Debt Recovery Tribunal allowed Original Application and issued Recovery Certificate for Rs. 59,83,082 with 6% simple interest against four defendants who were absent and ex parte, permitting recovery from schedule property.
Recovery Certificate issued for Rs. 59,83,082 with 6% simple interest, recoverable jointly and severally from defendants and their assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 27th Day of October, 2025
Present: Sri. T. RAJESH Presiding Officer
OA.No.1228/2023
BETWEEN:
Canara Bank Arasikere Branch, P.b.no. 62, BH Road, PP circle, Arasikere, Dist. Hassan, Karnataka – 573 103
Through its Chief Manager
Sri. Krishan Sighn …APPLICANT
AND:
OA-1228/2023
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Aged about 42 years R/o. Karagunda Village, Javagal Hobli, Arsikere Taluk, Hassan Dist. Karnataka – 573 122 ...DEFENDANTS
Counsel on record/appeared for:
Applicant : VS Associates Defendants : Ex parte
FINAL ORDER
availed loans, the defendants executed the necessary loan documents along with simple mortgage deed and agreement hypothecation.
OA-1228/2023
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Both these issues are gone into and decided together.
OA-1228/2023
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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 defendants and the claim of the amount
due are also proved by the above documents. The claim of the applicant is well within the limitation.
find both these issues are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.
availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view
that the OA can be allowed with a reduced interest of 6.00% (simple).
Rs. 59,83,082/- (Rupees Fifty Nine Lakhs Eighty Three Thousand and
Eighty Two Only) with further interest @6.00 % p.a.(simple) from the
date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed
OA-1228/2023
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the same to be recovered by proceeding against schedule property.
Properties schedule to the OA be the schedule to the recovery certificate.
ii) If the sale proceeds are not found sufficient to cover the
amount due and payable to the applicant bank, the defendants
jointly, severally and personally and their assets are liable for balance
amounts due under the loan accounts.
iii) The applicant bank is allowed cost of the proceedings
which applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this order
and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in
terms of this final order.
terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT
(Procedure) Rules, 1993.
[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27th Day of October, 2025].
(T. RAJESH) PRESIDING OFFICER
Sd/-
OA-1228/2023
6
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Sharada Bai K H, W/o. Arasaraju, Senior Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Particulars of Documents |
|---|---|
| A1 | Loan application 27.10.2005, loan application dated 21.02.2006 and loan application dated 09.03.2006 |
| A2 | Sanction letter dated 08.11.2005, sanction letter dated 21.02.2006 and sanction letter dated 09.03.2006 |
| A3 | Simple mortgage deed dated 27.10.2005 and 08.03.2006 |
| A4 | Agreement of hypothecation for agricultural loans dated 21.02.2006 |
| A5 | Memorandum of agreement for agricultural loans dated 08.11.2005 |
| A6 | Memorandum of agreement for agricultural loans dated 09.03.2006 |
| A7 | Agreement and hypothecation for agricultural loans dated 09.03.2006 |
| A8 | Letter of revival on letter of revival on 10.10.2008, 8.10.2011, 02.12.2013, 06.04.2015, 22.02.2017, 20.11.2019, 25.03.2022 and for the consecutive account 31.12.2007, 09.12.2010, 05.12.2013, 28.11.2016, 23.01.2019, 20.01.2022 For the third account 18.11.2008, 28.10.2011, 20.09.2014, 02.01.2017, 24.07.2019, 25.03.2022 |
| A9 | Legal notice dated 10.04.2020 |
| A10 | True extract of statement of accounts pertaining to the defendant’s loan account no. 078185603783 |
| A11 | True extract of statement of accounts pertaining to the defendant’s loan account no. 0781840004241 |
| A12 | True extract of statement of accounts pertaining to the defendant’s loan account no. 0781883004341 |
| Witness E | xamined for the Defendants: -Nil - |
List of Documents Exhibited for the Defendants:
-Nil -
Sd/- (T. RAJESH) PRESIDING OFFICER
3 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed regarding the recovery of the dues?
Whether the OA can be allowed with a reduced interest rate given the agricultural purpose?
3 provisions across 2 enactments
Canara Bank Arasikere Branch
Sri. K M Gangadharappa
Sri. K G Manjunatha
K G Kumara
K G Suresha
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
