Allowed

Canara Bank v. Devarajegowda

DRT28 Oct 2025OA/1071/2022

Case brief

AI extract

What is this about?

In an exparte application filed under Section 19 of the RDB Act, the Tribunal allowed Canara Bank’s claim for recovery of a debt of Rs. 21.46 lakh. The Tribunal ordered a recovery certificate with reduced interest at 6% p.a. permit recovery from specific defendants personally or jointly, and against schedule property.

What did the court decide?

Recovery Certificate for Rs. 21,46,846 with interest at 6% p.a. (simple). Recovery obtainable against defendants jointly/severally or Defendant No.1 personally, and against schedule property.

Canara Bank versus Devarajegowda — 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 28^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1071/2022

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BETWEEN:

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Canara Bank, Ramanathpura Branch, No. 100, Roopesh Nilaya, Ramanathapura, Hassan- 573 133.

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Represented by its Senior Manager and PA Holder, Sri. Suresh M, Aged about 36 years, S/o Sri. Marulappa.

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…APPLICANT

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AND:

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Sri. A.R. Devarajegowda, Aged about 69 years, S/o Rajegowda.

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Late Saroja, Deceased represented by his Lr- Defendant No.1.

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Smt. Manjula, Aged about 48 years, W/o A.R. Devarajegowda.

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No.1 & 3 are residing at: K.Abburu Village, Bannuru Post, Konanuru Hobli, Arakalgud Taluk, Hassan District- 573 201.

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OA 1071/2022

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Late H.T. Puttegowda, (abated) ...DEFENDANTS Counsel on record/appeared for:

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Applicant : HSR & Associates Defendants : 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 defendants for Rs. 21,46,846/- (Rupees Twenty One Lakh Forty Six Thousand Eight Hundred Forty Six Only) with further interest thereon from the date of filing the Application till realization.

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The applicant bank has filed a memo dated 24.06.2025 stating that the defendant No.2 is deceased and her legal heir is defendant No.1 who is already on record and case against defendant No.4 to be abated.

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It is the case of the applicant that, the defendant No.1 and late defendant No.4 availed farm machinery loan of Rs. 4,50,000/- (Rupees Four Lakh Fifty Thousand Only) and defendant No.1 availed credit card loan of Rs. 25,000/- (Rupees Twenty Five Thousand Only). The defendant Nos. 1 to 3 have availed KCCS loan of Rs. 2,00,000/- (Rupees Two Lakh Only) and farm development loan of Rs. 60,000/- (Rupees Sixty Thousand Only) and Kisan OD loan of Rs. 1,00,000/- (Rupees One Lakh Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with

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OA 1071/2022

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simple mortgage deed and agreement and deed of hypothecation.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants 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

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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 05.06.2025.

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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-59 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 claim

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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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OA 1071/2022

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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 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 defendants 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 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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In the result, OA.No.1071/2022, stands allowed,

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

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21,46,846/- (Rupees Twenty One Lakh Forty Six Thousand Eight Hundred

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Forty Six Only) with further interest @6.00 % p.a.(simple) which consists

of:-

OA 1071/2022

a) Rs. 10,48,298/- (Rupees Ten Lakh Forty Eight Thousand Two Hundred

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Ninety Eight Only) in farm machinery loan-1 from the date of filing OA till realization, from defendant No.1 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 defendant No.1 personally and his assets.

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b) Rs. 79,973/- (Rupees Seventy Nine Thousand Nine Hundred Seventy Three Only) in General credit card scheme from the date of filing OA till realization, from defendant No.1 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 defendant No.1 personally and his assets.

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c) Rs. 4,87,975/- (Rupees Four Lakh Eighty Nine Thousand Nine Hundred Seventy Five Only) in KCCS loan from the date of filing OA till the realization, from the defendants No. 1 & 3 jointly, severally & 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.

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d) Rs. 1,64,707/- (Rupees One Lakh Sixty Four Thousand Seven Hundred Seven Only) in Farm development loan -2 from the date of filing OA till the realization, from the defendants No. 1 & 3 jointly, severally &

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OA 1071/2022

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personally, after giving credit to all the amount recovered and received

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during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property.

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e) Rs. 3,65,893/- (Rupees Three Lakh Sixty Five Thousand Eight Hundred Ninety Three Only) in OD loan from the date of filing OA till the realization, from the defendants No. 1 & 3 jointly, severally & 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.

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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 amount due and payable to the applicant bank in KCCS loan, farm development loan-2 and OD loan, the defendants Nos. 1 & 3 jointly, severally & personally and their assets are liable for amounts due under the respective loan accounts.

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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.

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iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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

OA 1071/2022

of this final order.

15. 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

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Open Court, this the 28^th Day of October, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sheraz Ahamed S/o Wazir Ahamed, Officer, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	30.04.2005	Loan application submitted by the defendant No. 1 & 4 to the applicant bank
A2	30.04.2005	Sanction memorandum issued by the applicant bank
A3	30.04.2005	Memorandum of agreement for agricultural loans executed by defendant Nos 1 & 4 in favour of the applicant bank
A4 to A10	02.02.2008 10.10.2010 11.01.2013 02.01.2016 (2Nos) 23.01.2018 01.01.2021	7 Nos. of letters of revival executed by the defendant Nos 1 & 4 in favour of the applicant bank
A11	30.04.2008	Loan application submitted by defendant NO.1 to the applicant bank
A12	30.04.2008	Sanction memorandum
A13	30.04.2008	Pronote for Rs. 25,000/- executed by defendant No.1 in favour of applicant bank

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OA 1071/2022

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A14	30.04.2008	Request for OD facilities executed by defendant No.1 in favour of applicant bank
A15 to A20	15.01.2011 11.01.2013 22.12.2015 23.01.2018 17.11.2020 30.12.2021	6Nos. of letters of revival executed by the defendant Nos. 1 & 3 in favour of the applicant bank
A21	11.05.2009	Loan application submitted by the defendant Nos, 1 & 3
A22	11.05.2009	Sanction memorandum
A23	11.05.2009	Agreement and deed of hypothecation for Kisan credit card executed by the defendant Nos. 1 & 3 in favour of the applicant bank
A24	26.03.2009	Simple mortgage deed executed by defendant Nos 1 to 3 in favour of the applicant bank
A25 to A31	16.02.2012 29.01.2015 (3Nos) 23.01.2018 15.05.2019 30.12.2021	7 Nos of letters of revival executed by the defendant Nos. 1 & 3 in favour of the applicant bank
A32	02.06.2009	Loan application submitted by the defendant Nos. 1 to 3
A33	04.06.2009	Sanction memorandum
A34	04.06.2009	Memorandum of agreement for agricultural loans executed by the defendant Nos. 1 to 3 in favour of the applicant bank
A35	26.05.2009	Simple mortgage deed executed by the defendant Nos. 1 to 3 in favour of the applicant bank
A36 to A42	16.02.2012 06.01.2015 (3Nos) 17.12.2016 25.01.2018 22.01.2021	7 Nos of letters of revival executed by the defendant Nos. 1 to 3 in favour of the applicant bank
A43	25.05.2010	Loan application submitted by the defendant Nos 1 to 3
A44	26.05.2010	Sanction memorandum
A45	26.05.2010	Agreement and deed of kisan OD executed by the defendant Nos. 1 to 3 in favour of the applicant bank
A46	18.05.2010	Simple mortgage deed executed by the defendant Nos. 1 to3 in favour of the applicant bank

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OA 1071/2022

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A47 to A53	11.01.2013 19.11.2015 (3Nos) 23.01.2018 17.11.2020 30.12.2021	7 Nos of letters of revival executed by the defendant Nos. 1 to 3 in favour of the applicant bank
A54	18.02.2022	Office copy of the legal notice issued by the applicant bank
A55	--	Certified account extract of defendant No.1 bearing A/c No. 0550856007499
A56	--	Certified account extract of defendant No.1 bearing A/c No. 0550898015033
A57	--	Certified account extract of defendant No.1 bearing A/c No. 055040016797
A58	--	Certified account extract of defendant No.1 bearing A/c No. 0550883017037
A59	--	Certified account extract of defendant No.1 bearing A/c No. 0550897001292

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Canara Bank v. Devarajegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Devarajegowda

Case brief

What is this about?

What did the court decide?

What the court decided

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