Allowed

Canara Bank v. Sri. Davalasab H. Desai

DRT19 Feb 2024TA/1/2022

Case brief

AI extract

What is this about?

The DRT-II, Bengaluru allowed an original application filed under Section 19 of the RDBFI Act. The court upheld the petitioner's claim for recovery of loan dues and penal interest as the claim was within limitation and unchallenged due to respondents' absence.

What did the court decide?

Recovery of Rs.53,64,891/- plus future interest at 13.45% and 2% penalty from the applicants; liberty to sell mortgaged or personal assets in case of default.

Canara Bank versus Sri. Davalasab H. Desai — 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 February 2024

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Present: SMT. S. V. GOWRAMMA

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Hon’ble Presiding Officer

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TA NO.1/2022

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BETWEEN:

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Canara Bank, Gadag Branch, Neeralagi Village & Post, Gadag Taluk & District Represented by: It’s Senior Manager Sri. Sunil Ganapat Metre

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…APPLICANT

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AND

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Sri. Davalasab.H. Desai

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S/o. Husenasab.G.Desai

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Aged about 45 years

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Sri. Jeevanasab.h. Desai S/o.Husenasab.g.desai Aged about 35 years

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Sri. Gurappa.B. Madiwalar S/o.Basappa Madiwalar Aged about 45 years

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All are R/at

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Neeralagi Village & Post, Gadag Taluk & District

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…DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Malini Vinay Defendants Nos.1 to 3 : Ex-parte.

TA No.1/2022

FINAL ORDER

The present Original Application (OA) is filed on 31-03-2022 under section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of a sum of Rs.53,64,891/-(Rupees Fifty Three Lakhs Sixty Four Thousand Eight Hundred and Ninety One 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 Defendants Nos.1 and 2 are the agriculturists who have borrowed loan from the Applicant Bank. The 3^rd Defendant is the guarantor to the loan. An amount of Rs.6,15,000/- was availed by the 1^st and 2^nd defendants on 28.10.2005 for purchase of tractor which was used for agricultural purposes. The loan was sanctioned @ 10 % interest p.a & had to be repaid in 9 years, in yearly instalments of Rs. 68,500 /- and last year installment of Rs.67,000/- each with interest. Repayments were to start from 01.07.2006. The tractor purchased out of bank finance was hypothecated to the bank. The 1^st and 2^nd defendant have also executed an agreement for the agricultural advance & accepted the contractual rate of interest & other terms & conditions of repayment of the loan and 3^rd defendant has

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TA No.1/2022

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guaranteed the repayment of this loan. The documents were executed with regard to this loan: Application cum appraisal form along with Sanction Note on 24.10.2005 by 1^st and 2^nd Defendants. Registered Simple Mortgage Deed executed by 1^st and 2^nd defendants on 11.10.2005 mortgaging the B schedule properties. Acknowledgement of amount availed dated 28.10.2005 by defendants, Agreement for agricultural advances by 1^st and 2^nd Defendants on 28.10.2005, Deed of guarantee for agricultural advances along with a covering letter executed by 3rd Defendant on 28.10.2005, Quotation for tractor by Pragathi Agro Engineering on 20.10.2005,

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Letter of revival executed by 1^st and 2^nd defendants on 22.10.2008, 29.09.2011, 02.08.2017, Acknowledgment of debt and Security executed by 1^st and 2^nd defendants on 05.09.2014, Acknowledgment of debt and Security executed by 1^st and 2^nd defendants on 27.03.2020.

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The Applicant Bank sanctioning the loan, the 1^st and 2^nd defendants have mortgaged agricultural lands which is more fully described in schedule B on 11.10.2005. The defendants are liable to repay the loan dues and also liable to pay an additional 2% interest over & above the normal rate of interest in case of default. The rate of interest is subject to variation from time to time

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The Defendants has failed and neglected to pay to the Applicant Bank 6.

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the liability under the aforesaid loan including interest in terms of the

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TA No.1/2022

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Agreement. The Defendants has also committed some other defaults in

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terms of the loan agreements. In view of the continued default on the part of the Defendants in repayment of the outstanding dues. Calling upon the Defendants to repay the outstanding balance. 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

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Nos.1 to 3 by Applicant Bank by RPAD on 08.06.2022, duly served Acknowledgement produced, when OA was taken up on 11.09.2023, even after giving sufficient time, there was no appearance or representation

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from the defendants, hence, Defendants Nos. 1 to 3 was placed ex-parte on 11.09.2023.

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Heard the submissions of Counsels and perused the records.

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To prove the case, Mr. Sunil Ganapat Metre, 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 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

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TA No.1/2022

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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 defendants jointly or severally to pay a sum of Rs.53,64,891/-(Rupees Fifty Three Lakhs Sixty Four Thousand Eight Hundred And Ninety One only) being the amount claimed in the application together with future interest at 13.45% for the loan plus 2% penal interest from the date of the application till realization with yearly interests.

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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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TA No.1/2022

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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

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from the date of this final order.

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

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Recovery Officer in terms of the final order.

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

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[Dictated to the (GS), transcribed by her, corrected and signed by me on this the 19^th day of February 2024]

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Sd/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.Sunil Ganapat, Senior Manager of the Applicant Bank.

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Exhibits on the part of the Applicant:

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TA No.1/2022

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SL. NO	PARTICULARS	DATE	Exhibits
1.	Application cum appraisal form along with sanction note by 1^stand 2^ndDefendants.	24.10.2005	A3
2.	Registered simple mortgage deed executed by 1^stand 2^nddefendants	11.10.2005	A4 & A5
3.	Acknowledgement of amount availed	28.10.2005	A6
4.	Agreement for agricultural advances by 1st and 2nd Defendants	28.10.2005	A7
5.	Deed of guarantee for agricultural advances along a covering letter executed by 3^rdDefendant	28.10.2005	A8 & A9
6	Quotation for tractor by pragathi agro engineering	20.10.2005	A10
7.	Letter of revival executed by 1^stand 2^nd defendants	22.10.2008	A11
8.	Letter of revival executed by 1^stand 2^nd defendant	29.09.2011	A12
9.	Acknowledgment of debt and Security executed by 1^stand 2^nddefendants	05.09.2014	A13
10.	Letter of revival executed by 1^stand 2^nd defendants	02.08.2017	A14
11.	Acknowledgment of debt and Security executed by 1^stand 2^nddefendants	27.03.2020	A15

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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:

-Nil –

TA No.1/2022

1. SCHEDULE “A” : Hypothecation of Tractor

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SCHEDULE ‘B’

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I. Agricultural Land belonging to 1^st and 2^nd defendants bearing Sy.No.114/1+2A, situated at Neeralagi Village and Post, Gadag Taluk & District measuring 4.36 Acres and bounded on:

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East by	:	Land of Ibrahimpur Irappa
West by	:	Land of Vanageri Manjunath
North by	:	Land of Ibrahimpur Yallappa
South by	:	Land of Andavva Angadi

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II. Agricultural Land belonging to 1^st and 2^nd defendants bearing

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Sy.No.197/2, situated at Neeralagi Village and Post, Gadag Taluk & District measuring 2.34 Acres and bounded on:

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East by	:	Land of Masagi Mahadevappa
West by	:	Bleri Road
North by	:	Land of Fakeerasab
South by	:	Land of Abbigeri Davalasabha

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III. Agricultural Land belonging to 1^st and 2^nd defendants bearing Sy.No.203/2A/1, situated at Neeralagi Village and Post, Gadag Taluk & District measuring 8.06 Acres and bounded on:

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		TA No.1/2022
East by	:	Land of kariyappa Abbigeri
West by	:	Land of Ningappa Yallappa Umachagi
North by	:	River
South by	:	Road
		Sd/-
		PRESIDING OFFICER
		DRT-II, BENGALURU

Canara Bank v. Sri. Davalasab H. Desai

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Davalasab H. Desai

Case brief

What is this about?

What did the court decide?

What the court decided

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Case details

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