Allowed

Canara Bank v. Vishwanath Hj

DRT21 Oct 2025OA/1667/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application for issuance of a recovery certificate against defendants for a vehicle loan liability of Rs. 7.36 lakhs. The court observed that housing loan security had been sold under SARFAESI proceedings, leaving the vehicle loan outstanding. Due to defendants appearing ex parte and security being exhausted, reduced interest was granted.

What did the court decide?

Issuance of recovery certificate for Rs. 7,36,459 plus 8% simple interest from filing date against respondents jointly, severally and personally, recoverable from II schedule of assets.

Canara Bank versus Vishwanath Hj — Arbitration | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 21^st Day of October 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1667/2022

¶5

BETWEEN:

¶6

Canara Bank Nanjumalige Branch NS road, Lakshmipuram, Mysore – 570 004

¶7

Represented by its Chief Manager And PA holder, Mrs. Kalpavalli devi K …APPLICANT

¶8

AND:

¶9

Sri Vishwanath H J S/o. Late Jawaraiah Aged about 54 Years

¶10

Smt. Sunitha S W/o. Vishwanath H J Aged about 49 Years

¶11

Both are Residing at: No.464, ‘D’ Subbaiah Road, Chamaraja Mohalla, Mysore – 500 004 ...DEFENDANTS

¶12

Counsel on record/appeared for:

¶13

Applicant : HSR & Associates Defendants : Ex parte

OA-1667/2022

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs.7,36,459/- (Rupees Seven Lakhs Thirty Six Thousand Four Hundred And Fifty Nine Only) with further interest thereon from the date of filing the Application till realization.

¶18

It is the case of the applicant that, the defendants availed the following credit facilities:

¶19

Housing loan of Rs. 25,50,000/- (Rupees Twenty Five Lakhs Fifty Thousand Only) for construction of ground floor, first floor and second floor on the schedule property on 11.01.2012.

¶20

Housing loan of Rs. 15,00,000/- (Rupees Fifteen Lakhs Only) for the purpose of additional construction of interiors & amenities for ground floor, first floor and second floor built on the schedule property on 13.10.2012.

¶21

Canara Vehicle loan of Rs. 15,00,000/- (Rupees Fifteen Lakhs Only) for the purpose of purchasing second hand BMW car from its erstwhile owner on 06.03.2015.

¶22

It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents along with Deposit of title deeds and deed of hypothecation.

¶23

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

¶24

OA-1667/2022

¶25

¶26

defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA. The applicant bank as failed part satisfaction memo dated 10.06.2025 submitting that, the applicant bank sold the secured assets under SARFAESI act, 2002 for a sum of Rs. 1,26,00,000/- (rupees one crore twenty six lakhs only) out of the said amount two housing loan accounts are closed which are the subject matter in the captioned case. The remaining amount of Rs. 77,63,424.69/- (rupees seventy seven lakhs sixty three thousand four hundred and twenty four and paisa sixty nine only) adjusted to the loan account on 29.12.2022 in the name of M/s. Vishwa Paper products, prop. Mr. Vishwanth H J. at the present only the vehicle loan liability is outstanding and the applicant bank prays to issues recovery certificate for vehicle loan account in its favour and against the defendant.

¶27

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.

¶28

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 26.09.2024.

¶29

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-10 and got the same marked in evidence.

¶30

Heard the Ld. Counsel for the Applicant and considered the

¶31

OA-1667/2022

¶32

¶33

contentions as taken in the OA in the light of documentary evidence and proof affidavit.

¶34

The following issues arise for consideration in this matter:

¶35

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶36

ii) What order are to be passed?

¶37

Both these issues are gone into and decided together.

¶38

The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. The evidence tendered

¶39

by the applicant remains uncontroverted and undisputed.

¶40

The evidences put forth by the applicant were found admissible

¶41

and are sufficient to prove availment of credit facilities as stated in the OA, creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶42

Hence in view of the finding arrived herein above, the Tribunal

¶43

find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶44

Taking into consideration the facts that the credit facilities are

¶45

availed for purchasing Vehicle and against the security of residential

¶46

OA-1667/2022

¶47

¶48

property and the security is already sold under SARFAESI proceedings, this Tribunal in view of the OA can be allowed with a reduced interest of 8.00% (simple).

¶49

In the result, OA.No.1667/2022, stands allowed,

¶50

i) The applicant is allowed to recovery an aggregate sum of Rs. 7,36,459/- (Rupees Seven Lakhs Thirty Six Thousand Four Hundred And Fifty Nine Only) with further interest @8.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severely and personally, after giving credit to all the amount recovered and received in the vehicle loan account during the pendency of the OA and allowed the same to be recovered by proceeding against the II schedule. The schedule to the OA be the schedule to the recovery certificate.

¶51

ii) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to proceed against the defendants jointly, severely and personally and their other assets are liable for all such amounts due under the loan account.

¶52

iii) The applicant bank is allowed cost of the proceedings

¶53

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

¶54

iv) The Recovery Certificate to be drawn in terms of this order

¶55

OA-1667/2022

¶56

¶57

and transferred to Recovery for execution.

¶58

v) Interim application pending, if any, are disposed of with this

¶59

Final Order.

¶60

Communicate a copy of the order to the parties concerned in

¶61

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

¶62

(Procedure) Rules, 1993.

¶63

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

¶64

the Open Court, this the 21^st Day of October, 2025].

¶65

Sd/- (T. RAJESH)

¶66

PRESIDING OFFICER

¶67

ANNEXURES

¶68

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶69

AW-1: Soumya R Prabhu, D/o. Ramachandran V, Worked as senior

¶70

Branch Manager, of Applicant Bank.

¶71

Exhibits on the part of the Applicant:

¶72

Exhibit Nos.	Date	Particulars of Documents
A1	04.03.2015	Loan application submitted by the defendant no.01 for the purpose of purchasing second hand BMW car
A2	06.03.2015	Sanction memorandum issued by the applicant bank for the purpose of purchasing second hand BMW car

¶73

OA-1667/2022

¶74

¶75

A3	09.03.2015	Deed of hypothecation re: vehicles executed by the defendant no.01 in favour of the applicant bank
A4	09.03.2015	Letter of undertaking regarding loan/advances executed by the defendant no.01 in favour of the applicant bank
A5	12.03.2015	Particulars of vehicles hypothecated executed by the defendant no.01 in executed by the defendant no.01 in favour of the applicant bank
A6	07.09.2010	The ‘B’ register extract of the certificate of registration issued by the RTO, Mysore
A7 & A8	20.07.2017 02.07.2020	Letters of revivals executed by the defendant no.01 in favour of the applicant bank in respect of the Canara vehicle loan
A9	05.07.2019	Demand notice issued by the applicant bank under section 13(2) of SARFAESI act 2002
A10		Certified account extract of the defendant no.01 maintained by the applicant bank in respect of Canara vehicle loan a/c. no. 1614603004717

¶76

Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

¶77

Sd/-

¶78

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Vishwanath Hj

Case brief

What is this about?

What did the court decide?

Canara Bank v. Vishwanath Hj

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

Similar cases

Punjab and Sind Bank versus M/S Vahe Guru International

Punjab National Bank versus Naman Jain and Ors.

Mohammad Fayyaz S/O Mohammad Ibrahim versus Idbi Bank Ltd.

Punjab National Bank versus Bhartu Ram Ashish Kumar

Murali Medicals versus Catholic Syrian Bank Limited

Punjab National Bank versus Waseemraj Gafarsab Shilledar