Allowed

Canara Bank v. Bhimsha

DRT25 Mar 2024OA/636/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank applicant's application for recovery of Rs.43,74,615/- plus interest against the defendant-borrower. Being the defendant in ex-parte, the claim remained unchallenged. The bank was ordered to recover the dues by sale of mortgaged schedule property or personal assets and to draw up a recovery certificate.

What did the court decide?

Bank allowed to recover Rs.43,74,615/- plus future interest; liberty to sell schedule and personal assets; Recovery Certificate to be issued.

Canara Bank versus Bhimsha — Insolvency and Bankruptcy | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of March, 2024

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

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OA. No.636/2022

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BETWEEN:

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Canara Bank Kalaburgi Main 1 Branch, Janata Bazar Building, Super Market, Kalburgi-585101, Gulbarga. Represented by Chief Manager & PA Holder, Sri. Somana Gowda Ainapur.

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… APPLICANT

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AND:.

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Mr. Bhimsha (also called as Bheemsha) S/o Peerappa Aged about 65 years, R/at. Neeralkod Village, Jewargi Taluk, Gulbarga, Kalaburgi District-585 310. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendant : Exparte.

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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 Recovery of Debts Due to Banks and Bankruptcy Act 1993 for recovery of a sum of Rs.43,74,615/- (Rupees forty three lakh seventy four thousand six hundred and fifteen only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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OA. No. 636/2022

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The application filed is within the period of limitation as prescribed under Section 24 Recovery of the Debts Due to Banks 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 as borrower had approached the applicant bank seeking for Agricultural Term Loan of Rs.4,75,000/- (Rupees four lakh seventy five thousand only) an Loan Application dated 03.11.2004 in Loan A/c No.0513856006115 for the purpose of purchase of Tractor and Trailer. The loan was availed an interest @ 10.75% p.a. and penal interest @ 2% p.a. in case of default in repayment.

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The defendant 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 executed Registered Simple Mortgage Deed dated 29.01.2004, which was registered as Doc.No.1366/2004-05 in the office of Sub-Registered and Letter of Revival dated 05.06.2007, 28.05.2010, 01.05.2013, 20.04.2016, 15.03.2018 and 13.01.2021 in favour of the Applicant Bank.

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The Applicant Bank submits that the Defendant, after availing the said facilities, failed to repay the loan amount and committed default. The loan account of the Defendant had been classified as a Non Performing

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OA. No. 636/2022

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Asset (NPA) on 01.04.2016 and the Applicant Bank issue a Demand Notice dated 18.02.2022 calling upon the defendant to repay the entire outstanding loan amount. 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 Registered Post with Acknowledgment Due the same is duly served on 27.06.2023. Therefore, service held sufficient. When OA was taken up on 26.02.2024 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant was placed exparte on 26.02.2024.

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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. Satwant Singh S/o Sri. Gurcharan Singh, 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 A16. As the Defendant remained exparte, 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

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OA. No. 636/2022

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Tribunal comes to the conclusion that the applicant bank is entitled to a

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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 to pay an

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amount of Rs.43,74,615/- (Rupees forty three lakh seventy four thousand six hundred and fifteen only) and also future interest @ 10.75% p.a. plus

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2% penal interest from the date of OA application till the date of realization of the entire amount.

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(b) In the event of failure of the Defendant 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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(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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OA. No. 636/2022

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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

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of the OA, enabling the Registry to prepare Recovery Certificate for the

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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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(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 25^th Day of March 2024].

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Sd/-

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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 Sri. Gurcharan Singh, Senior Manager, of Applicant Bank.

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OA. No. 636/2022

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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 Term Loan	03.11.2004
A4	Application for purchase of tractor/ Power Tiller	03.11.2004
A5	Appraisal Report- Purchase of Tractor/ Power Tiller	03.11.2004
A6	Memorandum of Agreement for Agriculture loan.	03.11.2004
A7	Simple mortgage deed registered as Doc.No.1366/2004-05 in the office of Sub-Registrar.	29.10.2004
A8	Letter of Revival	05.06.2007
A9	Letter of Revival	28.05.2010
A10	Letter of Revival	01.05.2013
A11	Letter of Revival	20.04.2016
A12	Letter of Revival	15.03.2018
A13	Letter of Revival	13.01.2021
A14	Letter of Revival	18.02.2022
A15	Postal Acknowledgement card duly served	27.02.2022
A16	Bank statement of A/c No.051385600615

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Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

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-Nil -

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-Nil -

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Description of Schedule Property

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Agricultural immovable property in Sy.No.63/B measuring 14 acres 30 guntas situated at Neeralkod Village, Jewargi Taluk, Kalaburgi District585310 and bounded on:

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North: Land belonging to Ayyappa South: Land belonging to Siddappa East: Land belonging to Gundappa West: Land belonging to Arjun.

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

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OA. No. 636/2022

Canara Bank v. Bhimsha

Case brief

What is this about?

What did the court decide?

Canara Bank v. Bhimsha

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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