State Bank Of India vs Papakannu Dasaradharami Reddyx And Ors.

This application is filed under Section 19 of Recovery of Debts Due to the Banks and Financial Institutions Act, 1993 for directing the defendants to pay an amount of Rs.62,41,206/- with future interest @ 13.25% p.a with half yearly rests, from the date of OA till the date of full and final realization, award costs and for issue of Recovery Certificate accordingly.

According to the facts of the case in brief, the Defendant No.1 along with Defendant No. 2 & 3 who are his sons approached the applicant bank on 26-06-2010 for sanction of Crop Loan of Rs.8,25,000/- which was sanctioned on 09-07-2010 for which the defendants have executed necessary loan documents on 17-07-2010 and deposited their title deeds annexed in Item No.I to VI of the schedule and confirmed creation of mortgage under SME-5 and the same was recorded by a Memorandum for recording creation of mortgage by deposit of title deeds and on 23-08-2010, 25-08-2010 the defendants availed Term Loans individually for land development for Rs.6,25,000/-, Rs. 7,75,000/-, and Rs. 7,00,000/- respectively, OA.No.1088 of 2017 and on 23-08-2010, 25-08-2010, 26-08-2010 when the defendants have executed Hypothecation Agreements and on 26- 08-2010 and the Defendants executed a Deed of Guarantee on 6- 08-2010 and the defendants have executed all necessary loan documents, security documents etc., in favour of the applicant bank and utilized the loan and The defendants 1 to 3 again approached the applicant bank for Agricultural Term Loans individually for land development and purchase of Motor, Pipes and leveling of land each defendant as the borrower with other two defendants as guarantors. The 1st Defendant availed loan of Rs.6,25,000/-, the 2nd Defendant availed loan of Rs.7,75,000/-, and the 3rd Defendant availed loan of Rs.7,00,000/-, for developing the schedule properties and executed all necessary documents and utilized the loan facilities and after availing the said amounts and in spite of several reminders and personal requests, the defendant did not pay the outstanding amounts. The loan amount was not paid as per schedule in spite of repeated demands. Defendants is failed to repay the loan, As such loan account was classified as NPA.

Sri Uravakonda Rajesh, Deputy Manager of the Applicant Bank filed evidence on affidavit along with the documents which have been verified by the registry and marked as Ex. Al to A59 viz Ex. Al Evidence filed by the Bank, A2 List of Documents, A3 Loan Application, A4 Sanction Letter, AS Letter addressed to the defendants relating to sanction of loan by the applicant bank, A6 OA. No. 1088 of 2017 Personal assets and liabilities statement of Defendant No.1, A7 Personal assets and liabilities statement of Defendant No.2, AS Personal assets and liabilities statement of Defendant No.3, A9 Hypothecation Agreement executed by the defendants 1 to 3 in favour of the applicant bank, A10 Sale Deed in favour of the Defendant No.1 registered as Document No.84/2010 before SRO Rapuru, Al1 Sale Deed in favour of the defendant No.1 registered as Document No. 748/2008 before SRO, Rapuru, A12 Sale Deed in favour of Defendant No.2 registered as Document No.531/1997 before SRO, Rapuru, A13 Sale Deed in favour of the Defendant No.2 registered as Document no.532/1997 before SRO, Rapuru, A14 Sale Deed in favour of the Defendant No.3 registered as Document No.525/1997 before SRO, Rapuru, AlS Sale Deed in favour of the defendant No.3 registered Document No.526/1997 before SRO, Rapuru, A16 Memorandum for recording creation of mortgage by deposit of title deeds recorded by the applicant bank, A17 Letter of confirmation for creation of mortgage by deposit of title deeds executed by the defendant No.1, A18 Letter of confirmation for creation of mortgage by deposit of title deeds executed by the defendant No. 2, A19 Letter of confirmation for creation of mortgage by deposit of title deeds executed by the defendant No.3, A20 Loan Application of Defendant No. l for Rs.6.25 Lakhs, A21 Sanction letter for Rs.6.25 Lakhs, A22 Loan Application of Defendant No.2 for Rs.7,75,000/-, A23 Sanction letter for Rs. 7.75 Lakhs, A24 Loan Application of Defendant No.3 OA.No.1088 of 2017 for Rs. 7,00,000/-, A25 Sanction letter for Rs. 7.00 Lakhs, A26 Letter addressed to the Defendant by the applicant bank relating to sanction of loan, A27 Letter addressed to the 2nd Defendant by the applicant bank relating to sanction of loan, A28 Letter addressed to the 3rd Defendant by the applicant bank relating to sanction of loan, A29 Hypothecation Agreement executed by the defendant No.1, A30 Hypothecation Agreement executed by the defendant No.2, A31 Hypothecation Agreement executed by the defendant No.3, A32 Deed of Guarantee executed by the Defendant No.1 in favour of the applicant bank, A33 Deed of Guarantee executed by the Defendant No.2 in favour of the applicant bank, A34 Deed of Guarantee executed by the Defendant No.3 in favour of the applicant bank, A35 Memorandum of recoding extension of mortgage by deposit of title deeds executed by Defendant No.1, A36 Memorandum of recording extension of mortgage by deposit of title deed executed by Defendant No.2, A37 Memorandum of recording extension of mortgage by deposit of title deed executed by Defendant No.3, A38 CIBIL letter executed by defendant No.1 in favour of the applicant bank, A39 CIBIL letter executed by defendant No.2 in favour of the applicant bank, A40 CIBIL letter executed by defendant No.3 in favour of the applicant bank, A41 Recall notice issued to the defendant No.1 by' the applicant bank, A42 Recall notice issued to the defendant No.2 by the applicant bank, A43 Recall notice issued the defendant No.3 by the applicant bank, OA.No.1088 of 2017 A44 Lawyer's notice got issued by the applicant bank to the 1st defendant, A45 Lawyer's notice got issued by the applicant bank to the 2nd defendant, A46 Lawyer's notice got issued by the applicant bank to the 3rd defendant, A47 Lawyer's notice got issued by the applicant bank to the 1st defendant, A48 Lawyer's notice got issued by the applicant bank to the 2nd defendant, A49 Lawyer's notice got issued by the applicant bank to the 3rd defendant, ASO Lawyer's notice return cover of Defendant No.1, A51 Lawyer's notice return cover of Defendant No.2, A52 Lawyer's notice return cover of Defendant No.3, A53 Lawyer's notice return cover of Defendant No.1, A54 Lawyer's notice return cover of Defendant No.2, ASS Lawyer's notice return cover of Defendant No.3, A56 Loan account bearing No. 31356970417 of Defendant No.1 maintained by the applicant bank, A57 Loan account bearing No.31263718862 of Defendant No.1 maintained by the applicant bank, ASS Loan account bearing No. 31362714355 of Defendant No.2 maintained by the applicant bank and A59 Loan account bearing No.31362394593 of Defendant No.3 maintained by the applicant bank respectively.

Thus the Applicant prays that the Hon'ble Tribunal to pass an order and issue a Recovery Certificate for a sum of Rs.62,41,206/- with future interest @ 13.25%p.a with half yearly rests till the date of realization.

Heard the learned Counsel for applicant bank and perused the records. Having perused the OA, and also evidence affidavit filed along with documents verified by the Registry and marked as Exhibits Al to 59, and in view of the averments made in the application, the claim of the applicant bank is proved against defendants and OA deserves to be allowed with costs, for recovery of an amount of Rs.62,41,206/- with future interest @ 13.25%p.a with half yearly rests, from the date of OA, till the date of realization, from the defendant.

In the result, the OA is allowed with costs. Issue Recovery Certificate for an amount of Rs.62,41,206/- with future interest @ 13.25%p.a with half yearly rests, from the date of OA till the date of realization, to be recovered from the defendant, and also by sale of mortgaged/ hypothecated property, if any.

Accordingly issue Recovery Certificate. Let the copy of order be made available to the parties as per rule.

[Typed to the dictation, corrected and pronounced by me in the open court on this day of 29th September, 2020]