Allowed

Canara Bank (Syndicate Bank) v. Sri. Kondaiah .S

DRT21 Mar 2025OA/12/2022

Case brief

AI extract

What is this about?

In an original application under the RDB Act for a recovery certificate for a housing loan default, the Tribunal allowed the application ex parte due to the defendants' failure to appear, finding the bank's evidence sufficient and directing the issue of a certificate with reduced interest.

What did the court decide?

The applicant is allowed to recover Rs. 25,83,000 with further interest @ 10% p.a. (simple) from the date of filing till realization, to be recovered by proceedings against the schedule property and o

Canara Bank (Syndicate Bank) versus Sri. Kondaiah .S — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 21^th Day of March, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.12/2022

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BETWEEN:

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Canara Bank, (Erstwhile Syndicate Bank) Bylakuppe Branch, Periyapatna Taluk, Mysore District- 571 104.

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…APPLICANT

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AND:

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Mr. Kondaiah.S, S/o. Late. Sannegowda, Aged about 58 Years.

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Mrs. P. Grace Shobha, W/o. Mr. Kondaiah.S, Aged about 56 years.

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Defendant No. 1 & 2 are, R/a.No. 206, By Pass Road, 4^th Block, Kushalnagar Town, Somawarpet Taluk.

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Mr. Nasir M.E, S/o. Late. M.E. Ebrahim, Aged about 47 years, R/a. D. No. 2-146-3, Auvabi Layout, Dandinpet, Kushalnagar, Kushalnagar- 571 234.

...DEFENDANTS

OA 12/2022

Counsel on record/appeared for:

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Applicant : Sri. Rohit R Achar Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 25,83,000.00 (Rupees Twenty Five Lakh Eighty Three Thousand Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the 1^st defendant as the borrower and other two defendants as guarantors has availed a Housing Loan for Rs. 25,00,000/- (Rupees Twenty Five Lakh Only) from the Erstwhile Syndicate Bank which got amalgamated with the applicant.

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It is also the case of the applicant that, in vlieu of the above availed loans, the defendant executed necessary loan document and had also executed stamped consideration receipt, housing loan agreement and registered memorandum of deposit of title deeds in favour of the applicant bank.

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OA 12/2022

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 25.07.2024.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-9 which got same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA, in the light of documentary evidence and proof affidavit.

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OA 12/2022

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the

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OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application

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remains unrebutted as defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, the

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Tribunal find both these issues in favour of applicant and hence,

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this Tribunal is of the view that OA is liable to be allowed.

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OA 12/2022

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Taking into consideration the facts that the credit facilities

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are availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of

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10.00% (simple).

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In the result, OA.No.12/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. 25,83,000.00 (Rupees Twenty Five Lakh Eighty Three

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Thousand Only) with further interest @10 % p.a.(simple) from

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the date of filing OA till the realization from the defendants, after giving credit to all the amount recovered and received during the

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pendency of the OA and allowed the same to be recovered by proceedings against schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the

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defendants jointly, severally & personally and thier assets are

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OA 12/2022

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liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of

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receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of

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in terms of this final order.

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14. Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 21^th Day of March, 2025].

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Sd/- (T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mahesh Gunari S/o. Sri. Veerappa, Chief Manager, of Applicant Bank.

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OA 12/2022

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant Evidence
A2	--	List of Documents.
A3	30.05.2014	Loan application
A4	10.06.2014	Sanction letter
A5	11.06.2014	Stamped Consideration receipt
A6	11.06.2014	Housing loan Agreement
A7	19.06.2014	Regd. Memorandum of Deposit of Title deeds
A8	24.05.2017	Securitisation Notice
A9	--	Account Extract

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank (Syndicate Bank) v. Sri. Kondaiah .S

Case brief

What is this about?

What did the court decide?

Canara Bank (Syndicate Bank) v. Sri. Kondaiah .S

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

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Case details

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