Allowed

Canara Bank v. Sri Mallappa Laxmana Mulawade

DRT29 Sept 2025OA/1348/2022

Case brief

AI extract

What is this about?

DRT allowed the bank's original application for a recovery certificate regarding a defaulted agricultural loan. The defendant was absent. The court reduced the interest rate to 6% simple, permitting recovery from personal assets and schedule properties.

What did the court decide?

Recovery certificate for Rs. 31,90,553/ plus interest @ 6% simple from original loan date and future interest from date of filing OA, recoverable from personal assets and schedule properties.

Canara Bank versus Sri Mallappa Laxmana Mulawade — 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 OA.No.1348/2022

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BETWEEN:

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Canara Bank Ankali Branch Mayor Chitra Mandir, Ankali, Chikkodi Taluk, Belgaum Dist. Karnataka – 591 213

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Rep: By Its Branch Manager Mr. Shilesh Namdeoji Rangari …APPLICANT

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AND:

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Sri. Mallappa Laxmana Mulawade, S/o. Laxmana Mulawade, Byakuda, Raibag Taluk, Belgaum Dist. Karnataka – 591 317 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : M/s. VS Associates Defendants : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendant for

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OA-1348/2022

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Rs. 31,90,553/-(Rupees Thirty One Lakhs Ninety Thousand Five Hundred Fifty Three 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 defendant availed an agricultural loan of Rs. 6,00,000/- (Rupees Six Lakhs only) after executive of necessary loan documents.

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

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount 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, service of summons on the defendant, he failed to appear, resulting the defendant being set ex parte on 06.09.2023.

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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-7 and got the same marked in evidence.

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OA-1348/2022

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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

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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 remains unrebutted as defendant remained ex parte. 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 are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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OA-1348/2022

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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

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at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1348/2022 stands allowed,

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

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Rs. 31,90,553/-(Rupees Thirty One Lakhs Ninety Thousand Five Hundred Fifty Three Only) with further interest @6.00 % 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 amounts 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 and his assets are liable for balance amounts due under the loan accounts.

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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 order

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OA-1348/2022

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and transferred to Recovery for execution.

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

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), 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/-

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(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 Deepak magadm, S/o. babu working as Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan application dated 18.12.2006
A2	Sanction letter dated 21.12.2006
A3	Memorandum of agreement for agricultural loans executed by defendant in favor of applicant dated 21.12.2006

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OA-1348/2022

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A4	Registered simple mortgage deed executed by defendant in favour of applicant dated 18.12.2006
A5	Letter of revival executed by defendant no.1,2 & 3 in favour of applicant dated 14.11.2009,20.01.2012,05.08.2014,19.07.2017 and 07.04.2020
A6	Legal notice dated 22.05.2015/19.07.2016
A7	True extract of statement of accounts pertaining to the defendant’s loan accounts -0541856004065

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Witness Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sri Mallappa Laxmana Mulawade

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri Mallappa Laxmana Mulawade

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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