Allowed

Canara Bank v. M/s. I. S. Enterprises

DRT28 Nov 2025OA/1625/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application under Section 19 RDB Act. Finding the defendants' default unrebutted and evidence sufficient, it ordered recovery of principal plus interest at a capped rate of 11% p.a., authorizing execution against joint and several liability.

What did the court decide?

Recovery Certificate for Rs.53,73,764/- plus interest at 11% p.a. (simple) from filing date till realization, jointly and severally against defendants.

Canara Bank versus M/s. I. S. Enterprises — Specific Performance | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1625/2023

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BETWEEN:

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CANARA BANK Basrur Branch, Bank Street, Kundapura Taluk, Udupi District, BASRUR - 576 211, Represented by its Branch Manager Sri. Diwaker Kumar.

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… APPLICANT

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AND:

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M/s. I. S. ENTERPRISES, Represented by its Proprietrix Mrs. Shameena Mohammed Iqbal New No. 3-220, Old No. 3-184, Santhemakki House, Bolakatte, Gulvadi, KUNDAPURA - 576 283.

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Mrs. SHAMEENA MOHAMMED IQBAL, W/o. Mr. Mohammed Iqbal, Aged about 35 years, Proprietrix of M/s. 1. S. Enterprises, No. 2/137, Fakeer Saheb, Santhemakki, Gulvadi, KUNDAPURA - 576 283. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Raghavendra G K Defendants : 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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OA. No.1625/2023

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.53,73,764/- (Rupees Fifty three Lakhs Seventy three Thousand Seven Hundred and Sixty four 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 Overdraft facility of Rs.50,00,000/- on 29.03.2021 for business purpose.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents.

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It is further contended that, despite availing the credit facility, 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 account.

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OA. No.1625/2023

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 09.10.2024.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A8 and got the same marked in evidence.

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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 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

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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 facility as stated in the OA, as to the execution of loan documents as

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OA. No.1625/2023

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claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant 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 finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility was availed for business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 11.00% (simple).

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In the result, OA.No.1625/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.53,73,764/- (Rupees Fifty three Lakhs Seventy three Thousand Seven Hundred and Sixty four only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from defendants, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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to be recovered by proceeding against the defendants jointly, severally and personally and their other assets of the defendants,

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OA. No.1625/2023

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including the schedule are liable for all such amounts due under the loan account. 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 jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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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 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 28^th Day of November 2025].

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Sd/(T. RAJESH) PRESIDING OFFICER

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OA. No.1625/2023

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Amit Kumar Meena, 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	29.03.2021	Letter of Proprietorship
A2	29.03.2021	Request for overdraft facilities
A3	29.03.2021	Common Hypothecation Agreement
A4	29.03.2021	Pronote
A5	04.04.2022	Letter of renewal
A6	04.04.2022	Letter of revival
A7	03.04.2023	Recall notice
A8	-	Statement of account extract of overdraft A/c.

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Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. M/s. I. S. Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s. I. S. Enterprises

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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