Allowed

Canara Bank v. Mr Ganesh Shetty

DRT28 Nov 2025OA/1049/2023

Case brief

AI extract

What is this about?

This tribunal allowed the bank's Original Application for issuance of a Recovery Certificate. The court found the claim undisputed due to the defendants' ex parte appearance, calculated interest at 11% simple, and directed recovery against the defendants' joint and several liabilities and assets.

What did the court decide?

Issuance of Recovery Certificate for Rs. 2,03,20,959.75 with interest at 11% p.a. (simple) from the date of filing till realization, executable against defendants' assets.

Canara Bank versus Mr Ganesh Shetty — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1049/2023

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BETWEEN:

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Canara Bank SME Kundapura Branch Kundapura Taluk, Udupi Dist-576201 Through its Divisional Manager Sri. Jai Parkash Singh

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… APPLICANT

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AND:

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Mr. Ganesh Shetty (S/o. Gopal Shetty) Prop: M/s.Hegde Farms Shree Lakshmi Puranik Road, Koteshwara Kundapura Taluk, Udupi Dist, Karnataka 576222

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Also at: Molahalli, Kadoor, Kokkarne Kundapur, Dist. Udupi.

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Smt. Bhagyalaxmi Shetty W/o. Ganesh Shetty Shree Lakshmi Puranik Road, Koteshwara Kundapura Taluk, Udupi Dist, Karnataka - 576222 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Vignesh Shetty Defendants : Exparte

OA. No.1049/2023

:FINAL ORDER:

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.2,03,20,959.75 (Rupees Two Crore Three Lakh Twenty Thousand Nine Hundred Fifty Nine and Seventy Five Paise only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the Rs.190 lakhs as term loan and Rs.80 lakhs as OD for outright purchase of then existing poultry unit and improvement and OD for running poultry unit.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents.

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

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OA. No.1049/2023

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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 defendants, they failed to appear, resulting the defendants being set exparte on 05.01.2024.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A12 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

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claim as against the defendants?

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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 defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

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OA. No.1049/2023

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admissible and are sufficient to prove availment of credit facilities as stated in the OA, as to the execution of loan documents as claimed by the applicant bank and the defaults committed in the 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 above finding which cover both the issues raised in this manner, 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 were availed for business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 11.00% (simple).

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In the result, OA.No.1049/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.2,03,20,959.75 (Rupees Two Crore Three Lakh Twenty Thousand Nine Hundred Fifty Nine and Seventy Five Paise only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from defendants, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the

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OA. No.1049/2023

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defendants jointly, severally and personally and their other assets of the defendants, including the schedule properties are liable for all such amounts due under the loan account. The schedule properties to the OA be the schedule properties to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding 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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of November 2025].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.1049/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Vinod Kumar C K, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Applicant evidence by way of Affidavit
A2	List of documents
A3	Sanction letter dated 30.12.2015
A4	Memorandum of deposit of title deeds dated 30.12.2015
A5	Agreement for agricultural advanced dated 30.12.2015 against availing term loan of Rs.190 lakhs
A6	Agreement for agricultural advanced dated 02.01.2016
A7	Deed of Guarantee dated 30.12.2015
A8	Deed of Guarantee dated 02.01.2016
A9	Letter dated 20.04.2018 sough temporary renewal of existing limit for further 3 months; renewal letter dated 30.04.2018 sanction letter dated 28.12.2018
A10	Renewal letter dated 15.02.2020
A11	Demand notice dated 21.04.2021
A12	True extract of statement of accounts pertaining to the defendant’s loan accounts

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mr Ganesh Shetty

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr Ganesh Shetty

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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