Allowed

Canara Bank v. K S Lakshmi and Others

DRT29 Sept 2025OA/1653/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for a Recovery Certificate under Section 19(1) RDB Act 1993 for principal dues and interest from loan defaulting borrowers, confirming evidence unchallenged.

What did the court decide?

Recovery Certificate issued for Rs. 22,27,321.23 plus interest at 6% p.a.; recoverable from properties and against 1st defendant's personal assets.

Canara Bank versus K S Lakshmi and Others — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 29^th Day of September, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.1653 of 2024

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Canara Bank, Hoskote Branch, K.R.Road, Hosakote Taluk, Bangalore Rural District Represented by its Branch Manager.

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… Applicant.

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Vs.

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K.S.Lakshmi, W/o.Y.N.Subba Rao.

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Annapurna, D/o.Subba Rao.

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Venkataramanaprasad, S/o.Subba Rao.

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Aparana, D/o.Subba Rao.

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Sreeharsha, S/o.Venkataramaprasad.

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Shamala, D/o.Venkataramaprasad.

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Gopinath, S/o.Subba Rao.

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Yeshasvini, D/o.Gopinath.

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Tejaswini, D/o.Gopinath.

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Manjula, D/o.Subba Rao.

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All Defendants Residing at : Raghuvanahalli Village, Bidarahalli Hobli, Bangalore East Taluk, Bangalore Rural District. … Defendants. Counsel for Applicant : Sri Bapu Vishnu. Defendants : Exparte.

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ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts

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And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for a total sum of Rs.22,27,321.23 comprising of (i)Rs.40,342.13 under KCC Loan A/c.No.0598840006849 together with further interest @12% p.a. including 2% penal interest compounded half yearly and (ii) Rs.21,86,979.10 under Agricultural Land Development Loan A/c.No.0598883006621 together with further interest @13.30% p.a. including 2% penal interest compounded half yearly from 14.05.2024 till the date of realisation together with costs from the defendants jointly and severally and by way of sale of schedule mentioned properties.

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The Applicant contends that the 1^st defendant approached the applicant bank for KCC loan of Rs.1,50,000/- and availed the same on

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18.03.2014 by execution of necessary loan documents including the agreement of hypothecation. The defendants have also created mortgage over the property described in schedule to the OA by deposit of title deeds and executed simple mortgage deed in favour of applicant on 15.03.2014 and registered as Doc.No.BDH-1-052032013-14 in the office of Senior Sub-Registrar, Shivaji Nagar, Bangalore for due repayment of the loan. The 1^st defendant also executed revival letters on 12.05.2016, 12.12.2018 and 08.02.2021. Again the 1^st defendant approached the applicant bank for Agricultural Land Development loan of Rs.7,00,000/- and availed the same on 25.03.2014 by execution of necessary loan documents including the agreement of hypothecation. The defendants have also created mortgage over the property described in schedule to the OA by deposit of title deeds and executed simple mortgage deed in favour of applicant on 15.03.2014 and registered as Doc.No.BDH-105202-2013-14 in the office of Senior Sub-Registrar, Shivaji Nagar, Bangalore for due repayment of the loan. The 1^st defendant also executed revival letters on 12.05.2016, 12.12.2018 and 08.02.2021.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facilities, the defendants failed to regularize the said loan and hence the loan accounts of the defendants were declared as NonPerforming Asset on 27.08.2023. The applicant bank has also issued Legal Notice dt.14.05.2024 calling upon the defendants to repay the total outstanding dues. Despite availing the credit facilities by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to enter appearance, they were set exparte on 18.02.2025.

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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 A17, got the same marked in evidence.

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Heard. The following issues arise for consideration in this matter:

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i) Whether the applicant succeeded in proving the OA claim as

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against the Defendants?

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ii)If so, to what extent?

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Both these issues are gone into and decided together.

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The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.

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Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of Agricultural Loan the pendent lite and future interest is awarded at simple rate that too at reduced rate of 6% p.a. (simple).

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In view of the above

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i) OA No.1653 of 2024 stands allowed,

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ii) Applicant is permitted to recover an amount of Rs.22,27,321.23 (Rupees Twenty Two Lakhs Twenty Seven Thousands Three Hundred and Twenty One and Twenty Three Paise only)comprising of (i) Rs.40,342.13 under KCC Loan and (ii) Rs.21,86,979.10 under Agricultural Land Development Loan together with further interest from the date of filing of OA till the date of 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 the schedule

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properties. The schedule to the OA be the schedule to the Recovery Certificate.

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iii) If the sale proceeds are not sufficient to clear the liability, then the 1^st Defendant is personally and her other assets are liable to be proceeded against for realization of respective dues.

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iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the 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

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(Procedure) Rules, 1993.

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(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 29^th day of September, 2025)

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Sd./-

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(T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Mr.Gajendra.C, Manager, Applicant Bank

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Exhibits on the part of the Applicant:

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Ext A1	- Common Appraisal Cum Appraisal Report for Credit facilities for Agricultural Loan upto Rs.2 lakhs dt.18.03.2014.
Ext A2	- Sanction Memorandum dt.18.03.2014.
Ext A3	- Agreement of Hypothecation for Agricultural loans dt.18.03.2014.
Ext A4	- Simple Mortgage Deed in r/o. running limits to Agriculturists dt.15.03.2014.
Ext A5	- Letter of Revival dt.12.05.2016.
Ext A6	- Letter of Revival dt.14.12.2018.
Ext A7	- Letter of Revival dt.08.02.2021.
Ext A8	- Common Application cum Appraisal Form for Credit Facilities for Agricultural Lan above Rs.2 lakhs upto Rs.10 lakhs dt.25.03.2014.
Ext A9	- Sanction Memorandum dt.25.03.2014.
Ext A10	- Memorandum of Agreement for Agricultural loans dt.25.03.2014.
Ext A11	- Simple Mortgage Deed for Agricultural Advances dt.15.03.2014.
Ext A12	- Letter of Revival dt.12.05.2016.
Ext A13	- Letter of Revival dt.14.12.2018.
Ext A14	- Letter of Revival dt.08.02.2021.
Ext A15	- Legal Notice dt.14.05.2024.
Ext A16	- Copy of the Statement of Account Certified under Bankers’ Book of Evidence Act showing the outstanding Liability under KCC Loan A/c.No.0598840006849).
Ext A17	- Copy of the Statement of Account Certified under Bankers’ Book of Evidence Act showing the outstanding Liability under Agricultural Land Development Loan A/c.No.0598883006621).

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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 Sd./- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. K S Lakshmi and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. K S Lakshmi and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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