Allowed

Canara Bank v. Ms Gms Software Solutions

DRT29 Sept 2025OA/1866/2023

Case brief

AI extract

What is this about?

The DR Tribunal allowed the Bank’s recovery claim of approx. Rs. 25.27 lakh against a partnership firm and its guarantors for defaulted loans. Being unopposed at the ex parte hearing, the claim was upheld with interest reduced to 12% simple.

What did the court decide?

The applicant is allowed to recover Rs. 25,27,910.41 with further interest @12% p.a. (simple) from date of filing till realization, recoverable jointly, severally & personally against defendants and t

Canara Bank versus Ms Gms Software Solutions — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 29^th Day of September, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.1866/2023

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BETWEEN:

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Canara Bank, One of its Branch offices at Jayanagar Shopping Complex Branch, Jayanagar, Bangalore- 560011, Represented by its Agent and Manager, Smt. C.S. Sowmya, W/o Sunil Kumar A.K.

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…APPLICANT

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AND:

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M/s. GMS Software Solutions, No. 569 CR Complex, 30^th Main Road, Banagiri Nagar, BSK 3^rd Stage, Bangalore- 560085. Represented by its partners, Defendant No.2 & 3.

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Mr. Sudharshan T.S., S/o T. Sampath Kumar, Aged about 48 years, #1102, Tata Promont, Ittumadu Main, BSK 3^rd Stage, Bengaluru- 560085.

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Mr. Gunashekar R., S/o T.C. Raghupathy, Aged about 56 years, #T4, Sapthagiri, Tata Promont, No. 168, Ittumadu Main, Hosakerehalli, BSK 3^rd Stage, Bengaluru- 560085.

...DEFENDANTS

OA 1866/2023

Counsel on record/appeared for:

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Applicant : K. Shashidhar Parlathaya Defendants : Exparte

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FINAL ORDER

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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. 25,27,910.41 (Rupees Twenty Five Lakh Twenty Seven Thousand Nine Hundred Ten and Paise Forty One Only) with further interest thereon from the date of filing the Application till realization. The defendant No.1 is the partnership firm of defendant No.2 & 3.

¶21

It is the case of the applicant that, the defendants availed MSMEOD/OCC facility of Rs. 10,00,000/- (Rupees Ten Lakh Only) enhanced to Rs. 40,00,000/- (Rupees Forty Lakh Only) and next to Rs. 50,00,000/(Rupees Fifty Lakh Only).

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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 covering letter and guarantee agreement.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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 1866/2023

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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 03.02.2025.

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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-80 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

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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

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the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove

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OA 1866/2023

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availment of credit facilities as stated in the OA, and the defaults

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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

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of the applicant is well within the limitation.

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

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

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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 the 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 12.00% (simple).

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In the result, OA.No.1866/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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25,27,910.41 (Rupees Twenty Five Lakh Twenty Seven Thousand Nine

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Hundred Ten and Paise Forty One Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the defendants jointly, severally & personally and also proceeding against their assets.

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OA 1866/2023

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

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

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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of in terms

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of this final order.

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

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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 September, 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: Basalinga S Kodavi, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	List of documents
A1	11.08.2009	Letter of partnership
A2	08.08.2009	Loan sanction letter
A3	11.08.2009	Agreement Re: Advances against book debts as prime security, executed by the defendants

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OA 1866/2023

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A4	11.08.2009	Pronote
A5	11.08.2009	Request for overdraft facili	ties
A6	11.08.2009	Guarantee covering letter	by defendan	t No.	2
A7	11.08.2009	Guarantee agreement defendant No.2	executed	by	the
A8	11.08.2009	Guarantee covering letter	by defendan	t No.	3
A9	11.08.2009	Guarantee agreement defendant No.3	executed	by	the
A10	06.11.2009	Supplemental agreement defendants	executed	by	the
A11	06.11.2009	Pronote
A12	06.11.2009	Link letter
A13	06.11.2009	Guarantee covering letter	by defendan	t No.	2
A14	06.11.2009	Guarantee agreement defendant No.2	executed	by	the
A15	06.11.2009	Guarantee covering letter	by defendan	t No.	3
A16	06.11.2009	Guarantee agreement defendant No.3	executed	by	the
A17	04.08.2010	Sanction letter
A18	09.08.2010	Supplemental agreement defendants	executed	by	the
A19	09.08.2010	Pronote
A20	09.08.2010	Link letter
A21	09.08.2010	Guarantee covering letter	by defendan	t No.	2
A22	09.08.2010	Guarantee agreement defendant No.2	executed	by	the
A23	09.08.2010	Guarantee covering letter	by defendan	t No.	3
A24	09.08.2010	Guarantee agreement defendant No.3	executed	by	the
A25	09.08.2010	Letter of renewal
A26	17.11.2011	Letter of renewal
A27	17.11.2011	Letter from guarantor defe	ndant No.2
A28	17.11.2011	Letter from guarantor defe	ndant No.3
A29	09.08.2010	Letter of revival
A30	17.11.2011	Letter of revival
A31	13.02.2013	Sanction letter re: renewa	l
A32	04.04.2014	Sanction letter re: renewa	l
A33	02.07.2015	Sanction letter re: renewa	l
A34	01.10.2016	Sanction letter re: renewa	l
A35	12.03.2018	Sanction letter re: renewa	l
A36	15.07.2019	Sanction letter re: renewa	l

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OA 1866/2023

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A37	11.05.2013	Letter of renewal
A38	30.04.2014	Letter of renewal
A39	17.07.2015	Letter of renewal
A40	06.12.2016	Letter of renewal
A41	12.03.2018	Letter of renewal
A42	15.10.2019	Letter of renewal
A43	11.05.2013	Letter from guarantor defendant No.2
A44	30.04.2014	Letter from guarantor defendant No.2
A45	17.07.2015	Letter from guarantor defendant No.2
A46	06.12.2016	Letter from guarantor defendant No.2
A47	12.03.2018	Letter from guarantor defendant No.2
A48	15.10.2019	Letter from guarantor defendant No.2
A49	11.05.2013	Letter from guarantor defendant No.3
A50	30.04.2014	Letter from guarantor defendant No.3
A51	17.07.2015	Letter from guarantor defendant No.3
A52	06.12.2016	Letter from guarantor defendant No.3
A53	12.03.2018	Letter from guarantor defendant No.3
A54	15.10.2019	Letter from guarantor defendant No.3
A55	10.05.2013	Letter of revival
A56	29.04.2014	Letter of revival
A57	16.07.2015	Letter of revival
A58	06.12.2016	Letter of revival
A59	12.03.2018	Letter of revival
A60	15.10.2019	Letter of revival
A61	23.02.2021	Sanction letter
A62	23.02.2021	Letter of renewal
A63	23.02.2021	Letter from guarantor No.2
A64	23.02.2021	Letter from guarantor No. 3
A65	23.02.2021	Letter of revival
A66	10.06.2022	Loan application
A67	10.06.2022	Sanction letter
A68	10.06.2022	Letter of renewal
A69	10.06.2022	Letter from guarantor defendant No.2
A70	10.06.2022	Letter from guarantor defendant No.3
A71	10.06.2022	Letter of revival
A72	12.08.2022	Notice issued to the defendant No.1
A73	06.11.2022	Notice issued to the defendant No.1
A74	10.10.2023	Legal Notice

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OA 1866/2023

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A75	--	Postal receipts
A76	--	Returned postal cover
A77	--	Returned postal cover
A78	--	Returned postal cover
A79	--	Statement of account of A/c No. 0408261011053 with certificate
A80	--	Calculation statement

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Ms Gms Software Solutions

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms Gms Software Solutions

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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