Allowed

Canara Bank v. Mr. Kandera K Suresh

DRT30 Oct 2025OA/144/2023

Case brief

AI extract

What is this about?

DRT-II, Bengaluru allowed an Original Application under Sec 19 of RDB Act 1993 filed by Canara Bank for a recovery certificate against two defendants for agricultural loans in default. Given the agricultural nature of the loans, the Tribunal granted recovery of the principal and interest at a reduced rate of 6% simple interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 1,00,02,379.88 with interest at 6% simple p.a. from filing date till realization against Defendants 1 & 2 personally and jointly.

Canara Bank versus Mr. Kandera K Suresh — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 30^th Day of October, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.144/2023

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BETWEEN:

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Canara Bank Having its Branch office at Canara Bank, Ponnampet Branch, Kodagu District- 571216, Represented by its Senior Manager Ms. Navya Mathew, Aged about 39 years, D/o K M Mathew.

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…APPLICANT

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AND:

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Mr. Kandera K Suresh, S/o Late Kushalappa, Adult, Biloor Village, Ponnappasarthe Post, Kodagu District, Karnataka- 571213. 2. Natesh P.B S/o Late P.A Bopaiah, Adult, Besagur Village, Bekkesodlur Post, Kodagu District, Karnataka- 571216.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Manik B T Defendant No. 1 : Exparte Defendant No. 2 : Arun Nachappa

OA 144/2023

FINAL ORDER

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. 1,00,02,379.88/(Rupees One Crore Two Thousand Three Hundred Seventy Nine and Paise Eighty 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 defendant No.1 availed the following loans:-

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Kisan credit card scheme of Rs. 15 lakhs,

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Farm development loan of Rs. 15 lakhs,

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Canara KOD of Rs. 7.50 Lakhs,

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Vehicle Loan of Rs. 10 Lakhs- defendant No.2 is the guarantor.

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

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loans, the defendants executed necessary loan documents along with simple mortgage deed, guarantee letter and letter of revival.

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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

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by filing this OA seeking issuance of Recovery Certificate for the amount

OA 144/2023

due in the account.

Despite, summons on the defendant No.1 he failed to appear, resulting the defendant No.1 being set exparte on 26.03.2025. Despite entering appearance defendant No.2 failed to file written statement within stipulated time hence written statement stands closed.

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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-37 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 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 unrebutted as defendants remained exparte. The evidence tendered by

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the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove

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OA 144/2023

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availment of the credit facilities as stated in the OA, creation of security

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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

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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 Agricultural 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.144/2023, stands allowed,

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

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1,00,02,379.88/- (Rupees One Crore Two Thousand Three Hundred

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Seventy Nine and Paise Eighty Eight Only) with further interest @ 6.00 %

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p.a.(simple), as follows:-

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a) Rs. 29,84,433/- (Rupees Twenty Nine Lakh Eight Four Thousand Four

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Hundred Thirty Three Only) in KCCS loan from the date of filing OA till the realization, from the defendant No.1 personally after giving credit to all

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OA 144/2023

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the amounts recovered and received during the pendency of the OA and

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allowed to recover the same by proceeding against the schedule property. b) Rs. 37,49,343/- (Rupees Thirty Seven Lakh Forty Nine Thousand Three

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Hundred Forty Three Only) in Farm development loan from the date of filing OA till the realization, from the defendant No.1 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.

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c) Rs. 17,11,316/- (Rupees Seventeen Lakh Eleven Thousand Three Hundred Sixteen Only) in Canara KOD loan from the date of filing OA till the realization, from the defendant No.1 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.

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d) Rs. 15,57,287.88 (Rupees Fifteen Lakh Fifty Seven Thousand Two Hundred Eighty Seven and Paise Eighty Eight Only) in Vehicle Loan from the date of filing OA till realization, from the defendants No. 1 & 2 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

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by proceeding against the defendants Nos. 1 & 2 jointly, severally & personally and against their asset including the hypothecated vehicle.

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OA 144/2023

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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 other assets are liable for all such

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amounts due under the respective loan accounts (Excluding vehicle loan).

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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

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transferred to Recovery for execution.

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

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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)

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Rules, 1993.

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[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/- (T. RAJESH) PRESIDING OFFICER

OA 144/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Arjun P S/o Sreedharan P V, Officer, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Original Simple Mortgage deed of Kisan Credit card Scheme (KCCS) of Rs. 15,00,000/- (Rupees Fifteen lakh Only) dated 26.12.2014
A2	Original simple mortgage deed for farm development loan of Rs. 15,00,000/-(Rupees Fifteen lakh Only) dated 26.12.2014
A3	Original loan application for KCCS of Rs. 15,00,000/- (Rupees Fifteen lakh Only) dated 26.12.2014
A4	Original loan sanction memorandum for the loan of Rs. 15,00,000/-(Rupees Fifteen lakh Only) dated 26.12.2014
A5	Original agreement and deed of hypothecation for KCC of Rs. 15,00,000/-(Rupees Fifteen lakh Only) dated 27.12.2014
A6	Original loan application for farm development loan of Rs. 15,00,000/- (Rupees Fifteen lakh Only) dated 27.12.2014
A7	Original loan sanction memorandum for the loan of Rs. 15,00,000/-(Rupees Fifteen lakh Only) dated 29.12.2014
A8	Original memorandum of agreement for farm development loans of Rs. 15,00,000/-(Rupees Fifteen lakh Only) dated 29.12.2014
A9	Original sanction of Canara KOD and fixed the exposure limit of Rs. 7,50,000/- (Rupees Seven lakhs Fifty Thousand Only) dated 28.03.2015
A10	Original agreement and deed for Kisan OD of Rs. 7,50,000/- (Rupees Seven lakhs Fifty Thousand Only) dated 31.03.2015
A11	Original sanction memorandum for the loan of Rs. 7,50,000/- (Rupees Seven lakhs Fifty Thousand Only) dated 31.03.2015
A12	Loan application dated 23.03.16
A13	Original sanction memorandum for the loan of Rs. 10,00,000/- (Rupees Ten lakhs Only) dated 23.03.2016
A14	Original can-mobile loan agreement of Rs. 10,00,000/- (Rupees Ten lakhs Only) in support of loan application dated 23.03.2016
A15	Original particular of vehicles/ machinery/ equipment/ livestock etc., of Rs. 10,00,000/- (Rupees Ten lakhs Only) dated 2303.2016
A16	Original submitted a guarantee covering letter along with guarantee agreement of Rs. 10,00,000/- (Rupees Ten lakhs Only) dated 23.03.2016

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OA 144/2023

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A17	Original simple mortgage deed for kisan OD of Rs. 7,50,000/- (Rupees Seven Lakh Fifty Thousand Only) dated 11.07.2017
A18	Original letter of revival in favour of the applicant bank of Rs. 15,00,000/- (Rupees Fifteen lakh Only) in loan account No. 0456840014479 on 19.07.2017
A19	Original letter of revival in favour of the applicant bank of Rs. 15,00,000/- (Rupees Fifteen lakh Only) in loan account No. 0456883014038 on 19.07.2017
A20	Original letter of revival in favour of the applicant bank of Rs. 7,50,000/- (Rupees Seven Lakh Fifty Thousand Only) in loan account NO. 0456897001711 on 19.07.2017
A21	Original office note letter of Rs. 15,00,000/- (Rupees Fifteen lakh Only) in loan account No. 0456840014479 dated 23.03.2018
A22	Original letter of revival in favour of the applicant bank of Rs. 10,00,000/- (Rupees Ten lakhs Only) in loan account No. 0456636000008 on 16.07.2018
A23	Original letter of revival in favour of the applicant bank of Rs. 15,00,000/- (Rupees Fifteen lakh Only) in loan account No. 0456840014479 on 29.11.2019
A24	Original letter of revival in favour of the applicant bank of Rs. 15,00,000/- (Rupees Fifteen lakh Only) in loan account No. 0456883014038 on 02.12.2019
A25	Original letter of revival in favour of the applicant bank of Rs. 7,50,000/- (Rupees Seven Lakh Fifty Thousand Only) in loan account NO. 0456897001711 on 03.12.2019
A26	Original letter of revival in favour of the applicant bank of Rs. 15,00,000/- (Rupees Fifteen lakh Only) in loan account NO. 0456883014038 on 20.02.2021
A27	Original letter of revival in favour of the applicant bank of Rs. 10,00,000/- (Rupees Ten lakhs Only) in loan account NO. 0456636000008 on 20.02.2021
A28	Original letter of revival in favour of the applicant bank of Rs. Rs. 7,50,000/- (Rupees Seven Lakh Fifty Thousand Only) in loan account No. 0456897001711 on 02.02.2022
A29	Original legal notice dated 08.04.2022 issued to the defendant regarding loan account No. 0456883014038
A30	Original letter for seizure of vehicles Tata Safari loan account No. 0456636000008 dated 29.06.2022
A31	Original without prejudice letter for seizure the vehicles Tate Safari Loan account No. 0456636000008 which the 1^stdefendant have failed to repay the amount dated 06.07.2022
A32	Original without prejudice letter for seizure the vehicles tata Safari loan account No. 0456636000008 which the 1^stdefendant have failed to repay the amount dated 17.11.2022
A33	Original newspaper published the seized vehicle auction notice in English and Kannada

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OA 144/2023

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A34	Original statement of account as On 20.10.2022 for the A/c No. 0456840014479
A35	Original statement of account as on 20.10.2022 for the a/c No. 04568830140388
A36	Original statement of account as on 20.10.2022 for the a/c No. 0456897001711
A37	Original statement of account as on 20.10.2022 for the a/c No. 0456636000008

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Witness Examined for the Defendants: -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. Mr. Kandera K Suresh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr. Kandera K Suresh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Case details

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