Allowed

Canara Bank (Syndicate Bank) v. Nagamma

DRT25 Sept 2025OA/1069/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Original Application for issuance of a Recovery Certificate against farm loan defaulters. The Tribunal confirmed the loan default and granted recovery with reduced interest at 6.00% simple p.a. pending no defense from respondents.

What did the court decide?

Recovery Certificate to be drawn for Rs. 25,24,300/- plus 6% simple interest from filing date to realization, to be recovered from the defendants along with their scheduled properties.

Canara Bank (Syndicate Bank) versus Nagamma — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 25^th Day of SEPTEMBER, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1069/2023

¶5

BETWEEN:

¶6

Canara Bank (Erstwhile Syndicate Bank) Hoskote Branch, Ward No. 6, Kavery Complex, M V Extension, College Road, Hoskote Town, Bangalore Rural – 562 114

¶7

Head office building at: J C road, Bangalore – 560 002 …APPLICANT

¶8

AND:

¶9

Smt. Nagamma, W/o. late. Munichikkappa,

¶10

Sri J M Manjunath, S/o. Later Munichikkappa,

¶11

Both are residing at: Jinnagara village & hobli, Hoskote taluk, Bangalore rural district – 562 114 ...DEFENDANTS

¶12

OA-1069/2023

¶13

¶14

Counsel on record/appeared for:

¶15

Applicant : Ramanand achar Defendants : Ex parte

¶16

FINAL ORDER

¶17

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 defendants for Rs.25,24,300/-(Rupees Twenty Five Lakhs Twenty Four Thousand Three Hundred Only) with further interest thereon from the date of filing the Application till realization.

¶18

It is the case of the applicant that, the defendants availed an farm loan of Rs. 15,00,000/- (Rupees Fifteen Lakhs only) for the purpose of construction of farm house.

¶19

It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents along with agreement for agricultural, simple mortgage and letter of revival.

¶20

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 accounts as NPA.

¶21

In the above circumstances, the applicant approached this

¶22

OA-1069/2023

¶23

¶24

Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

¶25

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 06.02.2025

¶26

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-8 and got the same marked in evidence.

¶27

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.

¶28

The following issues arise for consideration in this matter:

¶29

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

¶30

ii) What order are to be passed?

¶31

Both these issues are gone into and decided together.

¶32

The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. 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,

¶33

OA-1069/2023

¶34

¶35

creation of the security interest and the defaults committed in the

¶36

accounts. The liability of the defendants and the claim of the amount

¶37

due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶38

Hence in view of the findings arrived herein above, the Tribunal

¶39

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

¶40

Taking into consideration the facts that the credit facilities are

¶41

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

¶42

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

¶43

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

¶44

In the result, OA.No.1069/2023 stands allowed,

¶45

i) The applicant is allowed to recover an aggregate sum of Rs.25,24,300/-(Rupees Twenty Five Lakhs Twenty Four Thousand Three Hundred Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly,

¶46

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

¶47

the same to be recovered by proceeding against the schedule

¶48

properties. Properties Schedule to the OA be the schedule to the

¶49

OA-1069/2023

¶50

¶51

recovery certificate.

¶52

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

¶53

amount due and payable to the applicant bank, the defendants jointly, severely and personally and their assets are liable for all such amounts due under the loan accounts.

¶54

iii) The applicant bank is allowed cost of the proceedings

¶55

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

¶56

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

¶57

and transferred to Recovery for execution.

¶58

v) Interim application pending, if any, are disposed of with this

¶59

Final Order.

¶60

Communicate a copy of the order to the parties concerned in

¶61

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

¶62

(Procedure) Rules, 1993.

¶63

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

¶64

Sd/-

¶65

(T. RAJESH) PRESIDING OFFICER

OA-1069/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶70

AW-1: Prajesh Babu, S/o. Narayana working as officer, of Applicant

¶71

Bank.

¶72

Exhibits on the part of the Applicant:

¶73

Exhibit	Date	Particulars of Documents
Nos.
A1	13.10.2016	Loan application
A2	13.10.2016	Agreement for agricultural advances
A3	07.10.2016	Regd. Simple mortgage deed
A4	07.10.2016	Regd. Simple mortgage deed
A5	05.10.2019	Acknowledgement of debt
A6	24.08.2022	Letter of revival
A7	02.08.2022	Legal notice
A8	-------	Account extract

¶74

Witness Examined for the Defendants:

¶75

-Nil -

¶76

List of Documents Exhibited for the Defendants: -Nil -

¶77

Sd/-

¶78

(T. RAJESH) PRESIDING OFFICER

Canara Bank (Syndicate Bank) v. Nagamma

Case brief

What is this about?

What did the court decide?

Canara Bank (Syndicate Bank) v. Nagamma

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

Similar cases

Union Bank of India versus Sukumar Mohan

State Bank of India versus Rahul

Canara Bank versus Sgr Infratech Solution

Canara Bank versus Santhosh Kumar H M

Bank of Baroda (Vijaya Bank) versus Bairaiah Since Dead by His Lrs and Others

Canara Bank versus Sri. S C Ravikumar Prop of Dodmane Poultry Farm