Debts Recovery Tribunals and Appellate Tribunals
CANARA BANK vs Sri MANAPPA on 7 December 2019
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU**
Dated this the 7<sup>th</sup> day of December, 2019
**Present: Shri K Ravindran Nair
Hon'ble Presiding Officer
Incharge-DRT-II**
**T.A.No.1081/2017
(O.A.No.2278/2014-DRT-I)**
**BETWEEN:**
**Canara Bank**
Sindhanur Branch
Sindhanur
Raichur District
**Represented by its Manager & PA Holder**
**Sri Kari Virupakshi**
S/o Veerabhadrappa
** ...APPLICANT**
**AND:**
**1) Sri Manappa**
S/o Sri Narasappa
**2) Sri Shivappa**
S/o Sri Manappa
**both are r/at: Hokkarani Village**
Vagarnal Post, Sindhanur Taluk
Raichur District
** ....DEFENDANTS**
**Counsels on record/appeared for:**
**Applicant : Sri H S Rukkoji Rao**
**D1 & D2 : Ex-parte**
**FINAL ORDERS**
The present Application came to be registered on 21.10.2014 on the basis of jurisdictional transfer and
renumbered as Transfer Application No.1081/2017 under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, seeking recovery of an amount of Rs.12,46,419/- (Rupees twelve lakh forty-six thousand four hundred and nineteen only) from the Defendants together with interest and cost.
2. The case of the applicant bank is that defendants being father and son had approached the applicant bank seeking financial assistance for agricultural operations. The applicant bank considered their request and sanctioned term loan of Rs.4,85,000/- vide loan application dated 23.09.2005. Defendants have executed necessary documents in favour of the applicant bank. After availing the loan, the defendants failed to regularize the loan account and also failed to pay the installments, they did not come forward to repay the balance outstanding. The Applicant bank has issued legal notice dated 18.01.2014 to the defendants, for which the defendants have not taken any steps to clear the dues. Hence, the O.A was filed and now numbered as TA.1081/2017. The applicant bank has produced the documents in favour of its case viz., loan application, memorandum of agreement for agricultural loan,
certificate of registration of the tractor, letter evidencing deposit of title deed, particulars of vehicle, revival letters, legal notice, certified copy of account extract etc.
3. Further the defendants agreed to repay the above loan with variable rates 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 to keep the account regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the OA by the Applicant Bank.
4. The defendants after utilizing the entire loan proceeds for the above said purpose have failed to make the repayments of the loan dues as agreed, not serviced the interest thereon as per the terms and conditions agreed by them and became chronic defaulters and hence, the recovery process is initiated against the defendants to recover the dues.
5. In the light of these factors, it is contended by the Applicant Bank that, Defendants are liable to pay a sum of Rs.12,46,419/- (Rupees twelve lakh forty-six thousand four hundred and nineteen only).
6. After filing the OA, summons were sent through RPAD and same was served on the defendant No.1 summons sent to defendant No.2 returned with postal shara as ' not in village'. Thereafter paper publications were made, when defendants were called out, defendants remained absent and hence, were placed ex parte.
7. To prove the case of the Applicant Bank, its Chief Manager/PA Holder, Mr. Ballani Ranganath, S/o Sri B.Gopal Setty, 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 15 documents came to be marked as Ex.A-3 to Ex.A-17.
8. No evidence on behalf of the Defendants.
9. Arguments of Learned Counsel for the Plaintiff/ applicant bank heard and perused the records of the case.
10. Following points arise for my consideration:
a) Whether Plaintiff/applicant bank proves its case as contended in the plaint/application?
b) What order?
11. For the following reasons, I answer the above referred points in the following manner:
5T.A.1081/2017 in O.A.No.2278/2014**REASONS**
12. Mr.Ballani Ranganath, S/o Sri B.Gopal Setty, Chief Manager/PA Holder 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-17 which clearly establish the case of the applicant bank to allow the present TA. Added to this, the defendants remained absent, hence it is to be construed that the defendants have 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.
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**:O R D E R:**
Present TA stands allowed with costs.
Defendants shall be jointly and severally are liable to pay Rs.12,46,419/- (Rupees twelve lakh forty-six thousand four hundred and nineteen only)with interest at the rate of 16.20% p.a. compounded half yearly, from the date of application till the date of final realization, as sought by the Applicant Bank in the TA.
In the event of failure of Defendants to pay the said TA amount, the applicant bank is at liberty to sell the mortgaged immovable properties as described in the Schedule-A of the main petition in accordance with law as sought by the applicant bank in the TA.
In spite of sale of the properties mentioned in the Schedule/s, if the TA amount is not fully realized, then the Applicant Bank is at liberty to proceed against the person and other properties of the Defendants 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 Defendants duly taking into account the amount/s if any paid by the Defendants 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 Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 7<sup>th</sup> day of December, 2019)
**(K. Ravindran Nair)** **Presiding Officer** **I/C - DRT II, Bengaluru**
8T.A.1081/2017 in O.A.No.2278/2014**ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Mr. Ballani Ranganath, S/o Sri B.Gopal Setty Chief Manager/PA Holder of Applicant bank **LIST OF DOCUMENTS MARKED ON BEHALF OF APPLICANT BANK:**
Ex.A1 : Affidavit of AW.1 Ex.A2 : List of documents Exs.A3 – A.17 : 15 documents
**LIST OF WITNESSES EXAMINED ON BEHALF OF DEFENDANTS :**
- NIL -
**LIST OF DOCUMENTS MARKED ON BEHALF OF DEFENDANTS:**
-NIL-
**(K Ravindran Nair) Presiding Officer I/c-DRT-II, Bengaluru**
c/