Allowed

Canara Bank v. Manjegowda D R

DRT27 Nov 2025OA/1547/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Canara Bank for issuance of a Recovery Certificate against borrowers who defaulted on agricultural loans. The defendants, appearing ex parte, were held jointly and severally liable for the outstanding amount with reduced interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 23,61,783.78 plus reduced interest at 6% p.a. simple till realization from the defendants jointly, severally and personally.

Canara Bank versus Manjegowda D R — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1547/2023

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BETWEEN:

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Canara Bank Kalkere Branch, Kalkere Post, Channarayapatna Taluk, Dist., Hassan – 573 116

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Through its Manager

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Mr. Ajith K …APPLICANT

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AND:

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Mr. Manjegowda D R S/o. late D C Rangegowda Age: 62 years

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Smt. Rangamma W/o. Manjegowda D R Age: 58 years

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Mr. Varalakshmi D M D/o. Manjegowda D R Age: 40 years

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Mr. Reeta D/o. Manjegowda D R Age: 38 years

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Mr. Shashidhara S/o. Manjegowda D R Age: 30 years

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Smt. Ranjini S/o. Manjegowda D R age: 40 years

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OA-1547/2023

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All are residing at: Devigere Village, Taluk Channarayapatna, Hassan District, Karnataka – 573 161 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Girish S Poojary Defendants : Ex parte

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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 for issuance of Recovery Certificate against the defendants for Rs. 23,61,783.78/- (Rupees Twenty Three Lakhs Sixty One Thousand Seven Hundred and Eighty Three and Paisa Seventy 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 1^st defendant availed the following credit facilities:

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Kisan Credit card scheme of Rs. 3,00,000/- (Rupees Three Lakhs Only) for the purpose of crop cultivation.

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Kisan OD Scheme of Rs. 6,00,000/- (Rupees Six Lakhs Only) for the purpose of working capital for agricultural allied activities.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with simple mortgage deed.

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It is further contended that, despite availing the credit facilities,

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OA-1547/2023

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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 ex parte on 16.10.2024.

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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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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

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unrebutted as defendants remained ex parte. The evidence tendered

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by the applicant remains uncontroverted and undisputed. The

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OA-1547/2023

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evidences put forth by the applicant were found admissible and are

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sufficient to prove availment of credit facilities as stated in the OA,

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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 document. The claim of the

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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 are in favour of applicant and hence, this

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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

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at by calculating interest at the agreed rate, this Tribunal is the view

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

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In the result, OA.No.1547/2023 stands allowed,

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

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Rs. 23,61,783.78/- (Rupees Twenty Three Lakhs Sixty One Thousand

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Seven Hundred and Eighty Three and Paisa Seventy Eight Only)with

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further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during

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the pendency of the OA and allowed the same to be recovered by

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OA-1547/2023

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proceeding against the schedule properties. Properties schedule to

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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

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jointly, severally and personally and their assets are liable for all such

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amounts due under the 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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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 (HS), 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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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA-1547/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ajith K, S/o. K Krishnan Nair, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Affidavit evidence
A2	List of documents
A3	Loan application dated 30.03.2015
A4	Sanction letter dated
A5	Agreement and deed of hypothecation for Kisan credit card scheme dated 30.03.2015
A6	Simple mortgage deed dated 23.03.2015
A7	Loan application dated 31.03.2015 and sanction letter dated 31.03.2015
A8	Sanction letter dated 31.03.2015
A9	Agreement and deed for Kisan OD dated 31.03.2015
A10	Simple mortgage deed dated 28.03.2015
A11	Legal notice dated 10.08.2023
A12	True extract of statement of accounts pertaining to the defendant no.1 aforesaid loan accounts no. 1808840007921
A13	True extract of statement of accounts pertaining to the defendant no.1 aforesaid loan accounts no. 1808897001064

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Manjegowda D R

Case brief

What is this about?

What did the court decide?

Canara Bank v. Manjegowda D R

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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