Allowed

Canara Bank v. Sri. Siddappa Irappa Kotre

DRT23 Jan 2024OA/755/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Canara Bank for recovery of dues against the legal heirs of a deceased borrower who availed agricultural loans and failed to repay, resulting in a final order to pay the principal and interest.

What did the court decide?

The applicant bank is allowed to recover a sum of Rs.37,41,230/- plus further interest from the legal heirs of the deceased defendant.

Canara Bank versus Sri. Siddappa Irappa Kotre — Contract and Commercial Disputes | DRT (2024)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 23^rd Day of January, 2024

¶3

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

¶4

OA. No.755/2022

¶5

BETWEEN:

¶6

Canara Bank Ankali Branch Mayur Chitra Mandir, Ankali, Chikkodi Taluk, Belgaum Dist, Karnataka 591213 Through its Branch Manager Mr. Shailesh Namdeoji Rangari

¶7

… APPLICANT

¶8

AND:.

¶9

Sri. Siddappa Irappa Kotre (Deceased) S/o Irappa Halappa Kotre, Nandikurali, Raibag Taluk, Belgaum Dist, Karnataka-591317

¶10

LRs of Deceased Defendant No.1

¶11

(a) Sri. Irappa Siddappa Kotre (b) Sri. Basappa S Kotre (c) Smt. Siddavva S Kotre (d) Sri. Halappa S Kotre (e) Sri. Mallappa S Kotre

¶12

All are residing at, Nandikurali, Raibag Taluk, Belgaum Dist, Karnataka-591317. ... DEFENDANTS

¶13

Counsel on record/appeared for:

¶14

Applicant : Sri. Vignesh Shetty Defendant No.1 : Deceased Defendant Nos.1 (a) to (e) : ex parte

OA. No. 755/2022

FINAL ORDER

The present Original Application (OA) is filed on 23.03.2022 under section 19 of Recovery of Debts Due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.37,41,230/- (Rupees thirty seven lakh forty one thousand two hundred and thirty only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶19

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.

¶20

Brief facts of the case:

¶21

The case of the Applicant Bank is that the Defendant No.1 is deceased represented by Legal Heirs of deceased Defendant No.1(a) to 1(e).

¶22

The Defendant No.1 is an agriculturist approached the Applicant Bank seeking for Agricultural Loan of Rs.5,00,000/- (Rupees five lakh only) an Loan Application dated 08.08.2007 for the purpose of Agricultural. After due diligence, promptly, the Applicant Bank sanctioned an Agricultural Loan of Rs.5,00,000/- (Rupees five lakh only) vide Sanction Memorandum dated 29.08.2007 along with interest @ 13.25% p.a. compounded quarterly rest in Loan A/c No.0541856004441.

¶23

¶24

OA. No. 755/2022

¶25

Further, the Defendant No.1 is an agriculturist approached the Applicant Bank seeking for Agricultural Loan of Rs.1,20,000/- (Rupees one lakh twenty thousand only) an Loan Application dated 28.01.2008 for the purpose of Agricultural. After due diligence, promptly, the Applicant Bank sanctioned an Agricultural Loan of Rs.1,20,000/- (Rupees one lakh twenty thousand only) vide Sanction Memorandum dated 04.02.2008 along with interest @ 9% p.a. compounded quarterly rest in Loan A/c No.0541859004708.

¶26

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 Defendants executed Memorandum of Agreement for Agricultural Advances dated 29.08.2007 and 04.02.2008 and Registered Simple Mortgage Deed dated 13.08.2007 and 29.01.2008 and letter of Revival dated 20.08.2010, 15.07.2013, 01.02.2011 and 15.01.2014 and also letter of Revival executed by LR’s dated 15.05.2017 & 09.04.2020 in respect of both loans in favour of the applicant bank.

¶27

The Applicant Bank submits that the Defendants, 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 Asset (NPA)and the Applicant bank issue a Legal Notices dated 22.05.2015 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

OA. No. 755/2022

Defendants.

After the filing of the OA, summons was sent to the Defendant No.1 (deceased) LR’s of 1(e) through Registered Post with Acknowledgment Due and the same were duly served on 22.09.2022 and Defendants No.1 (deceased) represented the LR’s of the Defendant 1(a) to 2(d) were returned unserved with postal shara “Refused”. When OA was taken up on 08.12.2022 even after giving sufficient time, there was no appearance or representation from the LRs of the Defendants 1(a) to 2(e); hence, Defendants Nos. 1(a) to (e) were placed exparte on 08.12.2022.

¶32

Heard the submissions of Applicant Bank and perused the records.

¶33

To prove the case of the Applicant Bank, Sri. Deepak Magadum S/o

¶34

Babu, 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 A12. 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.

¶35

Having regard to the amount advanced, the interest applied, the 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:

OA. No. 755/2022

: O R D E R:

The OA is allowed with costs,

¶40

(a) The applicant bank is allowed to recover from Defendants Jointly &

¶41

Severally to pay an amount of Rs.37,41,230/- (Rupees thirty seven lakh forty one thousand two hundred and thirty only) consisting of:

¶42

a. The LR’s of Defendants, jointly and severally an amount of Rs.31,67,530/- (Rupees thirty one lakh sixty seven thousand five hundred and thirty only) as on 31.03.2021 along with further interest @ 12.15% p.a. compounded half yearly with effect from 01.04.2021 till full and final

¶43

payment and realization of the entire debt in respect of Loan A/c No. 05418560004441.

¶44

b. The LR’s of Defendants, jointly and severally an amount of Rs.5,73,700/- (Rupees five lakh seventy three thousand seven hundred only) as on 31.03.2021 along with further interest @ 10.25% p.a. compounded half yearly with effect from 01.04.2021 till full and final payment and realization of the entire debt in respect of Loan A/c No. 0541859004708.

¶45

¶46

OA. No. 755/2022

¶47

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

¶48

the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

¶49

¶50

(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;

¶51

(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.

¶52

(f) The applicant bank shall file memo of costs within ten days from the

¶53

date of this final order.

¶54

(g) Recovery Certificate shall be drawn up and issued to the Recovery

¶55

Officer in terms of the final order.

¶56

¶57

OA. No. 755/2022

¶58

12. A copy of this order be communicated to the parties concerned.

¶59

[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 23^rd Day of January 2024].

¶60

Sd/-

¶61

PRESIDING OFFICER

¶62

DRT-II, BENGALURU

¶63

ANNEXURES

¶64

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶65

AW-1: Sri. Deepak Magadum S/o Babu, Manager of Applicant Bank.

¶66

Exhibits on the part of the Applicant:

¶67

Exhibit	Particulars of Documents
Nos.
A1	Applicant Evidence
A2	List of Documents.
A3	Loan application dated 08.08.2007 & 28.01.2008
A4	Sanction Letter dated 29.08.2007 & 04.02.2008
A5	Memorandum of Agreement for Agricultural Advances executed by Defendant in favour of applicant dated 29.08.2007
A6	Memorandum of Agreement for Agricultural Advances executed by Defendant in favour of Applicant dated 04.02.008
A7	Registered Simple Mortgage executed by Defendant in favour of applicant dated 13.08.2007 and 29.01.2008
A8	Letter of Revival executed by Defendant in favour of the applicant dated 20.08.2010, 15.07.2013, 01.02.2011 and 15.01.2014
A9	Letter of Revival executed by Legal Heirs of Defendant in favour of the Applicant dated 15.05.2017 and 09.04.2020
A10	Legal Notice dated 22.05.2015
A11	True Extract of Statement of Accounts pertaining to the Defendants Loan A/c NO.054185600004441
A12	True Extract of Statement of Accounts pertaining to the Defendants Loan A/c NO.0541859004708.

¶68

¶69

OA. No. 755/2022

¶70

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

¶71

-Nil -

¶72

-Nil -

¶73

SCHEDULE PROPERTY

¶74

All that piece and parcel of immovable property located in Nandikurali Village- Raibag Taluk, Belgaum Dist., in R Sy.No.328/1+2/5 measuring 7 acres and 22 gunats bounded by:

¶75

East: Kallappa Helavi

¶76

West: Canal North: Land of Bhimappa Gadde South: Land of Mahadev Gujanatti.

¶77

Sd/DRT-II, BENGALURU

Canara Bank v. Sri. Siddappa Irappa Kotre

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Siddappa Irappa Kotre

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

Hdfc Bank versus Sh. Bijender Kumar

Axis Bank versus M/S S. G. L. Traders

Ms Maniks salon and mangli kitchen rep by R Shiva Kumar versus Indusind Bank Limited

Dena Bank versus M/s Trident Tubes Limited.

Ms Sewa Enterprises versus Uco Bank

Hdfc Bank versus Sh. Ravi Malik