Allowed

Karnataka Gramin Bank v. Sri. B. M. Radhakrishna

DRT30 Jan 2024OA/409/2022

Case brief

AI extract

What is this about?

Applicant bank filed OA under Section 19 RDB Act for Rs. 25.92 lakhs against deceased borrower's legal heirs. Claim was unchallenged due to defendant absence. Tribunal allowed OA directed for recovery with interest and liberty to sell schedule properties.

What did the court decide?

Recovery of Rs. 25,91,607 with interest at 13.50% and 14% p.a. compounded half-yearly; liberty to sale schedule and personal assets.

Karnataka Gramin Bank versus Sri. B. M. Radhakrishna — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of January, 2024

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

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OA. No.409/2022

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BETWEEN:

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KARNATAKA GRAMIN BANK Hoysalakatte Branch Hoysalakatte Village, Chikkanayakanahalli Taluk, Tumkur District – 572 218. Represented by its Manager and PA Holder Sri Raghavendra S.R. … APPLICANT

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AND:.

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Sri B.M. Radhakrishna Aged about 52 years S/o. Late Muddurangegowda

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Sri Chikkanna Aged about 36 years S/o. Late Rangashamaiah

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Smt. Lokamma Aged about 55 years W/o. Late Rangashamaiah

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Sri Sriranga Aged about 34 years S/o. Late Rangashamaiah

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Kum. Bhavana Aged about 13 years D/o. B.M. Radhakrishna Since minor, represented by her father & natural guardian Sri B.M. Radhakrishna

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All are residing at: Badakagudilu Village,

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OA. No. 409/2022

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Chikkanayakanahalli Taluk, Tumkur District – 572 218.

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...DEFENDANTS

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Counsel on record/appeared for: Applicant : Sri. HSR & Associates Defendant No.1 to 5 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 08.12.2021 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of a sum of Rs.25,91,607/- (Rupees Twenty Five Lakhs Ninety One Thousand Six Hundred and Seven 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 is the son of Smt. Siddamma and Sri B.C. Muddarangegowda. The said Siddamma is main borrower along with the Defendant No. 1, who died intestate during the year 2018 leaving behind the Defendants as her legal heirs to inherit the estate left by her. The Defendant No. 1 is the father of

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the Defendant No. 5. The Defendant Nos. 2 to 4 are deceased elder brother’s wife & children of the Defendant No. 1. The Defendant Nos. 1 & Smt. Siddamma are the borrowers and the Defendant Nos. 3 to 5 are the co-mortgagors along with the Defendant Nos. 1 & Smt. Siddamma. Since,

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OA. No. 409/2022

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the Defendant No. 5 is a minor, she is represented by her father and natural guardian i.e., the Defendant No. 1. The Defendant No. 1 & Smt. Siddamma had approached the applicant bank seeking for KCC Loan of Rs.3,00,000/(Rupees Three Lakhs only) an loan application dated 21.07.2011 for the purpose of crop cultivation. After considering the proposal of the Defendant No. 1 & Smt. Siddamma, applicant bank sanctioned the KCC Loan of Rs.3,00,000/- (Rupees Three Lakhs only) vide Sanction Memorandum dated 21.07.2011. The KCC loan is tenable for 3 years subject to annual review. The Defendant No. 1 & Smt. Siddamma have agreed to pay interest at 13.50% p.a. compounded half yearly subject to change by the HO from time to time and penal interest of 2% p.a. on the overdue amount.

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3.1. 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 Defendant No. 1 & Smt. Siddamma executed Agreement & Deed of Hypothecation for Kisan Credit Card dated 21.07.2011 and Simple Mortgage Deed dated 18.07.2011 registered as Document No.CKL1-01358-2011-12, stored in CD No. CKLD60, in the office of the SubRegistrar, Chikkanayakanahalli and Agreement to repay time bared debts dated 26.03.2019 in favour of the Applicant Bank.

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Further, the Defendant No. 1 & Smt. Siddamma had approached

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the applicant bank seeking for Sri. Hulgappa, Farm Machinery Loan of Rs.4,00,000/- (Rupees Four Lakhs Only) an loan application dated

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OA. No. 409/2022

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04.08.2011 for the purpose of purchase of Tractor and Trailer. After considering the Proposal of Defendant No. 1 & Smt. Siddamma, applicant bank sanctioned the Farm Machinery Loan of Rs.4,00,000/- (Rupees Four Lakhs Only) vide Sanction Memorandum dated 23.09.2011. The Defendant No.1 & Smt. Siddamma have agreed to repay the loan in 18 half yearly instalments of Rs. 22,275/- each and last instalment of Rs.22,175/- and to pay interest & other charges separately. The Defendant No. 1 & Smt. Siddamma have agreed to pay interest at 14% p.a. compounded half yearly and penal interest of 2% p.a. on the overdue amount.

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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 Defendant Ns. 1 & Smt. Siddamma executed Memorandum of Agreement for Agricultural Loans dated 23.09.2011 and Simple Mortgage Deed dated 16.09.2011 in favour of the Applicant Bank, registered as Document No. CKL-1-02245-2011-12 stored in CD No. CKLD62 in the Office of the Sub-Registrar, Chikkanayakanahalli and Agreement to repay time bared debts dated 06.03.2019 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 Applicant bank issue a Legal Notice dated 15.02.2021 calling upon the defendants to repay the entire outstanding loan amount.in respect of both

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OA. No. 409/2022

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loans. 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 5 through Registered Post with Acknowledgment Due was duly returned unserved with postal shara “Refused”. When OA was taken up on 10.11.2022 even after giving sufficient time, there was no appearance or representation from the defendants; hence, Defendant Nos.1 to 5 were placed exparte on 10.11.2022.

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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. Raghavendra S.R S/o

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Sri. Ramachandrachar B.R Manager and PA Holder, 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 A17. As the Defendant 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, 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:

OA. No. 409/2022

: O R D E R:

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants to pay an amount of Rs.25,91,607/- (Rupees Twenty Five Lakhs Ninety One Thousand Six Hundred and Seven Only) consisting of:

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i. KCCS liability of Rs.11,15,464/- (Rupees eleven lakh fifteen thousand four hundred and sixty four only) carries interest @ 13.50% p.a. compounded half yearly from the date of OA till the date of realization.

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ii. Term Loan Liability of Rs.14,76,143/- (Rupees fourteen lakh seventy six thousand one hundred and forty three only) carries interest at 14% p.a. compounded half yearly from the date of OA till the date of realization. The Defendant Nos. 2 to 5 are liable to pay the OA amount only to the extent of value of their share in the Schedule Property.

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(b) In the event of failure of the Defendant to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

order;

OA. No. 409/2022

(d) If the sale proceeds of the schedule mentioned properties are not

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sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendant (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

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amount together with interest, costs etc., to be paid by the defendant 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

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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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(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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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 30^th Day of January 2024].

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PRESIDING OFFICER

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DRT-II, BENGALURU

Sd/-

OA. No. 409/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Raghavendra S.R S/o Sri. Ramachandrachar B.R Manager and PA Holder, 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	Loan application submitted by the Defendant No. 1 & Smt. Siddamma in favour of the Applicant Bank in respect of the KCC Loan	21.07.2011
A4	Sanction Memorandum	21.07.2011
A5	Agreement & Deed of Hypothecation for Kisan Credit Card executed by the Defendant No. 1 & Smt. Siddamma in favour of the Applicant Bank.	21.07.2011
A6	Simple Mortgage Deed executed by the Defendants and Smt. Siddamma in favour of the Applicant Bank.	18.07.2011
A7	Agreement to repay time bared debts executed by the Defendant No. 1 in favour of the Applicant Bank.	26.03.2019
A8	Loan application submitted by the Defendant No. 1 & Smt. Siddamma in favour of the Applicant Bank.	04.08.2011
A9	Sanction Memorandum	23.09.2011
A10	Memorandum of Agreement for Agricultural Loans executed by the Defendant No. 1 & Smt. Siddamma in favour of the Applicant Bank.	23.09.2011
A11	Simple Mortgage Deed executed by the Defendants & Smt. Siddamma in favour of the Applicant Bank.	16.09.2011
A12 & 13	Registration Certificates of Tractor & Trailer issued by the RTO	23.09.2011
A14	Agreement to repay time bared debts executed by the Defendant No. 1 in favour of the Applicant Bank.	06.03.2019
A15	Office copy of the Legal Notice and 4 Nos. of Postal Acknowledgment cards issued by the Applicant Bank.	15.02.2021

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OA. No. 409/2022

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A16 &	2 Nos. of Certified Account Extracts of the
A17	Defendant No. 1 & Smt. Siddamma maintained by Applicant Bank in usual and ordinary course of business -

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

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SCHEDULE PROPERTY

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The Defendants are the owners of the following agricultural lands situated at Badakagudulu Village, Khandikere / Huliyar Hobli, Chikkanayakanahalli Taluk, Tumkur district.

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Item Nos.	Sy. Nos.	Ext	ent	Boundaries
		A	G
1.	24/P	3	34¼	East by: Thimmaiah’s Property; West by: Ajjegowda’s Property; North by: Siddalingaiah Property; South by: Guddaiah’s Property;
2	39/2	1	36¼	East by: Land of Kenchabhovi; West by: Land of B.C. Sannegowda; North by: Land of Byrappa; South by: Land of Rangaiah;
3	44	0	20¼	East by: Land of Sannaiah; West by: Land of Rangaiah; North by: Land of B.C. Sannegowda; South by: Land of B.C. Ajjegowda;
4.	45/1	3	3½	East by: Own property; West by: Land of B.C. Ajjegowda; North by: Road; South by: Land of Jayarangappa;
The D	efendants	are th	e owne	rs of the following agricultural lands
situate	d at Be	llara	Villag	e, Khandikere / Huliyar Hobli,
Chikka	nayakanah	alli Ta	luk,Tu	mkur district.
				East b: Land of Eraiah
5.	93/10	3	27	y ; West by: Land of Eramma;

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OA. No. 409/2022

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				North by: Land of B.G. Hanumanthaiah; South by: Land of Rajanna B.G.;
6.	93/11	0	34	East by: Land of Kuduraiah; West by: Land of Earamma; North by: Land of Hanumanthaiah; South by: Land of Rajanna B.G.;
7.	93/12	0	38	East by: Land of Talavar Thimmaiah; West by: Land of Earamma; North by: Land of B.C. Hanumanthaiah; South by: Land of Rajanna B.G.;

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Hypothecated Property

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Tractor bearing No. KA-44-T-4631 and the Trailer bearing No. KA44-T4632 in the name of Defendant No. 1 and the lien of the Applicant Bank is noted in the RC.

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

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OA. No. 409/2022

Karnataka Gramin Bank v. Sri. B. M. Radhakrishna

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri. B. M. Radhakrishna

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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