DRT allowed bank application for Recovery Certificate under S. 19 RDB Act after defendants remained ex parte. Court noted default on housing and business loans and decreed recovery of Rs.1,88,77,175 with adjusted interest rates.
Issuance of Recovery Certificate for Rs.1,88,77,175 with interest @ 9.50% and 10.55% p.a.; recovery from scheduled property and personal assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU
Dated this 19th Day of June, 2025
Present: Sri. T. RAJESH Presiding Officer OA.No.1057/2023
BETWEEN:
Canara Bank. Car Street Branch, Pejawar Mutt Building, Udupi-576101
…APPLICANT
AND:
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...DEFENDANTS
Counsel on record/appeared for:
Applicant : C Vinay Swami Defendants : Exparte
FINAL ORDER
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partnership firm with the defendants No.1 & 2 as its partners. Further, defendants availed the following credit facilities from the erstwhile Syndicate Bank which later got amalgamated with Canara Bank:-
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the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.
OA claim as against the defendants?
Both these issues are gone into and decided together.
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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 admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the
limitation.
Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that OA is liable to be allowed.
are availed by defendants for housing and business purpose, interest is claimed at a normal rate, this Tribunal in view of the OA can be allowed with a reduced interest as claimed need not
be reduced. However as the OA Claim is arrived at by calculating interest at the agreed rate and also by applying default interest,
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the prayer for monthly rest and future penal interest are declined.
sum of Rs.1,88,77,175/-(Rupees one crore eighty eight lakhs seventy seven thousand one hundred seventy five only) consisting of:-
a) Rs. 40,31,368/-(Rupees forty lakhs thirty one thousand
three hundred sixty eight Only) with further interest @ 9.50% p.a. (Simple) in which defendants No.1 to 4 are liable to pay,
from the date of filing OA till the realization, from the defendants
jointly severally and personally as above after giving credit to all
the amount recovered and received during the pendency of the
OA and allowed the same to be recovered by proceedings against
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the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.
(ii) If the sale proceeds are not sufficient, the defendants personally and their other assets are liable to be proceeded against for the balance amount as allowed in the order.
iii) The applicant bank is allowed cost of the proceedings
which applicant to file cost memo within 7 days from the date of receipt of the order.
iv)The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of
in terms of this final order.
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16
of DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (JV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 19th day of June, 2025].
Sd/ (T. RAJESH) PRESIDING OFFICER
OA 1057/2023
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ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Ashok Nayak, Senior Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
The Exhibits are appended in this order.
Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -
-Nil -
Sd/ (T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant succeeded in proving the loan claim as against the defendants?
Whether the Original Application for issuance of Recovery Certificate is liable to be allowed?
2 provisions across 1 enactments
Canara Bank
Mr. Shamshir Ali
Mrs. Farhana Ali
Mr. Thashur
Mr. Mohd Iqbal
Uzair Sea Foods
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
