Allowed

Canara Bank v. Lewis Francis Dcosta

DRT28 Oct 2025OA/1758/2023

Case brief

AI extract

What is this about?

In an exparte hearing, the Tribunal allowed the Original Application filed under Section 19 of the RDB Act, 1993, by Canara Bank. The bank sought a recovery certificate for a housing loan default. The Tribunal awarded the principal sum with interest reduced to 8% p.a. simple and made an interim injunction absolute.

What did the court decide?

Recovery Certificate allowed for Rs. 1,93,13,776.67 with further interest at 8% p.a. simple; Order of temporary injunction made absolute; Cost of proceedings awarded to applicant.

Canara Bank versus Lewis Francis Dcosta — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 28^th Day of October, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1758/2023

¶5

BETWEEN:

¶6

Canara Bank, Branch office amongst other places At Trinity Circle Branch, BSNL Complex- Ground Floor, M.G. Road, Bengaluru- 5600008, Represented by its Assistant General Manager And Constituted attorney, Mr. B.P. Nanjundappa, Aged about 53 years, S/o Puradalingappa.

¶7

…APPLICANT

¶8

AND:

¶9

Lewis Francis Dcosta, Aged about 48 years, S/o Francis John Dcosta, At: No-82E- Jamna Prasad Chawl, Mogra Village, Andheri-East, Mumbai- 460069.

¶10

Bhaskara Muralidhara, Aged about 40 years, S/o Muralidhar Rao, No. 1534, 39^th Cross, 4^th T Block- Jayanagara, Bengaluru- 560041.

¶11

B. Lingappa, Aged about 67 years, S/o B. Boraiah.

¶12

Prema, Aged about 28 years, D/o B. Lingappa.

¶13

Ms. Chaitra, Aged about 29 years,

OA 1758/2023

D/o B. Lingappa.

Harsha, Aged about 26 years, D/o B. Lingappa.

¶18

Defendant NO-3 to 6 are resident at No-10, Lingappa Block, Ramakrishnaiah Street, Sheshadripuram, Bengaluru- 560010.

¶19

Defendant Nos- 3 to 6 are represented by their GPA Holder- M/s. CYMA Investments Pvt. Ltd, Having its registered office at No. 204, Rajaniganda, Garden Apartments, 21, Vittal Mallya Road, Bengaluru- 560001. Represented by its Director- Gopal P. Shinde.

¶20

M/s. CYMA Investments Pvt. Ltd, Having its registered office at No-204, Rajaniganda, Garden Apartments, 21, Vittal Mallya Road, Bengaluru- 560001- Builder, Represented by its Director- Gopal P. Shinde.

¶21

M/s. Parth Constructions Pvt. Ltd, Having its registered office at No-204, Rajaniganda, Garden Apartments, 21, Vittal Mallya Road, Bengaluru- 560001. (A sister concern of M/s CYMA investments Pvt. Ltd) Represented by its Director- Gopal P. Shinde. ...DEFENDANTS

¶22

Counsel on record/appeared for:

¶23

Applicant : D. Shashiprabha Ramesh Defendants : Exparte

¶24

FINAL ORDER

¶25

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 sum of Rs. 1,93,13,776.67 (Rupees One Crore Ninety Three Lakh Thirteen Thousand Seven Hundred Seveny Six and paise Sixty Seven Only) with

¶26

OA 1758/2023

¶27

¶28

further interest thereon from the date of filing the Application till realization.

¶29

It is the case of the applicant that the defendant No.1 as borrower availed Housing loan of Rs. 2,00,00,000/- (Rupees Two Crore Only) and defendant No.2 stood as guarantor. The defendant Nos. 1, 3 to 8 have entered into a Tripartite agreement

¶30

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Guarantee agreement, Tripartite Agreement, housing loan agreement and agreement for sale.

¶31

It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in compliance of the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶32

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.

¶33

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 04.11.2024.

¶34

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-14 and got the same marked in evidence.

¶35

OA 1758/2023

¶36

¶37

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.

¶38

The following issues arise for consideration in this matter:

¶39

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

¶40

ii) What order are to be passed?

¶41

Both these issues are gone into and decided together.

¶42

The case put forth by the applicant in the Application remains unrebutted as defendants 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 the credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶43

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

¶44

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

¶45

the view that OA is to be allowed.

¶46

OA 1758/2023

¶47

¶48

Taking into consideration the facts that the credit facilities are

¶49

availed for Housing 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 8.00% (simple).

¶50

In the result, OA.No.1758/2023, stands allowed,

¶51

i) The applicant is allowed to recovery an aggregate sum of Rs. 1,93,13,776.67 (Rupees One Crore Ninety Three Lakh Thirteen Thousand

¶52

Seven Hundred Seveny Six and paise Sixty Seven Only) with further interest @ 8.00 % p.a.(simple), from the date of filing OA till the realization, from the defendants jointly, severally & personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the defendants jointly, severally and personally and also their assets including

¶53

the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

¶54

ii) The applicant bank is allowed cost of the proceedings which

¶55

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

¶56

iii) Order of temporary injunction passed in IA No. 2014/2023 in OA No. 1758/2023 is made absolute.

¶57

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

¶58

OA 1758/2023

¶59

¶60

transferred to Recovery for execution.

¶61

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

¶62

Final Order.

¶63

Communicate a copy of the order to the parties concerned in terms

¶64

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

¶65

Rules, 1993.

¶66

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th day of October, 2025].

¶67

Sd/-

¶68

(T. RAJESH)

¶69

PRESIDING OFFICER

¶70

ANNEXURES

¶71

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶72

AW-1: K. Baskar S/o A.S. Krishnamoorthy, Chief Manager, of Applicant

¶73

Bank.

¶74

Exhibits on the part of the Applicant:

¶75

Exhibit Nos.	Date	Particulars of Documents
A1	16.11.2018	Loan application
A2	04.12.2018	Sanction memorandum
A3	06.12.2018	Housing loan agreement
A4	06.12.2018	Guarantee Covering letter by 2^nddefendant
A5	06.12.2018	Guarantee agreement for house loan to individuals by 2^nddefendant
A6	06.12.2018	Tripartite agreement in respect of Flat No. 641
A7	06.12.2018	Tripartite agreement in respect flat No. 651
A8	20.11.2018	Agreement for sale in respect flat No. 641
A9	20.11.2018	Agreement for sale in respect of flat No 651
A10	05.09.2023	Office copy of the legal notice
A11	--	RPAD receipts

¶76

OA 1758/2023

¶77

¶78

A12	--	Unserved/ returned RPAD cover of first defendant
A13	--	Unserved/ returned RPAD cover of second defendant
A14	01.09.2023	Statement of account extract pertaining to housing loan A/c No. 840266200003

¶79

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

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Canara Bank v. Lewis Francis Dcosta

Case brief

What is this about?

What did the court decide?

Canara Bank v. Lewis Francis Dcosta

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

Canara Bank versus Aadinath Plastics

Canara Bank versus Harjit Singh

Bank of Baroda versus Sh. Sukhraj Singh

Asset Reconstruction Company India Ltd. versus Krishna Pratap Singh Chandel

Hdfc Bank versus Sunita Tayal

Sh Khusinder Singh versus Himachal Pradesh Gramin Bank