Allowed

Canara Bank v. Smt. Shanthabai Patil

DRT16 Mar 2024OA/478/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an Original Application filed by Canara Bank Betageri Branch for recovery of dues against two defendants who defaulted on term and KCC loans. The tribunal validated the bank's claim based on unchallenged documentary evidence, including sanction letters and mortgage deeds, and ordered the respondents to pay the principal amount along with interest.

What did the court decide?

Recovery of Rs. 57,19,541/- consisting of Term Loan and KCC dues along with interest at specified rates, recoverable jointly and severally or by sale of schedule properties and personal assets.

Canara Bank versus Smt. Shanthabai Patil — 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 Hon’ble Presiding Officer

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OA. No.478/2023

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BETWEEN:

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Canara Bank Betageri Branch, Shanthi Nilaya, Kaujalgi Road, Betageri, Gokak Taluk, Belagavi District-591 233. Represented by its Senior Manager, Sri. Umesh Khanderao Shete

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… APPLICANT

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AND:.

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Smt. Shanthabai Patil W/o Sri. Venkanagouda Patil Major by age

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Sri. Ramanagouda Paitl S/o Venkangouda Major by age

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Both are R.at. Uadapudi Village, Ramadurga Tluk, Belagavi District-591 130. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Veeresh Kumar Javali Defendant Nos.1 & 2 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 30.12.2022 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for recovery of

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OA. No. 478/2023

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a sum of Rs.57,19,541/- (Rupees fifty seven lakh nineteen thousand five hundred and forty one 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 borrower and Defendant No.2 as co-obligant. The Defendant No.1 had approached the applicant bank seeking for Term (Tractor and Trailer) Loan of Rs.5,50,000/- (Rupees Five Lakh Fifty Thousand only) an Loan Application dated 28.01.2005 for the purpose of Agricultural Operations. After considering the request of the Defendant No.1, the applicant bank sanctioned Term (Tractor and Trailer) Loan of Rs.5,50,000/- (Rupees Five Lakh Fifty Thousand only) vide Sanction letter dated 28.01.2005. The Defendant agreed to repay the loan in 9 annual installments of Rs.60,000/each and to pay interest and other charges separately along with the installments as when due and first installment shall comments on 28.01.2006 the defendant has agreed to pay interest @ 10.75% p.a. compounded date of yearly and panel 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

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OA. No. 478/2023

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and charges, and Defendant No.1 executed memorandum of agreement for Agricultural Loan and Particulars of Vehicle Hypothecation dated 29.01.2005 and Simple Mortgage Deed dated 29.01.2005 which was registered as document No. 1283 of 2004-05 stored in the CD RMDD10 office of Sub Registrar Ramdurga and also executed Letter of Revival dated 17.01.2008, 02.01.2011, 02.01.2014, 30.12.2016, 14.12.2019 in favour of the Applicant Bank.

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Further, the Defendant No.1 had approached the applicant bank seeking for Kisan Credit Card Scheme (KCCS) Loan of Rs.2,00,000/(Rupees Two Lakh only) an Loan Application dated 03.01.2006 for the purpose of crop cultivation. After considering the request of the Defendant No.1, the applicant bank sanctioned Kisan Credit Card Scheme (KCCS) Loan of Rs.2,00,000/- (Rupees Two Lakh only) vide Sanction letter dated 05.01.2006. The Defendant agreed to repay the loan within 12 month from the date of disbursement or 18 months in case of annual yield in crops or

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marketing of the produce whichever is earlier. The Defendant No.1 has agreed to pay interest @ 9.5% p.a. compounded half yearly and penal interest @ 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 No.1 executed Agreement of Hypothecation of KCCS dated 05.01.2006 and Simple Mortgage Deed dated 21.12.2005,

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OA. No. 478/2023

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which was registered as Doc.No.1462 of 2004-05 stored in the CD RMDD19 office of sub registrar Ramdurga and also executed Letter of Revival dated 04.01.2009, 02.01.2012, 22.11.2014, 15.10.2017, 24.04.2020 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 Notices dated 01.04.2022 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 09.08.2023 . 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 & 2 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. Umesh Khanderao Shete S/o Sri. Khanderao Shete, Senior 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 A27. As the Defendant

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OA. No. 478/2023

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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

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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 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 jointly and severally to pay an amount of Rs.57,19,541/- (Rupees fifty seven lakh nineteen thousand five hundred and forty one only) consisting of:

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i. The Defendants jointly and severally to pay an sum of Rs.45,64,652/(Rupees forty five lakh sixty four thousand six hundred and fifty two only) in respect of Term Loan A/c No. 18328560001456 together with current and future interest @ 14.85% p.a. compounded half yearly rests from the date of OA application and till the date of realization.

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ii. The Defendant No.1 to pay an sum of Rs.11,54,889/- (Rupees eleven lakh fifty four thousand eight hundred and eighty nine only) in respect of KCSS Loan A/c No. 1832840003735 together with current and future

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OA. No. 478/2023

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interest @ 11.60% p.a. compounded half yearly rests from the date of OA application and 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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order;

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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. 478/2023

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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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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

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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. Umesh Khanderao Shete S/o Sri. Khanderao Shete, 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.
A3	Application for Agricultural Credit Short Term Loan	28.01.2005
A4	Sanction Letter	28.01.2005
A5	Memorandum of Agreement for Agricultural Loans executed by Defendant.	29.01.2005
A6	Particulars of Vehicle Hypothecated by Defendant in favour of the Applicant Bank.	29.01.2005
A7	Copy of RC extract
A8	Copy of RC extract
A9	Simple Mrotgage Deed executed by Defendant dated 29.01.2005 in favour of the Applicant Bank	29.01.2005

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OA. No. 478/2023

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	Registered as Doc.No. RMD-1-01-1283-2004-2005 stored RMDD10 office of Sub-Registrar Ramdurga.
A10 to A14	Revival of Letter executed by Defendant.	17.01.2008 02.01.2011 02.01.2014 30.12.2016 14.12.2019
A15	Legal Notice issued by the bank.	01.04.2022
A16	Statement of Account
	B. Kisan Credit Card Scheme 18328400003375
A17	Application Cum Apprasial form for Kissan Credit Cared Scheme (KCCS)	03.01.2006
A18	Sanction Letter	05.01.2006
A19	Agreement and Deed of hypothecation for Kisan credit card executed by defendant.	05.01.2006
A20	Simple Mortgage Deed for Kisan Credit Card scheme (KCCS) facility to Agriculturists executed by the Defendant No.1 in favour of the Applicant Bank registered as Document No.1462/05-06	21.12.2005
A21 to A25	Letter of Revival executed by the Defendant.	04.01.2009 02.01.2012 22.11.2014 15.10.2017 24.04.2020
A26	Demand Notice issued by the Bank	01.04.2022

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Witness Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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SCHEDULE ‘A’ PROPERTY

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All the piece and parcel of land bearing Sy.No.67 measuring 24 acres 08 guntas Udapi Village, Ramdurga Taluk, Belagavi District and bounded on:

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OA. No. 478/2023

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East by: Land of Venkappa Bhimanagouda Patil West by: Land of Krishnagouda S Patil North by: Land of Sadashivagoud B Paitl South by: Land of Krishanagouda S Patil

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SCHEDULE ‘B’ PROPERTY

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Tractor Registered as KA 24 T 4152. Trailer Registered as KA 24 T 4153 with the RTO Office in the name of Defendant No.1.

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

Canara Bank v. Smt. Shanthabai Patil

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Shanthabai Patil

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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