Allowed

Canara Bank v. Sri.Shivalingappa M Nugganatti

DRT19 Jun 2025OA/1284/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank seeking a Recovery Certificate. The defendants appeared ex parte. The Tribunal found the loan availed and defaults proved, allowing recovery of Rs. 21,52,854.07 with reduced interest at 8% p.a.

What did the court decide?

Issuance of Recovery Certificate for Rs. 21,52,854.07 with interest at 8% p.a., allowing execution against scheduled properties and personal assets.

Canara Bank versus Sri.Shivalingappa M Nugganatti — Execution and Attachment | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 19^th Day of June, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1284/2023

¶5

BETWEEN:

¶6

Canara Bank Yergatti Branch, Mahabaleshwar Complex, Gokak Road, Yergatti, Saundatti Taluk, District Belagavi

¶7

…APPLICANT

¶8

AND:

¶9

Mr. Shivalingappa M Nugganatti S/o Mahadevappa R/at House No.92, Nugganattiyavar Lane Sattigeri, Taluk Saundatti District Belagavi, Karnataka- 591129

¶10

Mr. Nagappa S Benakatti S/o. Somappa Benakatti, R/at Sattigeri, Taluk Saundatti, District Belagavi, Karnataka-591129

¶11

Mr. Prabhu A Badiger S/o Adiveppa R/at Baligar Oni, Sattigeri Taluk Saundatti District Belagavi, Karnataka-591129

...DEFENDANTS

OA 1284/2023

Counsel on record/appeared for:

¶16

Applicant : Venu K.V Defendants : Exparte

¶17

FINAL ORDER

¶18

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 Rs.21,52,854.07(Rupees twenty one lakh fifty two thousand eight hundred fifty four and paisa seven only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶19

It is the case of the applicant that the defendant No.1 is borrower and the other defendants No.2 & 3 stood as guarantors. Further, the Defendant No.1 availed the following credit facilities from the erstwhile Syndicate Bank which later amalgamated with Canara Bank:-

¶20

I. Agricultural loan of a sum of Rs.2,00,000/- (Rupees Two Lakh Only) in which Defendant No.2 stood as guarantor,

¶21

II. Agricultural loan limit of Rs.3,00,000/- (Rupees Three lakhs Only), in which Defendant No.2 stood as guarantor,

¶22

III. Agricultural Loan limit of Rs. 9,00,000/- (Rupees Nine Lakh

¶23

OA 1284/2023

¶24

¶25

Only) in which defendant No.3 stood as guarantor.

¶26

It is also the case of the applicant that, in view of the above

¶27

amount financed, the defendants executed necessary loan documents along with agreement for agricultural advances, deed of guarantee, simple mortgage deed in favor of the applicant bank.

¶28

It is further contended that, the defendants 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.

¶29

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.

¶30

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 18.01.2024.

¶31

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-20 and got the same marked in

OA 1284/2023

evidence.

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.

¶36

The following issues arise for consideration in this matter:

¶37

i) Whether the applicant had succeeded in proving the

¶38

OA claim as against the defendants?

¶39

ii) What order are to be passed?

¶40

Both these issues are gone into and decided together.

¶41

The case put forth by the applicant in the Application

¶42

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 mortgage as claimed by the applicant bank and the defaults committed in the accounts. 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.

¶43

OA 1284/2023

¶44

¶45

Hence in view of the finding arrived herein above, this

¶46

Tribunal find both these issues in favour of applicant and hence

¶47

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

¶48

12.12. Taking into consideration the facts that the credit facilities

¶49

are availed by defendant No.1 for agricultural purpose and also

¶50

that 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.

¶51

In the result, OA.No.1284/2023, stands allowed,

¶52

i) The applicant is allowed to recovery an aggregate

¶53

sum of Rs.21,52,854.07(Rupees twenty one lakhs fifty two thousand eight hundred fifty four and paisa seven only) consisting of:-

¶54

a) Rs. 5,58,539.20 (Rupees five lakhs fifty eight thousand five hundred thirty nine and paisa twenty Only) with further interest @8% p.a. (Simple), in which defendant Nos.1 & 2 jointly and severally liable to pay,

¶55

b) Rs.4,33,298.10 (Rupees four lakh thirty three thousand

¶56

two hundred ninety eight and paisa ten Only) with further

¶57

OA 1284/2023

¶58

¶59

interest @8% p.a. (Simple), in which both the defendant

¶60

Nos.1 & 2 are liable to pay and

¶61

c) Rs.11,61,016.77(Rupees eleven lakhs sixty one thousand sixteen and paisa seventy seven Only) with further interest @8% p.a. (Simple) in which the defendant Nos.1 & 3 are liable to pay

¶62

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

¶63

jointly and severally personally, as above after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

¶64

(ii) If the sale proceeds are not sufficient, the defendants personally and their other assets are liable to be proceeded against for the balance amount due as per this order.

¶65

iii) The applicant bank is allowed cost of the proceedings

¶66

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

¶67

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

¶68

order and transferred to Recovery for execution.

¶69

OA 1284/2023

¶70

¶71

v) Interim application pending, if any, stands disposed of

¶72

in terms of this final order.

¶73

Communicate a copy of the order to the parties concerned

¶74

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

¶75

of DRT (Procedure) Rules, 1993.

¶76

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

¶77

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

¶78

Sd/ (T. RAJESH)

¶79

PRESIDING OFFICER

¶80

ANNEXURES

¶81

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶82

AW-1: Rahul Shukla, Senior Manager, of Applicant Bank.

¶83

Exhibits on the part of the Applicant:

¶84

Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant Evidence
A2	--	List of Documents.
A3	24.10.2016	Loan application
A4	27.10.2016	Sanction Letter
A5	27.10.2016	Agreement for agricultural advances
A6	27.10.2016	Deed of Guarantee for Agricultural Advanced
A7	24.10.2016	Loan Application
A8	03.02.2016	Sanction Letter
A9	03.12.2016	Agreement for Agricultural Advances
A10	03.12.2016	Deed of Guarantee for Agricultural Advanced
A11	30.12.2015	Simple Mortgage deed
A12	01.07.2017	Loan Application
A13	04.07.2017	Sanction letter

¶85

OA 1284/2023

¶86

¶87

A14	04.07.2017	Agreement for Agricultural advances
A15	04.07.2017	Deed of Guarantee for agricultural Advances
A16	01.07.2017	Simple mortgage deed along with legal opinion given by the Advocate
A17	26.06.2023	Legal Notice
A18		True Extract of statement of accounts pertaining to the defendant’s aforesaid loan account no.05178230004898
A19		True Extract of statement of accounts pertaining to the defendant’s aforesaid loan account no.05178010020003
A20		True Extract of statement of accounts pertaining to the defendant’s aforesaid loan account no.05178240000519

¶88

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

¶89

Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sri.Shivalingappa M Nugganatti

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri.Shivalingappa M Nugganatti

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

Formost Center versus Hdfc Ltd.

M/s Md Kaif Poultry Feed versus Indian Bank

Smt Yasmeen versus Icici Bank Limited

Maheswari a versus Punjab National Bank

Canara Bank versus Goudappa Hanumanthappa Huchareddy

Canara Bank versus Smt. Laxmibai