Allowed

State Bank of India v. Sri. Pundalik

DRT26 Mar 2024OA/418/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by State Bank of India for recovery of Rs.36,29,275/ along with further interest from two defendants who defaulted on an agricultural term loan and KCC facility, ordering joint or several recovery and liberty to sell mortgaged and personal assets.

What did the court decide?

Recovery of Rs.36,29,275/ plus interest at 12.5% p.a. from 28.01.2022; liberty to sell mortgaged and personal assets if payment fails; issuance of Recovery Certificate.

State Bank of India versus Sri. Pundalik — Execution and Attachment | DRT (2024)

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OA No.418/2022

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 26^th day of March 2024

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

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OA NO.418/2022

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BETWEEN:

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State Bank of India Asset Recovery Management Branch at Mysore Bank Building, BKG Complex, A- Block, 2^nd Floor, Avenue Road, Bengaluru- 560009. Represented by it’s Chief Manager, Sri. Binoy Kumar.

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...APPLICANT

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AND :

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Sri. Pundalik S/o Yamanappa Naik

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Sri. Muttappa S/o Yamanappa Naik Both are R/o Chippalakatti Village, Ramadurga Taluq, Belagavi District-591123 …DEFENDENTS

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Counsel on record/appeared for:

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Applicant : Sri. G.N.Satyamurthy Defendant Nos.1 & 2 : Ex-parte.

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FINAL ORDER

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The present Original Application (OA) is filed on 21-03-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions

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Act 1993 for recovery of a sum of Rs.36,29,275/-(Rupees Thirty Six lakhs

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OA No.418/2022

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Twenty Nine Thousand Two Hundred and Seventy Five 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 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 Defendants approached the Applicant Bank to avail Agricultural Term Loan facility to the extent of Rs.5,95,00/- (Rupees Five Lakh Ninety Five Thousand Only) and KCC limit of Rs. 1,50,000/- ( Rupees One lakh Fifty Thousand Only) aggregating total limit of Rs.7,45,000/- under application dated 24.05.2007. The Applicant Bank, sanctioned an Agricultural Term Loan Facility of Rs.5,95,00/- (Rupees Five Lakh Ninety Five Thousand Only) for the purpose of purchase of Tractor and Trailer. The Defendants have signed the Letter of Sanction agreeing to the terms and conditions stated therein. The rate of interest agreed to be paid under the loan documents, in respect of the Term Loan facility, was @ 12.5 % p.a., with half yearly rests. It was agreed that the rate of interest was subject to the changes Medium Term Loan Rate and such revised rate of interest would always be construed as agreed to be paid by the Defendants. The Term Loan was agreed to be repaid in 7 yearly instalments of Rs.85,000/- each with interest w.e.f. 24.May.2008.

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OA No.418/2022

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The Applicant submits that in consideration of sanctioning the Term Loan Facility, the Defendants executed an Hypothecation Agreement dated 24.05.2007. The Defendants hypothecated the crops grown in the lands, more fully described in Schedule II (A) to ( C) to this Application, as also all the moveable Assets of the Defendants including the tractor, trailer, Tools, Equipment, Fixtures and all other Machineries, Receivables and Investments, other. The Applicant Bank, sanctioned an KCC Facility of Rs.1,50,00/- (Rupees One Lakh Fifty Thousand Only) for the purpose of growing crops. The Defendants executed a Registered Mortgage over the Schedule II Property as security for the Agricultural Term Loan and KCC of Rs.7,45,000/- Registered Mortgage dated 09.05.2007, Amount secured: Rs.5,95,000/- (Rupees Five Lakh Ninety Five Thousand only) term loan, and Rs. 1,50,000/ cash credit with interest, Rate of Interest: 12.5 % p.a. for the Term Loan and 7% p.a. for the Cash Credit compounded with half Yearly rests, Properties Mortgaged: The Agricultural Lands, situated at Chippalakatti Village Ramadurga Taluk, Belagaum District.

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The Term loan was rephased on 30.03.2010 where the overdue portion in a sum of Rs.4,02,000/- is credited to the original account No.64017245776 debited to the rephased account Number 64057635632. The said rephased account is herein after referred to as Rephased Account 1.

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b) Again the Term loan was rephased on 07.06.2012 where in the overdue portion in a sum of Rs. 3,50,000/- is credited to the original

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OA No.418/2022

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account No.64017245776 and debited to the rephased account bearing Number 64098111382. The said rephased account is herein after referred to as Rephased Account 2.

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c) The KCC Account sanctioned in 2007 was closed on 06.03.2010 where in the overdue sum of Rs. 1,80,700/- is credited to the original KCC account and closed. Then the same amount debited to the rephased account Number 64056720585. The said rephased account is herein after referred to as Rephased Account 3.

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The Applicant submits that the Defendants failed to operate and regularise the aforesaid facilities. The Defendants failed to pay the instalments as agreed to under the Loan Documents as also to pay interest accrued from time to time. The Defendants failed to pay the entire outstanding amount in the accounts in spite of repeated requests and demands and also sent Legal Notice dated 01-02-2022. The Defendants are at present liable to pay the current and future interest in respect of the term loan accounts at 12.5% p.a and in respect of all accounts compoundable with half yearly rests from 18.01.2022 till the date of realisation of the entire amount. The Applicant Bank submits that the Defendant, after availing the loans, failed to repay the loan amount and committed default. However, there was no positive response from the defendant. Hence, this Original Application (OA) has been filed to recover the dues from the defendant.

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OA No.418/2022

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After the filing of the OA, summons was sent to the Defendant Nos.1 & 2 by RPAD, the applicant had filed a memo on 22.08.2022, duly served Acknowledgement produced. When OA was taken up on 10.11.2022, even after giving sufficient time, there was no appearance or representation from the defendants, hence, Defendants was placed exparte on 10.11.2022.

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Heard the submissions of Counsels and perused the records .

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To prove the case, Sri. Binoy Kumar, S/o. late. J.P. Srivastava, aged about 57 years, Chief Manager, of the Applicant Bank, has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, and documents came to be marked as Ex.A3 to A17 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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The OA is allowed with costs,

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(a) The Applicant bank is allowed to recover from defendant Nos. 1 & 2 jointly or severally to pay a sum of Rs.36,29,275=00 (Rupees Thirty

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OA No.418/2022

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Six Lakhs Twenty Nine Thousand Two Hundred Seventy Five Only) together with further interest at 12.5% p.a. compoundable with half yearly rests from 28.01.2022 from the date of the filing of the OA 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 properties 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 movables 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 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 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 him, corrected and signed by me on this the 26^th day March 2024].

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Sd/-

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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. Vinaya Bhat S/o. Late, Rama Bhat, Chief Manager of the Applicant Bank.

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Exhibits on the part of the Applicant

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Sl No	Particulars	Date	Exhibits
1.	Application for Loan	24.05.2007	A3
2.	Sanction Letter	24.05.2007	A4
3.	Hypothecation Agreement	24.05.2007	A5
4.	Registered Mortgage Deed	09.05.2007	A6
5.	Legal Notice	01.02.2022	A7
6.	Postal Acknowledgements		A8
7.	Postal acknowledgements		A9
8.	Certified Accounts Extract	27.01.2022	A10
9.	Certified Accounts Extract	27.01.2022	A11
10.	Certified Accounts Extract	27.01.2022	A12
11.	Certified Accounts Extract	27.01.2022	A13

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OA No.418/2022

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12.	Account Closure Summary	27.01.2022	A14
13.	Account Closure Summary	27.01.2022	A15
14.	Account Closure Summary	27.01.2022	A16
15.	Account Closure Summary	27.01.2022	A17

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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:

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-Nil –

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SCHEDULE- I

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The crops grown in the lands more fully described in Schedule II hereunder

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as also all the moveable Assets of the Defendant including the tractor, trailer tools, equipments, fixtures and all other machineries, receivables and investments, other movable assets and valuables, including the Assets generated out of the Bank Finance.

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SCHEDULE II (A) to (C) PROPERTIES

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Properties Mortgaged : The Agricultural Lands bearing:

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(A) Sy.No. 85/1B measuring 3 Acres 02 Guntas

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(B) Sy.No. 86/1B measuring 3 Acres 02 Guntas

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All Lands are situated at Chippalakatti Village Ramadurga Taluk, Belagaum

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District.

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Sd/-

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PRESIDING OFFICER DRT-II, BENGALURU

State Bank of India v. Sri. Pundalik

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri. Pundalik

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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Case details

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