Allowed

Canara Bank v. Sri. Sunil Kumar

DRT30 Oct 2025OA/1411/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the bank's application under the RDB Act to issue a Recovery Certificate for an educational loan default. The tribunal ordered recovery of the principal with reduced interest at 6% p.a., covering mortgage proceeds and personal liabilities.

What did the court decide?

Recovery Certificate issued for Rs. 39,58,538/- with further interest at 6% p.a. (simple) from filing date, recoverable from schedule property and assets of defendants jointly/severally.

Canara Bank versus Sri. Sunil Kumar — Banking and Recovery | 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.1411/2023

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BETWEEN:

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Canara Bank, Branch at Chikka Tirupathi, No. 47, Chikka Tirupathi, Malur Taluk, Kolar District- 563 130, represented by its Senior Manager and Principal Officer of the Branch, Ms. Neha Jha, D/o Sobodh Kumar Jha, Age 34 years.

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…APPLICANT

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AND:

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Sri. Sunil Kumar, S/o. Sri Ganesh, Aged about 28 years, R/o Ward No. 9, Maruthi Extension, Behind Reddy Choultry (Padma House), Malur, Malur Taluk, Kolar District- 563 130.

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And also at, Gangalur Village, Anugondanahalli Holbi, Hoskote Taluk, Bengaluru Rural District.

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Sri. Ganesh, S/o Sri. Krishnappa, Aged about 58 years, R/o Ward No. 9, Maruthi Extension, Behind Reedy Choultry (Padma House), Malur, Malur Taluk, Kolar District- 563 130.

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And also at, Gangalur Village, Anugondanahalli Hobli, Hoskote Taluk, Bengaluru Rural District.

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Ms. Anushree, D/o Sri. Ganesh,

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OA 1411/2023

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Aged about 23 years, R/o Ward No. 9, Maruthi Extension, Behind Reedy Choultry (Padma House), Malur, Malur Taluk, Kolar District- 563 130.

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And also at, Gangalur Village, Anugondanahalli Hobli, Hoskote Taluk, Bengaluru Rural District.

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Sri. G.K. Ramamurthy, S/o Sri. Krishnappa, R/o. Gangalur Cillage, Chikkathirupathi Post, Hoskote Taluk, Bengaluru Rural District.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : K. Raveendran Defendants : Exparte

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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 issuance of Recovery Certificate against the defendants for Rs. 39,58,538/- (Rupees Thirty Nine Lakh Fifty Eight Thousand Five Hundred Thirty Eight 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 availed educational loan of Rs. 31,45,000/- (Rupees Thirty One Lakh Forty Five Thousand Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Simple mortgage deed and guarantee agreement.

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OA 1411/2023

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in compliance of 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, summons on defendants, they failed to appear, hence resulting the defendant being placed exparte on 14.02.2024.

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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-1 to A-10 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

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as against the defendants?

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ii) What order are to be passed?

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OA 1411/2023

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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 defendants remained exparte. 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 the credit facilities 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 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, the Tribunal find

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both these issues in favour of applicant and hence, 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 facilities are

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availed for educational purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the

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

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In the result, OA.No.1411/2023, stands allowed,

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OA 1411/2023

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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39,58,538/- (Rupees Thirty Nine Lakh Fifty Eight Thousand Five Hundred Thirty Eight Only) with further interest @ 6.00 % p.a.(simple), from the date of filing OA till the realization, from the defendants jointly, severally & personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the 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 & personally and their 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 proceedings which

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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 and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this Final 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)

OA 1411/2023

Rules, 1993.

[Dictated to the Stenographer (AJ), 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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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: M D Mirhasan Hussain S/o Late Sahid Ansari, Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Applicant’s evidence
A2	List of documents
A3	Application for education loan dated 03.09.2018
A4	Simple mortgage deed dated 29.10.2018
A5	Sanction memorandum
A6	Pronote for Rs. 31.45 lakhs dated 14.11.2018
A7	Education loan agreement dated 14.11.2018
A8	Guarantee agreement dated 14.11.2018
A9	Guarantee covering letter dated 14.11.2018
A10	Statement of account in respect of education loan account No. 0823651011510 along with interest calculation sheet & certificate

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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/- (T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. Sri. Sunil Kumar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Sunil Kumar

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

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