt since the respondents were placed in ex-parte.

What did the court decide?

Recovery of Rs. 47,03,236/- plus 14% p.a. interest; liberty to sell mortgaged landed property and personal assets to recover dues.

Karnataka Vikas Grameena Bank versus Venkappa… — 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 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.390/2022

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BETWEEN:

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Karnataka Vikas Grameena Bank, Ramdurg Branch, Daneshwari Complex, 1st Floor, Terbazar, Ramdurg, Belagavi District – 591 123. Represented by its Chief Manager, Sri. Basappa Siddappa Katti,

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… APPLICANT

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AND:.

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Venkappa Bhimappa Lamani Since deceased By his Legal Representatives;

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1(a). Chayappa Venkappa Lamani, S/o late Venkappa Lamani, Major by age,

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01(b).Neelappa Venkappa Lamani S/o late Venkappa Lamani, Major by age, Both are residing at:Obalapur DLT, Obalapur Post, Ramdurg Taluk, Belgaum District – 591 123.

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02.Sri. Rathnappa Lakkappa Lamani, Since deceased by his Legal Representatives ;

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2(a). Sri. Krishnappa Rathnappa Lamani S/o Rathnappa Lamani, Major by age, Residing at: Obalapur DLT, Obalapur Post, Ramdurg Taluk, Belgaum District – 591 123. ...DEFENDANTS Counsel on record/appeared for:

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Applicant : Sri. M. Mohan Rao, Defendant Nos.1(a) & (b) & 2 (a) : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 05.03.2022 under

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OA. No. 390/2022

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section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.47,03,236/- (Rupees Forty Seven Lakh Three Thousand Two Hundred Thirty 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 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 No.1(a) and 1(b) are the legal heirs of deceased borrower Venkappa Bheemappa Lamani. The Defendant No.2(a) is the legal heir of deceased Guarantor Rathnappa Lakkappa Lamani. The Sri Venkappa Bheemappa Lamani had approached the applicant bank seeking for Agricultural Loan of Rs.6,00,000/(Rupees six lakh only) an Loan Application dated 19.07.2006 for the purpose of purchase of 39 HP Preet Tractor and also to purchaser 3 Ton capacity Trailer and also to purchase agricultural implements.. After considering the request of the Sri Venkappa Bheemappa Lamani, the applicant bank sanctioned Agricultural Loan of Rs.6,00,000/(Rupees six lakh only) vide Sanction letter dated 19.08.2006. The Sri Venkappa Bheemappa Lamani agreed to repay the loan amount with Interest at the rate of 10.90% p.a. and also agreed to repay over due interest at the rate of 2%p.a. totally 12.90%p.a. and the Defendants agreed to repay the loan amount in 8 yearly installments of Rs.75,000/- each p.a. commencing from 19.08.2007 and the last installment shall be repayable on or before 19.08.2014.

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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 Venkappa Bheemappa Lamani executed Memorandum of Agreement dated 19.08.2006 and Deed of Mortgage dated 18.08.2006 which

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OA. No. 390/2022

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was registered as Document No.966/2006-07 in Book-I, in the Office of the Sub-Registrar, Ramdurg and Defendant No.1(a) and 1(b) and 2(a) have executed Acknowledgment of Debt dated 05.08.2010, 01.08.2013, 11.06.2016 and 30.04.2019 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) and the Applicant Bank issue a registered Notices on 03.11.2016 and 17.12.2019 and 09.12.2020 and Legal Notice dated 28.12.2020 & 11.12.2021 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 Defendant Nos.1(a) RPAD with postal tract report and 1(b) and 2(a) Registered Post with Acknowledgment Due the same is duly served on 17.08.2022 . 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 (a) & (b) and 2(a) 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. Veeresh Chandrashekarayya Chulakimath S/o Chandrashekarayya Chulakimath Branch 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 A26. As the Defendant remained ex-parte, the OA claim remains

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OA. No. 390/2022

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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, the 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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9. 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.47,03,236/- (Rupees Forty Seven Lakh Three Thousand Two Hundred Thirty Six only) towards Term Loan Facility (A/c No.17207509655) together with current and future interest at 14% p.a. (including penal interest) compounded quarterly from the date of the OA Application till the date of 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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OA. No. 390/2022

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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 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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(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 16^th Day of March 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. Veeresh Chandrashekarayya Chulakimath S/o Chandrashekarayya Chulakimath Branch 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	Copy of Notification of Amalgamation of KVGB.	12.09.2005
A4	Loan Application.	28.07.2006
A5	Loan Sanction letter.	16.08.2006
A6	Quotation issued by M/s Bharat Tractors.	10.07.2006
A7	Consideration Receipt for Rs.6,00,000/- executed by Venkappa Bhimappa Lamani in favour of the Applicant Bank.	19.08.2006

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OA. No. 390/2022

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A8	Memorandum of Agreement executed by Venkappa Bhimappa Lamani and Ratnappa Lakkappa Lamani for Rs.6,00,000/-in favour of the Applicant Bank.	19.08.2006
A9	Mortgage Deed executed by Venkappa Bhimappa Lamani, registered as Document No. 966/2006-07 in the Office of the Sub-Registrar, Ramdurg.	18.08.2006
A10	Acknowledgment of Debt executed by Defendant No.1(a) and 1(b) in favour of the Applicant Bank.	09.08.2010
A11	Acknowledgment of Debt executed by Ratnappa Lakkappa Lamani in favour of the Applicant Bank.	05.08.2010
A12	Acknowledgment of Debt executed by Defendant No.1(a) in favour of the Applicant Bank.	01.08.2013
A13	Acknowledgment of Debt executed by Defendant No.1(b) in favour of the Applicant Bank.	01.08.2013
A14	Acknowledgment of Debt executed by Ratnappa Lakkappa Lamani in favour of the Applicant Bank.	01.08.2013
A15	Acknowledgment of Debt executed by Defendant No.1(a) and 1(b) in favour of the Applicant Bank.	11.06.2016
A16	Acknowledgment of Debt executed by Defendant No.2(a) in favour of the Applicant Bank.	11.06.2016
A17	Acknowledgment of Debt executed by Defendant No.1(a) and 1(b) in favour of the Applicant Bank.	30.04.2019
A18	Acknowledgment of Debt executed by Defendant No.2(a) in favour of the Applicant Bank.	30.04.2019
A19	Notice issued by Applicant Bank to the Defendants.	03.11.2016
A20	Notice issued by Applicant Bank to the Defendants.	17.12.2019
A21	Notice issued by Applicant Bank to the Defendants.	09.12.2020
A22	Legal Notice issued by the Applicant Bank to the Defendants.	28.12.2020
A23	Served Acknowledgements.
A24	Legal Notice issued by Applicant Bank to the Defendants.	11.12.2021
A25	Served Acknowledgements.
A26	Statement of Account.

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

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-Nil -

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-Nil -

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SCHEDULE ‘A’ PROPERTY

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(Belonging to Defendant 1(a) and 1(b))

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All that piece and parcel of property bearing Re-Survey Number 24/1A, Re-Survey No.273/2/B/1 of Aribenchi and Turunur Village, Ramdurg Taluk, Belgaum District, measuring 2 Acres 31 Guntas and 5 Acres 39 Guntas respectively.

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SCHEDULE ‘B’ PROPERTY

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OA. No. 390/2022

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(Belonging to Defendant No.1(a) and 1(b))

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Hypothecated Tractor and Trailer; Agricultural Implements Kept at ReSurvey No.273/2/B/1, and RS No.24/1A situated at Aribenchi Village, Taranur Village, Ramdurg Taluk, Belgaum District.

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

Karnataka Vikas Grameena Bank v. Venkappa Bhimappa Lamani (Since deceased by his legal Representatives)

Case brief

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Karnataka Vikas Grameena Bank v. Venkappa Bhimappa Lamani (Since deceased by his legal Representatives)

Case brief

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