Allowed

Canara Bank (Syndicate Bank) v. Gangabylaiah Byle Gowda

DRT29 Sept 2025OA/1294/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for a recovery certificate against borrowers who defaulted on an agricultural loan. The court approved the claim of Rs. 44.57 lakh plus interest at a reduced simple rate of 6% p.a., permitting recovery via scheduled property and personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 44,57,709.68 plus 6% simple interest from the date of filing, recoverable from defendants jointly, severally, and personally against scheduled and other assets.

Canara Bank (Syndicate Bank) versus Gangabylaiah Byle Gowda — 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.1294/2024

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BETWEEN:

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Canara Bank, One of its Branch is at P.C. Road, No. 20/1 (36), Betta Chambers, 5^th Main Road, 4^th Cross. P.C. Road, Chamrajpet, Bengaluru- 560 018. Represented by its Senior Manager, Mr. Ravi Shankar Pritam.

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…APPLICANT

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AND:

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Sri. Byle Gowda G, S/o Bylappa Gangabylaiah, Aged about 52 years, R/at No. 1430, 10^th Main Road, Hosahalli, Vijayanagar, Bengaluru- 560 040.

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Smt. Shashikala. N, W/o Sri Byle Gowda G, Aged Major, R/at No. 1430, 10^th Main Road, Hoshalli, Vijayanagar, Bengaluru- 560 068. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sowbhagya N A Defendants : Exparte

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OA 1294/2024

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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. 44,57,709.68 (Rupees Forty Four Lakh Fifty Seven Thousand Seven Hundred Nine and Paise Sixty Eight Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants availed a sum of Rs. 46,50,000/- (Rupees Forty Six Lakh Fifty Thousand Only) for establishing Horticulture plantation and floriculture.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with deed of guarantee, registered simple mortgage deed and confirmation of deposit of title deeds.

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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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Despite, service of summons on the defendants, they failed to

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OA 1294/2024

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appear, resulting the defendants 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-21 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 the security interest and the defaults committed in the accounts. The liability of the

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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.

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OA 1294/2024

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Hence in view of the findings arrived herein above, the Tribunal

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

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agriculture 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.1294/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 44,57,709.68 (Rupees Forty Four Lakh Fifty Seven Thousand Seven Hundred Nine and Paise Sixty Eight Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against 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 found sufficient to cover the

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amount due and payable to the applicant bank, the defendants jointly,

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severally & personally and their assets are liable for respective amounts

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due under the respective loan accounts.

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OA 1294/2024

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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, stands disposed of in terms

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of 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) 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)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Nimisha V P W/o Vijith C, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Copy of agreement for agricultural advances dated
	07.03.2018 along with first schedule to seventh schedule
	and Annexure-I dated 07.03.2018

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OA 1294/2024

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A2	Copy of agreement for agricultural advances along with Annexure-2 and Annexure-3 dated 07.03.2018
A3	Copy of deed of guarantee for agricultural advances and Annexure-@B, consent letter by the guarantor dated 7.03.2018
A4	Copy of registered simple mortgage deed dated 03.03.2018
A5	Copy of confirmation of deposit of title deeds along with undertaking letter are dated 05.03.2018
A6 & A7	Copies of letter and along with receipt dated 07.03.2018
A8 & A9	Copies of letter dated 04.04.2018 along with receipt dated 05.04.2018
A10 & A11	Copies of letter dated 11.05.2018 along with receipt dated 17.05.2018
A12 & A13	Copies of letter dated 11.07.2018 along with receipt dated 21.07.2018
A14	Copy of letter for request of restructuring of extension loan dated 25.03.2021
A15	Copy of letter of revival dated 05.03.2022
A16	Copy of letter of restructuring of agricultural loan and acknowledgement of debt and security dated 07.03.2022
A17 to A19	Copies of legal notice dated 18.10.2023 and postal acknowledgements
A20	Copy of computerized statement of account
A21	Copy of certificate certified under bankers book evidence act

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

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Canara Bank (Syndicate Bank) v. Gangabylaiah Byle Gowda

Case brief

What is this about?

What did the court decide?

Canara Bank (Syndicate Bank) v. Gangabylaiah Byle Gowda

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

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