Allowed

The Federal Bank Limited v. Smt Sadiqunnisa Aziz

DRT18 Apr 2024OA/945/2022

Case brief

AI extract

What is this about?

The Devbts Recovery Tribunal allowed the applicant bank's original application for recovery of dues aggregating Rs.47,42,198.40 from the principal borrower and co-obligant, who defaulted on agricultural loans secured by immovable properties, after the defendants appeared ex-parte.

What did the court decide?

Directing defendants to pay Rs.47,42,198.40 jointly and severally with future interest; liberty to recover by sale of mortgaged and personal assets.

The Federal Bank Limited versus Smt Sadiqunnisa Aziz — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 18^th day of April 2024

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

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OA NO.945/2022

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BETWEEN:

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The Federal Bank Limited

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J.P. Nagar Branch, No.13, 15^th Cross, 100 Ft Ring Road, 6^th Phase, Bengaluru - 560078. Rept. by its Branch Manager

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…APPLICANT

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AND

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Mrs. Sadiqunnisa Aziz.,

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W/o. Mohsin Alam T.M.,

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Aged about 53 years,

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Mr. Tiptur Masoode Mohasine Alam,

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S/o. Masoode Alam,

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Aged about 71 years,

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Both are R/at

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No.562, 12^th Cross, 26^th Main, Near Water Tank, J.P. Nagar, 1^st Phase, Bengaluru-5620078 …DEFENDANTS

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OA No.945/2022

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Counsel on record/appeared for:

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Applicant : Sri.Nagaraj Damodar Defendant Nos.1 & 2 : Ex-parte.

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FINAL ORDER

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The present Original Application (OA) is filed on 26-04-2022, under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.47,42,198.40/-(Rupees Forty Seven Lakhs Forty Two Thousand One Hundred and Ninety Eight and Forty Paisa 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 No. 1 as principal Borrower and Defendant No. 2 as co-obligant, by offering immovable properties i.e. Item No.1 & 2 of the ‘Schedule’ hereunder, owned by the Defendant No.1, as security approached the Applicant Bank for the Cash Credit loan facility under the FKCC scheme of the Bank for a sum of Rs.20,00,000/- (Rupees Twenty Lakhs) for Agricultural operations. The Applicant Bank after considering the application of the Defendant No.1 & 2, sanctioned FKCC Loan Facility of

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OA No.945/2022

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Rs.20,00,000/- (Rupees Twenty Lakhs) Loan Application and Sanction dated 07.11.2018 .

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The Defendant No. 1 as principal Borrower and Defendant No. 2 as co-obligant, executed “Agreement for Agricultural Loans” in favour of Applicant Bank on 07.11.2018. The Defendant No.1, on 07.11.2018, as security for the said loan created an equitable mortgage of immovable properties i.e. the Item No. 1 & 2 of the 'Schedule A’ hereunder, in favour of the Applicant bank by depositing original title deed/Sale Deed, Evidencing said deposit of title deed the defendant No.1 executed Registered Memorandum of Deposit of Title Deeds”. 07.011.2018, by mortgaging the Item No.1 & 2 of Schedule Properties in favour of Applicant Bank to secure the said loan of Rs.20,00,000/- (Rupees Twenty Lakhs)

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The Defendants agreed to repay the said FKCC of Rs.20,00,000/(Rupees Seventy Two Lakhs) in 36 months with interest at the rate of 11.70% p.a. with yearly rests, in case of any default in repayments, defendants agreed to pay an additional interest rates as prescribed by the Applicant Bank, from time to time over and above the rate of interest in case of default/violation of the terms of the loan Agreement. The defendants also hypothecated the goat shed and goat rearing unit and other assets created out of banks finance mentioned in the agreement more particularly described in the Schedule B

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OA No.945/2022

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The Defendant No. 1 as principal Borrower and Defendant No. 2 as co-obligant, further being in need of additional financial assistance, approached the Applicant Bank, by offering Item No. 1 & 2 of the schedule A properties, owned by the Defendant No.1 as continuing security, for the facility of Term Loan (AMTL)-1 for a sum of Rs.17,40,000 Term Loan (AMTL)-2 for a sum of Rs.12,60,000/- (Rupees Twelve Lakhs Sixty Thousand) for Construction of goat shed.

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The Applicant Bank after considering the application of the Defendants, sanctioned Term Loan (AMTL)-1 Facility of Rs.17,40,000/(Seventeen Lakhs Forty Thousand) and Term Loan (AMTL)-2 facility of Rs.12,60,000/- (Rupees Twelve Lakhs Sixty Thousand). The Defendant No. 1 as principal Borrower and Defendant No. 2 as co-obligant executed “Agreement for Agricultural Loans” in favour of Applicant Bank on 25.04.2019. The Defendant No.1, on 25.04.2019 extended the benefit of mortgage already created by her on 07.11.2018 in favour of Applicant Bank in respect of immovable properties i.e. the Item No. 1 & 2 of the 'Schedule A ’ hereunder security as security for the said loans. Evidencing said extension of mortgage, the Defendant No. 1 executed an extension of mortgage letter i.e Letter In Lieu of Redeposit dated 25.04.2019

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The Defendant No.1 & 2 agreed to repay the said Term Loan (AMTL)1 of Rs.17,40,000/-(Seventeen Lakhs Forty Thousand) in 72 months with interest at the rate of 11.70% p.a. with quarterly rests, likewise the Defendant No.1 & 2 agreed to repay the said Term Loan (AMTL)-2 of

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OA No.945/2022

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Rs.12,60,000/- (Rupees Twelve Lakhs Sixty Thousand) in 72 months with interest at the rate of 11.70% p.a. with quarterly rests, in case of any default in repayments, defendants agreed to pay an additional interest rates as prescribed by the Applicant Bank, from time to time over and above the rate of interest in case of default/violation of the terms of the loan Agreement. As per the terms, the Applicant Bank has liberty to recall the facility at any time during the continuance of the facility. The contents of said Agreement for Agricultural loans dated 25.04.2019 executed by the defendants in favour of the Bank.

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The defendants after availing the aforesaid loan facility, failed to repay the principal as well as interest thereon and account turned NPA on 24.01.2022. In spite of repeated demands and requests made by the Applicant Bank, the Defendants have not regularized their account with the Applicant Bank. Thus, the Applicant Bank got issued notices dated 21.02.2022 to the address given by the defendants, calling upon the Defendants to discharge their liability, despite the same the Defendants have not come forward to clear the debt due to the Applicant Bank.

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The Applicant Bank, a sum of Rs.21,39,577.40 /- (Rupees Twenty One Lakhs Thirty Nine Thousand Five Hundred Seventy Seven and paisa Forty Only), is due under Cash Credit (FKCC), as on 19.04.2022. The pendentelite/future rate of interest payable by the Defendants is @ 14.60% per annum, with yearly rests, including overdue interest @4% as per the terms of the agreement executed by the Defendants.

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OA No.945/2022

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The Applicant Bank, a sum of Rs.15,11,091/- (Rupees Fifteen Lakhs Eleven Thousand Ninety One Only), is due under Term Loan (AMTL)-1, as on 19.04.2022. The future interest payable by the Defendants is @ 14.45% per annum, with quarterly rests, including overdue interest @ 4% as per the terms of the agreement executed by the Defendants.

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The Applicant Bank, a sum of Rs.10,91,530/- (Rupees Ten Lakhs Ninety One Thousand Five Hundred Thirty Only), is due under Term Loan (AMTL)-2, as on 19.04.2022. The future interest payable by the Defendants is @ 14.45 % per annum, with quarterly rests, including overdue interest @4% as per the terms of the agreement executed by the Defendants. The defendants failed to settle the liability of the amounts due to the Applicant Bank. The Applicant Bank submits that the Defendants, after availing the loans, failed to repay the loan amount and committed

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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 13.07.2022, duly served, Acknowledgment produced. When OA was taken up on 13.01.2023, even after giving sufficient time, there was no appearance or representation from the defendants, hence, Defendants No.1 & 2 was placed ex-parte on 13.01.2023.

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OA No.945/2022

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Heard the submissions of Counsels and perused the records.

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To prove the case, Sri.Nisha .P. John. D/o. John.P.I. aged about

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47 years, Associate, Vice President 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 A16. As the defendants remained ex-parte, the OA claim remains unchallenged.

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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 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 jointly or severally, a sum of Rs.47,42,198.40 (Rupees Forty Seven Lakhs Forty Two Thousand One Hundred Ninety Eight and paisa Forty Only). Out of which:

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i) Directing the defendants No.1 & 2 jointly, severally pay a sum of Rs. 21,39,577.40 (Rupees Twenty One Lakhs Thirty Nine Thousand

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OA No.945/2022

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Five Hundred Seventy Seven and paisa Forty Only) with future interest @ 14.60% per annum with yearly rests, under Cash Credit (FKCC) Loan

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ii) Directing the defendants No.1& 2 jointly, severally to pay a sum of Rs.15,11,091/- (Rupees Fifteen Lakhs Eleven Thousand Ninety One Only) with future interest @ 14.45% per annum with quarterly rests, under Term Loan (AMTL)-1

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iii) Directing the defendants No.1 & 2 jointly, severally to pay a sum of Rs.10,91,530/- (Rupees Ten Lakhs Ninety One Thousand Five Hundred Thirty Only) with future interest @ 14.45% per annum with quarterly rests from 19.04.2022, under Term Loan (AMTL)-1 till the date of 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

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OA No.945/2022

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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 18th day April 2024].

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Sd/-

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PRESIDING OFFICER DRT-II, BENGALURU

OA No.945/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Shrikrishna Sharma, Associate Vice-President, of the Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Sl. No	DESCRIPTION	EXHIBITS
1.	Loan Application for Agricultural Loans	A3
2.	Sanction letter dated 07.11.2018	A4
3.	Agreement for Agricultural Loan dated 07.11.2018	A5
4.	Registered Deed of Mortgage dated 07.11.2018	A6
	A/c No.18276600000026 & 18276600000034
5.	Loan Application for short Term Loans dated 07.11.2018	A7
6.	Sanction letter dated 25.04.2019	A8
7.	Agreement for Agricultural Loan dated 25.04.2019	A9
8.	Letter of Extension of Mortgage dt :25.04.2019	A10
9.	Balance Confirmation dated 25.04.2019	A11
10.	Recall Notice dated	A12
11.	Postal Receipts and Returned covers	A13
12.	Statement of Account Extract in respect of A/c No. 18275500000086	A14
13.	Statement of Account Extract in respect of A/c No. 18276600000026	A15
14.	Statement of Account Extract in respect of A/c No.18276600000034	A16

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OA No.945/2022

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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 PROPERTIES

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(The Property owned by Defendant No.1)

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ITEM No.1

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All that Piece and parcel of Agricultural Property bearing Survey No.46 P 124, measuring 1 Acre, Situated in Kaggalipura Village, Uttarahalli Hobli, Bengaluru South Taluk bounded on :

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East by	:	Road
West by	:	Government Canal
North by	:	Property belongs to Sadiqunnissa Aziz
South by	:	Property belongs to Sri. Ramanna

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ITEM No.2

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All that Piece and parcel of Agricultural Property bearing Survey No.46 P 85, measuring 1 Acre, Situated in Kaggalipura Village, Uttarahalli Hobli, Bengaluru South Taluk bounded on :

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East by : Road West by : Government Canal North by : Property belongs to Smt.Laikh Unnisa Aziz South by : Property belongs to Sri. Ramanna

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Sd/PRESIDING OFFICER DRT-II, BENGALURU

The Federal Bank Limited v. Smt Sadiqunnisa Aziz

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The Federal Bank Limited v. Smt Sadiqunnisa Aziz

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