Allowed

Canara Bank v. Apparaya

DRT30 Oct 2025OA/1409/2023

Case brief

AI extract

What is this about?

This Debt Recovery Tribunal allowed an Original Application filed by Canara Bank seeking a Recovery Certificate against two defendants for an agricultural loan of Rs.61,81,893. The court found the defendants' absence was exparte and the evidence sufficient, allowing the claim with reduced interest of 6% p.a. due to the agricultural purpose.

What did the court decide?

Issuance of Recovery Certificate for Rs.61,81,893 with 6% p.a. simple interest recoverable against defendants jointly and severally and schedule property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1409/2023

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BETWEEN:

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Canara Bank Janata Bazar building, super market Complex, Kalaburgi – 585101 Rep. by Senior Manager Mr. Satwant Sing … APPLICANT

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AND:

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Mr. Apparaya S/o. Sharanappa Aged about 57 years,

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Mr. Bhimsha S/o. Sharanappa Aged about 63 years

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Both residing at: R/o. Khed Umarga Village, Aland Taluk, Kalaburgi District-585236 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendants : Exparte

OA. No.1409/2023

: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.61,81,893/- (Rupees Sixty One Lakh Eighty One Thousand Eight Hundred and Ninety Three 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 defendants availed Farm Machinery loan of Rs.5,50,000/- on 26.05.2005.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents apart from the creation of security interest by way of mortgage over the Schedule property.

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It is further contended that, despite availing the credit facility, 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 account as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate

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OA. No.1409/2023

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for the amount due in the accounts.

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Despite, service of summons on the defendants, they failed

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to appear, resulting the defendants being set exparte on 26.11.2024.

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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 A1 to A14 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

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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

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remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

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OA. No.1409/2023

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admissible and are sufficient to prove availment of credit facility

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as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the accounts. 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 within the limitation.

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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility

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was availed for agriculture purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00%

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p.a.(simple).

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13. In the result, OA.No.1409/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.61,81,893/- (Rupees Sixty One Lakh Eighty One Thousand

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Eight Hundred and Ninety Three only) with further interest of

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OA. No.1409/2023

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6.00% p.a.(simple) from the date of filing OA till the realization from the defendants, 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 the schedule property. The 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

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the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding 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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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OA. No.1409/2023

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14. 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 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of October 2025].

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Satwant Singh, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Simple mortgage deed dated 02.05.2005
A2	application for agricultural credit term loan dated 26.05.2005
A3	Memorandum of agreement for agricultural loan dated 26.05.2005
A4	Letter of revival dated 31.10.2007
A5	Letter of revival dated 18.08.2010
A6	Letter of revival dated 02.07.2013
A7	Letter of revival dated 20.04.2016
A8	Two letter of revival dated 01.02.2019
A9	Letter of revival dated 10.01.2022

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OA. No.1409/2023

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A10	One postal department online delivery confirmation
A11	One postal cover returned
A12	Bank statement of A/c. 0513856006778

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Apparaya

Case brief

What is this about?

What did the court decide?

Canara Bank v. Apparaya

Case brief

What is this about?

What did the court decide?

What the court decided

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