Allowed

Canara Bank v. Gangamma

DRT29 Aug 2025OA/1960/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Canara Bank for a Recovery Certificate against eight defendants for a farm machinery loan default. The court reduced the statutory interest rate to simple interest at 6.00% p.a. due to the agricultural nature of the loan and granted relief for joint, several, and personal liability.

What did the court decide?

Issuance of Recovery Certificate for aggregate sum of Rs. 24,14,474.96 plus future interest at 6% simple p.a. to be recovered jointly, severally, and personally from defendants.

Canara Bank versus Gangamma — 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.1960/2023

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BETWEEN:

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Canara Bank, And Branches amongst others, one at M/s. Canara Bank, Karehalli Branch, Tiptur Road, Channarayapatna Taluk, Hassan District- 573131. Represented by senior manager, Mr. Bindukumar N.

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…APPLICANT

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AND:

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Smt. Gangamma, D/o Late Nagegowda, Aged about 67 years.

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Sri. Umesha S/o Sannegowda, Aged about 45 years,

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Smt. Manjamma, W/o Nagaraju, Aged about 63 years,

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Sri. Nagesha, S/o. Nagaraju, Aged about 36 years,

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Sri. Ravisha, S/o Sannegowda, Aged about 49 years,

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OA 1960/2023

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6. Smt. Shanthamma, W/o Late Mahalingegowda, Aged about 45 years,

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Mr. Dharma, S/o Late Mahalingegowda, Aged about 28 years,

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Ms. Chayamani, D/o Late Mahalingegowda, Aged about 27 years,

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All residing at:

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R/o. Adhihalli Village, Naville Post, Bagur Hobli, Channrayapatna Taluk, Hassan District- 573131. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Naveen Tao 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. 24,14,474.96 (Rupees Twenty Four Lakh Fourteen Thousand Four Hundred and Seventy Four and Paise Ninety Six 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 defendant Nos. 1 & 2 as borrowers and defendants Nos. 1 to 8 as mortgagers availed farm

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OA 1960/2023

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machinery loan of Rs. 4,60,000/- (Rupees Four Lakh Sixty Thousand Only) and 1^st defendant availed Kisan credit card scheme loan of Rs. 1,00,000/- (Rupees One 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 the necessary loan documents along with simple mortgage deed, memorandum of agreement, agreement and deed of hypothecation.

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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 being set exparte on 21.03.2024.

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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-3 to A-28 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

OA 1960/2023

and proof affidavit.

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 credit facilities as stated in the OA, 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 documents. The claim of the applicant is well within the limitation.

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

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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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Taking into consideration the facts that the credit facilities are

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OA 1960/2023

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availed for Agricultural purpose and also that the OA claim is arrived

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at by calculating interest at the agreed rate, this Tribunal in view of

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the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1960/2023, stands allowed,

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

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Rs. 24,14,474.96 (Rupees Twenty Four Lakh Fourteen Thousand Four

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Hundred and Seventy Four and Paise Ninety Six Only) with further interest @6.00 % p.a.(simple) which consists of:-

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a) Rs. 20,63,895.00 (Rupees Twenty lakh Sixty Three Thousand Eight

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Hundred and Ninety Five Only) 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 proceeding against schedule property.

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b) Rs. 3,50,579.96 (Rupees Three lakh Fifty Thousand Five Hundred

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seventy Nine and Paise Ninety Six Only) from the date of filing OA till the realization, from the defendant No.1 personally, after giving credit to all the amount recovered and received during the pendency

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of the OA and allowed the same to be recovered by proceeding against share of 1^st defendant over the schedule property.

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OA 1960/2023

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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 & personally and their assets are liable for respective

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amounts due under the respective loan accounts.

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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 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 (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) PRESIDING OFFICER

OA 1960/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Shruthi H N W/o Sunil Kumar M K, Branch Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant evidence
A2	--	List of documents
A3	19.03.2010	Simple mortgage deed registered as document No. NUG-1-02199-2009-10 at the office if sub-registrar, Nuggehalli
A4	19.03.2010	Common application for agricultural loan (A/c No. 0766856013219)
A5	22.03.2010	Memorandum of agreement for agricultural loans
A6	17.12.2012	Letter of revival
A7	18.02.2012	Letter of revival
A8	16.02.2018	Letter of revival
A9	29.10.2020	Letter of revival
A10	11.08.2011	Common application for agriculture loan (A.c No. 0766840013574)
A11	11.08.2011	Agreement and deed of hypothecation for KCC
A12	11.08.2011	Specimen signature card
A13	27.06.2014	Letter of revival
A14	28.09.2016	Letter of revival
A15	02.05.2019	Letter of revival
A16	02.04.2022	Letter of revival
A17	06.10.2023	Legal notice
A18 (a) to A18 (h)	--	Eight postal receipts
A19 to A26	--	Eight postal acknowledgement cards serve- signed by the parties
A27	--	Bank statement of account number 0766856013219

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OA 1960/2023

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A28 -- Bank statement of account number 0766840013574

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Gangamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Gangamma

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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