Allowed

Canara Bank v. Sharana Gowda

DRT18 Dec 2025OA/1875/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery certificate application filed by Canara Bank against two borrowers for an agricultural term loan. On ex parte hearing, the Court found the claim admissible and limited interest to 6% per annum simple after credit for the security proceeds realized from properties.

What did the court decide?

Grant of simple mortgagee's decree allowing the bank to recover Rs. 34,71,435.03 plus interest at 6% p.a. from the date of filing the OA till realization by proceeding against schedule properties and

Canara Bank versus Sharana Gowda — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 18^th Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1875/2024

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BETWEEN:

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Canara Bank Head office at: 112, JC road, Bangalore

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Branch office at: Janata Bazar building, super market, Complex, Kalaburgi – 585 101

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Represented by Senior Manager

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Mr. Satwant Singh …APPLICANT

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AND:

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Mr. Sharana Gowda S/o. Mallappa Gowda Aged about 43 years

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Mr. Shubhash @ Shubhash Gowda S/o. Mallappa Gowda Aged about 41 years

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Both are residing at: R/o. Heggnal Village, Jewargi Taluk, Kalburgi District – 585 310 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendants : Ex parte

OA-1875/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 34,71,435.03/- (Rupees Thirty Four Lakhs Seventy One Thousand Four Hundred and Thirty Five and Paisa Three 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 are availed an farm machinery loan of Rs. 5,00,000/- (Rupees Five Lakhs Only) on 14.09.2005.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan document along with Simple mortgage deed.

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It is further contended that, despite availing the credit facility, 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

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appear, resulting the defendants being set ex parte on 18.02.2025.

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OA-1875/2024

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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-15 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

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unrebutted as defendants remained ex parte. 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,

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the applicant is well within the limitation.

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OA-1875/2024

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

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

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility are

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1875/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs 34,71,435.03/- (Rupees Thirty Four Lakhs Seventy One Thousand

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Four Hundred and Thirty Five and Paisa Three 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 amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. 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 defendants jointly, severally and personally and their assets are liable for all such amounts due under the loan accounts.

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OA-1875/2024

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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

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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, stands disposed of in

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terms of 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 DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 18^th Day of December, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA-1875/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Bhoom Reddy, S/o. Gopal Reddy, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	13.09.2005	Simple mortgage deed registered as document no. JVG-1-01541-2005-06 at the office of sub registrar, Jewargi
A2	14.09.2005	Application for agricultural term loan (a/c. no. 0513856007381)
A3	14.09.2005	Memorandum of agreement for agricultural loans
A4	14.09.2005	Sanction memorandum
A5	04.08.2008	Letter of revival
A6	30.07.2011	Letter of revival
A7	16.06.2014	Letter of revival
A8	30.03.2016	Letter of revival
A9	05.02.2019	Letter of revival
A10	10.01.2022	Letter of revival
A11	29.12.2023	Legal notice
A12	30.12.2023	Two postal receipts
A13 & A14	-------	Postal cover returned unserved
A15	-------	Bank statement a/c. no. 0513856007381

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

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7 OA-1875/2024

Canara Bank v. Sharana Gowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sharana Gowda

Case brief

What is this about?

What did the court decide?

What the court decided

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