Allowed

Canara Bank v. Md Idris Ahmed

DRT30 Oct 2025OA/1151/2024

Case brief

AI extract

What is this about?

An RDB Tribunal allowed an Original Application filed by Canara Bank seeking a recovery certificate against a borrower for a defaulted loan. The defendant was present ex parte. The court found the debt proved, allowed the application with a reduced interest rate of 12% simple until realization, and directed issuance of a recovery certificate.

What did the court decide?

Issuance of recovery certificate for Rs. 3.54 Crore with 12% simple interest from filing date and recovery through sale of schedule properties.

Canara Bank versus Md Idris Ahmed — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1151/2024

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BETWEEN:

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Canara Bank Head office at: 112, JC road, Bangalore

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Branches At: Kalaburgi Main 1 Branch, Janata Bazar Building, Super Market Complex, Kalaburgi – 585 101

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Represented by Senior Manager

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Mr. Satwant Singh …APPLICANT

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AND:

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Mr. MD Idris Ahmed S/o. Mohammed Haneef Aged about 46 Years

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Proprietor of M/S. K K Agro Industries, House No. 7-794, Mijigori Road, Naya Mohalla, Kalaburgi – 585 101

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Also at: Plot No. 208, Bellur Cross, 2^nd Phase, KIADB Industrial Area, Kapnoor, Kalaburgi – 585 104 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendant : Ex parte

OA-1151/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendant for Rs. 3,54,25,883.51/- (Rupees Three Crores Fifty Four Lakhs Twenty Five Thousand Eight Hundred and Eighty Three and Paisa Fifty One Only) with further interest thereon from the date of filing the Application till realization.

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

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OD/OCC facility of Rs. 60,00,000/- (Rupees Sixty Lakhs Only) under OCC agro products on 30.12.2011.

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OD/OCC facility which as enhanced to Rs. 3,15,00,000/(Rupees Three Crores Fifteen Lakhs Only).

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Rs. 35,26,000/- (Rupees Thirty Five Lakhs Twenty Six Thousand Only) under guaranteed emergence cred loan (GECL)-1 on 10.06.2020

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Rs. 28,00,000/- (Rupees Twenty Eight Lakhs Only) under GECL-2 on 09.11.2021

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with common hypothecation agreement and deposit of title deeds.

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

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OA-1151/2024

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defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA. The applicant bank as filed part satisfaction memo dated 23.05.2025 submitting that, the applicant bank sold the secured assets under SARFAESI act, 2002 for a sum of Rs. 82,68,000/- (Rupees Eighty Two Lakhs Sixty Eight Thousand Only) and Rs. 1,93,80,000/- (Rupees One Crores Ninety Three Lakhs Sixty Eighty Thousand Only). The remaining amount of Rs. 2,25,20,635.17/- (Rupees Two Crores Twenty Five Lakhs Twenty Thousand Six Hundred and Thirty Five and Paisa Seventeen Only) adjusted to the loan account on 07.04.2025. 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 ex parte on 26.11.2024.

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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-73 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

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OA-1151/2024

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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

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unrebutted as defendant remained ex parte. The evidence tendered

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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 defendant and the claim of the amount

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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

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find both these issues are 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 business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

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that the OA can be allowed with a reduced interest of 12.00% (simple).

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OA-1151/2024

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In the result, OA.No.1151/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 3,54,25,883.51/- (Rupees Three Crores Fifty Four Lakhs Twenty Five Thousand Eight Hundred and Eighty Three and Paisa Fifty One Only) with further interest @12.00 % p.a.(simple) from the date of

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filing OA till the realization, from the defendant personally, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. 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

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amount due and payable to the applicant bank, the defendant personally and his assets are liable for balance amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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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 order

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and transferred to Recovery for execution.

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

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terms of this final order.

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OA-1151/2024

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13. Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of October, 2025].

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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. Bhoom Reddy, S/o. Gopal Reddy, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	30.12.2011	Cash credit agreement (Rs. 60 lakhs)
A2	30.12.2011	Request for overdraft facilities
A3	30.12.2011	Pronote
A4	30.12.2011	Letter for release of working capital
A5	06.12.2011	Letter of renewal (renewed for an amount of Rs. 60 lakhs)
A6	08.12.2012	Sanction memorandum
A7	14.12.2013.	Application for loans to MSE’s (enhancement from 60 lakhs to 95 lakhs)
A8	14.12.2013	Sanction memorandum (enhancement from 60 lakhs to 95 lakhs)
A9	14.12.2013	Letter of proprietorship
A10	19.12.2013	Request for overdraft facilities

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OA-1151/2024

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A11	19.12.2013	Pronote
A12	19.12.2013	Deed of hypothecation re: machinery
A13	19.12.2013	Letter of renewal
A14	19.12.2013	Letter of undertaking
A15	19.12.2013	Supplemental agreement
A16	16.12.2014	Sanction memorandum (enhancement from 95 lakhs to 150 lakhs)
A17	30.12.2014	Request for overdraft facilities
A18	30.12.2014	Letter of renewal
A19	30.12.2014	Letter of proprietorship
A20	30.12.2014	Pronote
A21	22.01.2016	Common hypothecation agreement
A22	22.01.2016	Sanction memorandum (enhancement from 150 lakhs to 200 lakhs)
A23	22.01.2016	Letter of proprietorship
A24	28.01.2016	Declaration
A25	28.01.2016	Request for overdraft facilities
A26	28.01.2016	Letter of renewal
A27	28.01.2016	Pronote
A28	28.01.2016	Supplemental common hypothecation agreement
A29	07.09.2017	Sanction memorandum (enhancement from 200 lakhs to 198 lakhs)
A30	07.09.2017	Letter of renewal
A31	15.11.2018	Letter of renewal
A32	15.112018	Sanction memorandum (renewed with limit 198 lakhs)
A33	15.11.2018	Link letter to be obtained from the borrower
A34	15.11.2018	Letter of proprietorship
A35	07.11.2019	Sanction communication (renewed with limit 198 lakhs)
A36	07.11.2019	Letter of renewal
A37	07.11.2019	Supplemental common hypothecation

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OA-1151/2024

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		agreement
A38	07.11.2019	Pronote
A39	07.11.2019	Link letter to be obtained from the borrower
A40	07.11.2019	Letter of proprietorship
A41	02.11.2020	Application for loans to MSME’s (renewed with limits 198)
A42	06.11.2020	Sanction memorandum (renewed with limit 198 lakhs)
A43	06.11.2020	Letter of renewal
A44	07.12.2021	Sanction proceedings (from Rs.198 lakhs to Rs. 315 lakhs)
A45	16.12.2021	Supplemental common hypothecation agreement
A46	07.12.2021	Letter of renewal
A47	10.03.2020	Application for loans to MSE’s (GECL-1)
A48	10.06.2020	Offer letter for GECL
A49	10.06.2020	Acceptance letter from the borrower for GECL
A50	10.06.2020	Undertaking letter form borrower
A51	10.06.2020	Process note format for sanction of GECL
A52	10.06.2020	Pronote
A53	29.10.2021	Application for loans to MSE’s (GECL- extension)
A54	08.11.2021	Sanction memorandum (Rs. 28 lakhs extension)GECL
A55	09.11.2021	Letter of undertaking
A56	09.11.2021	Supplemental common hypothecation agreement
A57	08.12.2012	Letter of revival
A58	28.01.2016	Letter of revival
A59	15.11.2018	Letter of revival
A60	06.11.2020	Letter of revival
A61	12.07.2022	Letter of revival
A62	17.11.2011	Letter evidencing deposit of title deeds alongwith schedule A and B

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OA-1151/2024

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A63	19.12.2013	LEDT to be used when additional limit is granted alongwith schedule A and B
A64	30.12.2014	LEDT to be used when additional limit is granted (two properties) along with schedule A and B
A65	25.01.2016	Memorandum of deposit of title deeds of title deeds registered as document no. GLB-1-14266-2015-16,at the office of sub- registrar,Gulbarga
A66	11.02.2019	Supplemental Memorandum of deposit of title deeds of title deeds registered as document no. GLB-1-13781-2018-19,at the office of sub-registrar,Gulbarga
A67	11.06.2020	Supplemental Memorandum of deposit of title deeds of title deeds registered as document no. GLB-1-01027-2020-21,at the office of sub-registrar,Gulbarga
A68	15.12.2021	Supplemental Memorandum of deposit of title deeds of title deeds registered as document no. GLB-1-17197-2021-22,at the office of sub-registrar,Gulbarga
A69	01.03.2023	Demand notice u/s 13(2) of SARFAESI act
A70	------	Two postal receipts
A71	------	Bank statement a/c. no. 0513256007621
A72	------	Bank statement a/c. no. 0513755000011
A73	------	Bank statement a/c. no. 170001708154

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

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-Nil -

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-Nil -

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Md Idris Ahmed

Case brief

What is this about?

What did the court decide?

Canara Bank v. Md Idris Ahmed

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

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Case details

All orders in this case

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