Allowed

Canara Bank v. Bopanna Pc

DRT19 Sept 2025OA/1804/2024

Case brief

AI extract

What is this about?

This DST allowed an Original Application by Canara Bank Virajpet Branch for issuance of a Recovery Certificate against defaulting borrowers for agricultural loans. The Tribunal found the claim well within limitation and allowed recovery of the outstanding principal and interest at a reduced rate of 6% per annum.

What did the court decide?

Recovery Certificate allowing recovery of Rs. 31,37,991.09 with interest at 6% p.a. simple, jointly, severally and personally.

Canara Bank versus Bopanna Pc — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of SEPTEMBER, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1804/2024

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BETWEEN:

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Canara Bank Virajpet Branch Virajpet Taluk Kudagu District – 571 218

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Through its Senior Manager

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Mr. Arun Kurian crown …APPLICANT

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AND:

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Mr Boppanna P C S/o Late P C Kariappa Age About: 55 years, Having Address at: Pandarapare, Chickpet, Virajpet Taluk Dist. Kodogu – 571 218

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Mr.Medappa P C & Anr. S/o Late P C Kariappa Age about: 55 Years, Having address at: Pandarapare, Chickpet, Virajpet Taluk Dist. Kodagu – 571 218 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Venu K V Defendants : Exparte

OA-1804/2024

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. 31,37,991.09/-(Rupees Thirty One Lakhs Thirty Seven Thousand Nine Hundred and Ninety One and Paise Nine 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 the following credit facilities :

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Credit facility Rs. 5,00,000/- (Five Lakhs Only) towards cultivation of coffee, pepper and other crops.

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Kisan Credit Card Scheme Rs. 5,27,000/- (Five Lakhs Twenty Seven Thousand Only) and later enhancement under Kisan credit card scheme up to Rs.7,00,000/-

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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 Mortgage Deed.

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It is further contended that, despite availing the credit facilities, 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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OA-1804/2024

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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 28.01.2025

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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-1 to A-32 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 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

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OA-1804/2024

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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

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accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the 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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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 of the view that OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1804/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 31,37,991.09/-(Rupees Thirty One Lakhs Thirty Seven Thousand Nine Hundred and Ninety One and Paise Nine Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and 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. Properties schedule to the OA be the schedule to the recovery certificate.

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OA-1804/2024

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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 and personally and their assets are liable for balance 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

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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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14. 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 19^th Day of September, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

OA-1804/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Arun Kurian Crown S/o M K Crown working as Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan Application dated 22.11.2008
A2	Sanction Memorandum dated 29.01.2009
A3	Memorandum of agreement for agricultural loans dated 29.01.2009
A4	Letter Evidencing deposit of title deeds dated 29.01.2009
A5	Application-cum-sanction for renewal under Kisan credit card scheme dated 08.08.2009
A6	Letter of Renewal dated 08.08.2009
A7	Supplemental Agreement dated 08.08.2009
A8	Application-cum-sanction for renewal and/or enhancement under Kisan credit card scheme dated 28.01.2012
A9	Letter of renewal dated 28.01.2012
A10	Applicant by its sanction letter dated 28.01.2012
A11	Letter of renewal dated 12.06.2013
A12	Letter of revival dated 12.10.2013
A13	Letter of revival dated 13.05.2014
A14	Application-cum-sanction for renewal and/or enhancement under Kisan credit card scheme dated 08.08.2014
A15	Letter of renewal dated 08.08.2014
A16	Letter evidencing deposit of title deeds dated 29.09.2014

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OA-1804/2024

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A17	Application-cum-sanction for renewal under Kisan credit card scheme dated 10.05.2016
A18	Letter of renewal dated 10.05.2016
A19	Letter of revival on 26.07.2016
A20	Letters of revival on 29.11.2016
A21	Letters of revival on 12.12.2018
A22	Letters of revival on 14.09.2021
A23	Loan application dated 01.09.2014
A24	Sanction letter dated 30.09.2014
A25	Agreement and deed for Kisan OD dated 10.09.2014
A26	Letter of revival dated 29.11.2016
A27	Letter of revival dated 12.12.2018
A28	Letter of revival dated 30.11.2021
A29	Notice dated 24.06.2024
A30	True extract of statement of accounts pertaining to the defendants aforesaid loan accounts 0559840006039
A31	True extract of statement of accounts pertaining to the defendants aforesaid loan accounts 0559897005291
A32	Combined statement showing total outstanding

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Witness Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Bopanna Pc

Case brief

What is this about?

What did the court decide?

Canara Bank v. Bopanna Pc

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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