Allowed

Canara Bank v. Mr. Venkappa Somappa Munyal

DRT14 Nov 2025OA/1233/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for a Recovery Certificate against four respondents for agricultural loans totaling over Rs.32.83 Lakhs, granting arrear recovery at reduced pendent lite interest. The claim against the deceased fifth defendant was rejected.

What did the court decide?

Recovery Certificate issued for principal dues of approx. Rs.32.83 Lakhs plus interest @6% p.a. (simple) and costs against respondents 1 to 4, attachable to properties and other assets.

Canara Bank versus Mr. Venkappa Somappa Munyal — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 14^th Day of November, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.1233 of 2023

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Canara Bank, Yergatti Branch, Mahabaleshwar Complex, Gogak Road, Yergatti, Saundatti Taluk, Dist. Belagavi. Through its Senior Manager, Mr.Rahul Shukla.

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… Applicant.

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Vs.

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Mr.Venkappa Somappa Munyal, S/o. Somappa Munyal, At & Post: 584 Sattigeri, Tal :Parasgad, Dist.Belgavi – 591 126.

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Mr.Timmappa Vittappa Munyal, S/o.Vittappa Munyal, At & Post: 584 Sattigeri, Tal :Parasgad, Dist.Belgavi – 591 126.

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Mr.Tippanna Vittappa Munyal, S/o. Vittappa Munyal, At & Post: 584 Sattigeri, Tal :Parasgad, Dist.Belgavi – 591 126.

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Mr.Jagadish Vittappa Munyal, S/o. Vittappa Munyal, At & Post: 584 Sattigeri, Tal :Parasgad, Dist.Belgavi – 591 126.

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Mr.Mallikgarjun Mirji. (Since Deceased.) … Defendants.

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Counsel for Applicant : M/s.Venu K.V. Defendants 1 to 4 : Exparte. 5^th Defendant : Deceased.

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ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for a sum of (i)Rs.15,05,601.96 together with further interest @9.90% compounded Half Yearly in respect of A/c.No.05178380005472 and (ii)Rs.17,78,066.89 together with further interest @8.35% compounded Half Yearly in respect of A/c.No.05178230002223 totaling Rs.32,83,668.85 from 01.04.2023 till the date of realization together with costs from the defendants jointly and severally and by way of sale of schedule mentioned properties.

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The Applicant contends that the defendants 1 to 4 approached the erstwhile Syndicate Bank for financial assistance of Rs.7,00,000/- for agricultural purpose and availed the same on 29.09.2014 by

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execution of necessary loan documents including Agreement for Agricultural Advances coupled with Simple Mortgage Deed dt.25.09.2014 in respect of schedule mentioned properties in favour of applicant. The 5^th defendant guaranteed the due repayment of facility advanced to defendants 1 to 4 by executing Deed of Guarantee dt.29.09.2014. The defendants 1 to 4 again sought for financial assistance of Rs.6,00,000/- for agricultural purpose from the applicant bank and availed the same on 29.09.2014 by execution of necessary loan documents including Agreement for Agricultural Advances. The 5^th defendant guaranteed the due repayment of facility advanced to defendants 1 to 4 by executing Deed of Guarantee dt.29.09.2014.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facility, the defendants failed to regularize the said loan and hence the loan accounts of the defendants were declared as NonPerforming Asset. The applicant bank has also issued Legal Notice dt.15.06.2023 to the defendants. Despite availing the credit facility by obliging to pay back the amount, the defendants failed in

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compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the 5^th defendant is deceased and even though it is represented that 4^th defendant is the LR of deceased 5^th defendant, no memo is filed in this regard. Applicant’s claim against 5^th defendant is hence rejected. The defendants 1 to 4 were called absent and were set exparte on 08.10.2024.

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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 A1 to A12, got the same marked in evidence.

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Heard. The following issues arise for consideration in this matter:

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

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ii)If so, to what extent?

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Both these issues are gone into and decided together.

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The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.

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Since the OA claim is arrived at by calculating interest with default

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interest and that the facilities are availed for agricultural purpose the pendent lite and future interest is awarded at simple rate that too at reduced rate of 6% p.a. (simple).

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In view of the above

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i) OA No.1233 of 2023 stands allowed.

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ii) Applicant is permitted to recover an amount of (i)Rs.15,05,601.96 in respect of A/c.No.05178380005472 and (ii)Rs.17,78,066.89 in respect of A/c.No.05178230002223 totaling Rs.32,83,668.85 (Rupees Thirty Two Lakhs Eighty Three Thousands Six Hundred Sixty Eight and Eighty Five paise only) together with interest @6% p.a. (simple) from the date of filing of OA till the date of realization together with costs from the defendants 1 to 4 jointly, severally and 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 the schedule mentioned properties. The schedule to the OA to be the schedule to the Recovery Certificate.

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iii) If the sale proceeds are not sufficient to clear the liability, then the Defendants 1 to 4 are personally and their other assets are

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liable to be proceeded against for realization of respective dues.

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iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the 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 PS, transcribed by him corrected and pronounced by me in the open Court on this the 14^th day of November, 2025)

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Sd./-

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(T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Mr.Naga Chetan, Senior Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Ext A1 - Loan Application dt.25.09.2014 Ext.A2 - Sanction dt.29.09.2014. Ext.A3 - Simple Mortgage Deed dt.25.09.2014. Ext.A4 - Agreement for Agricultural Advances dt.29.09.2014.

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Ext.A5 - Deed of Guarantee for Agricultural Advances dt.29.09.2014. Ext.A6 - Loan Application dt.25.09.2014. Ext.A7 - Sanction letter dt.29.09.2014. Ext.A8 - Agreement for Agricultural Advances dt.29.09.2014 in r/o credit facility of Rs.6,00,000/-. Ext.A9 - Deed of Guarantee for Agricultural Advances dt.29.09.2014 in r/o credit facility of Rs.6,00,000/-. Ext.A10 - Legal Notice dt.15.06.2023. Ext.A11 - True Extract of Statement of Accounts pertaining to the Defendant’s Loan A/c.No.05178380005472. Ext.A12 - True Extract of Statement of Accounts pertaining to the Defendant’s Loan A/c.No.05178230002223.

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Witness Examined for the Defendants:

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NIL

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List of Documents Exhibited for the Defendants :

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NIL

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Sd./- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mr. Venkappa Somappa Munyal

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr. Venkappa Somappa Munyal

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

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