KARNATAKA GRAMIN BANK vs PUNDALIK RAO on 28 April 2023

FINAL ORDER

The present Transfer Application (TA) is filed on 02.12.2019 under section 19 of the Recovery of Debts due and Bankruptcy Act 1993 for recovery of a sum of Rs.23,30,923/- (Rupees twenty three lakh thirty thousand nine hundred and twenty three Only) with further interest thereon from the date of filing the Application till realization from the defendants.

2. The application filed is within the period of limitation as prescribed under Section 24 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993, and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal. Brief facts of the case:

3. In the case of the Applicant Bank that the Defendant No.1 as Borrower and Defendant No.2 as Guarantor, had approached the Applicant Bank and availed credit facility i.e., Farm Mechanization Loan of Rs.4,00,000/- for the purpose of purchase of Sonalika 740 Tractor for development and improvement of land. Considering the proposal to the Defendants, the applicant bank sanctioned the Farm Mechanization Loan of Rs.4,00,000/- vide sanction letter dated 28.12.2007 and defendant agreed to repay the loan within 9 years, in 18 half yearly installments comprised of Rs.22,300/- X 16 Half yearly installments and Rs.21,600 X 2 Half yearly installments. The first installment should commence exactly in the month of July 2008 from the date of first disbursement. Half yearly interest shall be paid along with the installments. The defendant have agreed to pay interest @ 14% p.a. compounded half yearly and penal interest of 2% p.a. in the case of default in payment of the half yearly installments, over the defaulted installments. The applicant issued the Demand Draft date 29.12.2007 bearing No. 520851 for a sumo of Rs.4,51,000/- to the Dealer Vijay Motors, Bambu Bazaar, Filter Bed Road, Gulbarga.

5. The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. Defendants executed Loan Agreement and Mortgage Deed and Guarantee Agreement dated 28.12.2007 and also executed Certificate of registration dated 13.02.2008 in favour of the applicant bank.

8. The Applicant Bank submits that the Defendants, after availing the said facilities, failed to repay the loan amount and committed default. The Applicant bank through its Counsel issued a Legal Notice dated 24.04.2017 calling upon the defendants to repay the entire outstanding loan amount. The default in repayment continued and there was no positive response from the defendants. Hence, this Original Application (OA) has been filed to recover the dues from the defendants. Due to bifurcation of territorial jurisdiction, the OA filed before DRT-I is transfer to DRT-2 assigned TA No.117/2019

9. After the filing of the OA, summons was sent to the Defendant Nos.1 to 2 through RPAD, the same is duly served on 11.03.2020. Therefore, service held sufficient. When OA was taken up on 25.03.2022 even after giving sufficient time, there was no appearance or representation from the defendants; hence, Defendant Nos.1 & 2 was place exparte on 25.03.2022.

Heard the submissions of Applicant Bank and perused the records.

10. To prove the case of the Applicant Bank, Sri. Abhay Kumar S/o Sri. Abdhesh Kumar, Manager 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 A11. 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.

11. 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:

12. The TA is allowed with costs,

(a) The applicant bank is allowed to recover from Defendants an amount of Rs.23,30,923/- (Rupees twenty three lakh thirty thousand nine hundred and twenty three Only) together with current interest @ 14.5% p.a. compounded half yearly from 02.12.2019 and till the 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 mortgaged 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) 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 defendants 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 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.

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 28th Day of April 2023].

Sd/- PRESIDING OFFICER DRT-2, BENGALURU

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sri. Abhay Kumar S/o Sri. Abdhesh Kumar, Manager of Applicant Bank.

Exhibits on the part of the Applicant:

Exhibit Nos. Particulars of Documents Date A1 Applicant Evidence

A2 List of Documents.

A3 Appraisal Report cum Loan Application for Tractor Loan submitted by Sri. Pundalik Rao S/o Shva Rao Yentagi as the borrower in favour of the applicant for Tractor and Trailer Loan of Rs.4,00,000/-(Rupees four lakh only) 28.12.2007 A4 Loan Agreement executed by Sri. Pundalik Rao S/o Shiva Rao Yentagi as the borrower in favour of the applicant for Tractor and Trailer Loan of Rs.4,00,000/-(Rupees four lakh only) 28.12.2007 A5 Guaratee Agreement executed by Sri. Ravindra S/o Basappa Halgi in favour of the applicant for Tractor and Trailer Loan of Rs.4,00,000/-(Rupees four lakh only) 28.12.2007 A6 Mortgage Deed executed by Sri. Pundalik Rao S/o Shiva Rao Yentagi as the borrower in favour of the applicant for Tractor and Trailer Loan of Rs.4,00,000/-(Rupees four lakh only) 28.12.2007 A7 Certificate of Registration of Sonalika 740 Tractor bearing Regn. No. KA-32 T-9435 13.02.2008 A8 Legal Notice issued by executed by the applicant through its Counsel to the defendants. 24.04.2017 A9 Reply sent by the 1st defendant 09.05.2017 A10 Acknowledgement card of the 2nd defendant 28.04.2017 A11 Statement of account of Tractor Loan bearing old No. 000000200900076, new A/c No.00915326005207 25.10.2019

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

SCHEDULE ‘A’ The Properties mortgaged by the owner Sri. Pundalik Rao/Defendant No.1 in favour of the applicant bank.

All that piece and parcel of agricultural lands bearing Sy. No. 37/B measuring 6 acres 21 guntas and Sy. No. 50/A, measuring 6 acres 20 guntas, both situated at Gadikeshwar Village, Chincholi Taluk, Gulbarga District, now Kalburgi District.

Sy. No. 37/A is bounded as follows: East by: Land of Sy. No. 37 West by: Land of Sy. No. 35 North by: Land of Sy. No. 38 South by: Land of Sy. No. 36

Sy. No. 50/A is bounded as follows: East by: Road West by: Govt. Land North by: Land of Basavanna South by: Land of Imamsab

SCHEDULE ‘B’ (Description of the Hypothecated Tractor)

Sonalika 740 Tractor bearing Registration No. KA 32-T-9435 with Chassis No. FZISY1186683, Engine No.3097 FL72E118566 at Pangeraga and Gadikeshwar Village, Chincholi Taluk, Gulbarga District, now Kalburgi District.

Sd/- PRESIDING OFFICER DRT-2, BENGALURU