Allowed

Canara Bank v. Ishwar K Sathe

DRT19 Sept 2025OA/1071/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application for recovery of an agricultural loan defaulting debt. Approving the claim due to unopposed evidence, the court granted a reduced interest rate and authorized recovery from joint and several liabilities and mortgaged property.

What did the court decide?

Recovery Certificate to be drawn for Rs. 20,41,544.11 plus 6% simple interest from filing till realization, enforceable against the defendants jointly, severally, and personally and against the schedu

Canara Bank versus Ishwar K Sathe — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1071/2024

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BETWEEN:

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Canara Bank Nargund Branch, TMC Road, Vasavi Kalyanamantapa Building, Tehsil, Nargund, Gadag District-582207 Rep. by its Senior Manager Sri. Manohar Shejal …

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… APPLICANT

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AND:

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Sri. Ishwar K Sathe S/o. Krishnaji Aged about 53 years, Residing at: 2^nd Galli, Jamalpur Oni, Nargund, Gadag District – 582207

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Sri. Chandru K Sathe S/o. Krishnaji, Aged about 52 years, Residing at: 2^nd Galli, Jamalpur Oni, Nargund, Gadag District-582207 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. M. Mohan Rao Defendants : Exparte

OA. No.1071/2024

:FINAL ORDER:

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.20,41,544.11 (Rupees Twenty Lakh Forty One Thousand Five Hundred Forty Four and Eleven Paise only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the agricultural loan of Rs.10,00,000/- on 20.10.2016 for the purpose of Crop maintenance.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents apart from the creation of security interest by way of mortgage over the schedule property.

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It is further contended that, despite availing the credit facility, 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.

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OA. No.1071/2024

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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 defendants, they failed to appear, resulting the defendant being set exparte on 28.01.2025.

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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 A1 to A5 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 as against the defendants? 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

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remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and

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OA. No.1071/2024

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undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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 above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility

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was availed for agriculture purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1071/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.20,41,544.11 (Rupees Twenty Lakh Forty One Thousand Five

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Hundred Forty Four and Eleven Paise only) with further interest

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OA. No.1071/2024

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of 6.00% p.a.(simple) from the date of filing OA till the realization

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from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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

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the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable

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for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned

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

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OA. No.1071/2024

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 22^nd Day of September 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Ravi, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars	Date
A1	Loan sanction letter	20.10.2016
A2	Agreement and Deed of Hypothecation for Kisan Credit Card executed by defendant in favour of the applicant bank	20.10.2016
A3	Simple mortgage deed executed by defendant in favour of the applicant bank	18.10.2016
A4	Legal notice with postal endorsement	06.12.2023
A5	Statement of account	-

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Ishwar K Sathe

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ishwar K Sathe

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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