Allowed

Canara Bank v. H M Muttesh

DRT25 Nov 2025OA/105/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Canara Bank for a Recovery Certificate. The Tribunal found for the applicant after the defendant appeared ex parte and issued a certificate allowing recovery of the principal amount plus reduced interest at 6% p.a. simple.

What did the court decide?

Recovery Certificate issued for Rs. 36,12,751.70 with interest at 6% p.a. (simple) from filing date to realization, executable against defendant personally and assets.

Canara Bank versus H M Muttesh — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.105/2023

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BETWEEN:

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Canara Bank, Anavatti Branch, Soraba Taluk, Shimoga District, Pin- 577413, Karnataka.

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…APPLICANT

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AND:

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Sri. H M Muttesh, S/o H Mallappa, Thallur Village, Soraba Taluk, Shimoga District.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : V. Mohan Defendant : EXPARTE

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FINAL ORDER

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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. 36,12,751.70 (Rupees Thirty Six lakh Twelve Thousand Seven Hundred Fifty One and Paise Seventy Only) with further interest thereon from the date of filing the Application till realization.

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OA 105/2023

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It is the case of the applicant bank, that the defendant has availed KCCS limit of Rs. 3,00,000/- (Rupees Three Lakh Only) and Farm development loan of Rs. 10,00,000/- (Rupees Ten lakh Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with agreement and deed of hypothecation for kissan card and simple mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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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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, Summons on defendant he failed to appear resulting the defendant being set exparte on 06.10.2023.

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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-23 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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OA 105/2023

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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 sufficient to prove availment of credit facilities as stated in the OA, creation of the security interest 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 findings arrived herein above, the Tribunal

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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 at by calculating interest at the agreed rate, this Tribunal in view of the OA

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can be allowed with a reduced interest of 6.00% (simple).

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OA 105/2023

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In the result, OA.No.105/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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36,12,751.70 (Rupees Thirty Six lakh Twelve Thousand Seven Hundred

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Fifty One and Paise Seventy Only) with further interest @6.00 %

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p.a.(simple) as follows:-

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a) Rs. 4,40,292.85 (Rupees Four Lakh Forty Thousand Two Hundred Ninety Two and Paise Eight Five Only) in KCCS loan account from the date of filing OA till the realization, from the defendant personally, 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 defendant personally and his assets.

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b) Rs. 31,72,458.85 (Rupees Thirty One Lakh Seventy Two Thousand

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Four Hundred Fifty Eight and Paise Eighty Five Only) in farm development loan account from the date of filing OA till the realization, from the defendant personally, 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 schedule property. 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 in farm development loan account, the defendant personally and his assets are liable for respective

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OA 105/2023

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amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceedings which

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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 and

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transferred to Recovery for execution.

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

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of this final order.

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Communicate a copy of the order to the parties concerned in terms

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

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 25^th Day of November, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Lingesh H D, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A3	03.08.2013	Common application cum appraisal form for credit facilities for agricultural loan above Rs. 2 lakhs and up to Rs. 10 lakhs
A4	03.08.2013	Sanction memorandum
A5	03.08.2013	Agreement and deed of hypothecation for kissan card executed by defendant

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OA 105/2023

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A6	01.07.2016	Letter of revival executed by defendant
A7	21.11.2018	Letter of revival executed by defendant
A8	21.10.2021	Letter of revival executed by defendant
A9	12.08.2013	Common application cum appraisal form for credit facilities for agricultural loan above Rs. 2 lakhs and upto Rs. 10 lakhs
A10	12.08.2013	Sanction memorandum
A11	12.08.2013	Agreement for agricultural loans executed by the applicant
A12	02.08.2013	Simple mortgage deed for agricultural advances registered as Document No. SRB-1-01247-2013-14 stored in CD No. SRBD40 in the office of Sub- registrar, Soraba
A13	10.08.2016	Letter of revival executed by defendant
A14	19.12.2018	Letter of revival executed by defendant
A15	21.10.2021	Letter of revival executed by defendant
A16	23.05.2022	Legal notice issued to defendant in respect of loan account No. 4220.840.20
A17	26.05.2022	Acknowledgement received from the postal department
A18	--	Translated copy of legal notice
A19	02.11.2022	Legal notice issued to defendant in respect of loan account No. 4220.883.01
A20	--	Postal receipt
A21	--	Certified account extract of 422.840.20
A22	--	Certified account extract of 4220.883.1
A23	--	Core Banking certificate

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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/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. H M Muttesh

Case brief

What is this about?

What did the court decide?

Canara Bank v. H M Muttesh

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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