Allowed

Canara Bank v. Namdev

DRT7 Mar 2024OA/625/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's Original Application for recovery of approximately Rs. 73 lakh plus interest against the borrower and guarantor, who were debarred from appearing. The tribunal ordered recovery from joint or severally liable parties, mortgaged properties, or personal assets if insufficient. Costs were awarded.

What did the court decide?

Recovery of Rs. 73,25,181 plus future interest via sale of mortgaged properties or personal assets if necessary, with issuance of a Recovery Certificate.

Canara Bank versus Namdev — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 7^th day of March 2024

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

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OA NO.625/2022

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BETWEEN:

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Canara Bank PDA EC Branch, Aiwan-E-Shahi Road, Gulbarga – 585 102 Represented by Branch Manager & P.A. Holder Smt. Shilpa Srinivas

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… APPLICANT

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AND

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Sri. Namdev S/o Roopsingh Rathod Aged about 55 years, Proprietor of : M/s. BANAJARA WARE HOUSE Plot No. 74/P2, Sy.No. 40 & 94, Nandur & Kesaratgi Industrial Area Shahabad Road, Kalaburgi - 585102.

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Also at:

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Plot No. 117, Rupama Villa Rajmahal Nagar Behind Sai Temple, Ring road Gulbarga, Karnataka – 585 102.

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Smt. Sunita W/o Namdev Rathod Aged about 48 years, Plot No. 117, Rupama Villa Rajmahal Nagar Behind Sai Temple, Ring road Gulbarga, Karnataka – 585 102. …DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendants Nos 1 & 2 : Ex-parte.

OA No.625/2022

FINAL ORDER

The present Original Application (OA) is filed on 04-05-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.73,25,181/- (Rupees Seventy Three Lakhs Twenty Five Thousand One Hundred and Eight One 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 No. 1 is the proprietor M/s. BANJARA WARE HOUSE. The Defendant No. 1, had approached the Applicant Bank for financial assistance for the purpose of construction of Warehouse. The Defendant No. 1 08/09/2014, has availed a term loan of Rs. 84,00,000/- (Rupees Eighty Four Lakhs only) from the Applicant Bank. The Defendant no. 1 has executed necessary documents, the Loan Agreement and the said loans were assigned

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The Defendant No. 2 has stood has the guarantor to the loan availed by the Defendant No.1 by executing the guarantee agreement dated

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OA No.625/2022

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08/09/2014. On 03/09/2014, the Defendant No. 1 and 2 have jointly mortgaged the Scheduled immovable properties 1 to 5 as security towards the said loan by deposit of title deeds, the memorandum of deposit of title deeds is registered It is submitted that the loan was availed on an interest rate of 11.70% per annum variable from time to time plus 2% penal interest in case of default in repayment.

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The Applicant Bank submits that pursuant to the availing of the loans, the Defendants have failed to adhere to the financial discipline of repayment of the loan facilities. The said loan account is classified as NPA on 09.05.2017. That on 11.05.2017 and 13.02.2020 the defendant No.1 has revived the said loan by executing the Letters of Revival, acknowledging the debt and security in favour of the applicant bank. The Applicant Bank has issued legal notice dated 07.03.2022 recalling the entire loan along with the applicable interest thereon. The Applicant Bank herein relies and produces the documents in support of is claim:

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Application cum appraisal form for Credit facilities 23.06.2014 towards loan Account No. 8683887000001

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Memorandum of Agreement for Agricultural Loans 08.09.2014 3. Guarantor Agreement and related Documents 08.09.2014

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Memorandum Of Deposit Of Title Deed 03.09.2014

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Letter of Revival 11.05.2017

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Letter of Revival 13.02.2020

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Legal Notice 07.03.2022

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Bank statements of account no. 8683887000001

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The Defendants on 02.03.2022 are jointly and severally due to the Applicant Bank in total a sum of Rs. 73,25,181.00 (Rupees Seventy Three Lakhs Twenty Five Thousand One Hundred And Eighty One Only) together with applicable interest and penalty thereon. 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 Defendants Nos.1 & 2, summons served to D1 on 30.01.2022 duly served Acknowledgment produced, summons served to D2 on 27.06.2022, by Registered Post, postal cover returned with shara “Party Out of Station”. When OA was taken up on 06.06.2023, even after giving sufficient time, there was no appearance or representation from the defendants Nos. 1 & 2, hence, Defendants 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, Smt. Shilpa Srinivas W/o. Anegalla Srinivas, aged about 32 years, Manager, of the Applicant Bank, has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and

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OA No.625/2022

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marked as Ex.A1, and documents came to be marked as Ex.A3 to A12. 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 defendants jointly or severally to pay a sum of Rs.73,25,181.00 (Rupees Seventy Three Lakhs Twenty Five Thousand One Hundred And Eighty One Only) future interest at rate of interest 11.70 % 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;

OA No.625/2022

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 07^th day March 2024].

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Sd/-

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PRESIDING OFFICER DRT-II, BENGALURU

OA No.625/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.Bheemashankar Taddeewadi, Senior Manager of the Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Sl No.	Particulars	Date	Exhibits
1.	Application cum appraisal form for Credit facilities towards loan Account No. 8683887000001	23.06.2014	A3
2.	Memorandum of Agreement for Agricultural Loans	08.09.2014	A4
3.	Guarantor Agreement	08.09.2014	A5
4.	Memorandum Of Deposit Of Title Deed registered as Doc. No. 6582/2014-15 dated 03/09/2014, at the office of Sub- registrar, Gulbarga.	03.09.2014	A6
5.	Letter of Revival	11.05.2017	A7
6.	Letter of Revival	13.02.2020	A8
7.	Legal Notice along with postal receipts	07.03.2022	A9
8.	Postal Card, RPAD Acknowledgement of Namdev		A10
9.	Postal Card, RPAD Acknowledgement of Sunitha		A11
10.	Bank statements of account no. 8683887000001		A12

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Witness Examined for the Defendants:

-Nil –

OA No.625/2022

List of Documents Exhibited for the Defendants:

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-Nil –

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Description of Scheduled Properties mortgaged

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SCHEDULE NO. 1

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Non-Agricultural Plot no. 117, H.No. 1-891/80/4/117, in Sy. No. 80/4, measuring 1200 Sq. ft., situated at Brahampur Village, Gulbarga Taluk, Gulbarga, boundary as follows:

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East by : 30 feet wide road West by : Plot no. 116 North by : 30 feet wide road South by : Plot No. 118

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SCHEDULE NO. 2

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Land in Sy. No. 129/8, measuring 1 Acre 10 Guntas, situated at Karhari

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Village, Aland Taluka, Gulbarga, boundary as follows:

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East by : Remaining portion of the Vender West by : Nala North by : Land of Sunita Rathod South by : Land of Shanker Roopa

OA No.625/2022

SCHEDULE NO. 3

Non-Agricultural land measuring 3800 Sq. mtrs. bearing Plot No: 74/P2 in Sy. No. 40 and 94, of Nandur & Kesaratagi Industrial Area, Nandur Taluk, Gulbarga District, boundary as follows:

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East by : 18 meters wide road West by : Plot no. 67/P1 North by : Plot no. 75/P1 South by : Plot no. 74/P1

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SCHEDULE NO. 4

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Non-Agricultural Plot no. 116, in Sy. No. 80/4, measuring 1200 Sq. ft.,

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situated at Brahampur Village, Gulbarga Taluk, Gulbarga,

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East by : Plot no. 117 West by : Plot no. 115 North by : 30 feet wide road South by : Plot no. 119

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SCHEDULE NO. 5

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Non-Agricultural Plot no. 27, in Sy. No. 21/5, measuring 4,000 Sq. ft., situated at Udnoor Village, Gulbarga Taluk, Gulbarga,

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East by : 30 feet wide road West by : Plot no. 33

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OA No.625/2022

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North by : 30 feet wide road

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South by : Plot no. 28

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Sd/-

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PRESIDING OFFICER DRT-II, BENGALURU

Canara Bank v. Namdev

Case brief

What is this about?

What did the court decide?

Canara Bank v. Namdev

Case brief

What is this about?

What did the court decide?

What the court decided

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