CANARA BANK vs G S Sivakolundu on 28 March 2024

O R D E R

1. This Original Application is filed by the Applicant Bank, under Order Section 19 (1) of the RDDB & FI Act, 1993,

a. to direct the Defendant personally to pay to the Applicant Bank a sum of Rs.10,88,874/- under Kisan OD with subsequent interest at the present rate of 13.65% per + 2% PI annum monthly rest from the date of Application, till the date of its realization ; 2 TA 1462/2019

b. to direct the Defendant personally to pay to the Applicant Bank a sum of Rs.3,99,784/- under KCCS with subsequent interest at the present rate of 10.90% per + 2% PI annum monthly rest from the date of Application, till the date of its realization, failing which,

c. to direct the Applicant Bank to bring the mortgaged property which are mentioned in the Schedule of Property for sale and the sale proceeds appropriated for recovery of a sum of Rs.10,88,874/- under Kisan OD with subsequent interest at the present rate of 13.65% per + 2% PI annum and a sum of Rs.3,99,784/- under KCCS with subsequent interest at the present rate of 10.90% per + 2% PI annum monthly rest, totaling to a sum of Rs.14,88,658/- together with future interest with monthly rest, from the date of Application, till the date of its realization with Costs of this OA.

BRIEF FACTS

2. The Averments made by the Applicant Bank in the Application are stated as follows: 2.1 The Defendant availed various credit facilities from the Applicant Bank for developing his agricultural activities. In consideration of the above said sanction and Availment, the Defendant executed the necessary documents in favour of the Applicant Bank and the details of credit facility as follows: Sl. No. Type of Loan Date of Loan Loan amount Date of Execution of documents

1. KISAN OD 27.08.2011 Rs.7,00,000/- 27.08.2011

2. KCCS 28.08.2012 Rs.3,00,000/- 28.08.2012

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After the loan facilities availed by the Defendant, executed necessary documents in favour of the Applicant Bank. The details of the interest, repayment and present outstanding as detailed hereunder : Sl. No. Nature of Loan Rate of Interest Repayment Schedule Outstanding Loan Amount as on 13.10.2015

1. KISAN OD 13.65% + 2% PI Yearly installment from August with interest Rs.10,88,874/-

2. KCCS 10.90% + 2% PI Yearly installment with interest Rs.3,99,784/- Total Rs.14,88,658/-

2.2. The Defendant further applied for enhancement of KISAN OD with renewal for the purpose of developing of agricultural activities. The KISAN OD Limit was enhanced from Rs.5,00,000/- to Rs.7,00,000/-. The Defendant executed the Acknowledgment of Debt cum Security on 28.08.2012 & 17.07.2015. The Defendant created Mortgage over his property by Deposit of Title Deeds dt.25.11.2009 in favour of the Applicant Bank.

2.3. Despite repeated Demands and Reminders made by the Applicant Bank, the Defendant not paid the loan dues. Therefore, the Applicant Bank filed this OA against the Defendants and this Hon’ble Tribunal may be allowed the OA with Costs.

3. The Defendant was called absent and set ex-parte on 25.09.2017.

4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Shri.P.Sathish Kumar, Senior Manager of the Applicant Bank and marked the documents as Exts.A-1 to A-11 in 4 TA 1462/2019

support of its claim and reiterated the statements made in the Original Application. A cumulative analysis of both the Proof Affidavit and documents marked by the Applicant Bank would prove on the basis of the claim in the Proof Affidavit filed by the Applicant Bank.

5. Therefore, in view of the observations made supra, the OA stands allowed and the Applicant Bank is entitled to recover,

a. from the Defendant personally for a sum of Rs.10,88,874/- under Kisan OD with subsequent interest at the rate of 12% per annum (Agricultural Loan) from the date of Application, till the date of its realization ;

b. from the Defendant personally for a sum of Rs.3,99,784/- under KCCS with subsequent interest at the rate of 12% per annum (Agricultural Loan) from the date of Application, till the date of its realization ; failing which,

c. the Applicant Bank is directed to bring the mortgaged property which is mentioned in the Schedule of Property for sale and the sale proceeds appropriated for recovery of a sum of Rs.10,88,874/- under Kisan OD and Rs.3,99,784/- under KCCS, totaling to a sum of Rs.14,88,658/- with subsequent interest at the rate of 12% per annum, from the date of Application, till the date of its realization with Costs of this OA.

6. In the result,

a. it is hereby directed that the Defendant personally to pay to the Applicant Bank for a sum of Rs.10,88,874/- under Kisan OD with subsequent interest at the rate of 12% per annum (Agricultural Loan) from the date of Application, till the date of its realization.

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b. it is hereby directed that the Defendant personally to pay to the Applicant Bank for a sum of Rs.3,99,784/- under KCCS with subsequent interest at the rate of 12% per annum (Agricultural Loan) from the date of Application, till the date of its realization.

c. On failure to pay, the Applicant Bank is hereby directed to bring the mortgaged property which is mentioned in the schedule of property for sale and the sale proceeds appropriated for recovery of a sum of Rs.10,88,874/- under Kisan OD and Rs.3,99,784/- under KCCS, totaling to a sum of Rs.14,88,658/- with subsequent interest at the rate of 12% per annum from the date of Application, till the date of its realization with Costs of this OA.

7. All the pending IAs. if any, stand closed and disposed of by this Tribunal.

8. The Registry is directed to prepare DRC in terms of this Final Order. The Applicant Bank shall file memo of costs within 15 days from the date of this Order.

9. The Registry is directed to communicate the copy of this Order to both parties as provided in Rule 16 of the Debts Recovery Tribunal (Procedure) Rules, 1993 as amended in 2016. Dictated to Steno, directly typed on the Computer corrected and pronounced by me in the open Tribunal, this the 28th day of March, 2024.

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SCHEDULE OF PROPERTY

Erode District, Bhavani Taluk, Illipili Village, land in RS.No.663/1A, P.H.5.96.0, Old SF.No.531, 533, 535 & 536, 538, to an extent of 14.72 Acres bounded within the following boundaries :

North

: Land of RS.No.652

South

: Land of Sivanatarajan

East

: Land of RS.No.665 & 666

West

: Land of RS.No.661

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PROOF AFFIDAVIT OF THE APPLICANT BANK

1. Shri. P. Sathish Kumar, Senior Manager

LIST OF DOCUMENTS MARKED BY THE APPLICANT BANK

Sl. No. Date Description of Document Exhibits

27.08.2011 Common Application Cum Appraisal Form for Credit Facilities for Agricultural Loan above Rs.2 Lakhs and upto Rs.10 Lakhs given by the Defendant in favour of Applicant Bank. A.1

27.08.2011 Agreement and Deed for Kisan OD executed by the Defendant in favour of Applicant Bank. A.2

28.08.2012 Application cum Appraisal Form for Kisan Credit Card Scheme (KCCS) executed by the Defendant in favour of Applicant Bank. A.3

28.08.2012 Agreement and Deed of Hypothecation for Kisan Credit Card executed by the Defendant in favour of Applicant Bank. A.4

28.08.2012 Letter of Renewal executed by the Defendant in favour of Applicant Bank. A.5

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28.08.2012 Supplemental Agreement executed by the Defendant in favour of Applicant Bank. A.6

28.08.2012 Acknowledgement of Debt and Security executed by the Defendant in favour of Applicant Bank. A.7

17.07.2015 Acknowledgement of Debt and Security executed by the Defendant in favour of Applicant Bank. A.8

28.08.2012 Link Letter to be obtained when Additional Loan is Granted within the Maximum Limit. A.9

01.12.2009 Letter Evidencing Deposit of the Title Deeds executed by the Defendant in favour of Applicant Bank. A.10

-- Statement of Accounts. A.11

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