Allowed

Canara Bank v. Ms Dream Land Promoters and Developers

DRT29 Aug 2025OA/1096/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for a recovery certificate against the defendants for an aggregate sum of Rs. 1,37,10,518/- along with interest, as the defendants failed to appear. The order permitting recovery against joint and separate assets was issued.

What did the court decide?

Recovery certificate for Rs.1,37,10,518/- plus interest; recovery executable against schedule property and personal assets of defendants jointly and severally.

Canara Bank versus Ms Dream Land Promoters and Developers — Specific Performance | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 29^th Day of August, 2025

¶3

Present: Sri. T. RAJESH

¶4

Presiding Officer

¶5

OA. No.1096/2023

¶6

BETWEEN:

¶7

Canara Bank Catholic Centre Branch K M Marg, Syndicate Tower, Udupi – 576101 Rep. by its Chief Manger officer, Sri. Vinay Kumar G

¶8

… APPLICANT

¶9

AND:

¶10

M/s. Dream Land promoters and Developers Rep. by its Partners C/o. Indian Fashions, Ground Floor, Famous Commercial Complex, Near City Bus Stand, Udupi-576101

¶11

Mr. Mohd. Althaf S/o. Abubakar Saheb R/at. 5-181-A-51, Pent House, Penta Heights, V.P. Nagar, 1^st Cross, Indrali, Kunjibettu, Udupi – 576102

¶12

Mrs. Asifa Althaf W/o. Mohd Althaf R/at. 5-181-A-51, Pent House, Penta Heights, V.P. Nagar, 1^st Cross, Indrali, Kunjibettu, Udupi - 576102

...DEFENDANTS

OA. No. 1096/2023

Counsel on record/appeared for:

¶17

Applicant : Smt. Malini Vinay Defendants : Exparte

¶18

:FINAL ORDER:

¶19

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.1,37,10,518/- (Rupees One Crore Thirty Seven Lakh Ten Thousand Five Hundred and Eighteen only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶20

It is the case of the applicant that, the defendant No.1 is a partnership firm represented by its partners i.e. the defendant Nos.2 and 3 have availed term loan of Rs.240 lakhs on 04.08.2017 for business needs and WCTL under GECL scheme of Rs.67,24,000/- on 08.12.2021 for a working capital.

¶21

It is also the case of the applicant that, in view of the above financed credit facilities, the defendants have executed necessary loan documents.

¶22

It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and

¶23

OA. No. 1096/2023

¶24

¶25

regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶26

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.

¶27

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 06.01.2025.

¶28

The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A13 and got the same marked in evidence.

¶29

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.

¶30

The following issues arise for consideration in this matter:

¶31

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

¶32

ii) What order are to be passed?

¶33

OA. No. 1096/2023

¶34

¶35

Both these issues are gone into and decided together.

¶36

The case put forth by the applicant in the Application

¶37

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 security interest as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶38

Since the OA claim is arrived at by calculating agreed rate

¶39

of interest, penal interest/default interest, which this Tribunal considers as on the higher side, pendentalite and future interest

¶40

is awarded at fixed rate.

¶41

Hence in view of the above finding which cover both the

¶42

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

¶43

OA. No. 1096/2023

¶44

¶45

In the result, OA.No.1096/2023 stands allowed,

¶46

i) The applicant is allowed to recovery an aggregate sum of Rs.1,37,10,518/- (Rupees One Crore Thirty Seven Lakh Ten Thousand Five Hundred and Eighteen only) consisting of:

¶47

a) Rs.62,09,278/- for term loan together with further interest of 12.00% p.a.(simple) and

¶48

b) Rs.75,01,240/- for WCTL under GECL together with further interest of 8.75% from the date of filing OA till the realization from defendants, 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.

¶49

The schedule to the OA be the schedule to the Recovery Certificate.

¶50

ii) If the sale proceeds are not sufficient to pay of the liability, the balance can be recovered by proceedings against

¶51

the defendants jointly, severally and the defendant No.2 and 3 personally and their other assets are liable for all such amounts due under the loan accounts.

¶52

OA. No. 1096/2023

¶53

¶54

iii) The applicant bank is allowed cost of the proceeding

¶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

¶57

order and transferred to Recovery for execution.

¶58

Communicate a copy of the order to the parties

¶59

concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

¶60

[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of August 2025].

¶61

Sd/-

¶62

(T. RAJESH) PRESIDING OFFICER

¶63

ANNEXURES

¶64

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶65

AW-1: Sri. M. Ananda, Officer of the applicant bank.

¶66

Exhibits on the part of the Applicant:

¶67

Annexure	Particulars	Date
A1	Sanction Memorandum	04.08.2017
A2	General loan agreement	07.08.2017
A3	GUARANTEE AGREEMENT	07.08.2017

¶68

OA. No. 1096/2023

¶69

¶70

A4 & A5	Registered memorandum of deposit of title deeds and rectification deed	31.07.2017 & 16.08.2017
A6	Letter of revival	25.06.2020
A7	Application form	02.12.2021
A8 & A9	Sanction memorandum and duly acknowledged by defendants	07.12.2021 & 08.12.2021
A10	Common hypothecation agreement	07.12.2021
A11	Partnershipdeed	01.07.2013
A12 & A13	Statement of account	--

¶71

Sd/-

¶72

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Ms Dream Land Promoters and Developers

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms Dream Land Promoters and Developers

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

Punjab National Bank versus Kavita

Punjab and Sind Bank versus Amit Kumar

Central Bank of India versus M/S Fortress Packaging Pvt. Ltd.

Ms Lanvin Exports versus Canara Bank

Mrs Gayathri S and Another versus Tumkur Grain Merchants Cooperative Bank Limited

K R Nagesh versus Katta Radhakrishnaiah Nagesh