Allowed

Canara Bank v. Ramesh Kambar

DRT29 Aug 2025OA/1365/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Bengaluru allowed the recovery certificate application filed by the bank against multiple borrowers and guarantors. As defendants appeared ex-parte, the Tribunal found evidence uncontradicted, proving loan availing and defaults. The claim was reduced to 6% p.a. interest.

What did the court decide?

Recovery certificate issued for Rs.34,25,612.16 plus interest at 6% p.a. (Simple) recoverable from borrowers and guarantors personally or against mortgaged property.

Canara Bank versus Ramesh Kambar — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II,

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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.1365/2023

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BETWEEN:

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Canara Bank Mudalagi Branch College Road, Opp.Police Station, Mudalagi,

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Belagavi District-591312

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…APPLICANT

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AND:

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Ramesh Kambar S/o. Appayya R/at #256, Kamaladinni, Gokak Taluk, Belgaum District-591312

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Umesh Kambar S/o Appayya R/at #256, Kamaladinni, Gokak Taluk, Belgaum District-591312

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Mahantesh Kambar S/o Appayya R/at #256, Kamaladinni, Gokak Taluk, Belgaum District-591312

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Allappa Kambar S/o. Appayya R/at #256, Kamaladinni,

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OA 1365-2023

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Gokak Taluk, Belgaum District-591312

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Raju S/o Bhimappa Kambar R/at Kamaladinni, Gokak Taluk, Belgaum District-591312

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Irappa Bhimappa Jinagannavar S/o Bhimappa Jinagannavar R/at Kamaladinni Gokak Taluk, Belgaum District-591312 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Prakasha Hegde. K 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 Rs.34,25,612.16 (Rupees thirty four lakh twenty five thousand six hundred twelve and paisa sixteen 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.1,2,3 & 4 are the borrowers and defendant No.5 & 6 are the guarantors.

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Further, defendants availed the following credit facilities from the

OA 1365-2023

applicant bank:-

I. Agricultural Loan of a sum of Rs.15,00,000/- (Rupees Fifteen Lakh Only),

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II. Agricultural Loan limit of Rs.3,00,000/- (Rupees Three lakh Only), and

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III. Agricultural Loan limit of Rs.2,00,000/- (Rupees Two Lakh Only) and

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IV. Agricultural Loan limit of Rs.86,000/- (Rupees eighty six 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 deed of guarantee, agreement for Agricultural Advances in favor of the applicant bank.

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It is further contended that, the defendants despite availing 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 Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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OA 1365-2023

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 06.02.2024.

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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-25 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

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OA claim as against the defendants?

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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

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undisputed. The evidences put forth by the applicant were found

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OA 1365-2023

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admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of 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 this Tribunal is of the view that OA is to be allowed.

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12.12. Taking into consideration the facts that the credit facilities are availed by defendant No.1 for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed

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

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In the result, OA.No.1365/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.34,25,612.16 (Rupees thirty four lakh twenty five thousand six hundred twelve and paisa sixteen only) consisting

of:-

OA 1365-2023

a) Rs.23,86,803.12 (Rupees twenty three lakh eighty six

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thousand eight hundred three and paisa twelve Only) with further interest @6% p.a. (Simple) which defendants No.1,2,3,4 & 5 are liable to pay,

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b) Rs.5,97,546.36 (Rupees five lakh ninety seven thousand

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five hundred forty six and paisa thirty six Only) with further interest @6% p.a. (Simple) which defendants No.1,2,3,4 & 6 are liable to pay,

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c) Rs.3,17,911.91(Rupees three lakh seventeen thousand nine hundred eleven and paisa ninety one Only) with further interest @6% p.a. (Simple) which defendants No.1,2,3,4 & 6 are liable to pay,

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d) Rs.1,23,350.77(Rupees one lakh twenty three thousand

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three hundred fifty and paisa seventy seven Only) with further interest @6% p.a. (Simple) which defendants No.1 & 6 are liable to pay,

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from the date of filing OA till the realization, from the defendants personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property.

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OA 1365-2023

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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 defendants

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personally and their other assets are liable to be proceeded

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against for the balance amount in respective 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

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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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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 me in the Open Court, this the 29^th day of August, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1365-2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Srikanth Reddy, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documen	ts
A1	--	Applicant Evidence
A2	--	List of Documents.
A3	25.04.2016	Loan Application
A4	15.05.2016	Sanction letter
A5	26.06.2016	Agreement for Agricultural Advanc	es
A6	29.06.2016	Deed of guarantee for agricultural	advances
A7	16.02.2017	Loan application
A8	16.02.2017	Interview cum assessment form letter)	(sanction
A9	20.02.2017	Agreement for Agricultural advanc	es
A10	20.02.2017	Deed of guarantee for agricultural	advances
A11	16.02.2017	Loan application
A12	16.02.2017	Interview cum Assessment form letter)	(Sanction
A13	20.02.2017	Agreement for Agricultural advanc	es
A14	20.02.2017	Deed of guarantee for agricultural	advances
A15	16.02.2017	Loan Application
A16	16.02.2017	Interview cum Assessment form letter)	(Sanction
A17	20.02.2017	Agreement for Agricultural advanc	es
A18	20.02.2017	Deed of guarantee for agricultural	advances
A19	25.04.2016	Simple Mortgage deed
A20		Statement of Accounts No.5108280001440	in A/c
A21		Statement of Accounts No.5108010021417	in A/c
A22		Statement of Accounts in 5108010021428	A/c No.
A23		Statement of Accounts in 5108010021409	A/c No.

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OA 1365-2023

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A24 19.01.2023	Legal Notice
A25	Postal Receipt & Acknowledgement
Witness Examined fo	r the Defendant: -Nil -
List of Documents Ex	hibited for the Defendant: -Nil -

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Sd/
(T. RAJESH)
PRESIDING OFFICER

Canara Bank v. Ramesh Kambar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ramesh Kambar

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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Case details

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