STATE BANK OF INDIA vs SHANKARAPPA KOLKAR on 31 July 2024

O R D E R

Miscellaneous Application No.27/2023 was filed on 25.08.2023 under S.19(25) of the Recovery of Debts and Bankruptcy Act, 1993 (as amended from time to time) – for short 'the Act' - r/w R.18 of the Debts Recovery Tribunal (Procedure) Rules, 1993 (as amended from time to time) praying to modify the final order dated 17.04.2023 by deleting paragraph 29 of the impugned order. The petitioner is none other than the applicant in the OA.

2. The case set out by the petitioner/applicant bank in the memorandum accompanying MA No.27/2023 in brief is as follows:- The petitioner/applicant bank on 31.07.2017 filed OA 1271/2017 under S.19(1) of the Act for recovery of the aggregate sum of ₹25,47,815/- with interest and costs from the defendants jointly and severally and by sale of Schedule I and II properties. The OA was allowed on 17.04.2023 with a rider in paragraph 29 therein to produce the original title deeds relating to Exts.A6 and A16 registered mortgage deeds before the Recovery Officer while in execution of the recovery certificate. The defendants have not deposited the original title deeds relating to the schedule immovable properties and the applicant bank has not received such title deeds. As per the practice, the bank is not taking the original title deeds with it while creating registered mortgage deeds.

3. The respondents/defendants were duly served with notice. But they remained absent and they were not represented in the proceedings and thus they were declared ex-parte in the proceedings on 04.01.2024.

Typed by Aap

MA No.27/2023 in OA No.12719/20173

4. The only point arises for consideration is as to whether the relief prayed for by the petitioner/applicant can be granted?

5. The Point:- The aforesaid OA filed by the petitioner/applicant bank on 31.07.2017 was allowed by this Tribunal as per the final order dated 17.04.2023.

Paragraphs 25 to 29 of the aforesaid final order read as below:- "25. *In the result, the applicant bank is entitled to get a final order on the following lines:-*

*The applicant bank is allowed to recover:-*

(i) *the sum of ₹8,00,285.52 (Rupees eight lakhs two hundred eighty five and paise fifty two only) with interest on the sum of ₹7,76,705.79 (Rupees seven lakhs seventy six thousand seven hundred five and paise seventy nine only) @9% per annum from 01.08.2017 till realisation from the defendants jointly and severally and by sale of the schedule immovable properties described under schedule II (A) and (B) and also the standing crops therein and the hypothecated movables described under schedule I;*

(ii) *the sum of ₹8,37,324.93 (Rupees eight lakhs thirty seven thousand three hundred twenty four and paise ninety three only) with interest on the sum of ₹8,28,895.17 (Rupees eight lakhs twenty eight thousand eight hundred ninety five and paise seventeen only) @9% per annum from 01.08.2017 till realisation from the defendants jointly and severally and by sale of the schedule immovable properties described under schedule II (A) and (B) and also the standing crops therein and the hypothecated movables described under schedule I;*

(iii) *the sum of ₹9,10,204.92 (Rupees nine lakhs ten thousand two hundred four and paise ninety two only) with interest on the sum of ₹9,04,555.78 (Rupees nine lakhs four thousand five hundred fifty five and paise seventy eight only) @9% per annum from 01.08.2017 till realisation from the defendants jointly and severally and by sale of the schedule immovable properties described under schedule II (A) and (B) and also the standing crops therein and the hypothecated movables described under schedule I; and*

(iv) *also its costs from the defendants jointly and severally and by sale of the schedule immovable properties described under schedule II (A) and (B) and also the standing crops therein and the hypothecated movables described under schedule I.*

26. *Schedules I and II to the OA shall be appended to this final order.*

27. *The applicant bank shall file memo of calculation of the amounts allowed under this final order together with interest and costs to be paid by the defendants.*

28. *A certificate of recovery shall be drawn up on the basis of this final order and be issued along with a copy of this final order to the Recovery Officer for recovery of the amount of debt specified under paragraph 25 above and for distribution of the proceeds from the sale of Schedule I and II properties in the order of priority as provided under sub-section (20AB) of S.19 of the Act.*

29. *The applicant bank shall produce the original title deeds relating to Exts.A6 and A16 registered mortgaged deeds before the Recovery Officer while in execution of the recovery certificate issued hereto and thereafter only the Recovery Officer shall issue a notice under R.53 of the Second Schedule to the Income-tax Act, 1961 r/w S.29 of the Act and S.282 of the Income-tax Act, 1961."*

6. The applicant was directed to produce the original title deeds relating to Exts.A6 and A16 registered mortgage deeds before the Recovery Officer while in execution of the recovery certificate issued pursuant to the final order so as to enable him to hand over the prior title deeds along with the sale certificate to the auction purchaser in case of sale of such immovable property. However, it is the case of the petitioner/

Typed by Kagi

MA.No.27/2023 in OA No.12719/20174

applicant bank that the respondents/defendants have not deposited the original title deeds relating to the schedule immovable properties and it has not received such title deeds. It is submitted by the petitioner/applicant bank that as per the practice, the bank is not taking the original title deeds with it while creating registered mortgage deeds. If that be so, it will be suffice to file an affidavit declaring so before the Recovery Officer while in execution of the recovery certificate, for which a modification in the final order is not necessary. In the above facts and circumstances of the case, the petitioner/applicant bank is legally entitled to file an affidavit relating to the existence of title deeds relating to Exts.A6 and A16 registered mortgage deeds before the Recovery Officer and thereupon the Recovery Officer is to proceed accordingly for issuance of a notice under R.53 of the Second Schedule to the Income-tax Act, 1961 r/w S.29 of the Act and S.282 of the Income-tax Act, 1961.

7. In the result, MA is disposed of accordingly. Petitioner/applicant bank is permitted to file an affidavit relating to the existence of title deeds relating to Exts.A6 and A16 registered mortgage deeds before the Recovery Officer in the proceedings in execution of recovery certificate bearing No.17/2024 issued pursuant to the final order dated 17.04.2023 in OA 1271/2017. If such an affidavit is filed, the Recovery Officer is directed to consider the same and to proceed accordingly. Intimate the Recovery Officer. No costs.

*[Dictated to my P.A, transcribed by him, corrected and pronounced by me in the open Tribunal on this the 31^st day of July, 2024]*

[ IMTIAZ ALI ]

Typed by Kapi

IN THE DEBTS RECOVERY TRIBUNAL - 1, KARNATAKA AT BANGALORE

PRESENT: SRI IMTIAZ ALI PRESIDING OFFICER

Dated the 31^st day of July, 2024

**MISCELLANEOUS APPLICATION No.27 OF 2023**

**IN**

**ORIGINAL APPLICATION NO.1271 OF 2017**

Between

State Bank of India, having its Corporate Centre at Mumbai and branch among other places at Kolhar, Basavan Bagewadi Taluk, Bijapur District, Karnataka – 586210. ....Petitioner/Applicant

And

Shankrappa Kolkar, S/o Ramappa Kolkar, Kubakaddi, Basavan Bagewadi Taluk, Vijayapura District, Karnataka – 586210 and three others. .... Respondents/Defendants

**ORDER**

31.7.24