Allowed

Canara Bank v. Mallikarjun

DRT14 Oct 2025OA/1621/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed Original Application filed by Canara Bank for issuance of Recovery Certificate against legal heir of deceased borrower. Court reduced agreed interest to 6% simple and allowed recovery against inherited estate and schedule property.

What did the court decide?

Recovery Certificate issued for Rs.45,91,534/- plus 6% simple interest. Recovery against defendant's inheritance and schedule property.

Canara Bank versus Mallikarjun — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 14^th Day of October, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1621/2023

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BETWEEN:

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Canara Bank Janata Bazar Building, Super Market Complex, Kalaburgi-585101 Rep. by Senior Manager Mr. Satwant Singh

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… APPLICANT

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AND:

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Mr. Mallikarjun S/o. Late Mallappa Malukar Aged about 42 years, R/o. Kalhangarga Village, Gulbarge Taluk, Gulbarga District-585104

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendant : Exparte

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: Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for

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Rs.45,91,534/- (Rupees Forty Five Lakh Ninety One Thousand Five

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OA. No.1621/2023

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Hundred and Thirty Four only) with further interest thereon from the

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date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant is the legal heir of Late Smt. Gundamma and the deceased borrower had availed the following credit facilities:

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● Minor Irrigation loan of Rs.50,000/- on 03.04.2007

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Kisan Credit Card Scheme loan of Rs.1,50,000/on 26.08.2008

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● Agriculture Term loan of Rs.5,00,000/- on 07.01.2009

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

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendant 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

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Tribunal by filing this OA seeking issuance of Recovery Certificate for

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OA. No.1621/2023

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the amount due in the account.

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Despite, service of summons on the defendant, he failed to

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appear, resulting the defendant being set exparte on 23.10.2024.

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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 A3 to A39 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

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claim as against the defendant?

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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 defendant remained exparte. The evidence tendered by

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the applicant remains uncontroverted and undisputed. The evidences put

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forth by the applicant were found admissible and are sufficient to prove

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OA. No.1621/2023

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availment of credit facilities as stated in the OA, creation of security

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interest as claimed by the applicant bank and the defaults committed in

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the accounts. The liability of the defendant and the claim of the amount

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due are also proved by the above documents. The claim of the applicant

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is well within the limitation.

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Hence in view of the above findings which cover both the issues

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

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allowed.

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Taking into consideration the facts that the credit facility was

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availed for agriculture purpose and also that OA claim is arrived at by

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calculating interest at the agreed rate, this Tribunal in view of the OA can

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be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1621/2023 stands allowed,

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

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Rs.45,91,534/- (Rupees Forty Five Lakh Ninety One Thousand Five

¶65

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OA. No.1621/2023

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Hundred and Thirty Four only) with further interest of 6.00% p.a.(simple)

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from the date of filing OA till the realization from the defendant to the

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extent of their inheritance of any estate from the deceased borrower Late

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Gundamma, after giving credit to all the amount recovered and received

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

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proceeding against the schedule property. The schedule to the OA be the

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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 defendant to the

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extent of their inheritance of any estate from the deceased borrower Late

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Gundamma are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding which

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

order.

OA. No.1621/2023

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 with

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this Final Order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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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 14^th Day of October 2025].

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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: Sri. Satwant Singh, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1		Applicant Evidence by way of Affidavit.
A2		List of Documents.

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OA. No.1621/2023

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A3	27.02.200 7	Simple Mortgage deed, registered as document No.GLB-1-10445-2006-07, at the office of Sub-registrar,Gulbarga
A4	03.04.200 7	Common application for Agricultural loan
A5	03.04.200 7	Memorandum of agreement for agricultural loans
A6	03.04.200 7	Sanction memorandum
A7	03.04.200 7	Specimen signature card
A8	02.03.201 0	Letter of revival
A9	01.02.201 3	Letter of revival
A10	20.01.201 6	Letter of revival
A11	15.01.201 9	Letter of revival
A12	10.01.202 2	Letter of revival
A13	19.08.200 8	Simple mortgage deed, registered as document No.GLB-1-04167-2008-09, at the office of Sub-Registrar,Gulbarga
A14	19.08.200 8	Common application of agricultural loan
A15	26.08.200 8	Agreement of hypothecation for agricultural loans
A16	26.08.200 8	Sanction memorandum
A17	16.08.201 1	Letter of Revival
A18	03.06.201 4	Letter of Revival
A19	20.03.202 0	Letter of Revival
A20	03.01.200 9	Simple mortgage deed, registered as document No.GLB-1-08219-2008-09, at the office of sub-registrar,Gulbarga
A21	07.01.200 9	Common application for agricultural loan

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OA. No.1621/2023

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A22	07.01.200 9	Memorandum of agreement for agricultural loans
A23	07.01.200 9	Sanction memorandum
A24 & A25	01.01.201 2	Two letters of Revival
A26	30.12.201 4	Letter of Revival
A27 to A29	^23.03.201 7	Letters of Revival (all Three accounts)
A30	24.12.201 7	Letter of Revival
A31 & A32	15.12.202 0	Two letters of Revival
A33	01.09.202 2	Legal notice issued to Smt. Gundamma alongwithpostal receipt
A34	-	Postal cover returned aspartydead
A35	26.04.202 3	Legal notice issued to the defendant alongwithpostal receipts
A36	-	Postal acknowledgment card served signed bytheparty
A37	-	Bankstatement A/c.No.0513881009184
A38	-	Bank statement A/c.No.0513840010572
A39	-	Bank statement A/c. No.0513891011049

¶103

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mallikarjun

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mallikarjun

Case brief

What is this about?

What did the court decide?

What the court decided

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