Allowed

Canara Bank v. Sajjadahmad M Dhale

DRT28 Nov 2025OA/1122/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Receiver's Application filed by Canara Bank for issuance of a Recovery Certificate against the defendant for loan defaults. The court admitted the claim was within limitation and reduced the interest to 10% p.a. (simple).

What did the court decide?

Issuance of Recovery Certificate for Rs.24,11,456.42 plus further interest at 10% p.a. (simple) from the date of filing OA till realization, recoverable from defendant personally and his assets.

Canara Bank versus Sajjadahmad M Dhale — Banking and Recovery | 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 November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1122/2023

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BETWEEN:

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Canara Bank Kudachi Branch Raibag Taluk, Dist. Belgavi-591311 Through its Branch Manager Mr. Aniket Anand Alhat

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… APPLICANT

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AND:

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Mr. Sajjadahmad M Dhale W/o. M Dhale Aged about 40 years Having address at: Dhale Galli, Kudachi, Taluk Raibag, Dist. Belgavi, Karnataka-591311

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Mr. Venu K V Defendant : 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 for seeking issuance of Recovery Certificate against the defendant for Rs.24,11,456.42 (Rupees Twenty Four Lakh Eleven Thousand Four Hundred Fifty Six and Forty Two Paisa only) with further interest thereon from the date of filing the Application till realization from

OA. No.1122/2023

the Defendant.

It is the case of the applicant that, the defendant availed the overdraft facility of Rs.15 lakhs and Term loan of Rs.8.75 lakhs aggregate to Rs.23,75,000/- on 22.02.2022.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents.

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

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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 defendant, he failed to appear, resulting the defendant being set exparte on 05.08.2024.

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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 A3 to A11 and got the same marked in evidence.

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OA. No.1122/2023

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

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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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The case put forth by the applicant in the Application 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 credit facilities as stated in the OA, as to the execution of loan documents 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 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 finding which cover both the

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

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OA. No.1122/2023

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Taking into consideration the facts that the credit facilities were availed for business 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 10.00% (simple).

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In the result, OA.No.1122/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.24,11,456.42 (Rupees Twenty Four Lakh Eleven Thousand Four Hundred Fifty Six and Forty Two Paisa only) with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization from defendant, 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 his other assets of the defendant, including the schedule are liable for all such amounts due under the loan account. The 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, the defendant personally and his other assets are liable for all such amounts due under the loan accounts.

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OA. No.1122/2023

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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

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with this Final Order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of 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 28^th Day of November 2025].

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Sd/(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: Aniket Anand Alhat, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A3	Loan application dated 22.02.2022
A4	Sanction letter dated 22.02.2022
A5	Cash credit agreement dated 22.02.2022

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OA. No.1122/2023

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A6	Common hypothecation agreement dated 22.02.2022
A7	Demand promissory note dated 22.02.2022
A8	letter of undertaking Re: loans/advances dated 22.02.2022
A9	Legal notice dated 21.10.2023
A10	True extract for statement of accounts pertaining to the defendants’ loan accounts 125001656223
A11	True extract for statement of accounts pertaining to the defendants’ loan accounts 170004049278

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sajjadahmad M Dhale

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sajjadahmad M Dhale

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

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