Allowed

Canara Bank v. Ratnamma

DRT31 Oct 2025OA/1227/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank seeking issuance of a Recovery Certificate against the legal heir of a deceased borrower for an agricultural loan default, granting relief subject to reduced interest and subsequent execution against schedule property.

What did the court decide?

Recovery Certificate issued for Rs. 45,13,257.03 with 6% p.a. simple interest recoverable from schedule property or respondent's assets to the extent of inheritance.

Canara Bank versus Ratnamma — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

¶2

AT BENGALURU

¶3

Dated this 31^st Day of October, 2025

¶4

Present: Sri. T. RAJESH Presiding Officer

¶5

OA. No.1227/2024

¶6

BETWEEN:

¶7

Canara Bank Having its head office at: 112, JC road Bangalore Branches at: Kalburgi main 1^st branch, Janata bazar building, Super market complex, Kalburgi – 585 101

¶8

Represented by Senior Manager Mr. Satwant Singh …APPLICANT

¶9

AND:

¶10

Smt. Ratnamma W/O. Tippanna Aged about Major R/o. Khudavandapur Village, Chincholi Taluk, Kalburgi District – 585 306 ...DEFENDANT

¶11

Counsel on record/appeared for:

¶12

Applicant : Naveen Tao Defendant : Ex parte

OA. No. 1227/2024

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 defendant for Rs. 45,13,257.03/- (Rupees Forty Five Lakhs Thirteen Thousand Two Hundred and Fifty Seven and Paisa Three Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

¶17

It is the case of the applicant that, the defendant no.1 is the legal heir of the deceased borrower late Sri. Tippana, have availed an farm machinery loan of Rs. 4,95,000/- (Rupees Four Lakhs Ninety Five Thousand Only) on 30.07.2005.

¶18

It is also the case of the applicant that, in view of the above financed credit facility, the deceased borrower Sri. Tippana executed necessary loan documents. Apart from the creation of security interest by way of simple mortgage deed over the schedule property.

¶19

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

¶20

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for

¶21

OA. No. 1227/2024

¶22

¶23

the amount due in the account as against the defendant.

¶24

Despite, service of summons on the defendant, she failed to appear, resulting the defendant being set ex parte on 05.12.2024.

¶25

The applicant let in evidence through AW-1, who filed Proof

¶26

Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A15 and got the same marked in evidence.

¶27

Heard the Ld. Counsel for the Applicant and considered the

¶28

contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

¶29

The following issues arise for consideration in this matter:

¶30

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

¶31

ii) What orders are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the applicant in the Application remains unrebutted as defendant remained ex parte. 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 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 defendant and

¶34

OA. No. 1227/2024

¶35

¶36

the claim of the amount due are also proved by the above documents.

¶37

The claim of the applicant is well within the limitation.

¶38

Taking into consideration the facts that the credit facility are availed for agriculture purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 6.00%(simple).

¶39

In the result, OA.No.1227/2024 stands allowed,

¶40

i) The applicant is allowed to recover an aggregate sum of Rs. 45,13,257.03/- (Rupees Forty Five Lakhs Thirteen Thousand Two Hundred and Fifty Seven and Paisa Three Only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant no.1 to the extent of their inheritance of any estate of deceased borrower Sri. Tippana, after giving credit to all the amount recovered and be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶41

ii) If the sale proceeds are not sufficient to clear the liability,

¶42

the defendant no.1 personally and her assets to the extent of their inheritance of any estate of deceased borrower late Sri. Tippana are

¶43

liable for balance amounts due under the loan accounts.

¶44

OA. No. 1227/2024

¶45

¶46

iii) The applicant bank is allowed cost of the proceeding which

¶47

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

¶48

the order.

¶49

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

¶50

and transferred to Recovery for execution.

¶51

V) Interim Application pending, if any, stands disposed of with

¶52

this Final Order.

¶53

Communicate a copy of the order to the parties concerned in

¶54

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

¶55

(Procedure) Rules, 1993.

¶56

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

¶57

the Open Court, this the 31^st Day of October 2025].

¶58

Sd/-

¶59

(T. RAJESH) PRESIDING OFFICER

¶60

ANNEXURES

¶61

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶62

AW-1: Sri. Satwant Singh, S/o. Gurcharan Singh, worked as Senior Manager of the applicant bank.

¶63

OA. No. 1227/2024

¶64

¶65

Exhibits on the part of the Applicant:

¶66

Annexure	Date	Particulars
A1	29.07.2005	Simple mortgage deed registered as document no. CCL-1-00661-2005-06,at the office of sub- registrar,Chincholi
A2	30.07.2005	Application for agricultural credit term loan(a/c. no. 0513856007084)
A3	30.07.2005	memorandum of agreement for agricultural loans
A4	30.07.2005	Sanction memorandum
A5	30.07.2005	Specimen signature card
A6	31.01.2008	Letter of revival
A7	12.09.2008	Death certificate of Mr. Tippanna (demised on 03.08.2008)
A8	21.12.2011	Letter of revival bylegal heir
A9	20.07.2013	Letter of revival bylegal heir
A10	10.04.2016	Letter of revival bylegal heir
A11	04.10.2017	Letter of revival bylegal heir
A12	01.10.2020	Letter of revival bylegal heir
A13	17.01.2024	Legal notice alongwithpostal receipt
A14	-----	Acknowledgement card served
A15	-----	Bank statement a/c. no. 0513856007084

¶67

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Ratnamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ratnamma

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

State Bank of India versus M/S Bhatia Steel Industries

Canara Bank versus Sh Sukhjeet Singh Chahal

Punjab National Bank versus Gurjit Singh

Mrs Prasanna Kumari versus Bharat Cooperative Bank Mumbai Limited

Bank of Baroda versus Sri.Fakirappa Shivaputrappa Gouddannavar

Canara Bank versus M/S Nisha Apparels Rep by Its Proprietrix Smt Mariya