DT at Bengaluru allowed Bank's OA for Recovery Certificate. Unopposed by defendant in absentia. Certificate issued for principal plus reduced interest of 8% p.a. over agreed rate.
Recovery Certificate issued for Rs. 53,74,996 plus 8% p.a. simple interest from date of filing; personal liability enforced if schedule property proceeds insufficient.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 28th Day of April, 2025
Present: Sri. T. RAJESH Presiding Officer
OA.No.1426/2022
BETWEEN:
Canara Bank Chamarajanagar Branch Chamarajanagar – 571313, Rep. by its Asst. Manager and PA Holder Sri. Himanshu Kumar … APPLICANT
AND:
Sri. Rajashekarappa Aged about 57 years S/o. Late Doddamallappa Residing at: Kelasuru Village, Kasaba Hobli, Gundlupete Taluk, chamarajanagar District – 571123 ..DEFENDANT
Counsel on record/appeared for: Applicant : Sri. H.S. Rukkoji Rao Defendant : Exparte
FINAL ORDER
under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for
2 OA/1426/2022
Rs.53,74,996/- (Rupees Fifty Three Lakh Seventy Four Thousand Nine Hundred and Ninety Six only) with further interest thereon from the date of filing the Application till realization.
3 OA/1426/2022
for the amount due in the account.
ii) What order are to be passed?
Both these issues are gone into and decided together.
remains unrebutted as defendant remained exparte. The evidence
tendered by the applicant remains uncontroverted and
4 OA/1426/2022
undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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.
11. Hence in view of the above finding which cover both the
issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.
12. Taking into consideration the facts that the credit facility
was availed for agricultural purpose and also that the 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 8.00%p.a. (simple).
of Rs.53,74,996/- (Rupees Fifty Three Lakh Seventy Four
5 OA/1426/2022
Thousand Nine Hundred and Ninety Six only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.
ii) If the sale proceeds are not found sufficient to cover
the amount due and payable to the applicant bank, the defendant is personally and other assets are liable for all such amounts due under the loan accounts.
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.
iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
v) Interim Application pending, if any, stands disposed of with this Final Order.
6 OA/1426/2022
DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me
in the Open Court, this the 28th Day of April 2025].
Sd/-
(T. RAJESH) PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Sri. Direndra M, Manager & PA Holder of the applicant bank.
Exhibits on the part of the Applicant:
| Annexure | Date | Particulars |
|---|---|---|
| A1 | Applicant Evidence | |
| A2 | List of Documents | |
| A3 | 02.02.2006 | Farm Machinery loan application submitted by the defendant to the applicant bank. |
| A4 | 02.02.2006 | Memorandum of Agreement for Agricultural loans executed by the defendant in favour of the applicant bank. |
| A5 | 30.01.2006 | Simple Mortgage Deed executed by the defendant in favour of the applicant bank. |
| A6 & A7 | 22.06.2006 | Registration Certificates of the Tractor & Trailer issued bythe RTO |
| A8 | 03.02.2006 | Particulars of the Vehicles Hypothecated executed by the defendant in favour of the applicant bank. |
| A9 to A14 | 21.02.2008 26.06.2010 20.06.2013 10.06.2015 |
6 Nos. Letter of Revival executed by the defendant in favour of the applicant bank in respect of the Farm Machinery loan. |
7 OA/1426/2022
| 11.03.2018 03.11.2020 |
||
|---|---|---|
| A15 | - | The Certified Account Extract of the |
| defendant relatingto loan account. |
Sd/-
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendant?
What order is to be passed?
Canara Bank Chamarajanagar Branch
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
