Allowed

Canara Bank v. Hanumanthagouda Venkanagouda Patil

DRT26 Sept 2025OA/2038/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for a Recovery Certificate against defaulting borrowers. The court upheld the loan dues and security interests but reduced the interest rate from the claimed rate to 6% simple interest per annum.

What did the court decide?

Recovery Certificate directed to be issued for Rs. 58,70,680.44 with 6% p.a. simple interest, recoverable jointly, severally, and personally from defendants against schedule property.

Canara Bank versus Hanumanthagouda Venkanagouda… — 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 26^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2038/2023

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BETWEEN:

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Canara Bank, Ramdurg Branch, Belgaum Road, Ramdurg, Belgaum District- 591 123, Represented by its Senior Manager, Mr. Syed Imran, S/o Mr. Syed Muntura, Aged about 36 years.

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…APPLICANT

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AND:

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Sri Hanumanthagouda Venkanagouda Patil, S/o Venkanagouda, Aged about 56 years, Residing at: Thondikatti Village and Post, Ramdurg Taluk, Belgaum District- 591 123.

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Sri. Basayya Irayya Mathapathi, S/o Irayya, Aged about 64 years, Residing at: Thondikatti Village and Post, Ramdurg Taluk, Belgaum District- 591 123. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M. Mohan Rao Defendants : Exparte

OA 2038/2023

FINAL ORDER

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. 58,70,680.44 (Rupees Fifty Eight Lakh Seventy Thousand Six Hundred Eighty and Paise Forty four 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 availed the following loans from the applicant bank:-

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Crop production loan facility of Rs. 3,00,000/- (Rupees Three Lakh Only),

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Lift Irrigation loan facility of Rs. 7,00,000/- (Rupees Seven Lakh Only),

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Land development loan facility of Rs. 5,00,000/- (Rupees Five 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 agreement for agricultural advances, guarantee agreement, letter of revival and simple mortgage deed.

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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

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OA 2038/2023

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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 09.12.2024.

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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-25 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 unrebutted as defendants remained exparte. The evidence tendered by

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the applicant remains uncontroverted and undisputed. The evidences put

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OA 2038/2023

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forth by the applicant were found admissible and are sufficient to prove

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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 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 findings 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 availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA

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

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13. In the result, OA.No.2038/2023, stands allowed,

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

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58,70,680.44 (Rupees Fifty Eight Lakh Seventy Thousand Six Hundred

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Eighty and Paise Forty four Only) with further interest @6.00 %

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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 proceeding against schedule

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OA 2038/2023

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property. Properties schedule to the OA be the schedule to the recovery

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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 amounts

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due under the respective loan accounts.

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

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v) Interim application pending, if any, stands disposed of in terms 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 26^th Day of September, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

OA 2038/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ajit Kallappa Rajannavar S/o Kallappa, 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
		I- Crop Production loan facility (A/c No. 05068380004483)
A1	28.03.2012	Loan application
A2	28.03.2012	Agreement for agricultural advances for Rs. 3,00,000/- executed by defendant No.1 in favour of the applicant bank
A3	28.03.2012	Guarantee agreement executed by defendant No.2 in favour of the applicant bank
A4	26.03.2020	Acknowledgement of debt executed by defendant No.1 in favour of the applicant bank
A5	26.03.2020	Letter of revival executed by defendant No.1 in favour of the applicant bank
A6	01.06.2022	Letter of revival executed by defendant No.1 in favour of the applicant bank
A7	--	Statement of account
		II- Lift irrigation loan facility (A/c No. 05068210001036)
A8	--	Loan application
A9	25.05.2012	Agreement for agricultural advances for Rs. 7,00,000/- executed by defendant No.1 in favour of the applicant bank
A10	25.05.2012	Guarantee agreement executed by defendant No. 2 in favour of the applicant bank
A11	15.03.2012	Simple mortgage deed executed by defendant No.1 in favour of the applicant bank
A12	29.05.2012	Articles of agreement executed by defendant No.1 in favour of the applicant bank
A13	26.03.2020	Letter of revival executed by defendant No.1 in favour of the applicant bank

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OA 2038/2023

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A14	01.06.2022	Letter of revival executed by defendant No.1 in favour of the applicant bank
A15	--	Statement of account
		III- Land development loan facility A/c (No. 05068230000416)
A16	02.01.2013	Loan application
A17	04.01.2013	Consideration receipt for Rs. 3,50,000/- executed by defendant No.1 in favour of the applicant bank
A18	18.01.2013	Consideration receipt for Rs. 1,50,000/- executed by defendant No.1 in favour of the applicant bank
A19	04.01.2013	Agreement for agricultural advances for Rs. 5,00,000/- executed by defendant No.1 in favour of the applicant bank
A20	04.01.2013	Guarantee agreement executed by defendant No.2 in favour of the applicant bank
A21	26.03.2020	Letter of revival executed by defendant No.1 in favour of the applicant bank
A22	01.06.2022	Letter of revival executed by defendant No.1 in favour of the applicant bank
A23	11.07.2022	Legal Notice issued by the applicant bank to the defendants
A24	--	Served acknowledgements
A25	--	Statement of account

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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. Hanumanthagouda Venkanagouda Patil

Case brief

What is this about?

What did the court decide?

Canara Bank v. Hanumanthagouda Venkanagouda Patil

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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