Allowed

Canara Bank v. Veena Shetty

DRT23 Sept 2025OA/1062/2024

Case brief

AI extract

What is this about?

The Recovery Debt Tribunal allowed an Original Application filed by Canara Bank for issuance of a Recovery Certificate against a defaulting borrower. The defendant did not appear. The Tribunal reduced the interest rate to 8% simple for agricultural purpose and directed recovery of the principal and reduced interest.

What did the court decide?

Recovery of Rs. 22,38,129/- plus 8% simple interest p.a. from filing till realization; Recovery Certificate to be drawn and transferred for execution.

Canara Bank versus Veena Shetty — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 23^rd Day of SEPTEMBER, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1062/2024

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BETWEEN:

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Canara Bank Head office at: No. 112, J C road, Bengaluru – 560 002

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And having a branch at: Nagaveni complex, Haridravathi post, Alagerimandri, Hosanagara Taluk, Shivamogga district – 577 412

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Represented by its manager and constituted attorney

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Sri. Kumaraswamy B …APPLICANT

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AND:

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Smt. Veena Shetty W/o. Sri. Annappa Shetty Aged about 37 years, No.151, Alagerimandri, Haridravathi post, Shimoga district – 577 412 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Veeresh Kumar Javali M C Defendants : Exparte

OA-1062/2024

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. 22,38,129/-(Rupees Twenty Two Lakhs Eight Thousand One Hundred and twenty Nine 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 defendants availed an agriculture term loan of Rs. 10,00,000/- (Rupees Ten Lakhs only) for the purpose of working capital requirement of ginger business.

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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 cash credit agreement and pronote.

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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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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, she failed to appear, resulting the defendant being set exparte on 11.02.2025

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OA-1062/2024

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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-11 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 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

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due are also proved by the above documents. The claim of the

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OA-1062/2024

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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

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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 of the view that OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.1062/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.22,38,129/-(Rupees Twenty Two Lakhs Eight Thousand One

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Hundred and twenty Nine Only) Rupees Twenty Two Lakhs Eight Thousand One Hundred and twenty Nine Only) with further interest @8.00 % p.a.(simple) 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

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the same to be recovered by proceeding the defendant personally and

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her assets including schedule property.

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ii) The applicant bank is allowed cost of the proceedings

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OA-1062/2024

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

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receipt of the order.

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iii) 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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iv) 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 23^rd Day of September, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

OA-1062/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Nilesh Nalage, S/o, Balasaheb working as Branch 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	03.01.2018	Loan Application
A2	03.01.2018	Sanction memorandum
A3	03.01.2018	Request letter for overdraft facility submitted by the defendant
A4	03.01.2018	Cash credit agreement executed by the defendant
A5	03.01.2018	Pronote executed by the defendant
A6	03.01.2018	Letter of undertaking executed by the defendant
A7	10.012.2020	Letter of revival executed by the defendant
A8	11.05.2022	Legal of revival executed by the defendant
A9	03.07.2023	Legal notice issued to defendant
A10	--------	Unserved postal cover
A11	--------	Statement of account

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Veena Shetty

Case brief

What is this about?

What did the court decide?

Canara Bank v. Veena Shetty

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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