Allowed

Canara Bank v. Mr. Shivanagouda Laxmanagouda Patil

DRT20 Apr 2024OA/698/2023

Case brief

AI extract

What is this about?

The DRT-II allowed the banker's application filed by Canara Bank against the legal heirs of a deceased borrower for recovery of agricultural loans totaling Rs. 41,79,307 along with interest, as the defendants failed to appear.

What did the court decide?

Recovery of Rs 41,79,307 plus interest from defendants jointly or severally; liberty to sell schedule and personal assets; Recovery Certificate to be issued.

Canara Bank versus Mr. Shivanagouda Laxmanagouda Patil — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 20^th day of April 2024

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

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OA NO.698/2023

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BETWEEN:

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Canara Bank Ankali Branch

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Mayur Chitra Mandir, Ankali, Chikkodi Taluk, Belgaum Dist, Karnataka 591 213 Through its Branch Manager Mr. Deepak Magadum

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...APPLICANT

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AND

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Mr. Shivanagouda Laxmanagouda Patil S/o. Laxmanagouda Patil Aged about 79 years, Savasuddi, Raibag Taluk, Belgaum Dist Karnataka – 591213 (Since deceased through his legal heirs Defendant Nos. 2 to 4)

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Mr. Malagouda Laxmanagouda Patil S/o. Laxmanagouda Patil Aged about 59 years, Savasuddi, Raibag Taluk, Belgaum Dist Karnataka – 591213

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Mr. Shankaragouda Laxmanagouda Patil S/o. Laxmanagouda Patil Aged about 53 years, Savasuddi, Raibag Taluk, Belgaum Dist, Karnataka – 591213

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OA No.698/2023

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Mr. Appanagouda Laxmanagouda Patil

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S/o. Laxmanagouda Patil Aged about 49 years, Savasuddi, Raibag Taluk, Belgaum Dist Karnataka – 591213 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri.Venu.K.V. Defendant Nos.1 to 4 : Ex-parte.

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(Defendant No.1 is deceased through his legal heirs D2 to 4)

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FINAL ORDER

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The present Original Application (OA) is filed on 09-03-2023, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.41,79,307/- (Rupees Forty One Lakhs Seventy Nine Thousand Three Hundred and Seven 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

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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 Defendants, by their application dated 11.03.2009 approached

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the Applicant Bank seeking financial assistance for a sum of Rs.4,90,000/towards agricultural purposes and the Applicant Bank, after due diligence,

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OA No.698/2023

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promptly sanctioned financial assistance to Defendants for Rs.4,90,000/towards agricultural purposes. The facility granted to the Defendants was duly availed and utilized by Defendants. While availing financial facility, the Defendants executed Memorandum of Agreement for Agricultural Loans dated 11.03.2009 in favour of the Applicant as a primary security. The Applicant submits that as a collateral security Defendants created charge over the schedule properties by executing and registering Simple Mortgage Deed dated 03.03.2009.

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The Defendants, by their application dated 03.03.2010 again approached the Applicant Bank seeking financial assistance for a sum of Rs.3,00,000/- towards agricultural purposes and the Applicant Bank, after due diligence, promptly sanctioned financial assistance to Defendants for Rs.3,00,000/- towards agricultural purposes. The facility granted to the Defendants was duly availed and utilized by Defendants. While availing financial facility, the Defendants executed Agreement and Deed of Hypothecation for Kisan Credit Card dated 03.03.2010 in favour of the Applicant as a primary security. The Applicant submits that as a collateral security Defendants created charge over the schedule properties by executing and registering Simple Mortgage Deed dated 25.02.2010.

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The Applicant submits that during the pendency of repayment of the facility advanced to them, Defendant No.1 expired. Since Defendant No.2 to 4 are the legal heirs of Defendant and well as co-applicant. Hence Defendant No.2 to 4 executing Letter of Revival dated 07.10.2020 in the

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OA No.698/2023

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case of loan availed for a sum of Rs.4,90,000/- and Letter of Revival dated 31.12.2020 in the case of second loan availed for a sum of Rs.3,00,000/-. The Applicant Bank submits that though the Defendants had availed and utilized the financial assistance granted to Defendants, failed and/or neglected to repay the aforesaid financial assistance granted to the Defendants. The Account has become NPA when the loan instalments due together with interest have not been paid as agreed. The Applicant constrained to issue legal notice on 17.01.2022 demanding the Defendants to repay the outstanding liability.

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The Applicant Bank submits that they are entitled to recover a sum of Rs.41,79,307/- along with applicable interest p.a. compounded half yearly, till full and final payment and/or realization. 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 to 4 by RPAD on 08.09.2023 was returned postal cover with shara “Refused”. 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 to 4 was placed ex-parte on 15.11.2023.

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OA No.698/2023

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Heard the submissions of Counsels and perused the records.

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To prove the case, Sri.Deepak Magadum, S/o. Babu, aged about 34

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years, 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

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documents came to be marked as Ex.A3 to A15. 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

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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.2 to 4 jointly or severally, a sum of Rs. 41,79,307/- (Rupees Forty One Lakhs Seventy Nine Thousand Three Hundred and Seven Only)

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(i) Pass an Order in favour of the Applicant directing the Defendant No.2

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to 4 and 2 to pay, jointly or several, the Applicant balance a sum of Rs.31,32,866/- (Rupees Thirty One Lakhs Thirty Two Thousand Eight

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OA No.698/2023

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Hundred and Sixty Six only) as on 28.11.2022 along with further interest @12.10% compounded half yearly with effect from 29.11.2022 till full and final payment and/or realization of the entire debt in respect of Loan Account No.0541881005189.

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(ii) Pass an Order in favour of the Applicant directing the Defendant No.2 to 4 to pay, jointly or several, the Applicant balance sum of Rs.10,46,441/-(Rupees ten lakhs forty six thousand four hundred forty one only) as on 28.11.2022 along with further interest @10.15% compounded half yearly with effect from 29.11.2022 till full and final payment and/or realization of the entire debt in respect of Loan Account No.0541895005619

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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

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OA No.698/2023

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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 20^th day April 2024].

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Sd/-

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PRESIDING OFFICER DRT-II, BENGALURU

OA No.698/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.Deepak Magadum, Manager of the Applicant Bank.

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Exhibits on the part of the Applicant:

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SL.No	Particulars	EXHIBITS
1	Loan Application dated 11.03.2009	A3
2.	Sanction Letter both dated 11.03.2009	A4
3	Memorandum of Agreement for Agricultural Loans dated 11.03.2009	A5
4.	Simple Mortgage Deed dated 03.03.2009	A6
5.	Loan Application and sanction letter dated 03.03.2010	A7
6.	Sanction Letter dated 03.03.2010	A8
7.	Agreement and Deed of Hypothecation for Kissan Credit Card dated 03.03.2010	A9
8.	Simple Mortgage Deed dated 25.02.2010	A10
9.	Letters of Revival dated 07.10.2020	A11
10.	Letters of Revival dated 31.12.2020	A12
11.	Recall Notice dated 17.01.2022	A13
12.	True Extract of Statement of Accounts pertaining to the Defendant’s Loan Accounts No.0541881005189	A14
13.	True Extract of Statement of Accounts pertaining to the Defendant’s Loan Accounts No.00541895005619 & combined Statement	A15

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OA No.698/2023

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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 IMMOVABLE PROPERTIES

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Sy No.	Area	Location	Boundary
62/2B	06 acres 05 guntas	Devapurhatti	East : Hanamanth Ankalagi West : Gopal Bidri
			South : Land of Yalagouda Patil North : land of Laxman Puranagil
71/3	10 acres 22 guntas	Devapurhatti	East : Ramappa Kanadale West : Shankar Metri
			South : Paragouda Patil
			North : Paragouda Patil

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

Canara Bank v. Mr. Shivanagouda Laxmanagouda Patil

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr. Shivanagouda Laxmanagouda Patil

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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