Allowed

Canara Bank v. Basamma

DRT24 Oct 2025OA/1556/2023

Case brief

AI extract

What is this about?

This Original Application under Section 19 RDB Act 1993 was allowed ex-parte. The Tribunal issued a Recovery Certificate for an aggregate sum including principal and reduced interest at 6% p.a., to be recovered jointly and severally from the respondents and by proceeding against scheduled properties.

What did the court decide?

Issuance of Recovery Certificate for Rs.38,32,513.09 plus 6% p.a. simple interest to be recovered jointly and severally from respondents and from the schedule properties.

Canara Bank versus Basamma — 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 24^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1556/2023

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BETWEEN:

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Canara Bank Sheshadripuram Branch Balaji Urs Road, Sheshadripuram, Shimogga-577201, Dist. Shivamogga Through its Chief Manager Mr. Nagaraja Kengannavar

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… APPLICANT

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AND:

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Smt. Basama Aged about 67 years W/o. of Late G.R. Eshwarappa Gowda R/at: Bedarahosahalli Village, Shimoga Taluk and District, Karnataka

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Mr. Sathish G.E. Aged about 48 years S/o. Late G.R. Eshwarappa Gowda R/at: Bedarahosahalli Village, Shimoga Taluk and District, Karnataka

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Mr. Kumar G.E.

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Aged about 49 years S/o. Late G.R. Eshwarappa Gowda R/at: Bedarahosahalli Village, Shimoga Taluk and District, Karnataka

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OA. No.1556/2023

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Mr. Sujatha Aged about 44 years D/o. Late G.R. Eshwarappa Gowda R/at: Bedarahosahalli Village, Shimoga Taluk and District, Karnataka

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. V S Associates 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 for seeking issuance of Recovery Certificate against the defendants for Rs.38,32,513.09 (Rupees Thirty Eight Lakh Thirty Two Thousand Five Hundred Thirteen and Nine Paise 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 defendants availed the

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Following credit facilities:

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Rs.1.95 lakhs on 08.08.2017 towards development of property

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Rs.1.80 lakhs on 08.08.2017 towards crop production.

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Rs.20.00 lakhs on 16.08.2017 towards construction of godown.

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OA. No.1556/2023

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents apart from the creation of security interest by way of mortgage over the Schedule properties.

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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 account 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 accounts.

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Despite, entering appearance, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 30.07.2024.

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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 A1 to A11 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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OA. No.1556/2023

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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? 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

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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

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as stated in the OA, creation of security interest as claimed by the applicant bank 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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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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OA. No.1556/2023

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12. Taking into consideration the facts that the credit facilities

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was availed for agriculture purpose and also that OA claim is

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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%

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p.a.(simple).

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In the result, OA.No.1556/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.38,32,513.09 (Rupees Thirty Eight Lakh Thirty Two Thousand Five Hundred Thirteen and Nine Paise only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule properties. The 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

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the amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their other assets are liable

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OA. No.1556/2023

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for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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

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receipt of the order.

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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of October 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Sathiya Moorthy, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Sanction letter dated 08.08.2017

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OA. No.1556/2023

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A2	Simple mortgage deed for agricultural advances dated 07.08.2017
A3	Memorandum of Agreement for agricultural loans dated 08.08.2017
A4	Sanction letter dated 08.08.2017
A5	Simple mortgage deed for agricultural advances dated 04.08.2017
A6	Memorandum of Agreement for Agricultural loans dated 08.08.2017
A7	Sanction letter dated 16.08.2017
A8	Simple mortgage deed for agricultural advances dated 04.08.2017
A9	Memorandum of Agreement for Agricultural loans dated 16.08.2017
A10	Demand notice dated 17.09.2022
A11	True Extract of statement of accounts pertaining to the defendants’ loan accounts

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Basamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Basamma

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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