Allowed

Canara Bank v. G K Ramachandra

DRT25 Sept 2025OA/1720/2023

Case brief

AI extract

What is this about?

DRT allowed an original application for issuance of a Recovery Certificate against a proprietor for a business loan default, setting interest at 12% simple p.a. pending realization and permitting recovery from personal assets if pledged property proceeds are insufficient.

What did the court decide?

Issuance of Recovery Certificate for Rs. 2,32,33,957 plus interest at 12% p.a. (simple) allowing recovery from defendant's personal assets and schedule properties.

Canara Bank versus G K Ramachandra — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1720/2023

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BETWEEN:

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Canara Bank, Girinagar branch No.405, J P road, Girinagar 1^st phase Bengaluru – 560 085

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Represented by: Its senior manager, Sri. Sanjay Shrotriya …APPLICANT

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AND:

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Sri. G K Ramachandra S/o. late Krishnappa Proprietor of M/S Nature Home Care Products Aged about 51 years, At: No #43,1^st main Valagerhalli, Kengeri, near chithrakoota school, Bangalore – 560 056

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Also R/at: No. #06,1^st main, 19^th cross, MTS layout, KS town, Opp. Bethesda high Bangalore – 560 050 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : C Vinay swamy Defendant : Ex parte

OA 1720/2023

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 defendant for Rs. 2,32,33,957/- (Rupees Two Crores Thirty Two Lakhs Thirty Three Thousand Nine Hundred And Fifty Seven 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 defendant is the proprietor of M/S Nature Home Care Products who availed a OCC loan of Rs. 1,98,00,000/- (Rupees One Crores Ninety Eighty Lakhs only) for the purpose of his business needs.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with Memorandum of deposit of title, Hypothecation Agreement and Sanction Memorandum.

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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 Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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OA 1720/2023

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set ex parte on 06.02.2025

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The applicant 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-5 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 the 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 unrebutted as defendant remained ex parte. 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 the availment of the credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank

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OA 1720/2023

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and the defaults committed in the accounts. The liability of the

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defendant and the claim of the amount due are also proved by the

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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 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 Business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.1720 /2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 2,32,33,957(Rupees Two Crores Thirty Two Lakhs Thirty Three Thousand Nine Hundred And Fifty Seven Only) with further interest @ 12.00 % p.a.(simple), from the date of filing OA till the realization,

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from the defendant personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed

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to recover the same by proceeding against the schedule properties.

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Properties Schedule to the OA be the schedule to the recovery

OA 1720/2023

certificate.

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 personally and his 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 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 and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with 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 (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 25^th Day of August, 2025].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA 1720/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ranjan Kumar, S/o. Kumar Yogendra, worked as Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	21.06.2021	Application form
A2	16.06.2021	Sanction memorandum
A3	19.06.2021	Memorandum of deposit of title
A4	21.06.2021	Common hypothecation agreement
A5	-------	Statements of accounts

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

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. G K Ramachandra

Case brief

What is this about?

What did the court decide?

Canara Bank v. G K Ramachandra

Case brief

What is this about?

What did the court decide?

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