Allowed

Canara Bank v. Jayalakshmi

DRT15 Sept 2025OA/1385/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Recovery Certificate application filed by Canara Bank against two defendants jointly and severally for agricultural loans totaling Rs. 23,08,671/-, permitting recovery with interest at 6% p.a. by personal proceedings or against hypothecated assets.

What did the court decide?

Recovery Certificate issued for Rs. 23,08,671/- with interest at 6% p.a. to be recovered from defendants personally or via assets.

Canara Bank versus Jayalakshmi — Money Laundering | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 15^th Day of September, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.1385 of 2023

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Canara Bank, Channarayapatna Branch, Mysuru Road, Channarayapatna, Dist. Hasssan – 573 116. Through its Chief Manager.

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… Applicant.

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Vs.

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Smt.Jayalakshmi, W/o.Nanjappa, Having address at : Baragur, Dandiganahalli Hobli, Channarayapatna Taluk, Hassan District Karnataka – 573 116.

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Mr.Nanjappa, S/o.Nanjaiah, Having address at : Baragur, Dandiganahalli Hobli, Channarayapatna Taluk, Hassan District Karnataka – 573 116. … Defendants. Counsel for Applicant : Mr.Girish S.Poojary. Defendants : Exparte. …… ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts

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And Bankruptcy Act, 1993 seeking for issuance of a Recovery

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Certificate for a total sum of Rs.23,08,671/- comprising of Rs.22,45,543/- in loan account no.0767856007426 together with future interest @10% compounded half yearly and Rs.63,128/- in loan account no.076788100393 together with future interest @12.85% from 01.04.2023 till the date of payment together with costs compounded half yearly from the defendants jointly and severally and and by way of sale of schedule mentioned hypothecated properties.

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The Applicant contends that the defendants approached the applicant bank for financial assistance of Rs.25,000/- towards agricultural purpose for purchase of PVC pipe and availed the same on 23.12.2023 by execution of necessary loan documents. Again, the defendants approached the applicant bank for further financial assistance of Rs.4,20,000/- towards agricultural purpose for purchase of tractor and availed the same on 02.09.2025 by execution of necessary loan documents. The defendants also executed revival letters for both the loans from time to time since 2006.

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It is also stated that the above facilities were availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facilities, the defendants failed to regularize the said loan and hence the loan accounts of the defendants was declared as Non-Performing Asset. The applicant bank has also issued legal notices dt.11.07.2023. Despite availing the credit facilities by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to enter appearance, he was set exparte on 15.02.2024.

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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 A3 to A23, got the same marked in evidence.

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Heard. The following issues arise for consideration in this matter:

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i) Whether the applicant succeeded in proving the OA claim as against the Defendants?

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ii)If so, to what extent?

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Both these issues are gone into and decided together.

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The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is

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found to be entitled for the OA claim. The OA claim is made within

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limitation and there is no capitalization of penal interest.

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Even though the applicant bank has sought for relief as against both the defendants for both the loans there is no document evidencing that the 2^nd defendant is liable for the loan account no. 076788100393. Hence, this Tribunal feels that the liability of 2^nd defendant is only to the extent of the amount due in loan account no. 0767856007426.

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Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of Agircultural purpose the pendent lite and future interest is awarded at simple rate that too at reduced rate of 6%.

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In view of the above

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i) OA 1385 of 2023 stands allowed,

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ii) Applicant is permitted to recover an amount of (a)Rs.22,45,543/in loan account no.0767856007426 together with interest @6% p.a. (simple) from 01.04.2023 till realization from the defendants 1 and 2 jointly, severally and

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personally and (b)Rs.63,128/in loan account no.076788100393 together with interest @6% p.a. (simple) from 01.04.2023 till realization from the 1^st defendant totaling

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Rs.23,08,671/- (Rupees Twenty Three Lakhs Eight Thousands Six Hundred and Seventy One only) 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 the defendants personally and their assets including the hypothecated properties. The schedule to the OA to be the schedule to the Recovery Certificate.

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iii) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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iv) Interim application pending, if any, stands disposed of in terms of this final order.

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v) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 15^th day of September, 2025)

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Sd./- (T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Saransh Garg, Chief Manager, Applicant Bank

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Exhibits on the part of the Applicant:

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Ext A1 - Affidavit of Evidence. Ext A2 - List of Documents. Ext A3 - Loan Application dt.23.12.2003. Ext A4 - Sanction Letter dt. 23.12.2003. Ext A5 - Memorandum of Agreement for Agricultural Loans dt.23.12.2003.

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Ext A6 - Letter of Revival dt.09.12.2006. Ext A7 - Letter of Revival dt.10.08.2009. Ext A8 - Letter of Revival dt.03.02.2015. Ext A9 - Letter of Revival dt.22.01.2018. Ext A10 - Letter of Revival dt.11.06.2018. Ext A11 - Letter of Revival dt.20.12.2020. Ext A12 - Loan Application dt. 02.09.2005. Ext A13 - Sanction Letter dt.02.09.2005. Ext A14 - Memorandum of Agreement for Agricultural Loans dt. 02.09.2005.

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Ext A15 - Letter of Revival dt.30.03.2007. Ext A16 - Letter of Revival dt.10.08.2009. Ext A17 - Letter of Revival dt.26.06.2012. Ext A18 - Letter of Revival dt.03.02.2015. Ext A19 - Letter of Revival dt.22.01.2018. Ext A20 - Letter of Revival dt.20.12.2020. Ext A21 - Notice dt.11.07.2023. Ext A22 - Statement of Accounts pertaining to L/A. No.0767856007426. Ext A23 - Statement of Accounts pertaining to L/A. No.0767881003393 & combined statement.

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Witness Examined for the Defendants:

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NIL

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List of Documents Exhibited for the Defendants :

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NIL

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Sd./-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Jayalakshmi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Jayalakshmi

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

All orders in this case

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