Allowed

Canara Bank v. Allappa Basaprabhu Khanappanavar

DRT29 Aug 2025OA/1683/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed under the RDB Act for issuance of a recovery certificate. Since defendants appeared ex-parte, evidence was uncontroverted. The debt recovered with a reduced interest rate of 6% simple interest.

What did the court decide?

Recovery Certificate issued for Rs. 24,13,102.72 with further interest @6.00% p.a. (simple) from date of filing, recoverable jointly, severally and personally from defendants against schedule property

Canara Bank versus Allappa Basaprabhu Khanappanavar — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1683/2023

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BETWEEN:

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Canara Bank, Kulgod Branch, Gokak Road, Mudalgi Taluk, Dist Belgavi, Through its Senior Manager, Mr. Harish Yamanappa Gadinaik.

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…APPLICANT

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AND:

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Mr. Allappa Basaprabhu Khanappanavar, S/o. Basaprabhu Khanappanavar, Aged about: 47 years, Aralimatti Village, Taluk Gokak, Dist. Belgavi.

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Mr. Basaprabhu Allappa Khanappanavar, S/o. Allappa Khanappanavar, Aged about: 70 years, Aralimatti Village, Taluk Gokak, Dist. Belgavi. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Venu K.V. Defendants : Exparte

OA 1683/2023

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. 24,13,102.72 (Rupees Twenty Four Lakh Thirteen Thousand One Hundred Two and Paise Seventy Two 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 a loan of Rs. 7,65,000/- (Rupees Seven Lakh Sixty Five Thousand Only) for agricultural purpose towards purchase of John Deere Tractor. The defendant No.1 also availed a sum of Rs. 3,00,000/- (Rupees Three lakh Only) for sugar care cultivation and Kisan OD limit of Rs. 5,00,000/- (Rupees Five Lakh Only)

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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 memorandum of agreement for agricultural loans, simple mortgage deed dated 29.06.2011, agreement and deed of hypothecation for kisan credit card dated 31.07.2013, simple mortgage deed dated 31.07.2013, agreement and deed for kisan OD dated 16.10.2014, simple mortgage deed dated 18.08.2014 and letter of revivals in favour of the applicant bank.

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It is further contended that, despite availing the credit facilities,

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OA 1683/2023

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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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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 exparte on 11.03.2024.

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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-3 to A-28 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

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OA 1683/2023

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unrebutted as defendants remained exparte. The evidence tendered

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by the applicant remains uncontroverted and undisputed. The

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evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA,

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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.

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

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find both these issues in favour of applicant and hence, this Tribunal

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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

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at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1683/2023, stands allowed,

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

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Rs. 24,13,102.72 (Rupees Twenty Four Lakh Thirteen Thousand One

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Hundred Two and Paise Seventy Two Only) with further interest @6.00 % p.a.(simple) which consists of:-

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OA 1683/2023

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A) Rs. 10,93,681.86 (Rupees Ten Lakh Ninety Three Thousand Six Hundred Eighty One and Paise Eighty Six Only) from the date of filing

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OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property.

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b) Rs. 4,79,652.50 (Rupees Four Lakh Seventy Nine Thousand Six Hundred and Fifty Two and Paise Fifty Only) from the date of filing OA till the realization, from the defendant No.1 personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the share of defendant No.1 in the schedule property.

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c) Rs. 8,39,768.36 (Rupees Eight Lakh Thirty Nine Thousand Seven Hundred and Sixty Eight and Paise Thirty Six Only) from the date of filing OA till the realization, from the defendant No.1 personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the share of defendant No.1 in the schedule property.

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OA 1683/2023

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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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amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for respective

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amounts due under the respective 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 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

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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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of August, 2025].

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Sd/- (T. RAJESH) PRESIDING OFFICER

OA 1683/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Harish Yamanappa Gadinaik S/o. Yamanappa Gadinaik, Chief

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Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Affidavit of evidence
A2	List of documents
A3	Loan application dated 14.03.2011
A4	Memorandum of agreement for agricultural loans dated 30.06.2011
A5	Simple mortgage was registered on 29.06.2011
A6	Letters of revival dated 24.01.2014
A7	Letters of revival dated 17.06.2016
A8	Letters of revival dated 20.05.2019
A9	Letters of revival dated 22.06.2020
A10	Letters of revival dated 28.12.2022
A11	Loan application dated 31.07.2013
A12	Sanction letter dated 31.07.2013
A13	Agreement and deed of hypothecation for kisan credit card dated 31.07.2012
A14	Simple mortgage deed dated 25.07.2013
A15	Letters of revival dated 15.06.2016
A16	Letters of revival dated 16.10.2018
A17	Letters of revival dated 23.06.2020
A18	Letters of revival dated 28.12.2022
A19	Letter dated 05.03.2021 addressed by the applicant to the defendant
A20	Loan application dated 16.10.2014
A21	Sanction letter dated 16.10.2014
A22	Agreement and deed for kisan OD dated 16.10.2014
A23	Simple mortgage deed dated 18.08.2014
A24	Legal notice dated 15.09.2023

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OA 1683/2023

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A25	True extract of the state of accounts pertaining to the defendant’s aforesaid loan accounts No. 0677856008924
A26	True extract of the state of accounts pertaining to the defendant’s aforesaid loan accounts No. 0677896009319
A27	True extract of the state of accounts pertaining to the defendant’s aforesaid loan accounts No. 0677897000283
A28	Combined statement showing total outstanding balance

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

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. Allappa Basaprabhu Khanappanavar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Allappa Basaprabhu Khanappanavar

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

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