Allowed

Canara Bank v. Sannagurappa Mallappa Ganiger( Since Deceased by His LRs)

DRT29 Aug 2025OA/1558/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank under Section 19 of the RDB Act for issuance of a Recovery Certificate against the defendants for an agricultural loan default amounting to Rs. 35,93,231.68.

What did the court decide?

Recovery Certificate issued for Rs. 35,93,231.68 with future interest at 6.00% p.a. from defendant No. 2 and estate of deceased borrower; schedule property attached for recovery.

Canara Bank versus Sannagurappa Mallappa Ganiger( Since… — 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

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Presiding Officer

OA. No.1558/2022

BETWEEN:

Canara Bank

Having its head office at No.112, J.C. Road, Bangalore-560002 And having branch at Gajendragad, TMC 2435, 1^st Floor, Bhoomierddi Complex, Ron Road, Gajendragad, Gadag District – 582114 Rep. by its Senior Manager and Letter of Authority Holder Mr. Rahul Kapoor … APPLICANT

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AND:

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Sri. Sannagurappa Mallappa Ganiger S/o. Sri. Mallappa Ganiger, Since deceased by his LRs 1(a) Smt. Shantavva Ganiger Major by age 1(b) Sri. Mahantesha Ganiger Major by age 1(c) Sri. Sharanappa Ganiger Major by age

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All are R/o. Balutagi Village, Yalabrga Taluk, Koppal District- 582114

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Sri. Kalakappa S/o. Sannagurappa Mallappa Ganiger R/o. Balutagi Village, Yalabrga Taluk, Koppal District-582114 ...DEFENDANTS

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OA. No. 1558/2022

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Counsel on record/appeared for: Applicant : Sri. K. Raveendran 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.35,93,231.68 (Rupees Thirty Five Lakh Ninety Three Thousand Two Hundred Thirty One and Sixty Eight 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 are represented by GPA Holder of Sri. Kalakappa Sanngurappa Ganiger, had approached the applicant bank for sanction of agricultural Term loan for the purpose of land development. The applicant bank after considering their request sanctioned Farm Development loan of Rs.2,99,000/and KCCS loan of Rs.1,00,000/-.

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The deceased borrower along with the defendant No.2 had executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and

OA. No. 1558/2022

charges.

It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants 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 as against the defendants.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendant being set exparte on 28.11.2023.

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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 A3 to A25 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 the proof affidavit.

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OA. No. 1558/2022

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

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OA. No. 1558/2022

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Since the OA claim is arrived at by calculating agreed rate

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of interest, penal interest/default interest, which this Tribunal

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considers as on the higher side, pendentalite and future interest is

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awarded at reduced rate @ 6.00% p.a.

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In the result, OA.No.1558/2022 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs.35,93,231.68 (Rupees Thirty Five Lakh Ninety Three Thousand Two Hundred Thirty One and Sixty Eight Paise only) with

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further interest of 6.00% p.a.(simple) from the date of filing OA till the realization, from the defendant No.2 and to the extent of their inheritance of any estate from the deceased borrower Late Sannagurappa Mallappa Ganiger from defendant No.1(a) to (c), after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to 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

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the 2^nd defendant personally and his other assets and the estate

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OA. No. 1558/2022

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inherited by defendant No.1(a) to (c) from deceased borrower are

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liable for respective amounts due under the respective 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 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 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 (PR), 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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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA. No. 1558/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mrs. Raheesa Khatib, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	APPLICANT EVIDENCE
A2	List of documents
A3	Application for Agricultural credit dated 31.01.2005
A4	Sanction letter dated 31.01.2005
A5	Simple mortgage deed dated 31.01.2005
A6	Memorandum of agreement for agricultural loans dated 31.01.2005
A7	Letter of attestation/Declaration dated 31.01.2005
A8	Letter of Revival dated 04.01.2008
A9	Letter of Revival dated 01.01.2011
A10	Letter of Revival dated 31.08.2013
A11	Letter of Revival dated 23.06.2016
A12	Letter of Revival dated 22.11.2018
A13	Application for agricultural credit dated 07.10.2005
A14	Simple mortgage deed dated 08.09.2005
A15	Memorandum of Agreement for Agricultural loans dated 07.10.2005
A16	Letter of Revival dated 05.05.2008
A17	Letter of Revival dated 02.05.2011
A18	Letter of Revival dated 02.09.2013
A19	Letter of Revival dated 20.04.2016
A20	Letter of Revival dated 23.06.2019
A21	Letter of Revival dated 05.06.2021
A22	Legal notice along with postal receipts dated 25.05.2022

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OA. No. 1558/2022

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	Statement of accou	nt in respect	of farm
A23	development No.0512883001578	loan	account
	Statement of accou	nt in respect	of Farm
A24	Development No.0512883002039 a and certificate	loan long with inter	account est sheet

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sannagurappa Mallappa Ganiger( Since Deceased by His LRs)

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sannagurappa Mallappa Ganiger( Since Deceased by His LRs)

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

Coram

Case details

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