STATE BANK OF INDIA vs SRI,SATHYAPPA SHANTHAPPA NADAGERI (SINCE DECEASED REP BY HIS LRs) on 1 January 2025

**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU**

Dated this 1^st Day of January, ²⁰²⁵2024

**Present: Sri. Imtiaz Ali Hon'ble Presiding Officer In-charge**

**TA. No.1501/2017**

*This correction made as Per the direction of Hon'ble P.o. in TA 1501/2017 dt. 9/1/2025.*

**BETWEEN:**

State Bank of India Having its Corporate Centre at Madame Cama Road, Nariman Point, Mumbai and a Branch office at 1^st floor, HKCCI Building, Super Market Gulbarga-585101 Rep. by its Assistant General Manager, Sri. D.F. Sannakki

*V. Gulbarga 10/1/25 Registrar*

**...Applicant**

**And:**

Sri. Satyappa Shantappa Nadageri, Since deceased, Rep. by his LRs 1(a) Sri. Ashok S Nadageri S/o. Sri. Late Satyappa S Nadageri Major,

1(b) Sri. Mallikarjun S Nadageri S/o. Sri. Late Satyappa S Nadageri Major,

Both are Residents of #17/1, Ghatge Layout, MSK Mill Road, Gulbarga - 585102

**... Defendants**

**Counsel on record/appeared for:**

Applicant : Sri. G.N. Satya Murthy Defendants : Exparte

2TA.1501/2017**:FINAL ORDER:**

The present Original Application (OA) has been filed on 11.03.2016, under section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 for recovery of as aggregate sum of Rs.25,69,752/- (Rupees Twenty Five Lakh Sixty Nine Thousand Seven Hundred Fifty Two Only) with further interest thereon and costs, from the respective Defendants.

2. The application filed is within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act 1993 and the subject recovery claim falls within the jurisdiction of this Tribunal.

**Brief facts of the case:**

3. It is the case of Applicant bank that the father of defendant Nos. 1(a) and 1(b) approached the applicant bank to avail an agricultural term loan facility of Rs.5,89,000/- only under a loan application dated 04.05.2006. The applicant bank sanctioned the Agricultural Term Loan facility of Rs.5,89,000/- for the purchase of tractor, Trailor and other equipments, vide sanction letter dated 04.05.2006. The terms and conditions of the sanction were duly communicated to the father of defendant Nos.1(a) and 1(b) by the applicant bank under the letter of sanction stated above. The rate of interest agreed to be paid under the loan document, in respect of 3TA.1501/2017

the facility, is @ 11.75% p.a. with half yearly rests. The Term loan was repayable in 8 yearly instalments of Rs.65,400/- each and ninth yearly instalment of Rs.58,000/- along with interest and charges, thereon. The repayment was agreed to be commencing from May 2007.

4. It is submitted that the father of Defendant Nos. 1(a) and 1(b) hypothecated the crops grown in the lands and also all the moveable assets of the defendant including the Tractor, Trailer and other Equipments, receivables and investments, other movable assets and valuables. The father of defendant Nos. 1(a) and 1(b) executed a registered Mortgage over the Schedule II(A), (B) and (C) properties as security for the Agricultural Term Loan.

5. It is submitted that the father of defendants No.1(a) and 1(b) again approached the applicant bank to avail a crop loan facility of Rs.80,000/- under a loan application dated 11.07.2006. The applicant bank sanctioned the crop loan facility of Rs.80,000/-, vide sanction letter dated 11.07.2006. The rate of interest agreed to be paid under the loan document, in respect of the facility @ 10.00% p.a. with half yearly rests.

6. It is contended that the father of defendant No.1(a) and 1(b) executed the Hypothecation Agreement in Form -AB-1 dated 11.07.2006 and registered mortgage over the Schedule II(A), (B)

4TA.1501/2017

and (C) immovable properties as security for the Crop Loan of Rs.80,000/-.

7. It is submitted that, Sri. Satyappa Shantappa Nadageri is dead and the defendants No.1(a) and 1(b) are the sons and legal heirs/representatives of deceased Satyappa Shantappa Nadageri. The loans were availed by Satyappa Shantappa Nadageri. The schedule II (A), (B) and (C) properties were mortgage by deceased Sri. Satyappa Shantappa Nadageri. After his death the defendants No.1(a) and 1(b) being the LRs, have jointly succeeded to the schedule II (A), (B) and (C) properties belonging to and mortgage to the bank by deceased Sri. Satyappa Shantappa Nadageri and they are liable for sale proceeds arising out of schedule II (A), (B) and (C), having jointly succeeded to his estate. Therefore, the mortgage of schedule II (A), (B) and (C) properties created and extended by deceased Satyappa Shantappa Nadageri is enforceable against the defendant Nos.1(a) and 1(b) jointly and severally as legal heirs/representative of deceased Satyappa Shantappa Nadageri.

8. The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loan, interest, cost, charges and various loan documents in respect of loans in favour of the applicant bank.

5TA.1501/2017

9. After availing the credit facilities, Defendants failed and neglected to repay the dues and committed default. Hence, the account has classified as NPA. The applicant bank has issued a legal notice dated 24.01.2014 calling upon the defendants to make the payment of entire dues. However, the Defendant failed to repay the loan amount due. Therefore, the applicant bank has filed the present Original Application (OA) to recover the amount due from the Defendant.

10. After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, and returned with postal shara "Addressee left". Hence, summons through substitute service was taken and the Applicant Bank published on 11.11.2020 in two daily leading newspapers, "The Hindu" in English Newspaper and "Vijayavani" in Kannada Newspaper. When OA was taken up on 02.09.2024 even after giving sufficient time, there was no appearance or representation from the defendants; hence, Defendants were placed exparte on 02.09.2024.

*Heard the submissions of Applicant Bank and perused the records.*

11. To prove the case of the Applicant Bank, Sri. Gorakhanath Patil, S/o. Sri. Basavalingappa, Assistant Manager, 6TA.1501/2017

has filed his Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, the list of Document came to be marked as Ex.A2 and documents came to be marked as Ex.A3 to A13. 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.

12. Having regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed and also bearing in mind the loan is availed for the purpose of agriculture and using the powers conferred upon the Tribunal u/s 19(20) of the Act, this Tribunal comes to the conclusion that the applicant bank is entitled to a final order on the following terms.

**: O R D E R :**

13. The OA is allowed with costs,

a) The applicant bank is allowed to recover from Defendants jointly and severally a total of Rs.25,69,752/- (Rupees Twenty Five Lakh Sixty Nine Thousand Seven Hundred Fifty Two only), together with costs and interest thereon, consisting of:

i) Rs.23,43,451/- at 6.00% p.a. under the Agriculture Term Loan Account and 7TA.1501/2017

ii) Rs.2,26,301/- at 6.00% p.a., under the Crop Loan Account, from the date of filing this Application the date of realization; (b) In the event of failure of the defendant/s to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

(c) Schedule mentioned property in the OA shall be appended to this final order; (d) The Defendant Nos.1(a) & (b) being the legal heirs of the deceased Defendant No.1 are liable to the extent of the estate inherited by them from the Deceased Defendant No.1; (e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the defendant duly considering the amounts, if any, paid by the defendant 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 defendant to the applicant bank.

(f) The applicant bank shall file memo of costs within ten days from the date of this final order.

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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(h) Interim Application pending, if any, stands disposed of with this Final Order.

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

[Dictated to the (PR), transcribed by her, corrected and signed by me on this the 1st Day of January, of 2025]

(IMTIAZ ALI) **PRESIDING OFFICER** **I/c DRT-2, BENGALURU**

**ANNEXURES**

**WITNESSES EXAMINED FOR THE APPLICANT BANK:**

**AW-1:** Sri. Gorakhnatha Patil, Assistant Manager of the applicant bank **Exhibits on the part of the Applicant:**

<table border="1"> <thead> <tr> <th><b>Annexure</b></th> <th><b>Particulars</b></th> </tr> </thead> <tbody> <tr> <td>A1</td> <td>Applicant Evidence</td> </tr> <tr> <td>A2</td> <td>List of Documents</td> </tr> <tr> <td>A3</td> <td>Application for loan dated 04.05.2006</td> </tr> <tr> <td>A4</td> <td>Sanction letter dated 04.05.2006</td> </tr> <tr> <td>A5</td> <td>Hypothecation Agreement dated 04.05.2006</td> </tr> <tr> <td>A6</td> <td>Registered Mortgage Deed dated 04.05.2006</td> </tr> <tr> <td>A7</td> <td>Application for loan dated 11.07.2006</td> </tr> <tr> <td>A8</td> <td>Sanction letter dated 11.07.2006</td> </tr> <tr> <td>A9</td> <td>Hypothecation Agreement dated 11.07.2006</td> </tr> <tr> <td>A10</td> <td>Registered Mortgage Deed dated 11.07.2006</td> </tr> <tr> <td>A11</td> <td>Legal notice dated 24.01.2014</td> </tr> </tbody> </table>

9TA.1501/2017

<table border="1"><tr><td>A12</td><td>Certified Accounts Extract dated 08.03.2016</td></tr><tr><td>A13</td><td>Certified Accounts Extract dated 08.03.2016</td></tr></table>

**Witness Examined for the Defendants:** -Nil - **List of Documents Exhibited for the Defendants:** -Nil - **SCHEDULE 'T'**

The crops grown in the lands more fully described in Schedule II (A), (B) and (C) hereunder as also all the moveable Assets of the Defendants including the tractor, trailer, tools, equipments, fixtures and all other machineries, receivables and investments, other movable assets and valuables, including the assets generated out of the bank finance.

**SCHEDULE- II (A) (B) and (C)**

The agricultural lands bearing:

- A) Sy.No.202 measuring 05 Acres 31 Guntas

- B) Sy.No.206 measuring 13.00 Acres 12 guntas

- C) Sy.No.207 measuring 06.00 Acres 08 guntas Belonging to Defendants No.1(a) and 1(b)

All the lands at (A), (B) and (C) are situated at Savalgi (B) Village, Gulbarga Taluk, Gulbarga District.

*11.25* **(IMTIAZ ALI)** **PRESIDING OFFICER** **I/c DRT-2, BENGALURU**