Allowed

Canara Bank v. Shivaswamy S

DRT29 Aug 2025OA/1538/2023

Case brief

AI extract

What is this about?

In an ex-parte application under Section 19 of RDB Act, 1993, for recovery certificate against defendants for loan default. Tribunal allowed the OA allowing recovery of principal and interest at 6% simple p.a. with proceedings against schedule property.

What did the court decide?

Recovery certificate for Rs. 28,99,974.65 plus 6% p.a. interest from filing date against defendants jointly, severally, and personally, recoverable from schedule property.

Canara Bank versus Shivaswamy S — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1538/2023

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BETWEEN:

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Canara Bank, Kalkere Branch, Kalkere Post, Channarayapatna Taluk, Dist Hassan- 573 116. Through its Manager, Mr. Ajith K

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…APPLICANT

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AND:

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Mr. Shivaswamy S, S/o. Nyatigowda, Age: 75 years, Having address at: Chowdenahalli Village, Taluk Channarayapatna, Hassan District, Karnataka- 573 131.

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Smt. Rukmini S, W/o Shivaswamy, Age: 69 years, Having address at: Chowdenahalli Village, Taluk Channarayapatna, Hassan District, Karnataka- 573 116.

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Mr. Chandrashekara C.S. S/o. Shivaswamy, Age: 42 years, Having address at: Chowdenahalli Village,

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OA 1538/2023

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Taluk Channarayapatna, Hassan District, Karnataka- 573 116.

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Smt. Pratibha, S/o Shivaswamy, Age: 39 years, Having address at: Chowdenahalli Village, Taluk Channarayapatna, Hassan District, Karnataka – 573 116.

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Smt. Naveena, S/o Shivaswmay, Age: 37 years, Having address at: Chowdenahalli Village, Taluk Channarayapatna, Hassan District, Karnataka- 573 116. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Girish S Poojary 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. 28,99,974.65 (Rupees Twenty Eight Lakh Ninety Nine Thousand Nine Hundred Seventy Four and Paise Sixty Five 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 a loan

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of Kisan credit card scheme of Rs. 6,00,000/- (Rupees Six lakh Only)

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OA 1538/2023

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and kisan overdraft facility of Rs. 7,00,000/- (Rupees Seven Lakh Only). The defendant No.1 is the principal borrower and defendant Nos. 2 to 5 are the mortgagors to the loans availed.

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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 agreement, deed of hypothecation, simple mortgage deed and letters of revival in favour of the applicant bank.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount 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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 26.09.2024.

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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-15 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

OA 1538/2023

and proof affidavit.

The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA

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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

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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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OA 1538/2023

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availed for Agricultural purpose and also that the OA claim is arrived

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at by calculating interest at the agreed rate, this Tribunal in view of

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

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In the result, OA.No.1538/2023, stands allowed,

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

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Rs. 28,99,974.65 (Rupees Twenty Eight Lakh Ninety Nine Thousand

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Nine Hundred Seventy Four and Paise Sixty Five 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 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

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amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for respective amounts due under the respective loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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OA 1538/2023

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) 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 29^th Day of August, 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: Ajith K K S/o K Krishnan Nair, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Affidavit of evidence
A2	List of documents
A3	Loan application dated 29.09.2016
A4	Sanction letter dated 29.09.2016
A5	Agreement and deed of hypothecation for kisan OD dated 29.09.2016
A6	Simple mortgage deed dated 27.09.2016

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OA 1538/2023

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A7	Letter of revival executed by defendant No.1 dated 03.12.2021
A8	Loan application dated 29.09.2016
A9	Sanction letter dated 29.09.2016
A10	Agreement and deed for kissan OD dated 29.09.2016
A11	Simple Mortgage deed dated 27.09.2016
A12	Letter of revival executed by defendant No.1 dated 27.04.2022
A13	Legal notice dated 10.08.2023
A14	True extract of statement of accounts pertaining to the defendant No.1 aforesaid loan accounts
A15	True extract of statement of accounts pertaining to the defendant No.1 aforesaid loan accounts.

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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)

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PRESIDING OFFICER

Canara Bank v. Shivaswamy S

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shivaswamy S

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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