Allowed

Canara Bank v. Smt. Shambai

DRT11 Mar 2024OA/615/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed a recovery application filed by Canara Bank against a borrower for agricultural loans totaling Rs.21 lakhs. The Tribunal held the claim within limitation rules and awarded recovery of principal, interest, and penal charges absent defendant contest.

What did the court decide?

Direction to pay Rs. 21,08,962/- with future interest and penal interest; liberty to sell mortgage and personal assets.

Canara Bank versus Smt. Shambai — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 11^th day^of March 2024

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

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OA NO.615/2022

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BETWEEN:

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M/s. Canara Bank, Kalaburgi Main 1 Branch, Janata Bazar Building, Super Market, Kalburgi – 585101, Gulbarga Represented by Chief Manager & P.A. Holder Sri. Somana Gowda Ainapur

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…APPLICANT

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AND

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Mrs. Shambai W/o Gurunath Hugar aged about 66 years, R/o Khanadal, Kalaburgi Taluk, Gulbarga Kalaburgi District -585 101.

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…DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendant : Ex-parte.

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FINAL ORDER

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The present Original Application (OA) is filed on 06-05-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.21,08,962/- (Rupees Twenty One

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Lakhs Eight Thousand Nine Hundred and Sixty Two 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 Defendant had approached the Applicant Bank for financial assistance for agricultural purposes that on 10.12.2008 had availed loan of Rs.50,000/- under the Kisan Credit Card Scheme. The Defendant has executed necessary loan agreements and documents with respect to the said loans in favour of Applicant Bank. The loan was availed at an interest rate of 9% per annum, and penal interest @ 2% p.a in case of default in repayment. That on 02.12.2011, 01.12.2014, 25.11.2017 and 20.11.2020 the defendant has executed the Letters of Revival acknowledging the debt and security in favour of the Applicant Bank.

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The Defendant on 20.06.2009 had availed Over Draft Loan of Rs.2,00,000/-. The Defendant has executed necessary loan agreements and documents with respect to the said loans in favour of Applicant Bank. The loan was availed at an interest rate of 10.00 % per annum, and penal interest @ 2% p.a in case of default in repayment. That on 18.06.2009 the defendant has executed a registered Simple Mortgage of the Schedule

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agricultural Immovable Property as security towards the said loans, the said mortgage is registered in Gulbarga. On 20.05.2012, 07.06.2015, 15.03.2017 and 10.03.2020 the defendant has revived the said loan by executing the Letters of Revival, acknowledging the debt and security in favour of the applicant bank

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The Applicant Bank submits that pursuant to the availing of the loans, the Defendant has failed to adhere to the financial discipline of repayment of the loan facilities. The said accounts were classified as Non-Performing Assets (NPA) on 29/09/2010. Having no other option left, the applicant bank has issued demand notice dated 14.02.2022 recalling the entire loan along with the applicable interest. 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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After the filing of the OA, summons was sent to the Defendant on 06.02.2022, by Registered Post, postal cover returned with shara “Party Refused”. When OA was taken up on 06.06.2023, even after giving sufficient time, there was no appearance or representation from the defendant, hence, Defendant was placed ex-parte on 06.06.2023.

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Heard the submissions of Counsels and perused the records.

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To prove the case, Sri. Somana Gowda Aunapur, S/o. Shanta Gowda Ainapura, aged about 42 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 A21. 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 jointly or severally to pay a sum of Rs.21,08,962/- (Rupees Twenty One Lakhs Eight Thousand Nine Hundred and Sixty Two Only) future interest at rate of 10.05% p.a., plus 2.00 % penal interest 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 11^th day March 2024].

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Sd/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.Satwant Singh S/o. Gurcharan Singh, Senior Manager of the

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl	Particulars	Date	Exhibits
No
1.	Common Application cum Appraisal form for Agricultural loanNO. 0513840010983	10.12.2008	A3
2.	Agreement of Hypothecation for Agricultural loan	10.12.2008	A4
3.	Loan Sanction Memorandum	10.12.2008	A5
4.	Letter of Revival	02.12.2011	A6
5.	Letter of Revival	01.12.2014	A7
6.	Letter of Revival	25.11.2017	A8
7.	Letter of Revival	20.11.2020	A9
8.	Bank statement of A/c. 0513840010983		A10
	Over Draft Loan Loan Account No.0513256007592
9.	Common Application cum Appraisal form for Agricultural loan Account NO. 0513256007592	18.06.2009	A11
10.	Agreement and Deed for Kisan OD.	20.06.2009	A12
11.	Sanction Memorandum	20.06.2009	A13
12.	Simple mortgage deed registered as Doc. 2525/2009-10 dated 19/06/2009 at Gulbarga.	18.06.2009	A14
13.	Letter of Revival	20.05.2012	A15

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14.	Letter of Revival	02.05.2015	A16
15.	Letter of Revival	15.03.2017	A17
16.	Letter of Revival	10.03.2020	A18
17.	Bank statement of A/c. 0513256007592		A19
18.	Legal Notice	14.02.2022	A20
19.	Postal Cover returned unserved	26.02.2022	A21

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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 PROPERTY

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Agricultural Land Property in Sy.no. 278 measuring 05 Acres 15 Guntas situated at Khanadal, Kalaburgi Taluk, Kalaburgi District -585 101, bounded on:

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North : Land belonging to Doddappa Kama South : Land belonging to Shisharnappa East : Khanadal Roa West : Land belonging to Panduranga

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PRESIDING OFFICER DRT-II, BENGALURU

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Sd/-

Canara Bank v. Smt. Shambai

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Shambai

Case brief

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What did the court decide?

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