Allowed

Canara Bank v. K Ramachandra Rao

DRT27 Oct 2025OA/1347/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal entertained an application for issuance of a Recovery Certificate based on a KCCS loan and Farm Development loan. The defendant remained ex parte. The Tribunal found the claim authentic and allowable within limitation but reduced the interest rate to 6% per annum. The Recovery Certificate was directed to be drawn up and transferred for execution.

What did the court decide?

Issuance of Recovery Certificate for Rs. 22,77,895 with interest at 6% p.a. to be executed against schedule property and other assets if proceeds are insufficient.

Canara Bank versus K Ramachandra Rao — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 27^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1347/2023

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BETWEEN:

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Canara Bank Branch office at: Maski, Basavangouda Building, New Bazar, Maski, Lingasugur Taluk, Raichur District- 584124 …APPLICANT

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AND:

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Sri. K. Ramachandra Rao S/o. Sri. K. Srimannarayana R/at: Hedgibal Camp, Hedgibal Village, Sindhanur Taluk, Raichur District- 584124 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Veena R. Rai Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for

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OA 1347/2023

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Rs.22,77,895/- (Rupees twenty two lakh seventy seven thousand eight hundred ninety five only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the following credit facilities from the applicant bank:-

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I. KCCS Loan of a sum of Rs.2,00,000/- (Rupees Two Lakh Only) and

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II. Farm Development loan limit of Rs.8,50,000/- (Rupees Eight lakh fifty thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with simple mortgage deed, memorandum of agreement and letter of revival in favor of the applicant bank.

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It is further contended that, the defendant despite availing

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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.

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In the above circumstances, the applicant approached this

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OA 1347/2023

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Tribunal by filing this OA seeking issuance of Recovery Certificate

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for the amount due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 30.01.2024.

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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-1 to A-17 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

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evidence and the 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

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OA claim 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

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remains unrebutted as defendant remained exparte. The

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OA 1347/2023

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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 hypothecation and 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.

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Hence in view of the finding arrived herein above, this Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendant for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a.(Simple).

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OA 1347/2023

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In the result, OA.No.1347/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.22,77,895/- (Rupees twenty two lakh seventy seven thousand eight hundred ninety five only) with further interest @6% p.a. (Simple),

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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 proceedings against the 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 sufficient, the defendant personally and his other assets are liable to be proceeded against for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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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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OA 1347/2023

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in terms of 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

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of DRT (Procedure) Rules, 1993.

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

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me in the Open Court, this the 27^th day of October, 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: Mr. Parashuram L Bharama, Chief Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant Evidence
A2	--	List of Documents.
A3	09.10.2014	Loan Application
A4	09.10.2014	Specimen signature card
A5	09.10.2014	Sanction letter
A6	09.10.2014	Agreement and deed for kisan OD
A7	01.10.2014	Deed of simple mortgage
A8	28.10.2014	Loan application
A9	28.10.2014	Specimen signature card
A10	28.10.2014	Sanction memorandum of applicant
A11	28.10.2014	Memorandum of agreement for agricultural loan
A12	18.10.2014	Simple mortgage deed

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OA 1347/2023

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A13	08.10.2017	Letter of revival
A14	05.09.2020	Letter of revival
A15		Statement of account in respect of KCCS loan
A16		Statement of account in respect of FDL loan
A17	22.05.2020	General Power of attorney

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. K Ramachandra Rao

Case brief

What is this about?

What did the court decide?

Canara Bank v. K Ramachandra Rao

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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