Allowed

Canara Bank v. Patalappa

DRT27 Nov 2025OA/152/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's Original Application filed under Section 19 RDB Act, 1993, for unsecured recovery against a defaulting borrower. Since the borrower appeared exparte, the court found the debt and interest admissible, reducing the interest rate to 6% simple and authorizing recovery from schedule properties.

What did the court decide?

The applicant is allowed to recover Rs. 33,60,886.00 with 6% simple annual interest, executaby recovery certificate against schedule property.

Canara Bank versus Patalappa — 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 27^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.152/2024

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BETWEEN:

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Canara Bank, Having a branch at Doddaballapura, Bengaluru Rural- 561203, Represented by its Chief Manager, Mr. N Ravikumar.

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…APPLICANT

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AND:

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Sri Patalappa M, S/o. Mariyappa, Aged about 70 years, Ekasipura, Doddaballapur Taluk, Bengaluru Rural Dist: 561 203.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : M/s. Daivas Associates Defendant : 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 defendant for Rs. 33,60,886.00 (Rupees Thirty Three lakh Sixty Thousand Eight Hundred Eighty Six Only) with further interest thereon from the date of filing the Application till realization.

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OA 152/2024

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It is the case of the applicant bank, that the defendant has availed term loan of Rs. 23 lakhs and Rs. 6 lakhs for the purpose of construction of farm house and grape cultivation.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Simple mortgage deed 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 defendant 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 defendant he failed to appear resulting the defendant being set exparte on 19.12.2024.

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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-13 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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OA 152/2024

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i) Whether the applicant had succeeded in proving the OA claim

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as against the defendant?

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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 defendant 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 defendant 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 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 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

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

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OA 152/2024

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In the result, OA.No.152/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 33,60,886.00 (Rupees Thirty Three lakh Sixty Thousand Eight Hundred Eighty Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant 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 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 amount due and payable to the applicant bank, the defendant personally

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and his assets are liable for respective 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, stands disposed of in terms

of this final order.

OA 152/2024

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 27^th Day of November, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Gudhi Ravi Babu, 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
A1	14.08.2017	Application for agricultural credit-short term/ term loan
A2	14.08.2017	Sanction memorandum of term loan
A3	18.09.2018	Common application cum appraisal form for credit facilities for agricultural loan (ALLD)
A4	19.09.2018	Sanction memorandum of ALLD loan
A5	14.08.2017	Memorandum of agreement for agricultural loans (term Loan)
A6	05.10.2018	Memorandum of agreement for agricultural loans (ALLD loan)
A7	09.08.2017	Simple mortgage deed for agricultural advances (Other than running facility) (term loan)
A8	19.09.218	Simple mortgage deed for agricultural advances (other than running facility) (ALLD loan)
A9	09.07.2020	Letter of revival
A10	15.06.2023	Letter of revival
A11	05.07.2023	Legal notice sent by RPAD
A12	04.07.2023	Statement of account of term loan (Account No. 0664883015012)

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OA 152/2024

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A13	04.07.2023	Statement of account of	ALLD loan (Account No.
		0664883015017)

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

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. Patalappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Patalappa

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

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Case details

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