Allowed

Canara Bank v. C P Narayanappa

DRT29 Aug 2025OA/1872/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's Original Application for issuance of a Recovery Certificate. Interest was reduced to 6% p.a. The recovery can be executed against the schedule property and inherited assets of the guarantor's legal heirs.

What did the court decide?

Recovery Certificate issued for Rs. 34,41,266 + 6% p.a. interest; execution against schedule property and inherited assets allowed.

Canara Bank versus C P Narayanappa — 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

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OA. No.1872/2023

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BETWEEN:

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CANARA BANK, Devanahalli Branch, having its Head Office at No. 112, J.C. Road, Bengaluru And having a branch office amongst other places at Devanahalli, Devanahalli Taluk, Bengaluru Rural District-562110. Rep. its Manager and Constituted Attorney Mr. Arun Kumar K.M, … APPLICANT

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AND:

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C. P. NARAYANAPPA

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Aged about 57 years, S/o Late Poojappa Resident of Chennapura Village, Melekote-Tubugere, Doddaballapura Taluk- 561205 Bengaluru Rural District, Karnataka-INDIA.

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SMT. MUNIYAMMA (Deceased)

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C. P. MUNIANJINAPPA,

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Aged about 46 years, S/o Late Poojappa Resident of Chennapura Village, Melekote-Tubugere, Doddaballapura Taluk-561205 Bengaluru Rural District, Karnataka-INDIA.

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4. C. P. MUNIKRISHNAPPA,

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OA. No. 1872/2023

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Aged about 42 years, S/o Late Poojappa Resident of Chennapura Village, Melekote-Tubugere, Doddaballapura Taluk-561205 Bengaluru Rural District, Karnataka-INDIA.

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C. P. THIMMARAJU Aged about 40 years, S/o Late Poojappa Resident of Chennapura Village, Melekote-Tubugere, Doddaballapura Taluk-561205 Bengaluru Rural District, Karnataka-INDIA. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. Shashiprabha Ramesh Defendant No.2 : Deceased Defendants Nos.1,3,4 & 5 : 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 for seeking issuance of Recovery Certificate against the defendants for Rs.34,41,266/- (Rupees Thirty Four Lakh Forty One Thousand Two Hundred and Sixty Six 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 1^st defendant is a borrower and 2^nd , 3^rd , 4^th and 5^th defendants are the legal heirs of the guarantor Late Poojappa. The 1^st defendant along with the guarantor Late Poojappa have availed Farm Machinery loan to the limit of Rs.5,39,000/- on 21.03.2006. The defendant No.2

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OA. No. 1872/2023

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Muniyamma who is legal of deceased guarantor Late Poojappa reported dead and the legal heirs of defendant are already on record i.e., defendant Nos.1,3,4 and 5.

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The deceased guarantor along with the defendant No.1 had executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late Poojappa guarantor along with defendant No.1 had also Simple Mortgage Deed dated 17.03.2006.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the 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 as against the defendant Nos.1,3,4 and 5.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendant Nos.1,3 to 5 being set exparte on 24.10.2024.

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OA. No. 1872/2023

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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 A1 to A16 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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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 orders 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 credit facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. The

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OA. No. 1872/2023

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liability of the defendants and the claim of the amount due are also

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proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Since the OA claim is arrived at by calculating agreed rate of interest, penal interest/default interest, which this Tribunal considers as on the higher side, pendentalite and future interest is awarded at reduced rate @ 6.00% p.a.

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In the result, OA.No.1872/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.34,41,266/- (Rupees Thirty Four Lakh Forty One Thousand Two Hundred and Sixty Six only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA. No. 1872/2023

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ii) In the event, if the sale proceeds are not sufficient to

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pay of the liability, the 1^st defendant and his assets and the

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defendant Nos.3,4 and 5 to the extent of estate inherited by them

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are liable to be proceeded against.

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ii) The applicant bank is allowed cost of the proceeding

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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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iii) 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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iv) Interim Application pending, if any, stands disposed of

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with this 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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), 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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(T. RAJESH) PRESIDING OFFICER

OA. No. 1872/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Vallakati Amarendar, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	-	APPLICANT EVIDENCE
A2		List of documents
A3	20.03.2006	Application for agricultural credit – Short Term/Term loan
A4	21.03.2006	Sanction memorandum
A5	21.03.2006	Memorandum of Agreement for Agricultural loans
A6	17.03.2006	Simple mortgage deed executed by the defendants in favour of an applicant registered as Document No.DBP-1-07438-2005-06, stored in CD No.DBP 74 on 17.03.2006
A7	08.03.2009	Letter of revival by the borrower
A8	02.06.2011	Letter of Revival by the borrower
A9	05.08.2014	Letter of Revival by the borrower
A10	11.03.2017	Letter of Revival by the legal heirs of the guarantor
A11	14.03.2019	Letter of Revival by the legal heirs of the guarantor
A12	10.02.2022	Letter of revival by the legal heir’s guarantor

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OA. No. 1872/2023

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A13	10.08.2023	Office copy of the Recall notice issued to the first defendant.
A14	31.10.2023	Office copy of the legal notice issued to the defendants.
A15	-	RPAD receipt
	31.10.2023	Statements of account extract
A16		pertaining to the Farm Machinery loan account No.0474856007862

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. C P Narayanappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. C P Narayanappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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