Allowed

Canara Bank v. a Geetha

DRT29 Aug 2025OA/1740/2023

Case brief

AI extract

What is this about?

Bank sought recovery certificate via DRT against deceased borrower's legal heirs after default. Defendants were ex parte. Tribunal found contractual defaults proved, allowed claim with reduced interest, and issued recovery certificate executable against personal and inherited assets.

What did the court decide?

Recovery Certificate issued for aggregate sum of Rs.26,14,638.39 with further interest at 6% p.a. (simple), executable against respondents' personal assets and inherited estate.

Canara Bank versus a Geetha — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.1740/2023

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BETWEEN:

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Canara Bank Branch Office at Kanakapura, Ramanagara District

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…APPLICANT

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AND:

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Smt. A Geetha

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W/o Late G.V. Manjunath Kanakapura Tq. Ramanagara District

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D.M Sanjana D/o Late G.V. Manjunath Kanakapura Tq. Ramanagara District

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Ambarish D.M

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S/o Late G.V. Manjunath Kanakapura Tq. Ramanagara District

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : K Vijendra Rao Defendants : Exparte

OA 1740-2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act

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1993 seeking issuance of Recovery Certificate for Rs.26,14,638.39 (Rupees twenty six lakh fourteen thousand six hundred thirty eight and paisa thirty nine 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 Mr. Manjunath G.V. was a deceased borrower with defendants No.1 to 3 as his legal heirs. The deceased borrower had availed the following credit facilities from the applicant bank:-

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I. KCC Loan of a sum of Rs. 2,50,000/- (Rupees two lakh fifty thousand Only),

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II. Annual loan limit of Rs.2,34,000/- (Rupees two lakh thirty four thousand Only), and

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III. Loan limit of Rs.7,50,000/- (Rupees seven lakh fifty thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with simple mortgage deed, memorandum of

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OA 1740-2023

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agreement and letters of revival in favor of the applicant bank.

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It is further contended that, the deceased defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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 01.07.2024.

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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-19 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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OA 1740-2023

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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

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OA 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

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remains unrebutted as defendant 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 facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and

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the claim as 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, this

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Tribunal 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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OA 1740-2023

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Taking into consideration the facts that the credit facilities

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are availed by deceased borrower for agricultural purpose and

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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 @6% p.a. (simple).

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13. In the result, OA.No.1740/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.26,14,638.39 (Rupees twenty six lakh fourteen thousand six hundred thirty eight and paisa thirty nine only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant personally 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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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No.1 to 3 are personally and their other assets are liable to be proceeded against for the balance amount to the extent of estate

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OA 1740-2023

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they had inherited from deceased borrower.

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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

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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

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in terms of this final order.

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14. 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 29^th day of August, 2025].

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Anooja, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	--	Applicant Evidence

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OA 1740-2023

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A2	--	List of Documents.
A3	25.02.2014	Common Application cum facility	appraisal	for	credit
A4	25.02.2014	Sanction Memorandum applicant	issued	by	the
A5	25.02.2014	Agreement and deed of Kisan Credit	hypothe	catio	n for
A6	11.07.2014	Simple Mortgage deed Manjunath	executed	by	G.V.
A7	15.02.2017	Letter of Revival executed	by G.V.	Manj	unath
A8	05.01.2019	Letter of revival executed	by G.V. M	anj	unath
A9	01.01.2022	Letter of Revival executed	by G.V.	Manj	unath
A10	21.05.2014	Common Application Cum	Appraisal	for	m
A11	21.05.2014	Sanction Memorandum applicant	issued	by	the
A12	21.05.2014	Memorandum of Agreem Loans	ent for A	gricu	ltural
A13	17.02.2014	Simple Mortgage deed Manjunath	executed	by	G.V.
A14	15.02.2017	Letter of Revival executed	by G.V.	Manj	unath
A15	05.01.2019	Letter of Revival executed	by G.V.	Manj	unath
A16	01.01.2022	Letter of Revival executed	by G.V.	Manj	unath
A17	02.05.2023	Statement of A/c No.0594	89500001	4
A18	29.04.2023	Statement of A/c No.0594	89100003
A19	03.05.2023	Certificate under Banker’s Act.	Book of	Evi	dence

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

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PRESIDING OFFICER

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Sd/- (T. RAJESH)

Canara Bank v. a Geetha

Case brief

What is this about?

What did the court decide?

Canara Bank v. a Geetha

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

All orders in this case

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