Allowed

Canara Bank v. Rajendraswamy K M

DRT19 Nov 2025OA/1457/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Karnataka allowed an Original Application filed by Canara Bank seeking a recovery certificate against three defendants for loan defaults totaling approximately Rs. 76.20 lakhs. Being ex parte, the court found evidence conclusive, allowing recovery with reduced interest capped at 6% simple. A recovery certificate was directed.

What did the court decide?

Recovery certificate directed for Rs. 76,20,538 with interest @ 6% p.a. (simple) recoverable from joint & several assets and schedule property.

Canara Bank versus Rajendraswamy K M — 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 19^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1457/2022

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BETWEEN:

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Canara Bank, Chamarajanagar Branch, Chamarajanagar- 571 313, Represented by its, Manager and PA Holder, Sri Himanshu Kumar, Aged about 32 years, S/o Ashwani Kumar Sinha.

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…APPLICANT

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AND:

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Sri. Rajendraswamy K.M, Aged about 65 years, S/o Late K Madappa.

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Sri. R. Manoj, Aged about 30 years, S/o K M Rajendraswamy.

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Sri R Sachin, Aged about 27 years, S/o K M Rajendraswamy.

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All are residing at: Kuderu Village, Santhemaralli Hobli, Chamarajanagar Taluq and District- 571 316.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. HSR & Associates Defendants : EXPARTE

OA 1457/2022

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. 76,20,538/- (Rupees Seventy Six Lakh Twenty 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 defendant No.1 as borrower and defendant No. 2 & 3 as mortgagers availed farm development loan of Rs. 40 lakhs and defendant No.1 availed KCCS loan of Rs.19,50,000/(Rupees Nineteen Lakh Fifteen 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 Hypothecation agreement and simple mortgage deed.

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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 complying 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 resulting

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OA 1457/2022

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the defendants being set exparte on 28.08.2024.

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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-3 to A-14 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 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 the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of the security interest 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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OA 1457/2022

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agriculture 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 6.00% (simple).

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In the result, OA.No.1457/2022, stands allowed,

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

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76,20,538/- (Rupees Seventy Six Lakh Twenty Thousand Five Hundred Thirty Eight Only) with further interest @6.00 % p.a.(simple) as follows:-

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a) Farm development liability of Rs. 58,92,231/- (Rupees Fifty Eight Lakh Ninety Two Thousand Two Hundred Thirty One Only) from the date of filing OA till the realization, from the defendants Nos. 1, 2 & 3 jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule property.

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b) KCCS loan liability of Rs. 17,28,307/- (Rupees Seventeen lakh Twenty

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Eight Thousand Three Hundred and Seven Only) from the date of filing OA till the realization, from the defendant Nos 1 personally, after giving

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OA 1457/2022

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credit to all the amount recovered and received during the pendency

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of the OA and allowed the same to be recovered by proceeding against the schedule property.

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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 amounts due under the respective 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, stands disposed of in terms

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of 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)

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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 19^th Day of November, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

OA 1457/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1:Uma Mahesh, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A3	29.05.2018	Farm development loan application submitted by defendant No.1 to the applicant bank
A4	29.05.218	Memorandum of agreement for agricultural loans executed by defendant No.1 in favour of the applicant bank
A5	29.05.208	Simple mortgage deed executed by the defendants in favour of the applicant bank
A6 & A7	29.05.2018 & 07.06.2018	Two Nos. of particulars of the farm equipment’s hypothecated executed by the defendant No. 01 in favour of the applicant bank
A8	15.02.2020	Letter of revival executed by the defendant No. 1 in favour of the applicant bank in respect of the farm machinery loan
A9	30.10.2019	KCCS loan application submitted by defendant No.1 to the applicant bank
A10	24.12.2019	Agreement and deed of hypothecation for Kisan credit card executed by defendant No.1 in favour of the applicant bank
A11	18.12.2019	Simple mortgage deed executed by the defendant No.1 in favour of the applicant bank
A12	10.03.2021	Letter of revival executed by the defendant No.1 in favour of the applicant bank in respect of the KCCS loan
A13	--	Certified account extract of the defendant No.1 maintained by the applicant bank in respect of farm machinery loan Ac No. 0797891000005
A14	--	Certified account extract of the defendant No.1 maintained by the applicant bank in respect of KCCS loan a/c No. 0797895000281

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Rajendraswamy K M

Case brief

What is this about?

What did the court decide?

Canara Bank v. Rajendraswamy K M

Case brief

What is this about?

What did the court decide?

What the court decided

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