Allowed

Canara Bank v. Basavegowda

DRT25 Nov 2025OA/1572/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Applicant Bank's original application seeking a Recovery Certificate for defaulted agricultural loans. As defendants appeared ex parte, Tribunal found for the applicant and granted a reduced interest rate for agricultural purposes.

What did the court decide?

Recovery Certificate issued for Rs. 28,23,157/- with 6% simple interest p.a. from filing date, recoverable from joint/several/personal liability and against schedule properties.

Canara Bank versus Basavegowda — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1572/2022

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BETWEEN:

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Canara Bank Nanjangudu Branch, Priya Complex, MGS Road, Nanjangudu, Mysore District – 571 301

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Represented by Manager & Letter of Authority Holder Mrs. Tashi Slvi V Panackal …APPLICANT

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AND:

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Sri. Basavegowda S/o. late Basavegowda Aged about 78 years

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Sri. T B Chandra S/o. Basavegowda Aged about 53 years

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Both are residing at: Ram Mandeera Beedi, Thandavapura Village, Chikkanchatara Hobli, Nanjangud Taluk, Mysore District – 571 302 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : HSR & Associates Defendants : Ex parte

OA-1572/2022

FINAL ORDER

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. 28,23,157/- (Rupees Twenty Eight Lakhs Twenty Three Thousand One Hundred and Fifty Seven 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 the following credit facilities:

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Kisan OD of Rs. 5,00,000/- (Rupees Five Lakhs Only) for the purpose of agricultural operations and allied activities.

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KCCs loan of Rs. 4,35,000/- (Rupees Four Lakhs Thirty Five Thousand Only) for the purpose of crop cultivation.

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Farm Development loan of Rs. 8,00,000/- (Rupees Eight Lakhs Only) for the purpose of cultivating arecanut plantation.

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Dairy loan of Rs. 10,00,000/- (Rupees Ten Lakhs Only) for the purpose of construction of cow shed and to purchase cows.

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It is also the case of the applicant that, in view of the above

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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, 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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OA-1572/2022

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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 12.11.2024.

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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-42 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 unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The 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, creation of the security interest and the defaults committed in the

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OA-1572/2022

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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 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 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.1572/2022 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 28,23,157/- (Rupees Twenty Eight Lakhs Twenty Three Thousand

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One Hundred and Fifty Seven Only) with 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

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the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. 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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OA-1572/2022

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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

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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 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 25^th Day of November, 2025].

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(T. RAJESH) PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ashish Awadhesh Shukla, S/o. Awadhesh Kumar Shukla, Manager, of Applicant Bank.

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OA-1572/2022

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	-----	Affidavit evidence
A2	-----	List of documents
A3	17.06.2014	Loan application submitted by defendant no. 01 to the applicant bank in reference to Kisan OD
A4	27.06.2014	Sanction memorandum issued by the applicant bank in reference to Kisan OD
A5	27.06.2014	Agreement and deed for Kisan OD executed by defendant no.01 in favour of the applicant bank in reference to Kisan OD
A6	26.06.2014	Simple mortgage deed executed by the defendant no.01 in favour of the applicant bank in reference to Kisan OD
A7 to A9	17.03.2017 22.04.2019 25.09.2019	03. nos. of letters of revival executed by the defendant no.01 in favour of the applicant bank in reference to Kisan OD
A10	17.10.2015	Loan application submitted by defendant no. 01 to the applicant bank in reference to KCCS limit
A11	17.10.2015	Sanction memorandum issued by the applicant bank in reference to KCCS limit
A12	17.10.2015	Agreement and deed of hypothecation for KCCs executed by defendant no.01 in favour of the applicant bank
A13	16.10.2025	Simple mortgage deed executed by the defendant no.01 in favour of the applicant bank
A14	29.09.2016	Application for renewal and enhancement of KCCs limit submitted by the defendant no.01 to the applicant bank
A15	29.09.2016	Letter of renewal executed by the defendant no.01 in favour of the applicant bank
A16	15.09.2017	Application for renewal and enhancement of KCCs limit submitted by the defendant no.01 to the applicant bank
A17	15.09.2017	Letter of renewal executed by the defendant no.01 in favour of the applicant bank
A18	24.07.2019	Application for renewal and enhancement of KCCs limit submitted by the defendant no.01 to the applicant bank
A19	24.07.2019	Letter of renewal executed by the defendant no.01 in favour of the applicant bank

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OA-1572/2022

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A20 to A22	22.04.2019 01.09.2019 17.02.2022	03. nos. of letters of revival executed by the defendant no.01 in favour of the applicant bank in reference to KCCs limit
A23	17.01.2018	Loan application submitted by defendants to the applicant bank in reference to farm development loan
A24	17.01.2018	sanction memorandum issued by the applicant bank in reference to farm development loan
A25	17.01.2018	Memorandum of agreement for agricultural loans executed by defendants in favour of the applicant bank
A26	02.01.2018	Simple mortgage deed executed by the defendants in favour of the applicant bank in reference to farm development loan
A27	01.08.2020 17.02.2022	02. nos. of letters of revival executed by the defendants in favour of the applicant bank in reference to KCCs limit
A28	26.02.2019	Loan application submitted by defendant no.01 to the applicant bank in reference to dairy loan
A30	26.02.2019	Sanction memorandum issued by the applicant bank in reference to dairy loan
A31	26.02.2019	Memorandum of agreement for agricultural loans executed by defendants in favour of the applicant bank
A32	15.02.2019	Simple mortgage deed executed by the defendant no.01 in favour of the applicant bank in reference to dairy loan
A33	16.03.2019	Particulars of vehicles/machinery/equipment/livestock hypothecated executed by the defendant no.01 in favour of the applicant bank in reference to dairy loan
A34	17.02.2022	Letter of revival executed by the defendant no.01 in favour of the applicant bank in reference to dairy loan
A35 to A38	01.09.2022	Recall notices issued by the applicant bank to the defendant no.01
A39 to a42	------	04. nos. of certified account extract of the defendant no.1 maintained by the applicant bank

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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

Canara Bank v. Basavegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Basavegowda

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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