Debts Recovery Tribunals and Appellate Tribunals
CANARA BANK vs Dhanajaya G R on 24 August 2019
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**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT
BENGALURU**
Dated this the 24<sup>th</sup> day of August 2019
**:Present:
Shri K Ravindran Nair
Hon'ble Presiding Officer
In-charge-DRT-II**
**TA.2023/2017
IN OA.2303/2016-DRT-I**
**BETWEEN**
**CANARA BANK,
Halebeedu Branch,
Temple Road,
Belur Taluk,
Hassan District -573 118.
Represented by its Manager-
Mr. Vishnu Pramod. M.L.
S/o. Manikandam Nair.**
..... **APPLICANT**
**AND:**
**Mr. DHANANJAYA. G.R.,
S/o. Rudregowda,
Aged about 35 years,
R/at Gonisomanahalli Village,
Halebeedu Hobli, Belur Taluk,
Hassan District- 573 121.**
..... **DEFENDANT**
**Counsels on record/appeared for:**
Applicant : J.S. Advocates
Defendant : *Ex parte.*
2TA.2023/2017
IN OA.2303/2016-DRT-I**FINAL ORDER**
The present Application came to be registered on the basis of jurisdictional transfer and renumbered as TA.No.2023/2017 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of an amount of Rs.10,70,238/- (Rupees ten lakh, seventy thousand, two hundred & thirty-eight only) from the Defendant together with further interest and cost.
2. The case of the applicant bank is that Defendant had approached the applicant bank for financial assistance. The applicant bank considered his request and sanctioned Farm Machinery Loan of Rs.3,30,000/-, vide Sanction Letter dated 19.06.2007. The Defendant has executed requisite necessary documents in favour of the applicant bank for the above said loans. The defendant has agreed to repay the said loan as per the terms and conditions of the applicant bank. After availing the loan, the defendant failed to regularize the loan account and also failed to pay the installments and did not come forward to repay the balance outstanding. Hence, the present TA is filed.
3TA.2023/2017
The applicant bank has produced the documents in favour of its case viz., Loan Application, Sanction Memorandum, Memorandum of Agreement, RC Book reflecting Hypothecation, Simple Mortgage Deed, Letter of Revival and Certified Accounts Extract, etc.,
3. Further the Defendant agreed to repay the above loan with variable rate of interest, as applicable from time to time as per the directions of the Head Office/Central Office of the Applicant Bank and penal interest in case of default and keep the account regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the TA by the Applicant Bank.
4. The Defendant after utilizing the entire loan proceeds for the above said purpose has failed to make the repayments of the loan dues as agreed and he has not serviced the interest thereon as per the terms and conditions agreed by Defendant. The Defendant has become chronic defaulter in the loan account and not taken any steps to clear the dues and hence the recovery process is initiated to recover the dues.
4TA.2023/2017
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1. 5. In the light of these factors, it is contended by the Applicant Bank that, Defendant is liable to pay a total sum of Rs.10,70,238/- (Rupees ten lakh, seventy thousand, two hundred & thirty-eight only).
2. 6. After transfer of the TA, summons which was sent by RPAD to the defendant got returned. Hence, summons were published and served through two leading daily newspapers. When defendant was called out, he remained absent and placed *ex-parte*.
3. 7. To prove the case of the Applicant Bank, Mr. Dhananjaya, Manager of the Applicant Bank has filed his affidavit by way of evidence and same was considered as evidence of AW-1 and marked at Ex. A-1 and list of documents came to be marked as Ex.A-2 and 9 documents came to be marked as Ex.A-3 to Ex.A-11.
4. 8. No evidence on behalf of the Defendant.
5. 9. Arguments of Learned Counsel for the Plaintiff/ applicant bank heard and perused the records of the case.
5TA.2023/2017
10. Following points arise for my consideration:
1. 1) Whether Plaintiff/applicant bank proves its case as contended in the plaint/application?
2. 2) What order?
11. For the following reasons, I answer the above referred points in the following manner:
**REASONS**
12. Mr. Dhananjaya, Manager of the Applicant Bank came to be examined as AW-1. His affidavit by way of evidence reiterates the facts pleaded in the plaint and his affidavit is also corroborated by the above referred Ex.A-3 to Ex.A-11, which clearly establish the case of the applicant bank to allow the present TA. Added to this, inspite of paper publication in two daily newspapers, the Defendant has remained absent and hence, it is to be construed that he has admitted the entire case pleaded by the applicant bank as sought in the present TA.
13. Therefore, for these reasons, present TA is to be allowed with costs as sought by the applicant bank.
6TA.2023/2017 IN OA.2303/2016-DRT-I**:ORDER:**
Present TA stands allowed with costs.
Defendant shall be personally liable to pay entire TA amount of Rs.10,70,238/- (Rupees ten lakh, seventy thousand, two hundred & thirty-eight only) together with current and future interest at the rate of 14.20% p.a., from the date of application till the date of realization, as sought by the Applicant Bank in the TA.
In the event of failure of Defendant to pay the said TA amount, the applicant bank is at liberty to sell the hypothecated movable assets and mortgaged immovable properties as mentioned in the Schedule of the main Application according to Law by the applicant bank in the TA.
In spite of sale of the property mentioned in the Schedule/s, if the TA amount is not fully realized, then the Applicant Bank is at liberty to proceed against the 7TA.2023/2017
person and other properties of the Defendant as required under law and also as advised.
Applicant Bank shall file fresh Memo of calculation of TA amount together with interest, costs etc., to be paid by Defendant duly taking into account the amount/s if any paid by the Defendant and/or amount realized by sale of assets, etc., during the intervening period after filing the TA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendants to the Applicant Bank.
Office is directed to issue Recovery Certificate.
(Dictated to the Steno, transcribed by her and after necessary corrections, signed and pronounced by me in the Open Court on this the **24<sup>th</sup> day of August, 2019**)
**(K. RAVINDRAN NAIR)** Presiding Officer I/c - DRT II, Bengaluru.
8TA.2023/2017 IN OA.2303/2016-DRT-I**ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Mr. Dhananjaya Manager of the Applicant Bank.
**LIST OF DOCUMENTS MARKED ON BEHALF OF APPLICANT BANK:**
Ex.A.1 : Affidavit of AW.1. Ex.A.2 : List of documents. Exs.A.3 – A.11 : 9 documents.
**LIST OF WITNESSES EXAMINED ON BEHALF OF DEFENDANT:**
- NIL -
**LIST OF DOCUMENTS MARKED ON BEHALF OF DEFENDANT:**
-NIL-
**(K. RAVINDRAN NAIR)**
Presiding Officer, I/c-DRT-II, Bengaluru.
K\*