Allowed

Canara Bank v. Nagaraj Siddappa Patil

DRT15 Oct 2025OA/1349/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for a recovery certificate of Rs. 32,98,104.01 against the borrower and his legal representatives for depreciated agricultural loans. The Tribunal reduced future interest to 6% p.a., noting the claimed rate was high.

What did the court decide?

Recovery certificate drawn for Rs. 32,98,104.01 with 6% p.a. interest from date of filing against defendants, executable against personal assets and inherited estate.

Canara Bank versus Nagaraj Siddappa Patil — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 15^th Day of October, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1349/2022

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BETWEEN:

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Canara bank Head office at: No. 112, JC road, Bengaluru – 560 002

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Branch office at: Khanapur (6250), Bus Stand Road, Khanapur, Gokak Taluk, Belagavi District – 591 231

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Rep: By Its Branch Manager,

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Mr. Shreeshail Annappa Khot …APPLICANT

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AND:

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Sri Nagaraj Siddappa Patil, S/o. Sri Siddappa Patil, Aged about 39 Years, Residing at: Avargol, Avargol Village, Hukkeri Taluk, Belagavi District – 591 309

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Sri Siddappa Ningappa Patil (Since deceased by his LRs) 2(a). Smt Kashavva Kempanna Sannabangi D/o. Late Siddappa Ningappa Patil, Aged about 52 Years, R/o. Avargol Village,

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OA. No. 1349/2022

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Hukkeri Taluk, Belagavi District – 591 309

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2(b). Sri. Shivaputhra Siddappa Patil S/o. Late Siddappa Ningappa Patil, Aged about 50 Years, R/o. Avargol Village, Hukkeri Taluk, Belagavi District – 591 309

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2(c). Smt. Lalitha Kempanna Belavi

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D/o. Late Siddappa Ningappa Patil, Aged about 48 Years, R/o. Avargol Village, Hukkeri Taluk, Belagavi District – 591 309

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2(d). Smt. Savitha Chidanand Nayik

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D/o. Late Siddappa Ningappa Patil, Aged about 46 Years, R/o. Avargol Village,

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Hukkeri Taluk, Belagavi District – 591 309

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2(e). Sri Basavaraj Siddappa Patil,

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S/o. Late Siddappa Ningappa Patil, Aged about 44 Years,

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R/o. Avargol Village,

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Hukkeri Taluk, Belagavi District – 591 309

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2(f). Smt. Sumalatha Shivanand Patil, W/o. Shivanand Patil,

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Daughter-In-Law of Late Siddappa Ningappa Patil, Aged About 43 Years, R/o. Avargol Village,

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Hukkeri Taluk, Belagavi District – 591 309

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OA. No. 1349/2022

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2(g). Sri. Vinayaka Shivanand Patil, S/o. Shivanand Patil, Grandson of Late Late Siddappa Ningappa Patil, Aged about 28 Years, R/o. Avargol Village, Hukkeri Taluk, Belagavi District – 591 309

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2(h). Sir Vijay Shivanand Patil, S/o. Shivanand Patil, Grandson of Late Late Siddappa Ningappa Patil, Aged about 26 Years, R/o. Avargol Village, Hukkeri Taluk, Belagavi District – 591 309

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2(i). Sri Nagaraj Siddappa Patil, S/o. Late Siddappa Ningappa Patil, Aged about 39 Years, R/o. Avargol Village, Hukkeri Taluk, Belagavi District – 591 309

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2(j). Smt. Suganda Siddappa Patil. D/o. Late Siddappa Ningappa Patil, Aged about 30 Years, R/o. Avargol Village, Hukkeri Taluk, Belagavi District – 591 309 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Veena R Rai Defendant no.1 : Ex parte Defendant no.2 : Deceased Defendant no.2(a to j) : Ex parte

OA. No. 1349/2022

FINAL ORDER

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. 32,98,104.01/- (Rupees Thirty Two Lakhs Ninety Eight Thousand One Hundred and Four and Paisa One 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 defendant no.1 and the deceased borrower Sri Siddappa Ningappa Patil, who expired during the pendency of OA have availed the following credit facilities:

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KCC loan of Rs. 3,00,000/- (Rupees Three Lakhs Only) on 30.03.2017.

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Kisan OD loan of Rs. 4,25,000/- (Rupees Four Lakhs Twenty Five Thousand Only) on 31.03.2017

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Vehicle loan of Rs. 7,75,000/- (Rupees Seven Lakhs Seventy Five Thousand Only) on 24.04.2017.

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Dairy loan of Rs. 10,00,000/- (Rupees Ten Lakhs Only) on 01.08.2017.

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OA. No. 1349/2022

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It is also the case of the applicant that, in view of the above financed credit facilities, the deceased borrower Sri. Siddappa Ningappa Patil and defendant no.1 executed necessary loan documents, apart from the creation of security interest by way of simple mortgage and hypothecation agreement over the schedule property.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, borrowers 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 Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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After filling of the OA, summons sent to defendants by registered post. The summons to defendant no.2 returned unserved with an endorsement “dead” and the applicant bank has filed an IA no.1470/2023 on 17.07.2023 to bring the LRs of deceased defendant no.2 as defendant nos. 2(a) to (j) and the same is allowed vide proceedings dated 16.12.2024.Despite, services completed, the defendant no.1 and defendant nos. 2(a) to (j) did not appear and hence, placed ex parte on 27.01.2025.

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OA. No. 1349/2022

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A41 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 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 OA claim as against the defendants?

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ii) What orders 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 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 facility 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 are also proved by the above documents. The claim of the applicant is well

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OA. No. 1349/2022

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within the limitation.

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Hence in view of the above findings 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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Since the OA claim is arrived at by calculating agreed rate of interest, penal interest/default interest, which this Tribunal considers as on the higher side, pendentalite and future interest is awarded at reduced rate @ 6.00% p.a.

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In the result, OA.No.1349/2022 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 32,98,104.01/- (Rupees Thirty Two Lakhs Ninety Eight Thousand One Hundred and Four and Paisa One Only) with further interest of 6.00% p.a.(simple) from the date of filing of OA till the realization, from the defendant no.1 and from the defendant nos. 2(a) to (j) to the extent of their inheritance of any estate of deceased borrower late Sri. Siddappa Ningappa Patil, after giving credit to all the amount recovered and be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA. No. 1349/2022

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ii) If the sale proceeds are not sufficient to clear the

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liability, the defendant no.1 personally and his assets and from the

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defendant nos. 2(a) to (j) to the extent of their inheritance of any estate of deceased borrower late Sri. Siddappa Ningappa Patil are

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liable for balance 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

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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 in

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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 (HS), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 15^th Day of October 2025]

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA. No. 1349/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Mr. Nikil Mohite, S/o. Pradeep Mohite, worked as Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexu re	Date	Particulars
A1	31.03.2017	Loan application executed by the defendant no. 1-(page no.68-79)
A2	31.03.2017	Sanction memorandum – (page no.80)
A3	31.03.2017	agreement and deed of hypothecation for KCCS executed bydefendant no.1 –(page no.81-90)
A4	30.03.2017	Simple mortgage deed executed by defendant no.1 –(page no.91-97)
A5	31.03.2017	Certificate of loan papers obtained – (page no.98)
A6	31.03.2017	Letter evidencing execution of documents – (page no. 99)
A7	31.03.2017	Loan application for Kissan OD executed by defendant no.1 –(page no.100-111)
A8	31.03.2017	Sanction memorandum –(page no. 112)
A9	31.03.2017	Agreement and deed for Kissan OD executed by defendant no.1 –(page no. 113-122)
A10	30.03.2017	Simple mortgage deed for Kissan OD by defendant no.1 –(page no.123-130)
A11	31.03.2017	Certificate of loan papers obtained – (page no.131)
A12	31.03.2017	Letter evidencing execution of documents of the applicant –(page no. 132)
A13	24.04.2017	Application for loan executed by defendants – (page no.133-137)
A14	24.04.2017	Sanction memorandum –(page no.138-139)
A15	24.04.2017	Can mobile agreement executed by the defendant no.1 &-(page no.140-147)
A16	24.04.2017	Certificate of loan papers obtained – (page no.148-149)

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OA. No. 1349/2022

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A17	24.04.2017	Letter evidencing execution of documents – (page no. 150)
A18	01.08.2017	Application for loan executed by defendant no.1 & 2 –(page no.151-158)
A19	01.08.2017	Specimen signature card of the defendants no.1 & no.2 –(page no.159)
A20	01.08.2017	Sanction memorandum –(page no.160)
A21	01.08.2017	Memorandum of agreement for agricultural loans executed by defendant no. 1 & 2 –(page no. 161-172)
A22	29.07.2017	Simple mortgage deed executed by defendant no.1 & 2 –(page no.173-181)
A23	01.08.2017	Certificate of loan papers obtained – (page no.182)
A24	01.08.2017	Letter evidencing execution of documents – (page no. 182)
A25	02.04.2019	Letter of revival executed by the defendant no.1 for KCCS loan –(page no.184)
A26	25.05.2021	Letter of revival executed by the defendant no.1 for KCCS loan –(page no.185)
A27	18.06.2019	Letter of revival executed by the defendant no.1 for Kissan OD –(page no.186)
A28	25.06.2021	Letter of revival executed by the defendant no.1 for Kissan OD –(page no.187)
A29	18.06.2019	Letter of revival executed by the defendant no.1 & 2 for vehicle loan –(page no.188)
A30	25.06.2021	Letter of revival executed by the defendant no.1 & 2 for vehicle loan –(page no.189)
A31	11.10.2019	Letter of revival executed by the defendant no.1 & 2 for dairyloan –(page no.190)
A32	11.10.2019	Letter of revival executed by the defendant no.1 & 2 for dairyloan –(page no.191)
A33	01.09.2022	Letter of revival executed by the defendant no.1 & 2 for dairyloan –(page no.192)
A34	07.03.2019	Notice issued to defendants –(page no.193)
A35	14.09.2020	Notice issued to defendants –(page no.194)
A36	03.03.2022	Notice issued to defendants –(page no.195)
A37	20.04.2022	Notice issued to defendants –(page no.196)
A38	--------	Statement of accounts in respect of KCCS loan account number 6250895000082 together with

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OA. No. 1349/2022

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		interest calculation sheet and certificate under the provisions of the bankers books evidence act –(page no.197-201)
A39	---------	Statement of accounts in respect of Kissan OD/loan account number 6250897000021 together with interest calculation sheet and certificate under the provisions of the bankers books evidence act –(page no.202-206)
A40	---------	Statement of accounts in respect of vehicle loan account number 6250636000002 together with interest calculation sheet and certificate under the provisions of the bankers books evidence act –(page no.207-211)
A41	---------	Statement of accounts in respect of dairy loan account number 6250860000023 together with interest calculation sheet and certificate under the provisions of the bankers books evidence act –(page no.212-217)

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

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Nagaraj Siddappa Patil

Case brief

What is this about?

What did the court decide?

Canara Bank v. Nagaraj Siddappa Patil

Case brief

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What did the court decide?

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