Allowed

Canara Bank v. Sri.P Rajan

DRT28 Feb 2025OA/1997/2023

Case brief

AI extract

What is this about?

Application for Recovery Certificate filed against a defendant for an agricultural term loan default. Defendant absent. Tribunal found claim proven, reduced interest to 8% due to agricultural purpose, and allowed recovery against movable, immovable, and hypothecated assets.

What did the court decide?

Recovery of Rs. 23,11,980/-. Interest fixed at 8% simple. Suit filed against personal assets, hypothecated crops, and mortgaged schedule property. Recovery Certificate issued.

Canara Bank versus Sri.P Rajan — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of February, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.1997/2023

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BETWEEN:

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Canara Bank, Avathi Branch, Avathi, Devanahalli Taluk, 562 164 Bangalore Rural District, Represented by its Manager, Bhavya P.K.

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…APPLICANT

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AND:

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P. Rajan, S/o Late Pilla Munishamappa, Aged about 50 years, Bullahalli Village post, Vijayapura Hobli, Devanahalli Taluk, Bengaluru Rural Dist 562 110. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. M.R. Rajini Defendant : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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OA 1997/2023

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendant for Rs. 23,11,980/- (Rupees Twenty Three Lakhs Eleven Thousand Nine Hundred and Eighty Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed Agriculture Term Loan of Rs. 9,00,000/- (Rupees Nine Lakh Only) for Development of Grape Orchards.

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It is also the case of the applicant that, in view of the above financed loans, the defendant had executed necessary loan documents apart from creation of security by way of Registered simple mortgage and Hypothecation of crops in favour of the applicant bank.

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

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OA 1997/2023

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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 defendant, they failed to appear, resulting the defendant being set exparte on 21.08.2024.

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The applicant had 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-13 and got the 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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The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

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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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OA 1997/2023

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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 defendant and the claim of the amount due is also proved by the above documents. The claim

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of the applicant is well within the limitation.

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Taking into consideration the facts that the credit facilities

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are availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal

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in view of the OA can be allowed with a reduced interest of 8.00% (simple).

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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 1997/2023

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In the result, OA.No.1997/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. 23,11,980/- (Rupees Twenty Three Lakh Eleven Thousand Nine Hundred and Eighty Only) with further interest of 8 % p.a.(simple) from the date of filing OA till the realization

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from the defendant personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against schedule property.

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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 defendant personally, his assets, hypothecated crops are 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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Communicate a copy of the order to the parties concerned

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OA 1997/2023

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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

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me in the Open Court, this the 28^th Day of February, 2025].

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Sd/- (T. RAJESH) 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: Chouta Gangadhara Rao S/o Vasantha Rao, Chief Manager, of Applicant Bank.

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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	10.07.2015	Loan Application
A4	10.07.2015	Sanction letter
A5	03.08.2015	Memorandum of Agreement for Agricultural loans
A6	09.01.2018	Letter of Revival
A7	02.01.2018	Letter of Revival
A8	10.07.2015	Simple Mortgage
A9	--	RTC for the period 2014-15 for Sy.No. 26/1
A10	09.06.2023	Legal Notice
A11	--	Postal Receipt
A12	--	Postal Acknowledgement
A13	04.11.2023	Statement showing the balance outstanding in the loan A/c of the Defendants.

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OA 1997/2023

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

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SCHEDULE PROPERTY REFERRED ABOVE (MOVABLE ITEMS HYPOTHECATED BY DEFENDANT i.e, P. RAJAN)

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Hypothecated items such as crops grown or to be grown on the land bearing Sy.No. 26/1, Bullahalli Village, Vijayapura Hobli, Devanahalli Taluk, or at any other places where such items are stored/ to be stored.

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(IMMOVABLE PROPERTY MORTGAGED BY THE BORROWER i.e., DEFENDANT- P. RAJAN)

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All the piece and parcel of Agriculture land bearing Sy.No. 26/1, Bullahalli Village, Vijayapura Hobli, Devanahalli Taluk, measuring 2 acres 8 guntas, together with rights of passages, heriditaments, easementary rights and the said Land, within the limits of Anekal Registration Dist. and the said land is bounded by:

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East By : Raja Kaluve West By : Raja Kaluve North By : Land belonging to Jayamma South By : Land belonging to K. Narayanappa

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Sd/- (T. RAJESH) DRT-II, BENGALURU

Canara Bank v. Sri.P Rajan

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri.P Rajan

Case brief

What is this about?

What did the court decide?

What the court decided

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