Allowed

Canara Bank v. Shivasharanappa G

DRT19 Jun 2025OA/1264/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed under Section 19 of the RDB Act for issuing a recovery certificate against a defaulting agricultural loan borrower who appeared ex parte. The court upheld the claim amount but reduced future interest to 8% p.a.

What did the court decide?

Issuance of recovery certificate for Rs.48,77,111 with interest at 8% p.a. from the date of filing, recoverable from the defendant and schedule property.

Canara Bank versus Shivasharanappa G — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 19^th Day of June, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.1264/2023

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BETWEEN:

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Canara Bank. Branch Office at: Janata Bazar Building, Super Market Complex, Kalaburgi-585101

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…APPLICANT

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AND:

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Mr. Shivasharnappa.G S/o. Gurulingappa Biradar R/at Madra (B) Village, Afzalpur Taluk, Kalaburgi District-585213

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.48,77,111/(Rupees forty eight lakhs seventy seven thousand one hundred eleven only) with further interest thereon from the date of filing

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OA 1264/2023

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the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the Agricultural loan credit facilities for a sum of Rs.4,95,000/(Rupees four lakh ninety five thousand only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with registered simple mortgage, memorandum of agreements and letter of revival in favor of the applicant bank.

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

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to appear, resulting the defendant being set exparte on 18.01.2024.

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OA 1264/2023

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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-3 to A-15 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 the 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

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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

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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, creation of mortgage as claimed by

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the applicant bank and the defaults committed in the accounts.

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OA 1264/2023

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The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this Tribunal find both these issues in favour of applicant and hence

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this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendant for agricultural purpose and also that

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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 @8% p.a.

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13. In the result, OA.No.1264/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.48,77,111/-(Rupees forty eight lakhs seventy seven

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thousand one hundred and eleven only) with further interest @8% p.a. (Simple)

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from the date of filing OA till the realization, from the defendant

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personally after giving credit to all the amount recovered and

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OA 1264/2023

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received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the 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 sufficient, the defendant

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personally and his other assets are liable to be proceeded against for the balance amount.

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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

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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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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 19^th day of June, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1264/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Satwant Singh, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant Evidence
A2	--	List of Documents.
A3	22.12.2004	Simple mortgage deed registered as document No.AZP-1-01892/2004-05 at the office of Sub registrar, Afjalpur
A4	27.12.2004	Application for agricultural credit Term loan (A/c No.0513856006239)
A5	27.12.2004	Memorandum of agreement for agricultural loans
A6	27.12.2004	Sanction memorandum
A7	13.12.2007	Letter of Revival
A8	08.12.2010	Letter of Revival
A9	09.12.2013	Letter of Revival
A10	30.06.2016	Letter of Revival
A11	20.06.2019	Letter of Revival
A12	10.01.2022	Letter of Revival
A13	18.02.2022	Legal Notice along with postal receipts
A14		Online tracking delivery confirmation stamped by the post master
A15		Bank Statement A/C No.0513856006239

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

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Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Shivasharanappa G

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shivasharanappa G

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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