Allowed

Canara Bank v. Sri. Manjunatha

DRT19 Jun 2025OA/1115/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for a recovery certificate against a defaulting borrower. The court found the claim uncontroverted due to the defendant's ex-parte appearance, reducing the applicable interest rate to 8% simple interest for agricultural loans and ordering recovery against personal assets and mortgage properties.

What did the court decide?

Recovery certificate allowed for aggregate sum of Rs. 45,43,075/- with interest at 8% simple p.a., to be recovered by proceeding against Schedule 'A' and 'B' properties and personally against the defe

Canara Bank versus Sri. Manjunatha — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 19^th Day of June, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1115/2024

¶5

BETWEEN:

¶6

Canara Bank, Branch Office at Nuggehalli, Nuggehalli Branch, Channarayapatna Taluk, Hassan District- 573 131 and Represented by its Senior Manager And authorized signatory, Mr. Ashish Ranjan, Aged about 35 years, S/o Mr. Ashok Kumar Dutta. …APPLICANT

¶7

AND:

¶8

Sri. Manjunatha, Aged about 47 years, S/o Late Rangegowda, R/o. Duggenahalli Village, Masakanahalli Post, Hirisave Hobli, Channarayapatna Taluk, Hassan District- 573 131. ...DEFENDANT

¶9

Counsel on record/appeared for:

¶10

Applicant : Smt. Veena R Rai Defendant : Exparte

¶11

FINAL ORDER

¶12

The present Original Application in short (OA) has been

¶13

OA 1115/2024

¶14

¶15

filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendant for Rs. 45,43,075/- (Rupees Forty Five Lakh Forty Three Thousand Seventy Five Only) with further interest thereon from the date of filing the Application till realization.

¶16

It is the case of the applicant that, the defendant availed the following credit facilities from the applicant:-

¶17

Farm machinery loan of Rs. 4,75,000/- (Rupees Four Lakh Seventy Five Thousand Only) and,

¶18

Kisan credit card scheme of Rs. 50,000/- (Rupees Fifty Thousand Only).

¶19

It is also the case of the applicant that, in view of the Farm machinery loan, the defendant executed necessary loan documents along with Simple mortgage deed and memorandum of agreement for agricultural loans.

¶20

It is the case of the applicant that, in view of the Kisan Credit Card Scheme the defendant executed necessary loan documents along with agreement and deed of hypothecation and letters of revival in favour of the applicant bank.

¶21

OA 1115/2024

¶22

¶23

It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant failed in compliance of the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶24

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.

¶25

Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 22.11.2024.

¶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-28 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

¶28

OA 1115/2024

¶29

¶30

evidence and the proof affidavit.

¶31

The following issues arise for consideration in this matter:

¶32

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

¶33

ii) What order are to be passed?

¶34

Both these issues are gone into and decided together.

¶35

The case put forth by the applicant in the Application

¶36

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 the credit facilities as stated in the OA, creation of security interest and hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶37

OA 1115/2024

¶38

¶39

12. Hence in view of the finding arrived herein above, the

¶40

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

¶41

13. Taking into consideration the facts that the credit facilities

¶42

are availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal

¶43

is of the view that the OA can be allowed with a reduced interest

¶44

of 8.00% (simple).

¶45

In the result, OA.No.1115/2024, stands allowed,

¶46

i) The applicant is allowed to recovery an aggregate

¶47

sum of Rs. 45,43,075/- (Rupees Forty Five Lakh Forty Three

¶48

Thousand Seventy Five Only) which consists of:-

¶49

a) Rs. 43,02,937/- (Rupees Forty Three Lakh Two Thousand

¶50

Nine Hundred Thirty Seven Only) due under Farm Machinery loan, with further interest @ 8 % 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

¶51

OA 1115/2024

¶52

¶53

allowed the same to be recovered by proceeding against schedule ‘A’ property.

¶54

b) Rs. 2,40,138/- (Rupees Two Lakh Forty Thousand One Hundred Thirty Eight Only) due in Kisan Credit Card Scheme, with further interest @ 8 % 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 the same to be recovered by proceeding against the defendant personally and also against his assets including

¶55

the schedule ‘B’ property.

¶56

Properties schedule to the OA be the schedule to the recovery certificate.

¶57

ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant personally and his assets are liable for respective amounts due under the loan accounts.

¶58

iii) The applicant bank is allowed cost of the proceedings

¶59

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

¶60

OA 1115/2024

¶61

¶62

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

¶63

order and transferred to Recovery for execution.

¶64

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

¶65

in terms of this final order.

¶66

Communicate a copy of the order to the parties concerned

¶67

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

¶68

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 19^th Day of June, 2025].

¶69

Sd/- (T. RAJESH)

¶70

PRESIDING OFFICER

¶71

ANNEXURES

¶72

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶73

AW-1: Ashish Ranjan S/o Ashok Kumar Dutta, Senior Manager,

¶74

of Applicant Bank.

¶75

Exhibits on the part of the Applicant:

¶76

Exhibit	Date	Particulars of Documents
Nos.
A1	11.12.2007	Application for loan together with sanction
		report executed by defendant

¶77

OA 1115/2024

¶78

¶79

A2	11.12.2007	Specimen signature card executed by defendant
A3	11.12.2007	Memorandum of agreement for agricultural loans executed by defendant
A4	11.12.2007	Particulars of hypothecated assets
A5	11.12.2007	Certificate of loan paper obtained
A6	06.12.2007	Simple mortgage deed executed by defendant
A7	08.03.2008	Application for loan executed by defendant
A8	08.03.2008	Specimen signature card executed by the defendant
A9	08.03.2008	Agreement and deed of hypothecation for Kisan Credit Card executed by defendant
A10	08.03.2008	Certificate of loan paper obtained
A11	08.03.2008	Letter of evidencing execution of documents
A12	03.12.2010	Letter of revival executed by the defendant
A13	23.08.2013	Letter of revival executed by the defendant
A14	13.04.2016	Letter of revival executed by the defendant
A15	08.04.2019	Letter of revival executed by the defendant
A16	25.03.2022	Letter of revival executed by the defendant
A17	01.03.2011	Letter of revival executed by the defendant
A18	23.08.2013	Letter of revival executed by the defendant
A19	13.04.2016	Letter of revival executed by the defendant
A20	08.04.2019	Letter of revival executed by the defendant
A21	25.03.2022	Letter of revival executed by the defendant
A22	02.09.2020	Notice issued to the defendant
A23	02.09.2020	Notice issued to the defendant
A24	23.12.2021	Notice issued to the defendant
A25	03.02.2024	Notice issued to the defendant
A26	--	Statement of account in respect of agricultural
		farm machineryloan together with interest

¶80

OA 1115/2024

¶81

¶82

		calculation sheet and certificate 05908560008627
A27	--	Statement of account in respect of KCCS loan together with interest calculation sheet and certificate
A28	18.10.2016	General power of attorney

¶83

Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

¶84

Sd/-

¶85

(T. RAJESH)

¶86

PRESIDING OFFICER

Canara Bank v. Sri. Manjunatha

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Manjunatha

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

Formost Center versus Hdfc Ltd.

M/s Md Kaif Poultry Feed versus Indian Bank

Smt Yasmeen versus Icici Bank Limited

Maheswari a versus Punjab National Bank

Canara Bank versus Goudappa Hanumanthappa Huchareddy

Canara Bank versus Smt. Laxmibai