Allowed

Karnataka Gramin Bank v. Sri Rajanna v T

DRT16 Jan 2024OA/66/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Karnataka allowed an Original Application filed by Karnataka Gramin Bank under Section 19 of the RBI Act 1993 for recovery of outstanding agricultural loans. The tribunal permitted recovery from defendants' jointly and separately including sale of schedule and personal assets.

What did the court decide?

Recovery of Rs.27,66,416/- with future interest and penal interest ordered; liberty to sell schedule and personal assets granted.

Karnataka Gramin Bank versus Sri Rajanna v T — Execution and Attachment | 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 January, 2024

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

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OA. No.66/2022

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BETWEEN:

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Karnataka Gramin Bank (earlier Kaveri Kalpatharu Grameena Bank/ Kaveri Grameena Bank) Kodigenahalli Branch, Kodigenahalli, Madhugiri Taluk, Tumkuru District-572 127. Represented by its’s Branch Manager, Sri. Shivanaiah C.

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… APPLICANT

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AND:.

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Sri. Rajanna V.T S/o late. Thimmappa Aged about 50 years,

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Sri. Prakash V.T S/o late. Thimmappa Aged about 45 years,

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Sri. Srinivas S/o late. Thimmappa Aged about 40 years,

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All are R/at. Veerapura Village, Kodigenahalli Hobli, Madhugiri Taluk, Tumkur District-572 127.

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...DEFENDANS

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Counsel on record/appeared for:

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Applicant : Sri. T.S. Mahabaleshwara Defendant Nos.1 to 3 : Exparte.

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FINAL ORDER

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The present Original Application (OA) is filed on 21.01.2022 under

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OA. No. 66/2022

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section 19 of Recovery of Debts Due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.27,66,416/- (Rupees twenty seven lakh sixty six thousand four hundred and sixteen 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 Due to Banks and Financial Institutions 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.2 and his deceased mother Smt. Narasamma approached the applicant bank seeking for Agricultural Loan of Rs.7,50,000/- (Rupees seven lakh fifty thousand Only) vide sanction cum terms and conditions letter dated 02.12.2015 in Loan A/c. No.85035407582 New A/c. No.12143130000520 for the purpose of growing the crops silk, areca nut and banana. The loan was repayable in 5 yearly installments of Rs.53,250/- and last installment was agreed to be paid on or before 23.11.2020 together with minimum interest @ 14.25% p.a. as per bank norms.

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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 and charges, and 2^nd Defendants and their deceased mother Smt.

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OA. No. 66/2022

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Narasamma executed Hypothecation Agreement dated 02.12.2015 and Registered Simple Mortgage Deed dated 23.11.2015 and Letter of Commitment dated 30.11.2018 and Letter of Revival dated 11.08.2021 in favour applicant bank.

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Further, the Defendant No.2 and his deceased mother Smt. Narasamma approached the applicant bank seeking for ATL Loan of Rs.8,00,000/- (Rupees eight lakh Only) vide sanction cum terms and conditions letter dated 02.12.2015 in Loan A/c. No.85035416520 New A/c. No.42143326001315 for the purpose construction of cow shed and purchase of cows. The loan was repayable in 5 years in 60 monthly installments together with minimum interest @ 13.75% p.a. as per bank norms.

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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 2^nd Defendants and their deceased mother Smt. Narasamma executed Hypothecation Agreement dated 02.12.2015 and Registered Simple Mortgage Deed dated 23.11.2015 and Letter of Commitment dated 30.11.2018 and Letter of Revival dated 11.08.2021 in favour applicant bank.

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Further, the Defendant No.2 and his deceased mother Smt. Narasamma approached the applicant bank seeking for ATL Loan of Rs.2,00,000/- (Rupees two lakh Only) vide sanction cum terms and

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OA. No. 66/2022

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conditions letter dated 02.12.2015 in Loan A/c. No.85035411533 New A/c. No.42143326001215 for the purpose land development. The loan was repayable in 5 years in 60 monthly installments together with minimum interest @ 13.25% p.a. as per bank norms.

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5.1. 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 2^nd Defendants and their deceased mother Smt. Narasamma executed Hypothecation Agreement dated 02.12.2015 and Registered Simple Mortgage Deed dated 23.11.2015 and Letter of Commitment dated 30.11.2018 and Letter of Revival dated 11.08.2021 in favour 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 Legal Notices dated 19.07.2021 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 No.1 to 3 Registered Post with Acknowledgment Due the same is duly served on 06.05.2021. Therefore, service held sufficient. When OA was taken up on 19.07.2022 even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 to 3 were placed exparte on 19.07.2022.

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OA. No. 66/2022

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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. B.S. Jasobanthi D/o

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Sri. Basanth Kumar Sabar, Branch 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 A24. As the Defendants 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 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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10. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants jointly and severally an amount of Rs.27,66,416/- (Rupees twenty seven lakh sixty six thousand four hundred and sixteen Only) together future interest @ 12.50% in respect of ATL compounded half yearly and 13.50% p.a. in respect of KCC compounded yearly from the date of OA application and till the date of realization and penal interest of 2% for default committed.

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OA. No. 66/2022

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(b) In the event of failure of the Defendants to pay the aforesaid amount,

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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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(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 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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OA. No. 66/2022

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10. 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 January 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. B.S. Jasobanthi D/o Sri. Basanth Kumar Sabar, Branch 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.
I	Agricultural Cash Credit (Crop Loan) Limit of Rs.7,50,000/- granted on 02.12.2015 Loan A/c.No.12143130000520
A3	Sanction cum terms and conditions letter executed by 2^nddefendant and his deceased mother Smt. Narasamma.	02.12.2015
A4	Hypothecation Agreement executed by 2^nd defendant and his deceased mother Smt. Narasamma.	02.12.2015
A5	Letter of commitment executed by 2^nddefendant and his deceased mother.	30.11.2018
A6	Letter of revival executed by 2^nddefendant.	11.08.2021
A7	Statement of Account Extract.
II	Agricultural Cash Credit (Crop Loan) Limit of Rs.8,00,000/- granted on 02.12.2015 Loan A/c.No. 42143326001315.

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OA. No. 66/2022

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A8	Sanction cum terms and conditions letter executed by 2^nddefendant and his deceased mother Smt. Narasamma.	02.12.2015
A9	Hypothecation Agreement executed by 2^nd defendant and his deceased mother Smt. Narasamma.	02.12.2015
A10	Letter of commitment executed by 2^nddefendant and his deceased mother.	30.11.2018
A11	Letter of revival executed by 2^nddefendant.	11.08.2021
A12	Statement of Account Extract.
III	Agricultural Cash Credit (Crop Loan) Limit of Rs.2,00,000/- granted on 02.12.2015 Loan A/c.No. 42143326001215.
A13	Sanction cum terms and conditions letter executed by 2^nddefendant and his deceased mother Smt. Narasamma.	02.12.2015
A14	Hypothecation Agreement executed by 2^nd defendant and his deceased mother Smt. Narasamma.	02.12.2015
A15	Registered Simple Mortgage Deed dated 23.11.2015 executed by 2^nddefendant and his deceased mother (Common documents for all three loans).
A16	Letter of commitment executed by 2^nddefendant and his deceased mother.	30.11.2018
A17	Letter of revival executed by 2^nddefendant.	11.08.2021
A18	Legal Notice	19.07.2021
A19	Four postal receipts	20.07.2021
A20	One returned RPAD cover	20.07.2021
A21 to A23	Three postal acknowledgements
A24	Statement of account extract.

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

SCHEDULE -A

OA. No. 66/2022

Hypothecation of Crops & movables and standing crops in the schedule “B” properties.

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SCHEDULE- B Owned by Defendants

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Item No.1

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Landed property bearing Sy.No.88/1 (old Sy.No.88), measuring in two bits, 1^st bit measuring 1 acre 18 guntas, 2^nd bit measuring 1 acre 38 guntas,

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Totally 3 acres 16 guntas, situated at veerapura Village, Kodigenahalli Hobli, Madhugiri Taluk, Tumkur District, and bounded on:

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East by: Land of Sri. Venkatappa West by: Land of Narasamma North by: Land of Sri. Shivappa

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South by: Land of Sri. Narayanappa

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Item No.2

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Landed property bearing Sy.No.88/2, measuring 1 acres 20 guntas, situated at veerapura Village, Kodigenahalli Hobli, Madhugiri Taluk, Tumkur District, and bounded on:

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East by: Land of Sri. Narasamma West by: Land of Narasamma North by: Land of Narsamma South by: Govt Channel

Item No.3

OA. No. 66/2022

Landed property bearing Sy.No.126/2, measuring 2 acres 25 guntas, situated at veerapura Village, Kodigenahalli Hobli, Madhugiri Taluk, Tumkur District, and bounded on:

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East by: Land of Rangappa West by: Land of Chikkarangappa North by: Land of Chikkarangappa South by: Govt. Road and lands of Rangappa and Thimmappa.

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Sd/DRT-II, BENGALURU

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PRESIDING OFFICER

Karnataka Gramin Bank v. Sri Rajanna v T

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Rajanna v T

Case brief

What is this about?

What did the court decide?

What the court decided

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