CANARA BANK vs SMT..MUBEENA. K.H. on 7 August 2023

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 20.12.2016 and numbered as OA. No. 2362/2016, seeking recovery an sum of Rs.14,85,186.20 (Rupees fourteen lakh eighty five thousand and one hundred eighty six and paise twenty 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.1238/2017. Brief facts of the case: Can Budge (CBG-7)

3. In the case of the applicant bank the Defendant No.1 as borrower, Defendant No.2 Co-obligant/Guarantor. During the year 2013, the 1st Defendant had approached the Applicant Bank for procuring financial assistance for can Budge (CBG-7) Loan of Rs.1,00,000/- (Rupees one lakh only) on 25.10.2013 for purpose of personal use. Considering the request, applicant bank sanctioned the Can Budge (CBG-

7) Loan of Rs.1,00,000/- (Rupees one lakh only) vide sanction letter dated 25.10.2013 in Loan A/c No. CBG 0655626000007. The loan was repayable in 36 equated monthly installments of Rs.3464.00 with the interest @ 14.95% p.a. and additional interest @ 2% p.a. in the event of default.

3.1. 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, and Defendants executed Agreement of Demand Promissory Note and Take Delivery Letter dated 25.10.2013 and also executed Letter of Revival dated 29.03.2016 in favour of the applicant bank. Canara Vehicle (CMB 7827) Loan

4. Further, During the year 2013, the Defendants had approached the Applicant Bank for procuring financial assistance for Canara Vehicle (CMB 7827) Loan of Rs.10,00,000/- (Rupees ten lakh only) on 26.12.2013 for purpose of purchasing a Toyota Innova Vehicle. Considering the request, applicant bank sanctioned the Canara Vehicle (CMB 7827) Loan of Rs.10,00,000/- (Rupees ten lakh only) vide sanction letter dated 26.12.2013 in Loan A/c No. CMB 0655603007827. The loan was repayable in 72 equated monthly installments of Rs.18,881.00 which was repayment was to commence from 26.01.2014 with the interest @ 10.70% p.a. compounded monthly rests and additional interest @ 2% p.a. in the event of default.

4.1. 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, and Defendants executed Canmobile Agreement and Letter of undertaking dated 26.12.2013 and Guarantee Agreement and Guarantee Covering Letter dated 26.012.2013 and Declaration of Hypothecation dated 27.12.2013 and also executed Letter of Revival dated 29.03.2016 in favour of the applicant bank. ODCC 252 Loan

5. Further, During the year 2014, the Defendants had approached the Applicant Bank for procuring financial assistance for ODCC 252 Loan of Rs.5,00,000/- (Rupees five lakh only) on 03.12.2014 for purpose of Tailoring, Dress Designing and Embroidery unit. Considering the request, applicant bank sanctioned the ODCC 252 Loan of Rs.5,00,000/- (Rupees five lakh only) vide sanction letter dated 06.12.2014 in Loan A/c No. ODCC 0655261000252. The loan was tenure of three years with interest @ 10.20% p.a. compounded monthly rests and additional interest @ 2% p.a. in the event of default.

5.1. 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, and Defendants executed On Demand Promissory Note and Cash Credit Agreement dated 06.12.2014 and Letter of Undertaking and Request for Overdraft facilities dated 06.12.2014 in favour of the applicant bank.

6. The Applicant Bank submits that the Defendants, after availing the said loans, failed to repay the loan amount and committed default. The loan account of the Defendants had been classified as a Non Performing Asset (NPA) and the bank issued Legal Notice dated 07.11.2016 calling up on the Defendants to pay the outstanding loan amount. However, there was no positive response from the defendants. Hence, this Transfer Application (TA) has been filed to recover the dues from the defendants.

7. After the filing of the TA, summons was sent to the Defendant Nos.1 & 2 through Registered Post with Acknowledgment Due and the summons were duly served on 07.12.2019. When TA was taken up on 14.03.2022 even after giving sufficient time, there was no appearance or representation from the defendants; hence, Defendant Nos. 1 & 2 were placed exparte on 14.03.2022. Heard the submissions of Applicant Bank and perused the records.

8. To prove the case of the Applicant Bank, Mr. Vishnuraj R S/o Rajan Pillai G, 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 A27. As the defendants remained ex-parte, the TA claim remains unchallenged. There is no contra-evidence available on record to repudiate the claim of the Applicant Bank.

9. 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:

10. The TA is allowed with costs,

(a) The applicant bank is allowed to recover from Defendants to pay a sum of Rs.14,85,186.20 (Rupees fourteen lakh eighty five thousand and one hundred eighty six and paise twenty only) consisting of:

i. Rs.33,936.20 (Rupees thirty three thousand nine hundred and thirty six only) under CBG Loan in A/c No. 0655626000007 along with interest @ 18.65% p.a. compounded monthly rests and 2% p.a. penal interest from 20.12.2016 till the date of realization.

ii. Rs.7,50,113.00 (Rupees seven lakh fifty thousand one hundred and thirteen only) under CMB Loan in A/c No. 0655603007827 along with interest @ 14.15% p.a. compounded monthly rests and 2% p.a. penal interest from 20.12.2016 till the date of realization.

iii. Rs.7,01,137.00 (Rupees seven lakh one thousand one hundred and seven only) under ODCC Loan in A/c No. 06556261000252 along with interest @ 14.35% p.a. compounded monthly rests and 2% p.a. penal interest from 20.12.2016 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; (d) If the sale proceeds of the schedule mentioned mortgaged properties are not sufficient to satisfy the amount due 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.

11. 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 7th Day of August, 2023]

Sd/- PRESIDING OFFICER

DRT-II, BENGALURU ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. Vishnuraj R S/o Rajan Pillai G, Manager of Applicant Bank.

Exhibits on the part of the Applicant:

Exhibit Nos. Particulars of Documents Date A1 Applicant’s Evidence

A2 List of Documents

A3 Application for Loan 25.10.2013 A4 Sanction Memorandum 25.10.2013 A5 On Demand Promissory Note 25.10.2013 A6 Take Delivery Letter to DPN 25.10.2013 A7 Letter of Revival 29.03.2016 A8 Statement of Accounts 24.10.2016 A8(a) Certificate under Banker’s Book of Evidence Act. 17.12.2016

CMB-7857

A9 Application for Credit Card 26.12.2013 A10 Sanction Memorandum 26.12.2013 A11 Can Mobile Agreement 26.12.2013 A12 Letter of undertaking 26.12.2013 A13 Guarantee Agreement 26.12.2013 A14 Guarantee Covering Letter 26.12.2013 A15 Declaration of Hypothecation 27.12.2013 A16 Statement of Accounts 24.10.2016 A16(a) Certificate under Bankers Book of Evidence Act. 17.02.2016

ODCC 252

A17 Application for Loan 03.12.2014 A18 Loan Sanction Memorandum 06.12.2014 A19 On Demand Promissory Note 06.12.2014 A20 Cash Credit Agreement 06.12.2014 A21 Request for Overdraft Facilities 06.12.2014 A22 Letter of Undertaking 06.12.2014 A23 Statement of Accounts 24.10.2016 A23(a) Certificate under Banker’s Book of Evidence Act. 17.12.2016 A24 Legal Notice 07.11.2016 A25 Postal Receipt 10.11.2016 A26 Postal Acknowledgement of D.1 13.12.2016 A27 Postal Acknowledgement of D.2 13.12.2016

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

Schedule

Schedule property of the Defendant/ Certificate Debtor, if not found, then the applicant Bank/ Certificate Holder is at liberty to proceed against the person and other properties of the defendant/ Certificate Debtor as required under law.

Sd/- PRESIDING OFFICER

DRT-II, BENGALURU