Allowed

Canara Bank v. Irappa Basappa

DRT18 Dec 2025OA/1380/2024

Case brief

AI extract

What is this about?

The debt recovery tribunal allowed an application filed by Canara Bank seeking a recovery certificate against three borrowers for an agricultural loan default. Being an ex parte case, the court accepted the bank's evidence, granted the claim with reduced interest at 6% p.a., and authorized recovery from the defendants jointly and severally.

What did the court decide?

Recovery certificate issued for aggregate sum of Rs. 42,69,670.66 with 6% simple interest from filing date; recovery from defendants jointly, severally, and from schedule property.

Canara Bank versus Irappa Basappa — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 18^th Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1380/2024

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BETWEEN:

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Canara Bank Gokak Branch, Gokak Taluk, Dist. Belagavi – 591 307

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Represented by its Chief Manager

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Mr. Raju Nanarao Pasalwad …APPLICANT

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AND:

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Mr. Irappa Basappa Kadkol S/o. Basappa Kadkol Age: 52 years Having address at: Post Arabhavi, Gokak Taluk, Dist. Belagavi, Karnataka – 591 307

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Mr. Rajendra Ningappa mutnal S/o. Ningappa Mutnal Age: 51 years Having address at: Post Arabhavi, Gokak Taluk, Dist. Belagavi, Karnataka – 591 307

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Mr. Mahadev Basappa Kadkol S/o. Basappa Kadkol Age: 60 years Having address at: Post Arabhavi, Gokak Taluk, Dist. Belagavi, Karnataka – 591 307 DEFENDANTS

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OA-1380/2024

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Counsel on record/appeared for:

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Applicant : Venu K V Defendants : Ex parte

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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 for issuance of Recovery Certificate against the defendants for Rs. 42,69,670.66/- (Rupees Forty Two Lakhs Sixty Nine Thousand

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Six Hundred and Seventy and Paisa Sixty Six 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 defendants are availed

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the following credit facilities:

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1^st Agricultural facility of Rs. 2,25,000/- (Rupees Two Lakhs Twenty Five Thousand Only) on 10.08.2006.

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2^nd Agricultural facility of Rs. 75,000/- (Rupees Seventy Five Thousand Only) on 10.08.2007.

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3rd Agricultural facility of Rs. 2,50,000/- (Rupees Two Lakhs Fifty Thousand Only) on 09.05.2009.

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4^th agricultural facility of Rs. 1,00,000/- (Rupees One Lakhs Only).

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It is also the case of the applicant that, in view of the above

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availed loans, the defendants executed the necessary loan document along with simple mortgage deed.

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OA-1380/2024

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants 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 defendants, they failed to appear, resulting the defendants being set ex parte on 07.01.2025.

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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-30 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 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

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unrebutted as defendants remained ex parte. The evidence tendered

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OA-1380/2024

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by the applicant remains uncontroverted and undisputed. The

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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 defendants and the claim of the amount

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due are also proved by the above document. 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 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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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 is the view

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

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In the result, OA.No.1380/2024 stands allowed,

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

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Rs 42,69,670.66/- (Rupees Forty Two Lakhs Sixty Nine Thousand Six Hundred and Seventy and Paisa Sixty Six Only) consisting of:

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a. Rs. 17,07,827.46/- (Rupees Seventeen Lakhs Seven Thousand

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Eight Hundred and Twenty Seven and Paisa Forty Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till

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OA-1380/2024

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the realization, from the defendants no.1 & 2:

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b. Rs. 12,47,217.36/- (Rupees Twenty Lakhs Forty Seven Thousand

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Two Hundred and Seventeen and Paisa Thirty Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants no.1 & 2:

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c. 12,47,217.36/- (Rupees Twelve Lakhs Forty Seven Thousand Two Hundred and Seventeen and Paisa Thirty Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants no.1 & 3:

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d. Rs. Rs. 8,85,283.41/- (Rupees Eight Lakhs Eighty Five Thousand

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Two Hundred and Eighty Three and Paisa Forty One Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants no.1 & 3:

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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 defendants jointly, severally and personally and also 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 defendants jointly, severally and personally and their assets are liable for all such

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OA-1380/2024

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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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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

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the Open Court, this the 18^th Day of December, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Raju Nanarao Pasalwad, S/o. Nanarao Pasalawad, Senior Manager, of Applicant Bank.

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OA-1380/2024

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Sanction letter dated 10.08.2006
A2	Agreement for agricultural advances dated 23.08.2007
A3	Deed of guarantee for agricultural advances dated 23.08.2007
A4	Simple mortgage deed dated 03.08.2007
A5	Demand promissory note dated 30.09.2019
A6	Letter of time barred debts dated 01.10.2019
A7	Demand promissory note dated 31.03.2020
A8	Letter of revival dated 01.02.2023
A9	Sanction letter dated 10.08.2007
A10	Agreement for agricultural advances dated 23.08.2007
A11	Deed of guarantee for agricultural advances dated 23.08.2007
A12	Letter of time barred debts along with demand promissory note dated 30.09.2019
A13	Letter of revival dated 31.03.2022
A14	Sanction letter dated 09.05.2009
A15	Agreement for agricultural advances dated 11.05.2009
A16	Deed of guarantee for agricultural advances dated 11.05.2009
A17	Mortgage deed dated 22.04.2009
A18	Demand promissory note dated 30.09.2019
A19	Letter of revival dated 30.09.2022
A20	Sanction letter
A21	Agreement for agricultural advances dated 12.05.2009
A22	Deed of guarantee for agricultural advances dated 12.05.2009
A23	Letter of time barred debts dated 01.10.2019
A24	Letter of revival dated 30.09.2022
A25	Notice dated 23.05.2024
A26	True extract of statement of accounts pertaining to the defendants aforesaid loan accounts no. 05118540002735

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OA-1380/2024

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A27	True extract of statement of accounts pertaining to the defendants aforesaid loan accounts no. 05118380000095
A28	True extract of statement of accounts pertaining to the defendants aforesaid loan accounts no. 05118540003118
A29	True extract of statement of accounts pertaining to the defendants aforesaid loan accounts no. 05118540000628
A30	Statement showing total outstanding liabilities

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Irappa Basappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Irappa Basappa

Case brief

What is this about?

What did the court decide?

What the court decided

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