Allowed

Canara Bank v. Shoukatali Fakirsab

DRT19 Nov 2025OA/1551/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank for recovery of Rs. 20.82 lakhs due from deceased borrowers. The Court approved a reduced simple interest rate of 6% p.a. and ordered issuance of a Recovery Certificate against legal heirs and schedule property.

What did the court decide?

Recovery Certificate to be drawn for Rs. 20,82,925.38/- plus 6% p.a. simple interest; liable against legal heirs and schedule property.

Canara Bank versus Shoukatali Fakirsab — Banking and Recovery | 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

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Presiding Officer OA. No.1551/2024

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BETWEEN:

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Canara Bank Ramdurg Branch, Ramdurg, Ramdurg Taluk, Dist. Belagavi – 591 123

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Through its Senior Manager Mr. Sayed Imran

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APPLICANT

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AND:

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Mr. Shoukatali Fakirsab Sangal (Since deceased through his legal heirs)

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1(a) Smt. Naseema Shoukatali Sangal W/o. Shoukatali Fakirsab Sangal

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Aged about 52 years

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1 (b) Smt. Shaheenabanu Amanulla Jamdhar D/o. Shoukatali Fakirsab Sangal Aged about 34 years

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1(c) Mr. Rasulaseb Shoukatali Sangal S/o. Shoukatali Fakirsab Sangal Aged about 32 years

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1(d) Mr. Dastagirasab Shoukatali Sangal

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S/o. Shoukatali Fakirsab Sangal Aged about 33 years

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1(e) Mr. Arief Shoukatali Sangal S/o. Shoukatali Fakirsab Sangal

OA. No. 1551/2024

Aged about 30 years

1(f) Mr. Fakirasab Shoukali Sangal S/o. Shoukatali Fakirsab Sangal Aged about 26 years

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All having their address at: Gonaganur, Artagal Post, Taluk, Ramdurg, Dist. Belgavi – 591 123

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Mr. Hasensab Fakirsab Sangal

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(Since deceased) ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Venu K V Defendant no.1 & 2 : Deceased Defendant’s no.1(a & f): 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 for seeking issuance of Recovery Certificate against the defendants for Rs. 20,82,925.38/- (Rupees Twenty Lakhs Eighty Two Thousand Nine Hundred and Twenty Five and Paisa Thirty Eight Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the deceased borrowers

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OA. No. 1551/2024

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Late Mr. Srishoukatali Fakirsab Sangal & Mr. Hasensab Fakirsab Sangal, availed the following credit facilities:

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Agricultural loan of Rs. 8,50,000/- (Rupees Eight Lakhs Fifty Thousand Only) for the production of sugarcane on 18.05.2017.

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Rs. 4,00,000/- (Rupees Four Lakhs Only) for the purpose of pipeline & miner irrigation.

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It is also the case of the applicant that, in view of the above financed credit facilities, the deceased borrowers Mr. Srishoukatali fakirsab sangal & Mr. Hasensab fakirsab sangal executed necessary loan documents, apart from the creation of security interest by way of simple mortgage deed over the schedule property.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, borrowers failed in complying the same, resulting in defaults 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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After filling of the OA, summons sent to defendant by registered post. The summons to defendant no.2 returned unserved with an endorsement “dead” and the applicant bank has

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OA. No. 1551/2024

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filed a memo dated 19.11.2024 in this regard. When the case came up for hearing on 18.12.2024, in spite of granting sufficient time, defendants no1 (a to f) neither appeared nor represented. Hence, the defendant’s no1 (a to f) placed ex parte on 18.12.2024.

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In respect of defendant no.2, who is reported ‘dead’, the applicant bank has filed a memo dated 19.11.2024, and the applicant bank is not willing to bring on record of his legal heirs.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A12 and got the same marked in evidence. 9. Heard the Ld. Counsel for the Applicant and considered the

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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

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claim as against the defendants?

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ii) What orders 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

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remains unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and

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OA. No. 1551/2024

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undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility 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 is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1551/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 20,82,925.38/- (rupees twenty lakhs eighty two thousand

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nine hundred and twenty five and paisa thirty eight only) with further interest of 6.00% p.a.(simple) from the date of filing of OA

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OA. No. 1551/2024

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till the realization, from the defendant nos. 1(a) to (f), to the extent of their inheritance of any estate of deceased borrowers Late Mr. Srishoukatali fakirsab sangal & Mr. Hasensab fakirsab sangal, after giving credit to all the amount recovered and be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not sufficient to clear the liability, the defendant nos. 1(a) to (f) to the extent of their inheritance of any estate of deceased borrowers Late Mr. Srishoukatali fakirsab sangal & Mr. Hasensab fakirsab sangal are liable for balance amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding 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 and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order

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OA. No. 1551/2024

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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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 19^th Day of November, 2025]

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Mustafa Ahamed C, S/o. Mohamed Abduirahiman, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Application dated 10.05.2017
A2	Agreement for agricultural advances dated 20.05.2017
A3	Simple mortgage deed dated 10.05.2017
A4	Guarantee for agreement for agricultural advances dated 20.05.2017
A5	Application letter dated 04.07.2017
A6	Sanction letter dated 04.07.2017
A7	Agreement for agricultural advances dated 05.07.2017
A8	Deed of guarantee for agricultural advances dated 05.07.2017
A9	Notice dated 09.01.2023

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OA. No. 1551/2024

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A10	True extract of statement of accounts pertaining to the defendant aforesaid loan accounts
A11	True extract of statement of accounts pertaining to the defendant aforesaid loan accounts
A12	Statement showing total outstanding liabilities of the defendants

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

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Shoukatali Fakirsab

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shoukatali Fakirsab

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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