Allowed

Canara Bank v. Yathish

DRT29 Aug 2025OA/1842/2023

Case brief

AI extract

What is this about?

This Tribunal allowed an Original Application filed by Canara Bank under the RDB Act for a recovery certificate against defendants including legal heirs of a deceased borrower. The court verified loan availing, security creation, and defaults. Defendants appeared ex-parte. The order permits recovery of the dues with reduced interest on mortgage assets and personal liability.

What did the court decide?

Recovery Certificate issued for Rs. 20,73,215.60 with 6% simple interest from filing date. Defendants personally liable including legal heirs for estate portion. Sale proceeds of mortgage properties f

Canara Bank versus Yathish — 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 29^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1842/2023

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BETWEEN:

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Canara Bank, And Branches amongst other, one at M/s. Canara Bank, Next to Government Hospital, Bidare Village, Kemablu Post, Bagur Hobli, Channarayapatna Taluk, Hassan District, Karnataka- 573111. Represented by Chief Manager, Sri. Y. Murali Krishna.

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…APPLICANT

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AND:

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Sri. Yathish, S/o G. Anantha, Aged about 41 years,

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Smt. B. Lalithamma, W/o G. Anantha, Aged about Major,

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Both residing at: R/o Balaghatta Village, Bagur Hobli, Channarayapatna Taluk, Hassan District- 573111. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendants : Exparte

OA 1842/2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of a Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs. 20,73,215.60 (Rupees Twenty Lakh Seventy Three Thousand Two Hundred and Fifteen and Paise Sixty 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 bank that, the Late G. Anantha along with 1^st defendant approached the applicant bank for financial assistance, since G. Anantha is deceased his LR’s are made party in the OA i.e, Defendant No.1 & 2.

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It is also the case of the applicant that, the deceased borrower G. Anantha and 1^st defendant as mortgagor availed Kisan Credit card Scheme loan of Rs. 1,00,000/- (Rupees One Lakh Only), Farm development loan of Rs. 3,50,000/- (Rupees Three Lakh Fifty Thousand Only) and another Farm development loan of Rs. 1,50,000/(Rupees One Lakh Fifty Thousand Only).

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It is also the case of the applicant that, in view of the above financed loans, the deceased borrower & defendants had executed

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OA 1842/2023

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necessary loan documents and had also executed Simple mortgage deed, agreement of hypothecation and letters of revival in favour of the applicant bank.

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It is also contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the deceased borrower & defendants 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 07.11.2024.

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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-30 and got the same marked.

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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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OA 1842/2023

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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 OA

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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 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 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 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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OA 1842/2023

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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 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 of 6.00% (simple).

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In the result, OA.No.1842/2023, stands allowed,

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

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Rs. 20,73,215.60 (Rupees Twenty Lakh Seventy Three Thousand Two Hundred and Fifteen and Paise Sixty Only) with further interest of 6% p.a.(simple) from the date of filing this OA till the date of realization

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from the defendant No.1 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 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 found sufficient to cover the

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amount due and payable to the applicant bank, the defendant No.1

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personally and his other assets are liable for all such amounts due under the loan accounts. The defendants No.2 being the LR of the

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OA 1842/2023

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deceased borrower G. Anantha is liable to the extent of the estate

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inherited by them from the deceased borrower respectively.

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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 seven 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 order

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and transferred to Recovery for execution.

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

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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 (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)

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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:Y. Murali Krishna S/o. Punnaiah, Manager, of Applicant Bank.\

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OA 1842/2023

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Exhibits on the part of the Applicant:

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Exhibit Nos.	DATE	Particulars of Documents
A1	04.11.2010	Simple mortgage deed registered as document NO. NUG-1-00957-2010- 11, at the office of Sub-registrar, Nuggehalli.
A2	11.11.2010	Common Application for agricultural loan (A/c No. 1806840003976)
A3	12.11.2010	Agreement of hypothecation for agricultural loans
A4	12.11.2010	Sanction memorandum
A5	11.10.2013	letter of revival
A6	16.12.2015	letter of revival
A7	20.03.2018	letter of revival
A8	19.03.2021	letter of revival
A9	04.11.2010	Simple mortgage deed registered as document No. NUG-1-00958-2010- 11, at the office of Sub-registrar, Nuggehalli
A10	15.11.2010	Common application for agricultural loans (A/c No. 1806883003930)
A11	15.11.2010	Memorandum of agreement for agricultural loans
A12	15.11.2010	Sanction memorandum
A13	12.10.2013	Letter of revival
A14	16.12.2012	letter of revival
A15	20.03.2018	letter of revival
A16	19.03.2021	letter of revival
A17	09.09.2011	Simple mortgage deed registered as document No. NUG-1-01219-2011- 12, at the office of Sub-Registrar, Nuggehalli
A18	28.09.2011	Common Application for agricultural loan (A/c No. 1806883003942)
A19	28.09.2011	Memorandum of agreement for agricultural loans
A20	28.09.2011	Sanction memorandum
A21	07.01.2014	letter of revival
A22	19.10.2016	letter of revival

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OA 1842/2023

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A23	30.10.2018	letter of revival
A24	01.09.2021	letter of revival
A25	12.08.2023	Legal notice and postal	receipt
A26	07.02.2019	Death certificate of (Demised On 23.01.201	G. An 9)	antha
A27	--	On acknowledgement served	cared	duly
A28	--	Bank statement 180684000397	A/c	No.
A29	--	Bank statement 1806883003930	A/c	NO.
A30	--	Bank statement 1806883003942	A/c	No.

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

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Canara Bank v. Yathish

Case brief

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Canara Bank v. Yathish

Case brief

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