Allowed

Canara Bank v. Katta Lskahmi Kantamma

DRT19 Apr 2024OA/673/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's recovery application against two defendants who failed to repay agricultural loans. The court passed a final order for joint and several recovery of the principal amount along with interest.

What did the court decide?

Recovery of Rs. 26,21,368/- plus interest and penal charges jointly or severally from the defendants, with liberty to sell mortgaged and personal assets if recovery fails.

Canara Bank versus Katta Lskahmi Kantamma — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th day of April 2024

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Present: SMT. S. V. GOWRAMMA

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Hon’ble Presiding Officer

OA NO.673/2023

BETWEEN:

Canara Bank

Basavan Gouda Building, New Bazaar, Maski, Raichur District – 584 124, Represented by its Manager and Constituted Attorney Mr. Parashuram L Bharamoji. … APPLICANT

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AND :

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1. Smt. Katta Lakshmi Kantamma

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W/o. Late. Ramabrahmam

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Aged about 67 years,

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R/a, Shankar Nagar Camp,

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Manvi Taluk, Raichur District,

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Karnataka – 584 120.

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2. Katta Venu S/o Ramabrahmam Aged Major, R/a Shankar Nagar Camp,

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Manvi Taluk, Raichur District,

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Karnataka – 584 120. … DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri.K. Raveendran Defendant Nos.1 & 2 : Ex-parte.

OA No.673/2023

FINAL ORDER

The present Original Application (OA) is filed on 24-03-2023, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.26,21,368/-(Rupees Twenty Six Lakhs Twenty One Thousand Three Hundred and Sixty Eight 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 approached the Applicant Bank for sanction of Rural Gowdown Loan for construction of Gowdown. The Applicant Bank considering the said request of the defendant sanctioned Rural Gowdown loan of Rs.17.00 Lakhs. The defendants also approached the Applicant Bank and availed KOD facility of Rs. 7.50 Lakhs and KCC facility of Rs.3.00 Lakhs on certain terms and conditions. The said facilities were fully secured by executing the documents like Loan Agreement, which were executed by Defendants, Mortgage of Agricultural Lands morefully described in the Schedule “B” Item No. 1 to 4 executed by Defendants.

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OA No.673/2023

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The Defendant had made a request vide Comprehensive Application cum Appraisal Report for Minor Irrigation/ Farm Development/Land Development Activities dated 07.09.2009 for sanction of Rural Gowdown loan. The Defendant No.1, as security for the said Rural Gowdown Loan had executed a Simple Mortgage Deeds dated 02.09.2091 of application Schedule Immovable Properties owned by her, in favour of the Applicant Bank registered with an intention to create mortgage. The defendant No.1 had deposited the original title deeds in respect of property described in the Application Schedule with the Applicant Bank with intention to create security by way of registered simple mortgage deeds and thereby secured the said principal loan amount to the extent of Rs. 17.00 Lakhs and also the interest.

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The said defendant executed Memorandum of Agreement for Agricultural Loans dated 07.09.2009 in respect of Rural Gowdown Loan in favour of the Applicant Bank. The defendants had agreed to repay the loan on Demand along with agreed rate of interest. The Defendants have executed Letter of Revival dated 22.02.2012, 20.10.2014, 06.06.2016, 18.09.2018, 10.09.2021, in favour of the Applicant Bank thereby acknowledging the said loan availed and revived the same. The Defendant had again approached the Applicant bank and made a request vide Common Application cum Appraisal Form for Credit Facilities for Agricultural Loan dated 01.07.2013 for sanction of CKOD Loan.

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OA No.673/2023

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The defendant No.1 as security for the CKOD facility to be availed, had executed a Registered Mortgage Deed dated 22.06.2013 of the Original Application Schedule Immovable Properties owned by her, in favour of the Applicant Bank registered on 24.06.2013 with an intention to create mortgage. The defendant has deposited the original title deeds in respect of Application Schedule Properties with the Applicant Bank with intention to create security by way of Registered Mortgage by deposit of title deeds and thereby securing the CKOD facility to the extent of Rs.7,50,000/-. The Defendant executed Agreement of Hypothecation for Agricultural Loans dated 01.07.2013 in favour of the Applicant Bank for the said KOD facility Loan. The defendants have hypothecated the movables described in the Schedule “A”.

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The Defendant No.1 has further requested the Applicant Bank for Renewal of the existing facility vide Application Cum Sanction for Renewal And / or Enhancement Under CKOD dated 08.11.2017. The defendant has given Letter of Renewal dated 08.11.2017, 15.06.2016, 05.03.2019, 27.02.2022. The Defendant had again approached the Applicant bank and made a request vide Common Application Cum Appraisal Form for Credit Facilities for Agricultural Loan dated 28.09.2015 for sanction of KCC facility.

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The defendant No.1 as security for the KCC facility to be availed, had executed a Registered Mortgage Deed dated 22.09.2013 of the Original Application Schedule Immovable Properties owned by her, in favour of the Applicant Bank registered on 24.06.2013 with an intention to create

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mortgage. The defendant has deposited the original title deeds in respect of Application Schedule Properties with the Applicant Bank with intention to create security by way of Registered Mortgage by deposit of title deeds and thereby securing the overall limit of Rs.4,00,000/-. The Applicant Bank, after considering the request of the said Defendant No.1, had sanctioned vide sanction memorandum dated 28.09.2015, KCC Loan of Rs.3.00 Lakhs on certain terms and conditions. The defendant No.1 accepted the terms and conditions of sanction.

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The Defendant executed Agreement of Hypothecation for Agricultural Loans dated 28.09.2015 in favour of the Applicant Bank for the said KCC Loan. The defendant hypothecated the crops mentioned in the Schedule “A”. The Defendant executed Letter of Revival dated 28.08.2018, 30.07.2021. The defendants failed to adhere to the terms and conditions of the said credit facilities. The defendants were not regular in repayment and failed to remit the amount due in respect of produce loan in spite of several demands and requests by the Applicant Bank. Since the Defendants failed to adhere to the terms and conditions of sanction. The Applicant Bank issued Legal Notice dated 06.01.2023 calling upon the defendants to pay the outstanding mentioned therein, along with interest. The current and future interest payable by the defendants in respect of Rural Gowdown is at the rate of 12.60% per annum, in respect of CKOD facility is at 10.25% p.a. and in respect of KCC facility is at 10.40% p.a. all compounded half yearly as per the guidelines and terms of the agreement

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OA No.673/2023

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executed by the defendant. The Applicant Bank submits that the Defendants, after availing the loans, failed to repay the loan amount and committed default. 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 Defendants No.1 & 2 by RPAD on 12.06.2023, duly served, Acknowledgment produced. When OA was taken up on 15.11.2023, even after giving sufficient time, there was no appearance or representation from the defendants, hence, Defendants No.1 & 2 was placed ex-parte on 15.11.2023.

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Heard the submissions of Counsels and perused the records.

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To prove the case, Sri.Parashuram.L. Bharamoji, S/o. Laxman, aged about 27 years, Manager and Power of Attorney Holder 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

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came to be marked as Ex.A3 to A28. 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,

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documents executed, the conduct and operations in the loan account and

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OA No.673/2023

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the default committed, this Tribunal comes to the conclusion that the

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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 Nos.1 & 2

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jointly or severally, a sum of Rs.26,21,368.00 (Rupees Twenty Six Lakhs Twenty One Thousand Three Hundred Sixty Eight Only) against and also the current and future interest, penal interest.

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i) Pass an order and issue Recovery Certificate for a sum of Rs.8,79,659.00 (Rupees Eight Lakhs Seventy Nine Thousand Six Hundred Fifty Nine Only) towards Rural Gowdown Loan account No.0545887005742 and future interest at 12.60% p.a. 2% penal interest, compounded half yearly.

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ii) Pass an order and issue Recovery Certificate for a sum of Rs.12,97,895.00 (Rupees Twelve Lakhs Ninety Seven Thousand Eight Hundred Ninety Five Only) from defendant towards CKOD facility account No.0545897000416 and future interest at 10.25% p.a.+ 2% Penal interest, compounded half yearly.

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iii) Pass an order and issue Recovery Certificate for a sum of Rs.4,43,814.00 (Rupees Four Lakhs Forty Three Thousand Eight Hundred Fourteen Only) towards KCC Loan account No.0545847001424 and future interest at 10.40% p.a.+ 2% penal

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OA No.673/2023

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interest, compounded half yearly, from the date of filing Original Application till the date 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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OA No.673/2023

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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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14. 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 19^th day April 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. Parashuram. L. Bharamoji, Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl.	PARTICULARS	EXHIBITS
No
1.	Comprehensive Application cum Appraisal Repot for Minor Irrigation/ Farm Development dated 07.09.2009	A3
2.	Simple Mortgage Deed for agricultural Advances dated 02.09.2009	A4
3.	Memorandum of Agreement for Agricultural Loans dated 07.09.2009	A5
4.	Letter of Revival dated 22.02.2012	A6
5.	Letter of Revival dated 20.10.2014	A7
6.	Letter of Revival dated 06.06.2016	A8
7.	Letter of Revival dated 18.09.2018	A9
8.	Letter of Revival dated 10.09.2020	A10
9.	Common Application cum Appraisal Form for Credit Facilities for agricultural Loan dated 01.07.2013	A11
10.	Simple Mortgage Deed in respect of running limits to agriculturist dated 22.06.2013	A12
11.	Agreement of Hypothecation for Agricultural Loans dated 01.07.2013	A13

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OA No.673/2023

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12.	Application cum sanction for renewal/ enhancement dated 08.11.2017	A14
13.	Letter of Renewal dated 08.11.2017	A15
14.	Letter of Revival dated 15.06.2016	A16
15.	Letter of Revival dated 05.03.2019	A17
16.	Letter of Revival dated 27.02.2022	A18
17.	Common Application Form cum Appraisal Report for Credit Facilities for Agricultural Loan dated 28.0.2015	A19
18.	Simple Mortgage Deed for KCC facility to agriculturist dated 22.06.2013	A20
19.	Sanction Memorandum dated 28.09.2015	A21
20.	Agreement of Hypothecation for agricultural loan dated 28.09.2015	A22
21.	Letter of Revival dated 28.08.2018	A23
22.	Letter of Revival dated 30.07.2021	A24
23.	Legal Notice dated 06.01.2023	A25
24.	Statement of account in respect of KCCS loan account No.0545887005742	A26
25.	Statement of account in respect of CKOD facility account No.0545897000416	A27
26.	Statement of account in respect of KCC loan account No.0545847001424 along with interest calculation sheet and Certificate	A28

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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 ‘A”

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Hypothecation of Crops grown on Sy.Nos. 13/2/1, situated at Hanchinal, Manvi Taluk, Raichur Dist and Sy.No.43 situated at Ramaladinni, Village, Manvi Taluk, Raichur District.

OA No.673/2023

SCHEDULE ‘B’

Item No.1

All that piece and parcel of Property bearing Sy.No. 13/2/B, 4 acres 20 Guntas, situated at Hanchinal, Manvi Taluk, Raichur District, standing in the name of Smt. Katta Lakshmi Kantamma W/o Ramabrahmam i.e. defendant No.1 and bounded on the

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East by: Land of Yamanappa

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West by: Land of Narasana Gouda

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North by: Land of Basappa

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South by: Narasimha Murthy

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Item No.2

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All that piece and parcel of Property bearing Sy.No. 13/3/B, 2 acres 23 Guntas, situated at Hanchinal, Manvi Taluk, Raichur District, standing in the name of Smt. Katta Lakshmi Kantamma W/o Ramabrahmam i.e. defendant No.1 and bounded on the

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East by: Road

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West by: Land of Shankarappa Halli North by: Land of Nageshwar Rao

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South by: Canal

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Item No.3

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All that piece and parcel of Property bearing Sy.No. 13/4/A, measuring 2 acres, situated at Hanchinal, Manvi Taluk, Raichur District,

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OA No.673/2023

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standing in the name of Smt. Katta Lakshmi Kantamma W/o Ramabrahmam i.e. defendant No.1 and bounded on the

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East by: Land of K Laxmi Kantamma

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West by: Land of Shankarappa Halli

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North by: Land of Basappa

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South by: Land of Bhimamma

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Item No.4

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All that piece and parcel of Property bearing Sy.No. 13/5/A, measuring 2 acres, situated at Hanchinal, Manvi Taluk, Raichur District, standing in the name of Smt. Katta Lakshmi Kantamma W/o Ramabrahmam i.e. defendant No.1 and bounded on the

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East by: Road

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West by: Halli Shankarappa

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North by: Nageshwar Rao

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South by: Canal

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Item No.5

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All that piece and parcel of Property bearing Sy.No. 43/D1, measuring 10 acres 0.5 Guntas, situated at Ramuladinni Village, Manvi Taluk, Raichur District, standing in the name of Smt. Katta Lakshmi Kantamma W/o Ramabrahmam i.e. defendant No.1 and bounded on the

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OA No.673/2023

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East by: Land of Mangalayar

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West by: Land of P Venkata Rao

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North by: Land of Durgappa

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South by: Way & remaining land

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

Canara Bank v. Katta Lskahmi Kantamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Katta Lskahmi Kantamma

Case brief

What is this about?

What did the court decide?

What the court decided

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