Allowed

Canara Bank v. Sri.Sathish

DRT28 Feb 2025OA/82/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Canara Bank's application for issuance of a Recovery Certificate. The court held the uncontroverted evidence of default proved, permitting recovery of the principal sum plus interest and authorizing execution against mortgaged properties and personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 30,01,572/- with 12% interest; liberty to proceed against schedule properties and personal assets for balance; cost awarded.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28th day of February 2025

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PRESENT: SHRI T. RAJESH

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PRESIDING OFFICER

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OA NO.82/2024

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CANARA BANK, (Erstwhile Syndicate Bank) SME Branch, P B No.10, Kamath Building Kundapura-576201, Udupi District. Rep. by its Senior Manager Sri. Vittala Naik ... Applicants

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Versus

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Sir. Sathish S/o. Sri. Rama Markala, Aged 43 years, H No.2-393, Sampreeth Beach Road, Kumbhashi, Kundapura-576 257 Udupi District.

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Smt. Prameela K W/o. Sri. Sathish Aged 39 years, H No.2-393 Sampreeth . Beach Road, Kumbhashi, Kundapura-576 257, Udupi District. ... Defendants Counsel on record / appeared : For Applicant : Shri Raghavendra G.K. For Defendants : Ex parte …….

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2 OA 82/2014

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O R D E R

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The Applicant bank has approached this Tribunal by filing this Original Application (OA) seeking issuance of a Recovery Certificate for Rs.30,01,572/- (Rupees thirty lakh one thousand five hundred and seventy two only) the amount claimed to be due from the Defendants in lieu off the alleged defaults committed by them in the Housing loan availed by them.

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It is the case of the applicant that despite having availed a Housing loan for Rs.28,00,000/- for the construction of house by obliging themselves to pay back the amount promptly and regularly, Defendants committed chronic defaults compelling the applicant to file this application seeking recovery of amount due by proceeding against the Defendants personally and their assets including the mortgaged schedule properties.

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The applicant contends that due to defaults committed by the Defendants the account is classified as Non-Performing Asset (NPA) and a notice was also issued as contemplated u/s 13(2) of the

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3 OA 82/2014

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SARFAESI Act and a Legal Notice dated 01.10.2023. Despite the

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same, no payment was forth coming.

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Summons taken out and D1 was served. Summons issued to the 2^nd defendant had been returned as “Unclaimed”. Holding that the summons on 2^nd defendant as duly served, the defendants were set ex parte on 21.8.2024.

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Applicant filed proof affidavit in lieu of evidence and marked loan documents and statement of accounts which got marked as Ex.A3 to A13 in evidence.

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Heard the counsel for the applicant and considered the claim in the light of pleadings and evidence.

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The only issue arise for consideration is, whether the applicant had succeeded in proving the claim as made in the OA.

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The available evidence in this application is the evidence as let in by the applicant through the proof affidavit and the documents marked as Ext.A3 to A13. The evidence let in by the applicant remains uncontroverted and hence had to be held as proved. The documents

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4 OA 82/2014

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produced by the applicant are found admissible and sufficient to prove the OA claim.

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Since the OA claim is arrived at by calculating interest at agreed rate, which remains undisturbed and taking notice of the fact that the facility availed is a housing loan, pendente lite and future interest is awarded at a simple rate, that too at reduced rate.

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In the result :-

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i) OA No.82 of 2024 stands allowed;

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ii) The applicant is permitted to recover the amount of Rs.30,01,572/- (Rupees thirty lakh one thousand five hundred and seventy two only) with pendente lite and further interest @12 % from the date of filing of the OA till realization from the Defendants;

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iii) In the event of default by Defendants in paying the amount due as aforesaid, after giving credit to all the amounts recovered and realized during the pendency of the OA, the Applicant bank is at liberty to recover the balance amount due by proceeding against the property described in the Schedule to the OA; the property schedule to the OA be the schedule to the Recovery Certificate;

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5 OA 82/2014

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iv) If the sale proceeds of the OA schedule property are not sufficient

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to satisfy the dues as ordered above, the Applicant is permitted to proceed against the Defendants jointly, severally and personally and the other assets of the Defendants;

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v) Applicant is permitted to realize cost of the proceedings for which cost memo to be filed in seven days from the date of issuance of the order;

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vi) A Recovery Certificate to be drawn in terms of this final order to

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recover the amount due by the Defendants;

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vii) Interim application pending, if any, stands disposed of with this

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Final Order;

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viii) A copy of this order be communicated to the parties concerned

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in terms of Section 19(21)(i) of the Act read with Rule 16 of DRT(Procedure) Rules 1993.

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( Dictated to my PA directly on the Computer, corrected and then pronounced by me in the open court, on this 28th day of February, 2025 )

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Sd/- (T. RAJESH) PRESIDING OFFICER

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6 OA 82/2014

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Exhibits on the part of the Applicant:

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Exhibit	Documents
A1	Applicant’s Evidence
A2	List of documents
A3	Housing Loan Agreement dated 19.04.2022
A4	Memorandum of Deposit of title deeds dt 11.04.2022
A5-A9	Office copy of Demand Notice, Postal Receipts (2 Nos), returned postal cover and acknowledgment card
A10-A12	Office copy of Legal Notice, Postal Receipt and Acknowledgment Card
A13	Statement of account Extract

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sri.Sathish

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri.Sathish

Case brief

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What did the court decide?

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