Allowed

Canara Bank v. Sri. G. K. Lakshminarayana

DRT29 Apr 2024OA/713/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by Canara Bank against Sri G. K. Lakshminarayana for recovery of a defaulted loan of Rs. 33 lakhs. The bank successfully proved its claim through a single witness since the respondent appeared ex-parte.

What did the court decide?

Allowed recovery of Rs.33,11,227/- with interest at 9.55%, permitting sale of schedule properties for realization.

Canara Bank versus Sri. G. K. Lakshminarayana — Contract and Commercial Disputes | DRT (2024)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 29^nd day of April 2024

¶3

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

¶4

OA NO.713/2023

¶5

BETWEEN:

¶6

Canara Bank Chikka Tirupathi, No.47, Malur Taluk, Kolar District – 563 130. Represented by its Senior Manager and Principal Officer of the Branch, Ms. Neha Jha …APPLICANT

¶7

AND:

¶8

Sri. G. K. Lakshminarayana S/o. Sri. Krishnappa Aged about 45 Years R/o Gangaluru Village, Anugodanahalli Hobli, Hoskote Taluk, Bengaluru Rural District. …DEFENDANT

¶9

Counsel on record/appeared for:

¶10

Applicant : Sri.K.Raveendran Defendant : Ex-parte.

¶11

FINAL ORDER

¶12

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.33,11,227/- (Rupees Thirty Three

¶13

¶14

OA No.713/2023

¶15

Lakhs Eleven Thousand Two Hundred and Twenty Seven Only) with further interest thereon from the date of filing till realization from defendants.

¶16

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.

¶17

Brief facts of the case:

¶18

The Defendant approached the Applicant Bank for sanction of KCCS Loan vide loan application dated 18.02.2017 and 03.05.2017 for agriculture purpose. The Applicant Bank after considering his request sanctioned a KCCS Loan of Rs.7,35,000/- and Further enhanced KCCS Loan total limit of Rs.19,80,000/- and Kisan OD Loan of Rs.5,50,000/-. The said Loan/facility were fully secured by executing the documents like Loan Agreement, which were executed by Defendant, Equitable mortgage of Agricultural Lands morefully described in the Schedule “B” immovable Property, executed by Defendant.

¶19

The Defendant has made a request on 18.02.2017 for KCCS Loan for purpose of Agricultural activity/raising crops. The Defendant for the said loan sanctioned as security, had executed a Simple Mortgage Deed dated 16.02.2017 of application Schedule Immovable “B” Property owned by them in favour of the Applicant with an intention to create mortgage.

¶20

The Defendant had deposited the original title deeds in respect of

¶21

¶22

OA No.713/2023

¶23

Application Schedule Properties of OA with the Applicant Bank with intention to create security by way of Registered Mortgage by deposit of title deeds and thereby secured the said principal loan amount of Rs.7,35,000/- sanctioned to Defendants.

¶24

The Applicant Bank after considering the request of the Defendant sanctioned vide Sanction Memorandum for KCCS Loan of Rs.7,35,000/dated 18.02.2017 on certain terms and conditions. The Defendant has executed Agreement and Deed of Hypothecation for Kisan Credit Card dated 18.02.2017 in respect of KCCS Loan in favour of the Applicant Bank. As per the said agreement, the Defendant had agreed to repay the loan in within 05 years along with agreed rate of interest. The defendant also executed Declaration cum Undertaking Letter dated 18.02.2017 thereby undertaking to abide by the conditions mentioned, the Defendant has further made a request on 03.05.2017 for enhancement KCCS Loan.

¶25

The Defendant for the said enhancement of loan sanctioned as security, had executed Supplemental Simple Mortgage Deed dated 27.04.2017 of application Schedule Immovable “B” Property owned by them in favour of the Applicant Bank registered with an intention to create mortgage. The Defendant had deposited the original title deeds in respect of Application Schedule Properties of OA with the Applicant Bank with intention to create security by way of Registered Mortgage by deposit of title deeds and thereby secured the said principal loan amount of Rs.19,80,000/- sanctioned to Defendants and also the interest. The

¶26

¶27

OA No.713/2023

¶28

Applicant Bank after considering the request of the Defendant sanctioned/enhancement vide Sanction Memorandum for KCCS Loan of Rs.19,80,000/- dated 03.05.2017 on certain terms and conditions.

¶29

The said Defendant has executed Supplemental Agreement dated 03.05.2017 in respect of KCCS Loan in favour of the Applicant Bank. As per the said agreement, the Defendant had agreed to repay the loan in within 05 years along with agreed rate of interest. The Defendant has executed Letter of Revival dated 02.04.2020, in favour of the Applicant Bank thereby acknowledging the loan availed. The Defendant has further made a request on 03.05.2017 for Kisan OD Loan for purpose of Agricultural activity. The Defendant for the said loan sanctioned as security, had executed a Simple Mortgage Deed for Canara Kisan OD dated 27.04.2017 of application Schedule Immovable “C” Property owned by him in favour of the Applicant Bank registered with an intention to create mortgage. The Defendant had deposited the original title deeds in respect of Application Schedule Properties of OA with the Applicant Bank with intention to create security by way of Registered Mortgage by deposit of title deeds and thereby secured the said principal loan amount of Rs.5,50,000/- sanctioned to Defendants and also the interest.

¶30

The Applicant Bank after considering the request of the Defendant sanctioned vide Sanction Memorandum for Kisan OD Loan of Rs.5,50,000/dated 03.05.2017 on certain terms and conditions. The Defendant has executed Agreement and Deed for Kisan OD dated 03.05.2017 in respect

¶31

¶32

OA No.713/2023

¶33

of Kisan OD Loan in favour of the Applicant Bank. As per the said agreement, the Defendant had agreed to repay the loan in within 03 years along with agreed rate of interest. The Defendant has executed Letter of Revival dated 02.04.2020, in favour of the Applicant Bank thereby acknowledging the loan availed.

¶34

The Defendant failed to adhere to the terms and conditions of the sanction of said facilities. The Defendant was not regular in repayment and failed to service the interest in spite of several demands and requests by the Applicant Bank. The current and future interest payable by the Defendant in respect of both Loan is at the rate of 9.55% per annum compounded half yearly, terms of the agreement 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.

¶35

10 After the filing of the OA, summons was sent to the Defendant by RPAD on 22.09.2023 was duly served, Acknowledgment produced. When OA was taken up on 24.11.2023, even after giving sufficient time, there was no appearance or representation from the defendant, hence, Defendant was placed ex-parte on 24.11.2023.

¶36

Heard the submissions of Counsels and perused the records.

¶37

¶38

To prove the case, Ms.Neha Jha, D/o. Subodh Kumar Jha, aged about 34 years, Senior 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 documents came to be marked as Ex.A3 to A20. 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.

¶39

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:-

¶40

: O R D E R:

¶41

The OA is allowed with costs,

¶42

(a) The Applicant bank is allowed to recover from defendant jointly or severally, a sum of Rs.33,11,227.00 (Rupees Thirty Three Lakhs Eleven Thousand Two Hundred and Twenty Seven Only) against the Defendant @ 9.55% and also the current and future interest, penal interest, from the date of the OA till its realization.

¶43

¶44

OA No.713/2023

¶45

(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;

¶46

¶47

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;

¶48

(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.

¶49

(f) The Applicant Bank shall file memo of costs within ten

¶50

days from the date of this final order.

¶51

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶52

¶53

OA No.713/2023

¶54

A Copy of this order be communicated to the parties concerned.

¶55

[Dictated to the (GS), transcribed by him, corrected and signed by me on this the 29^th day April 2024].

¶56

Sd/-

¶57

PRESIDING OFFICER DRT-II, BENGALURU

¶58

ANNEXURES

¶59

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶60

AW-1: Ms.Neha Jha, Senior Manager of the Applicant Bank.

¶61

Exhibits on the part of the Applicant:

¶62

Sl. No	PARTICULARS	EXHIBITS
1	Common Application cum Appraisal form for credit facilities dated 18.02.2017	A3
2	Simple Mortgage Deed dated 16.02.2017	A4
3	Sanction Memorandum for KCCS dated 18.02.2017	A5
4	Agreement and Deed of Hypothecation for Kisan Credit Card dated 18.02.2017	A6
5	Declaration cum Undertaking Letter dated 18.02.2017	A7
6	Undertaking Letter dated 18.02.2017	A8
7	Application cum Sanction for renewal/enhancement under Kisan Credit Card Scheme dated 03.05.2017	A9
8	Supplemental Simple Mortgage Deed dated 27.02.2017	A10
9	Sanction Memorandum for KCCS dated 03.05.2017	A11

¶63

¶64

OA No.713/2023

¶65

10	Supplemental Agreement dated 03.05.2017	A12
11	Letter of Revival dated 02.04.2020	A13
12	Common Application cum Appraisal form for credit facilities dated 03.05.2017	A14
13	Simple Mortgage Deed for Canara Kisan OD dated 27.04.2017	A15
14	Sanction Memorandum for KCCS dated 03.05.2017	A16
15	Agreement and Deed for Kisan OD dated 03.05.2017	A17
16	Letter of Revival dated 02.04.2020	A18
17	Statement of account in respect of KCCS Loan account No. 0823840011803	A19
18	Statement of account in respect of Kisan OD Loan account No. 0823897020211 along with interest sheet and Certificate	A20

¶66

Witness Examined for the Defendants:

¶67

-Nil –

¶68

List of Documents Exhibited for the Defendants:

¶69

-Nil –

¶70

SCHEDULE ‘A’ MOVABLE PROPERTIES MORTGAGED BY DEFENDANT

¶71

Hypothecation of standing crops in said schedule “B” Property, standing in

¶72

the name of Defendant.

¶73

SCHEDULE ‘B’ IMMOVABLE PROPERTIES MORTGAGED BY DEFENDANT

¶74

All that piece and parcel of at land bearing Sy No.32/1 measuring 03 acre

¶75

07 guntas, situated at Bommaganahalli Village, Boodikote Hobli,

¶76

¶77

Bangarpete Taluk, within jurisdiction of Bangarpete Sub-Registrar and bounded on the:

¶78

East by	:	Land of Jayakumar & Lakshmaiah
West by	:	Land of Venkateshappa
North by	:	Land of Muniraju
South by	:	Land of Kaki Potlachari

¶79

SCHEDULE ‘C’ IMMOVABLE PROPERTIES MORTGAGED BY DEFENDANT

¶80

Item No.I

¶81

All that piece and parcel of at land bearing Sy No.93/2 measuring 01 acre 36 guntas, situated at Banahalli Village, kasaba Hobli, Bangarpete Taluk,

¶82

within jurisdiction of Bangarpete Sub-Registrar and bounded on the:

¶83

East by	:	Land in Sy. No.93/1
West by	:	Land in Sy. No.93/1
North by	:	Land in Sy. No.26
South by	:	Land in Sy. No.93/3
Item No.I	I

¶84

All that piece and parcel of at land bearing Sy No.23/4 measuring 01 acre 00 guntas, situated at Yachamanahalli Village, Boodikote Hobli, Bangarpete Taluk, within jurisdiction of Bangarpete Sub-Registrar and bounded on the:

¶85

East by	: Land of Venkatachari & Krishnachari
West by	: Bommaganahalli Boundery & Jagadali Ramaiah Shetty’s
	Land
North by	: Land of Venkobarao S/o. Ramarao
South by	: Land in Sy. No.23/5

OA No.713/2023

Item No.III

All that piece and parcel of at land bearing Sy No.23/5 measuring 01 acre 00 guntas, situated at Yachamanahalli Village, Boodikote Hobli, Bangarpete Taluk, within jurisdiction of Bangarpete Sub-Registrar and bounded on the:

¶90

East by	:	Land of Venkatachari & Krishnachari
West by	:	Bommaganahalli Boundery & Jagadali Ramaiah Shetty’s
		Land
North by	:	Land in Sy. No.23/4
South by	:	Land of Pattabhiramaiah Shetty

¶91

Item No.IV

¶92

All that piece and parcel of at land bearing Sy No.13/2 measuring 02 acre 00 guntas, situated at Bommaganahalli Village, Boodikote Hobli, Bangarpete Taluk, within jurisdiction of Bangarpete Sub-Registrar and bounded on the:

¶93

East by	:	River
West by	:	SRI. Chowdeshwari Inam Land
North by	:	Land of G V Arunachalam
South by	:	Halla

¶94

Sd/PRESIDING OFFICER DRT-II, BENGALURU

Canara Bank v. Sri. G. K. Lakshminarayana

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. G. K. Lakshminarayana

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

Similar cases

Anis Anvarbhai Ghanchivahora versus State Bank of India

Bank of India versus Mansi Manilala Rangani

Bank of Baroda versus Krishna Oil Industries

Deepak Prakashbhai Ramchandani Ors. versus Icici Bank Limited

Punjab National Bank versus Ms Aishwarya Food Company

Canara Bank versus M/S Riddhi Jewellers