Allowed

Canara Bank v. Shankarappa G Angadi

DRT19 Sept 2025OA/1046/2024

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by Canara Bank seeking a Recovery Certificate against a defaulting loan borrower. The defendant appeared ex-parte, leaving the bank's evidence uncontroverted. The Tribunal allowed the claim with reduced interest at 6% simple due to agricultural purpose.

What did the court decide?

Recovery Certificate issued for Rs. 25,60,358.38 with 6% simple interest; recovery from personal assets and scheduled property.

Canara Bank versus Shankarappa G Angadi — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of SEPTEMBER, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1046/2024

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BETWEEN:

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Canara Bank Nargund Branch, TMC Road, Vasavi Kalyanamantapa Building, Tehsil, Nargund, Gadag District – 582 207

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Represented by its Senior Manager Sri. Manohar Shejal …APPLICANT

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AND:

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Sri. Shankarappa G Angadi, S/o Gurusiddappa, Aged about 38 years, Residing at: House no.181, Jagapur, Nargund, Gadag District – 582 207

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Also Residing at: Alagavadi village, Navalagund Taluk, Gadag District. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : M Mohan Rao Defendants : Exparte

OA-1046/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendant for Rs. 25,60,358.38/-(Rupees Twenty Five Lakhs Sixty Thousand Three Hundred Fifty Eight and Paise Thirty Eight Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendant availed the following credit facilities :

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Crop loan of Rs. 6,00,000/- (Rupees Six Lakhs Only) (5^th year limit Rs.10,00,000/-) for the purpose of Standing Crop Maintenance.

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Crop loan of Rs. 3,00,000/- (Rupees Three Lakhs Only) for the purpose of repairs and replacement of agricultural equipment’s.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with Hypothecation agreement and Simple Mortgage Deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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OA-1046/2024

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 29.01.2025.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-10 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are

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OA-1046/2024

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sufficient to prove availment of credit facilities as stated in the OA,

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creation of the security interest and the defaults committed in the

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accounts. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural purpose and also that the OA claim is arrived

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at by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1046/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 25,60,358.38/-(Rupees Twenty Five Lakhs Sixty Thousand Three

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Hundred Fifty Eight and Paise Thirty Eight Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization,

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from the defendant personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed

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the same to be recovered by proceeding against schedule property.

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OA-1046/2024

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Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the defendant personally and his assets are liable for balance amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 19^th Day of September, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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OA-1046/2024

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ravi S/o Sri.Thammaiah working as Senior Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	11.02.2015	Loan Sanction Letter
A2	11.03.2015	Agreement and deed of Hypothecation for Kisan Credit Card executed by defendant in favour of the applicant bank
A3	27.09.2016	Simple Mortgage deed executed by defendant in favour of the applicant banks
A4	06.12.2023	Legal notice along with postal endorsement
A5	-----	Statement of account
A6	09.03.2017	Loan Sanction Letter
A7	09.03.2017	Agreement and deed of Hypothecation for Kissan overdraft executed by defendant in favour of the applicant bank
A8	08.02.2017	Simple mortgage deed executed by defendant in favour of the applicant bank
A9	06.12.2023	Legal Notice along with postal endorsement
A10	-----	Statement of Account

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Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

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-Nil -

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-Nil -

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Sd/-

Canara Bank v. Shankarappa G Angadi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shankarappa G Angadi

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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