Allowed

Canara Bank v. Mallappa Ramaning Mudavi

DRT25 Nov 2025OA/1333/2022

Case brief

AI extract

What is this about?

DRT Bangalore allowed Canara Bank's OA for recovery of debt. The defendant appeared exparte. The Tribunal found the loan documents and default proved, reducing interest to 6% simple and ordering recovery via schedule property.

What did the court decide?

Recovery certificate issued for Rs. 50.12 lakhs with 6% simple interest from filing date; recovery via personal assets and schedule property.

Canara Bank versus Mallappa Ramaning Mudavi — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1333/2022

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BETWEEN:

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Canara Bank, Branch at Athani I, Opp. Govt. Hospital, Athani- 591 304, Belgavi District.

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…APPLICANT

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AND:

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Sri. Mallappa Ramaning Mudavi, S/o Sri Ramaning, Aged about 54 years, R/o Mole Village, Katral Post, Athani Taluk, Belgavi District- 591304.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : K Raveendran Defendant : 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 defendant for Rs. 50,12,994.00 (Rupees Fifty Lakh Twelve Thousand Nine Hundred Ninety Four 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 bank, that the defendant has availed

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OA 1333/2022

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Minor irrigation loan of Rs. 5,00,000/- (Rupees Five Lakh Only), KCCS loan of Rs. 2,00,000/- (Rupees Two Lakh Only0 and FML of Rs. 12.00 lakhs.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with simple mortgage deeds and memorandum of agreement.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant 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, Summons on defendant he failed to appear resulting the defendant being set exparte on 27.11.2024.

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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-27 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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OA 1333/2022

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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 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 the security interest and the defaults committed in the accounts. The liability of the defendant 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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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 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 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

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can be allowed with a reduced interest of 6.00% (simple).

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OA 1333/2022

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In the result, OA.No.1333/2022, stands allowed,

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

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Rs. 50,12,994.00 (Rupees Fifty Lakh Twelve Thousand Nine Hundred

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Ninety Four Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant 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 defendant personally

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and his assets are liable for respective 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

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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

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OA 1333/2022

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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

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Open Court, this the 25^th Day of November, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sachin Maruti Kanabargi, Asst. Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A3	Application for comprehensive application-cum-appraisal report for minor irrigation dated 24.08.2012
A4	Simple mortgage deed for agricultural advances dated 07.08.2012
A5	Sanction memorandum dated 24.08.2012
A6	Memorandum of agreement for agricultural loans dated 24.08.2012
A7	Application for comprehensive application-cum-appraisal report for credit facility dated 02.11.2012
A8	Simple mortgage deed for agricultural advances dated 09.10.2012
A9	Sanction memorandum dated 02.11.2012
A10	Agreement and deed of hypothecation for kisan credit card dated 02.11.2012
A11	Letter of revival dated 0705.2014 in respect of KCCS loan
A12	Letter of revival dated 05.06.2015 in respect of minor irrigation loan
A13	Letter of revival dated 07.04.2017 in respect of KCCS loan
A14	Letter of revival dated 16.05.2018 in respect of minor irrigation loan
A15	Letter of revival dated 25.03.2019 in respect of KCCS loan

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OA 1333/2022

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A16	Letter of revival dated 22.04.20212018 in respect of minor irrigation loan
A17	Letter of revival dated 28.05.2021 in respect of KCCS loan
A18	Application for comprehensive application-cum-appraisal report for farm development dated 31.07.2013
A19	Simple mortgage deed for agricultural advances dated 28.06.2013
A20	Sanction memorandum dated 31.7.2013
A21	Memorandum of agreement for agricultural loans dated 31.07.2013
A22	Letter of revival dated 01.10.2015
A23	Letter of revival dated 04.09.2018
A24	Letter of revival dated 17.06.2020
A25	Statement of account in respect of minor irrigation loan account No. 10699881005328
A26	Statement of account in respect of KCCS loan account No. 10699895654
A27	Statement of account in respect of Farm development loan account No. 10699883000005

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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)

Canara Bank v. Mallappa Ramaning Mudavi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mallappa Ramaning Mudavi

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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