Allowed

Canara Bank v. Sri. Siddaiah

DRT29 Aug 2025OA/1327/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed Canara Bank's application under Section 19 RDB Act for a Recovery Certificate against four defendants. The court found credit facilities availed and security interest created proved, granting recovery with a reduced interest rate of 6% p.a. and costs.

What did the court decide?

Recovery Certificate issued for Rs.28,94,208/- plus 6% p.a. simple interest from filing date, recoverable from defendants jointly, severally, personally, and against schedule properties.

Canara Bank versus Sri. Siddaiah — 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 August, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1327/2023

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BETWEEN:

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Canara Bank Its registered head office at 112, J.C. Road, Bangalore - 560002 And inter alia its branch office at Main Branch, Sira, Sira Taluk – 572137, Tumakuru District, Rep. by its Chief Manager, Sri. Sathya Madhav T … APPLICANT

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AND:

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Sri. Siddaiah

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S/o. Badajoganna Aged about 56 years, Resident of Devarahalli, Gollarahatti, Chikkanahalli Post, Kallambella Hobli, Sira Taluk, Tumakuru District

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Smt. Puttamma W/o. Eeranna Aged about 51 years, Residents of Maranagere Village, Sira Taluk.

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Sri. Muralidhar S/o. Siddaiah Aged about 21 years,

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OA. No. 1327/2023

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Resident of Devarahalli, Gollarahatti, Chikkanahalli Post, Kallambella Hobli, Sira Taluk, Tumakuru District.

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Miss. Shilpa, D/o. Siddaiah Aged about 19 years, Resident of Devarahalli, Gollarahatti, Chikkanahalli Post, Kallambella Hobli, Sira Taluk, Tumakuru District

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...DEFENDANTS

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Counsel on record/appeared for: Applicant : Sri. Mohamed Afroze Ahamed Defendants : Exparte 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 for seeking issuance of Recovery Certificate against the defendants for Rs.28,94,208/- (Rupees Twenty Eight Lakh Ninety Four Thousand Two Hundred and Eight only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the borrower Smt. Badakka expired on 15.08.2020, the 1^st defendant has executed the legal heirs document undertaking to repay the loan amount and also executed the Regd. Mortgage Deed, the 2^nd , 3^rd , and 4^th defendants are signatories to the Mortgage Deed. The deceased borrower Smt. Badakka availed a Farm Development loan amount of

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OA. No. 1327/2023

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Rs.9,82,000/- for the purpose of leveling pump house, store house, check dam, labour quatres, fencing, drip, IP sets and plantation expenses etc., on 18.07.2008.

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It is also the case of the applicant that, in view of the above financed credit facilities, the deceased borrower executed necessary loan documents apart from the creation of security interest by way of mortgage over the Schedule properties.

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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 accounts.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 06.11.2024.

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The applicant had let in evidence through AW-1, who filed

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OA. No. 1327/2023

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Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A14 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 as against the defendants? 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 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 the account. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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OA. No. 1327/2023

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Taking into consideration the facts that the credit facilities

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was availed for agriculture purpose and also 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 of 6.00% (simple).

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Hence in view of the above finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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In the result, OA.No.1327/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.28,94,208/- (Rupees Twenty Eight Lakh Ninety Four Thousand Two Hundred and Eight only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization

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from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against defendants jointly,

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severally, personally and also by proceeding against the schedule properties. The schedule properties to the OA be the schedule

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OA. No. 1327/2023

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properties to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover

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

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jointly, severally, personally and their other assets are liable for

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all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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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with 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 of

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DRT (Procedure) Rules, 1993.

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

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA. No. 1327/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Gopi Krishna K, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	18.07.2008	Loan application
A2	18.07.2008	Sanction memorandum
A3	18.07.2008	memorandum of agreement
A4	18.07.2008	Certificate of loan papers
A5	15.07.2008	Simple mortgage deed
A6	20.05.2008	Quotation issued by the Vruksha Agro Tech,Sira
A7	30.06.2008	Quotation issued by the Vinay Enterprises,Sira
A8	30.06.2008	Quotation issued by the Vinay Enterprises,Sira
A9	09.07.2011	Letter of Revival
A10	20.12.2013	Letter of Revival
A11	11.07.2016	Letter of Revival
A12	28.12.2018	Letter of Revival executed by the 1^st defendant
A13	20.12.2021	Letter of Revival executed by the 1^st defendant
A14	--	Statement of account

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Sri. Siddaiah

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Siddaiah

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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