CANARA BANK vs SRI. M.N RAMACHANDRA on 10 April 2024

FINAL ORDER

The Application was originally filed before the Debts Recovery Tribunal-1, Bangalore under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 on 26.02.2016 and numbered as OA. No. 2128/2016, seeking recovery an sum of Rs.10,30,927/- (Rupees Ten Lakh Thirty Thousand Nine Hundred and Twenty Seven Only) with further interest thereon and costs from the Defendants.

2. Subsequently, in view of the Government of India Notification & Official Gazette dated 30.01.2017, the case was transferred to this Tribunal and renumbered as TA.1479/2017. Brief facts of the case:

3. It is the case of the applicant bank where in the Defendant as borrower had approached the applicant bank seeking for Farm Machinery Loan Rs.4,00,000/- (Rupees four lakh Only) an Loan Application Form dated 31.05.2005 for the purpose of purchase of tractor, trailer and other implements. After considering the proposal of the Defendant applicant bank sanctioned the for Farm Machinery Loan Rs.4,00,000/- (Rupees four lakh Only) vide sanction communication dated 31.05.2005 in loan account number No. 1896856003748 and along with interest @ 10.65% in respect of the said loan.

4. The defendant executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendant executed Memorandum of Agreement for Agricultural loans dated 31.05.2005 and Simple Mortgage Deed dated 26.05.2005 and Letter of Revival dated 02.03.2013 in favour of the Applicant Bank.

5. The Applicant Bank submits that the Defendant, after availing the said facilities, failed to repay the loan amount and committed default. The Applicant Bank issue a Legal Notice dated 20.02.2016 calling upon the defendants to repay the entire outstanding loan amount. However, there was no positive response from the Defendants. Hence, this Original Application (TA) has been filed to recover the dues from the Defendant.

6. After the filing of the TA, summons was sent to the Defendant through Registered Post with Acknowledgment Due the same is duly returned unserved with postal shara “No such person in this address” Hence, summons through substitute service was taken and the Applicant Bank published on 23.08.2019 in two daily leading newspapers, “The New Indian Express” in English Newspaper and “Kannada Prabha” in Kannada Newspaper. When TA was taken up on 12.03.2024 even after giving sufficient time, there was no appearance or representation from the Defendant; hence, Defendant was placed exparte on 12.03.2024.

Heard the submissions of Applicant Bank and perused the records.

7. To prove the case of the Applicant Bank, Sri. Suresh T, Manager, has filed 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 A11. As the Defendant remained ex-parte, the TA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

8. Having regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, 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:

9. The TA is allowed with costs,

(a) The applicant bank is allowed to recover from Defendant to pay an amount of Rs.10,30,927/- (Rupees Ten Lakh Thirty Thousand Nine Hundred and Twenty Seven Only) along with current and future interest from 07.12.2015 at the rate of 14.20% p.a. with penal interest @ 2% p.a. from the date of the TA Application and till date of realization.

(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 property in the TA;

(c) Schedule mentioned property in the TA shall be appended to this final order; (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 movable and immovable) respectively to recover the balance dues as required under law;

(e) The applicant bank shall file the latest memo of calculation of TA amount together with interest, costs etc., to be paid by the defendants 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 TA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by the respective defendants 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.

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

Order.

10. A copy of this order be communicated to the parties concerned. [Dictated to the (CS), transcribed by her, corrected and signed by me on this the 10th Day of April 2024].

Sd/- PRESIDING OFFICER

DRT-II, BENGALURU ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sri. Suresh T, Manager, of Applicant Bank. Exhibits on the part of the Applicant: Exhibit Nos. Particulars of Documents A1 Applicant Evidence

A2 List of Documents. A3 Copy of the loan application form dated 31/05/2005. A4 Copy of the Sanction Memorandum dated 31/05/2005. A5 Copy of the Memorandum of agreement for agricultural loans dated 31/05/2005. A6 & A7 Copies of the RC Book reflecting Hypothecation in the name of Applicant Bank. A8 The copy of the Simple Mortgage deed dated 26/05/2005. A9 Copy of the Letter of revival dated 02/03/2013. A10 The copy of the statement of accounts along with Bankers Book of Evidence. A11 The copy of the legal notice along with postal receipt dated 20/02/2016. Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil - SCHEDULE PROPERTIES

SCHEDULE ‘A’ PROPERTY

Tractor bearing registration no. KA 13 J 8278 and trailer bearing registration no. KA 13 J 8279. SCHEDULE ‘B’ PROPERTY

SL. NO. SY. NO. EXTENT A – G Location Boundaries

1P/77 3.25 Manjenahalli Kaval, Gandsi Hobli, Arasikere Taluk & Hassan District. East: Thimmegowda land West : Marigowda land South: M N Ramachandra land North: Laxmamma land

1P/79 3.10 Manjenahalli Kaval, Gandsi Hobli, Arasikere Taluk & Hassan District. East : Honnegowda land West : C H Honnappa land South : C H Honnappa land North : Marigegowda’s land

Sd/- PRESIDING OFFICER

DRT-II, BENGALURU