Allowed

Canara Bank v. Mr. Gundappa Annappa Kamate

DRT29 Aug 2025OA/1873/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an original application filed by Canara Bank to issue a Recovery Certificate against defaulting agricultural borrowers. Despite respondents appearing ex-parte or being deceased, the evidence was uncontroverted. The claim was admitted with reduced interest at 6% p.a.

What did the court decide?

Recovery Certificate issued for Rs.1,63,96,846.67 with 6% simple interest, recoverable from surviving defendants jointly and severally over schedule property and assets.

Canara Bank versus Mr. Gundappa Annappa Kamate — 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

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Presiding Officer

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OA. No.1873/2023

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BETWEEN:

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Canara Bank Gokak Branch, Gokak Taluk Dist Belgavi - 591 307 Through its Chief Manager Mr. Nyamannavar Mallanagoud … APPLICANT

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AND:

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Mr. Gundappa Annappa Kamate S/o. Annappa Kamate

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Age: 65 years Having address at: At & Post Patagundi, Gokak Taluk Dist. Belgavi, Karnataka 591 312

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Mr. Annappa Devappa Kamate S/o. Devappa Kamate Age: 94 years Having address at: At & Post Patagundi, Gokak Taluk Dist. Belgavi, Karnataka 591 312

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Mr. Siddappa Gangappa Naik S/o. Gangappa Naik Age: 69 years Having address at: At & Post Chigadolli, Gokak Taluk Dist. Belgavi, Karnataka - 591 307

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OA. No.1873/2023

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Mr. Ravindra Rajaram Kalal S/o. Rajaram Kalal Age: 53 years Having address at: At & Post Hospeth Galli, Gokak Taluk Dist. Belgavi, Karnataka 591 307

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...DEFENDANTS

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Counsel on record/appeared for: Applicant : Sri. Venu K V 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 for seeking issuance of Recovery Certificate against the defendants for Rs.1,63,96,846.67 (Rupees One Crore Sixty Three Lakh Ninety Six Thousand Eight Hundred Forty Six and Sixty Seven Paise 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 defendants availed the following facilities:

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i. Agricultural facility for a sum of Rs.8,90,000/- on 27.02.2006;

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ii. Agricultural facility for a sum of Rs.9,00,000/- on 02.06.2012

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OA. No.1873/2023

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iii. Agricultural facility for a sum of Rs.4,00,000/on 11.06.2012.

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iv. Agricultural facility for a sum of Rs.7,30,000/- on 14.02.2013

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v. Agricultural facility of Rs.18,00,000/- on 13.03.2014.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents apart from the creation of security interest by way of mortgage over the Schedule property.

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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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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 No.1, 4 and 5 being set exparte on 24.10.2024. The applicant has filed memo reporting that, the defendant Nos. 2 and 3 deceased and no reliefs are sought from

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OA. No.1873/2023

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the deceased defendants No.2 and 3.

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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 A1 to A39 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? 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

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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 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 defendant and the claim of the amount due are also

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OA. No.1873/2023

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

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within the limitation.

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11. Taking into consideration the facts that the credit facilities

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was availed for agriculture 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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Hence in view of the above finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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In the result, OA.No.1873/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.1,63,96,846.67 (Rupees One Crore Sixty Three Lakh Ninety

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Six Thousand Eight Hundred Forty Six and Sixty Seven Paise only) from the date of filing OA till the realization from the defendants No.1,4 and 5, 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 defendants No.1,4 and 5 jointly, severally, personally and also by proceeding against the schedule

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OA. No.1873/2023

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property. The schedule property to the OA be the schedule

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property to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their other assets are liable

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for all such amounts due under the loan account.

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

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with this Final Order.

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14. Communicate a copy of the order to the parties concerned

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in 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.1873/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Raju Nanarao Pasalwad, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Sanction Memorandum dated 27.02.2006
A2	Agreement for Agricultural Advances dated 27.02.2006
A3	Confirmation of deposit of Title dated 27.02.2006
A4	Deed of Guarantee for Agricultural Advances dated 27.02.2006
A5	Request letter dated 13.02.2007
A6	Letter dated 03.02.2009 seeking time for repayment of the facilityavailed
A7	Acknowledgement of Debt dated 26.02.2018
A8	Demand Note Promissorydated 31.03.2020
A9	Letter of Time Barred Debts dated 31.03.2020
A10	Letter of Revival dated 25.02.2021
A11	Application dated 02.06.2012
A12	Memorandum Sanction of dated 02.06.2012
A13	Agreement for Agricultural Advances dated 04.06.2012
A14	Simple Mortgage Deed dated 01.06.2012
A15	Deed of Guarantee for Agricultural Advances dated 04.06.2012
A16	Simple Mortgage Deed dated 24.11.2011
A17	Application dated 07.06.2012
A18	Memorandum of Sanction dated 11.06.2012
A19	Agreement for Agricultural Advances dated 15.06.2012
A20	Deed of Guarantee for Agricultural Advances dated 15.06.2012
A21	Application dated 13.02.2013
A22	Memorandum of Sanction dated 14.02.2013

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OA. No.1873/2023

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A23	Agreement for Agricultural Advances dated 19.02.2014
A24	Deed of Guarantee for Agricultural Advances dated 19.02.2014
A25	Demand Promissory Note dated 17.02.2016
A26	Demand Promissory Note dated 30.03.2018
A27	Demand Promissory Note dated 31.03.2020
A28	Letter of Revival dated 19.01.2023
A29	Application dated 12.03.2014
A30	Memorandum of Sanction dated 13.03.2014
A31	Agreement for Agricultural Advances dated 30.05.2014
A32	Deed of Guarantee for Agricultural Advances dated 30.05.2014
A33	Legal Notice dated 03.11.2023
A34	True Extract of Statement of Accounts pertaining to the Defendants' aforesaid Loan Account No. 05118540003372
A35	True Extract of Statement of Accounts pertaining to the Defendants' aforesaid Loan Account No. 05118230000921
A36	True Extract of Statement of Accounts pertaining to the Defendants' aforesaid Loan Account No. 05118380001072
A37	True Extract of Statement of Accounts pertaining to the Defendants' aforesaid Loan Account No.05118010006554

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OA. No.1873/2023

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A38	True Extract of Statement of Accounts pertaining to the Defendants' aforesaid Loan Account No. 05118210000055
A39	Combined statement showing aggregate outstanding liabilities.

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mr. Gundappa Annappa Kamate

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr. Gundappa Annappa Kamate

Case brief

What is this about?

What did the court decide?

What the court decided

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