Allowed

Canara Bank v. Mallesh Kumar

DRT18 Mar 2024OA/560/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by a bank against a borrower seeking recovery of Rs. 67,40,018.31 along with interest and costs arising from a default on a housing loan of Rs. 60 lakhs. The court ruled in favor of the bank since the defendant failed to appear and raised no challenges.

What did the court decide?

Recovery of Rs. 67,40,018.31 along with current interest at 9.55% per annum compounded monthly from the date of filing till realization.

Canara Bank versus Mallesh Kumar — Specific Performance | DRT (2024)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

¶2

AT BENGALURU

¶3

Dated this 18^th day of March 2024

¶4

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

¶5

OA NO.560/2022

¶6

BETWEEN:

¶7

M/s.Canara Bank, J. P. Nagar 2^nd Phase Branch, Bengaluru-560 078, Represented by its Senior Manager Sri. Rajesh Kumar

¶8

… APPLICANT

¶9

AND:

¶10

Sri. Mallesh Kumar.S S/o late Sundar Raju Aged about 38 years, R/at No.848, 11^th Cross RBI Layout, JP Nagar 7^th Phase Bengaluru-560 078.

¶11

And also at :

¶12

Flat No.102, 1^st Floor “Neha Sadan”, Property No.7 Old No.193, Singasandra Village Ward No.171, Begur Hobli Bengaluru South Taluk Bengaluru-560068. …DEFENDANT

¶13

Counsel on record/appeared for:

¶14

Applicant : Sri. K.Aswathanarayana Defendant : Ex-parte.

OA No.560/2022

FINAL ORDER

The present Original Application (OA) is filed on 11-04-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.67,40,018.31/- (Rupees Sixty Seven Lakhs Forty Thousand Eighteen and Thirty One paisa Only) with further interest thereon from the date of filing till realization from defendants.

¶19

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.

¶20

Brief facts of the case:

¶21

The Applicant submits that Sri.Mallesh Kumar Defendant herein, approached the Applicant Bank and applied for grant of Housing Loan of Rs.60,00,000 ( Rupees Sixty Lakhs Only) for purchase of residential Flat bearing No.102, 1^st Floor, in the Apartment building known as “NEHA SADAN”, constructed on the ‘A’ schedule property measuring 1500 Sq. ft., of Super Built up area together with 332 Sq.ft. of UDS in the ‘A’ schedule property from Mr. Muneer Ahmed represented by his GPA Holder and Developer M/s. Neha Construction. The Applicant bank considered the loan application of Defendant favorably and sanctioned the Housing Loan Finance of Rs.60,00,000/- (Rupees Sixty Lakhs only) to the defendant. The

¶22

¶23

OA No.560/2022

¶24

Loan Application dated 24.07.2017 submitted by the defendant in favour of the applicant.

¶25

The Applicant Bank considered the loan application of the Defendant and sanctioned the Housing Loan of Rs.60,00,000/-(Rupees Sixty Lakhs Only) on 04-09-2017. The Sanction Memorandum dated 04-09-2017, issued by the Applicant in favour of the Defendant.

¶26

The Defendant agreeing to the terms and conditions of the sanction has affixed his signature to the Sanction Memorandum. The Defendant has executed Housing Loan Agreement dated 21.09.2017 in favour of the Applicant for the Housing loan of Rs.60,00,000/-(Rupees Sixty Lakhs Only) The defendant has agreed to repay the said housing loan of Rs.60,00,000/(Rupees Sixty Lakhs Only) with interest at 8.60% per annum compounded monthly. In the event of the borrower’s default in payment of any one installment or in regularizing or in clearing the account as per terms agreed upon, the borrower shall agree to pay an additional rate of 2% per annum above the rate of interest charge on the advance from the date of such default till regularizing.

¶27

The said Housing Loan of Rs.60,00,000/-(Rupees Sixty Lakhs Only) shall be repayable in 240 Equal Monthly Installments of Rs.52,450/- each. Interest to be paid as and when due. The defendant has executed Irrevocable Mandate for Deduction from CASA Accounts dated 21.09.2017

¶28

in favour of the Applicant, authorizing the applicant bank to deduct a sum of Rs.52,450/-being the monthly Loan installment from his CASA account

¶29

¶30

OA No.560/2022

¶31

No.0492.201.1716 maintained in the applicant every month and to pay to the loan account.

¶32

The Applicant submits that the Defendant Sri Malleshkumar.S., purchased the residential Flat known as “NEHA SADAN” measuring 1500 Sq. ft., of Super Built up area together with 332 Sq.ft. of UDS in the ‘A’ schedule property with a Car parking space in the stilt floor in the property, from its owner Mr. Muneer Ahmed represented by his GPA Holder and Developer M/s.Neha Construction, under a Sale Deed dated 27.09.2017 from the Housing Loan granted by the Applicant in favour of the Defendant. As Security for the due repayment of the Housing Loan of Rs.60,00,000/(Rupees Sixty Lakhs only) with interest costs etc., the defendant-Sri Malleshkumar has mortgaged his residential Flat bearing No.102, known as “NEHA SADAN” constructed on the ‘A’ schedule, which is more fully described as schedule “A” hereunder, by executing the Memorandum of Deposit of Title Deeds dated 27.09.2017 in favour of the applicant. The Applicant Bank has herewith produced the registered MODT dated 27.09.2017 executed by the defendant in favour of the applicant.

¶33

The Applicant submits that the defendant is a chronic defaulter in the matter of repayment of the above said Housing loan with interest. In spite of repeated requests and demands the defendant did not cleared the over dues. Finally the Applicant Bank got issued Legal Notice dated 07.02.2022 calling upon him to pay the amounts due by him to the applicant. The defendant is liable to pay a sum of Rs.66,95,968.31ps. (Rupees Sixty Six

¶34

¶35

OA No.560/2022

¶36

Lakhs Ninety Five Thousand Nine Hundred Sixty Eight and Paise Thirty One only) as on 28.02.2022, inclusive of interest debited up to 08.02.2022. The defendant is liable to pay subsequent interest at 9.55% per annum compounded monthly from 09.02.2022 till 10.03.2022 in a sum of Rs.44,050/-(Rupees Forty Four Thousand Fifty only) the date of filing of this original application. Thus the defendant is liable to pay a Total sum of Rs.67,40,018.31ps (Rupees Sixty Seven Lakhs Forty Thousand Eighteen and Paise Thirty One Only), under the Housing Finance Loan A/c No.0492619004074 as on the date of the original application to the applicant Bank.

¶37

The defendant has not complied the demands made by the Applicant Bank, demanding the repayment of the amounts due to it in spite of sufficient opportunities given with him, 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.

¶38

After the filing of the OA, summons was sent to the Defendant by RPAD on 28.09.2022, was returned with postal Shara “Addressee Left”. Hence, summons through substitute service was taken and the Applicant Bank published the summons to the Defendants in two daily leading newspapers kannada daily Newspaper “Samyuktha Karnataka ’’ and English Daily ‘’The New Indian Express” on 12.06.2023. When OA was

¶39

¶40

OA No.560/2022

¶41

taken up on 27.09.2023, even after giving sufficient time, there was no appearance or representation from the defendant, hence, Defendant was placed ex-parte on 27.09.2023.

¶42

Heard the submissions of Counsels and perused the records.

¶43

To prove the case, Sri. Rajesh Kumar, S/o. L.B. Ram, aged about 44 years, Senior Manager, of the Applicant Bank, has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as

¶44

Ex.A1, and documents came to be marked as Ex.A3 to A13. 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.

¶45

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:-

¶46

: O R D E R:

¶47

The OA is allowed with costs,

¶48

(a) The Applicant bank is allowed to recover from defendant jointly or severally to pay a sum of Rs. Rs.67,40,018.31ps (Rupees Sixty Seven Lakhs Forty Thousand Eighteen and Paise Thirty One Only), in respect of Housing Finance Loan A/c No.0492619004074, together with

¶49

¶50

OA No.560/2022

¶51

Current Interest at 9.55 % per annum compounded monthly, from

¶52

the date of the filing of the OA till the date of realization.

¶53

(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;

¶54

¶55

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;

¶56

(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.

¶57

(f) The Applicant Bank shall file memo of costs within ten days from the date of this final order.

¶58

¶59

OA No.560/2022

¶60

(g) Recovery Certificate shall be drawn up and issued to the Recovery

¶61

Officer in terms of the final order.

¶62

14. A copy of this order be communicated to the parties concerned.

¶63

[Dictated to the (GS), transcribed by him, corrected and signed by me on this the 18^th day March 2024].

¶64

Sd/-

¶65

PRESIDING OFFICER DRT-II, BENGALURU

¶66

ANNEXURES

¶67

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶68

AW-1: Smt. Sadu Sujatha, W/o, Sri. Jayasimha, Manager of the Applicant Bank.

¶69

Exhibits on the part of the Applicant.

¶70

Sl No.	Date	Particulars	Exhibits
1.	24.07.2017	Loan Application submitted by the defendant in favour of the Applicant for grant of Housing loan of Rs.60.00 Lakhs for purchase of apartment/flat.	A3
2.	04.09.2017	Sanction Memorandum issued by the Applicant in favour of the defendant granting Housing loan of Rs.60.00 Lakhs for purchase of apartment/flat.	A4
3.	21.09.2017	Housing Loan Agreement executed by the defendant in favour of the Applicant in respect of Housing Loan of Rs. 60.00 Lakhs for purchase of apartment/flat.	A5

¶71

¶72

OA No.560/2022

¶73

4.	21.09.2017	Irrevocable Mandate for deduction of monthly installments from CASA A/c of the Defendant to the Housing loan account.	A6
5.	27.09.2017	Registered Memorandum of Deposit of Title deeds executed by the Defendant in favour of the Applicant bank, in respect of Housing Loan of Rs. 60.00 Lakhs	A7
6.	07.02.2022	Legal Notice issued to the Defendants	A8
7.	07.02.2022	Postal Registration Receipts	A9 & A10
8.		RPAD Returned Envelops	A11 & A12
9.	28.02.2022	Certified Statement of Account of Housing Finance Loan Account No.0492619004074 of the defendant with interest calculation sheet and certificate.	A13

¶74

Witness Examined for the Defendants:

¶75

-Nil –

¶76

List of Documents Exhibited for the Defendants:

¶77

-Nil –

¶78

SCHEDULE

¶79

DESCRIPTION OF THE PROPERTY MORTGAGED BY THE Owner-

¶80

Defendant-Sri Mallesh Kumar.S.

¶81

ITEM NO.1

¶82

Schedule-“A”

¶83

(Entire Property)

¶84

All that piece and parcel of Property bearing Site No.7, Old Katha No.193,

¶85

formed in Sy No.11 (duly converted Order No. B.DIS.ALN.SR(S)246/1992-

¶86

¶87

OA No.560/2022

¶88

93, dated 25.11.1992, issued by Special Deputy Commissioner, Bangalore District, Bangalore), situated at Singasandra Village, Begur Hobli, Bengaluru South Taluk, now property comes under the administrative jurisdiction of Bruhat Bangalore Mahanagara Palike, under BBMP Katha No.730/253/254/11/7, in Ward No.171, New PID No. 191-W0417-35, measuring East to West 91.8 Feet and North to South 103 feet, in all measuring 9455.45 square feet and bounded on the

¶89

East by : Private Property, West by : 30 Feet Road, North by : Private Property, South by : Property belongs to Krishnappa.

¶90

SCHEDULE-‘B’ PROPERTY:

¶91

(Description of the UDS and Apartment)

¶92

Residential Flat bearing No.102, in First Floor, in the apartment building known as “NEHA SADAN”, constructed on the ‘A’ schedule property measuring 1500 Sq.ft. of Super Built up area together with 332 Sq. ft. of Undivided share, right, title and interest in the ‘A’ schedule property along

¶93

with a Car parking space in the stilt floor and bounded as follows:

¶94

East by : Flat No.101, West by : Setback, North by : Corridor South by : Setback.

¶95

Sd/PRESIDING OFFICER DRT-II, BENGALURU

Canara Bank v. Mallesh Kumar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mallesh Kumar

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

Coram

Case details

Similar cases

Bank of Maharashtra versus Vinod Kumar Chaturvedi

The Federal Bank Limited versus Sri. Johney @ John Chacko

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

Punjab National Bank versus Ms Om Anand Enterprises

Atma Ram versus the Kangra Central Cooperative Bank Limited

Narinder Singh versus the Kangra Central Cooperative Bank Limited