Allowed

Canara Bank v. Gurusiddappa

DRT29 Sept 2025OA/1268/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Canara Bank for a recovery certificate of Rs. 53.04 lakhs against legal heirs of a deceased borrower who defaulting on a farm machinery loan. The defendants did not appear; the claim was adjudicated based on uncontroverted documentary evidence, with interest capped at 6% simple.

What did the court decide?

Recovery certificate issued for Rs. 53,04,057 with interest @6% p.a. simple from filing date, recoverable jointly, severally, and personally against defendants Nos. 2 to 5 on scheduled property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1268/2022

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BETWEEN:

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Canara Bank, Nanjangudu Branch, Priya Complex, M.G. Road, Nanjangudu, Mysore District- 571 301.

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Represented by its Manager & PA Holder, Sri. Ashish Shukla, Aged about 31 years, S/o. Awadhesh Kumar Shukla.

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…APPLICANT

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AND:

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Gurusiddappa, Deceased- Represented by LRs D-2 to D-5.

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Sri. Nagabhushana, S/o Gurusidappa.

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Sri. Chandrashekarappa, S/o Gurusidappa.

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Sri. Shivaswamya, S/o Gurusidappa.

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Sri. Shivarajappa, S/o Gurusidappa.

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D2 to D5 are residing at: Mallammana Hundi,

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OA 1268/2022

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Gundlupet Taluk, Chamrajnagar District. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : HSR & Associates Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 53,04,057/- (Rupees Fifty Three lakh Four Thousand Fifty Seven Only) with further interest thereon from the date of filing the Application till realization.

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The defendant No.1 is reported deceased, defendant No. 2 to 5 are the legal heirs of the deceased defendant No.1.

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It is also the case of the applicant that, in view of the above availed loans, the defendants and the deceased availed farm machinery loan of Rs. 5,70,000/- (Rupees Five Lakh Seventy Thousand Only) for the purchase of tractor and trailer.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default 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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OA 1268/2022

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Despite, service of summons on the defendants Nos. 2 to 5 they failed to appear, resulting the defendants Nos. 2 to 5 being set exparte on 14.02.2025.

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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-12 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 claim

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as against the defendants?

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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 unrebutted as defendants 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 security interest as claimed by the applicant bank and the defaults committed in

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OA 1268/2022

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the accounts. The liability of the defendants and the claim of the amount

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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, the Tribunal find

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both these issues in favour of applicant and hence, this Tribunal is of the

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view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural purpose and also that the 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 of 6.00% (simple).

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In the result, OA.No.1268/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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53,04,057/- (Rupees Fifty Three lakh Four Thousand Fifty Seven Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till

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the realization, from the defendants Nos. 2 to 5 jointly, severally & personally after giving credit to all the amounts recovered and received

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during the pendency of the OA and allowed to recover the same by proceeding against the schedule property. 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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OA 1268/2022

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amount due and payable to the applicant bank, the defendants No. 2 to

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5 jointly, severally & personally and their assets are liable for all such

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amounts due under the loan accounts.

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

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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 and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in terms

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

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of September, 2025].

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Sd/- (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: Girish H.C S/o Chikkanna, Manager, of Applicant Bank.

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OA 1268/2022

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	23.12.2004	Loan application submitted by the defendant to the applicant bank
A2	27.12.2004	Sanction memorandum issued by the applicant bank in reference to the farm machinery loan
A3	31.12.2004	Memorandum of agreement for agricultural loans executed by the defendants in favor of applicant bank in respect of the farm machinery loan
A4	27.12.2004	Simple mortgage deed executed the defendant in favor of applicant
A5	December 2005	Particulars of vehicle/ Machinery hypothecated executed by the defendants in favour of the applicant bank
A6 & A7	11.03.2005	Forms of certificate of registration of the tractor and trailer
A8 to A10	21.05.2008 21.08.2008 12.08.2011	03 Nos. of letters of revival executed by the defendants in favour of applicant bank in respect of the farm machinery loan
A11	31.12.2011	Office copy of the legal notice issued by the applicant bank
A12	02.08.2022	Certified account extract of defendant No. 01 maintained by the applicant bank in respect of the Farm machinery loan A/c No. 0597856007722

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Gurusiddappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Gurusiddappa

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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Case details

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