Allowed

Canara Bank v. Nanjappa

DRT29 Aug 2025OA/207/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery certificate application filed by the bank for the recovered loan amount. Finding the defendant in default and the claim within limitation, the Tribunal awarded the principal sum with interest reduced to 6% p.a. after allowing recovery from mortgage properties.

What did the court decide?

Recovery certificate to be drawn for Rs. 20,39,080/- plus 6% p.a. interest, recoverable from schedule properties and defendant's other assets.

Canara Bank versus Nanjappa — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II,

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BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.207/2023

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BETWEEN:

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Canara Bank Yelwala Branch Near Bus Stand Opp. Police Station Hunsur Road, Yelwala, Mysore-571130 …APPLICANT

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AND:

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Sri. Nanjappa S/o. Dollaiah R/at: Ambedkar Street, Bilikere, Hunsur Taluk, Mysore District-571103 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : HSR & Associates Defendant : 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 for

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Rs.20,39,080/- (Rupees Twenty Lakh thirty nine thousand and

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eighty only) with further interest thereon from the date of filing

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OA 207-2023

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the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the following credit facilities from the applicant bank:-

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I. KCCS Loan of a sum of Rs. 1,50,000/- (Rupees one lakh fifty thousand Only) and

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II. Farm Development loan limit of Rs.18,50,000/- (Rupees eighteen lakh fifty thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with simple mortgage deed, memorandum of agreement and letters of revival in favor of the applicant bank.

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It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, 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.

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Despite, service of summons on the defendant, he failed

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to appear, resulting the defendant being set exparte on

OA 207-2023

09.10.2024.

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-14 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 claim as against the defendant?

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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

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remains unrebutted as defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

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admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of mortgage as claimed by

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OA 207-2023

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the applicant bank and the defaults committed in the accounts.

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The liability of the defendants and the claim as the amount due

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

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11. Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favor of applicant and hence

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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

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are availed by defendant for agricultural 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 @6% p.a. (simple).

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13. In the result, OA.No.207/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.20,39,080/- (Rupees twenty lakh thirty nine thousand

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and eighty only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant

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personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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OA 207-2023

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to be recovered by proceedings against the schedule property.

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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 sufficient, the defendant personally and his other assets are liable to be proceeded against

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for the balance amount.

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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

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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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in terms of this final order.

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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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of August, 2025].

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PRESIDING OFFICER

Sd/- (T. RAJESH)

OA 207-2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Lokapati Swain, Chief Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	28.06.2018	Loan Application submitted by the defendant for KCCS Loan
A2	28.06.2018	Sanction Memorandum
A3	28.06.2018	Agreement of Hypothecation for Agricultural loans
A4	20.06.2020	Letter of Revival
A5	24.07.2018	Loan Application submitted by the defendant for farm development loan
A6	24.07.2018	Sanction Memorandum
A7	30.07.2018	Memorandum of Agreement for Agricultural loans
A8	24.07.2018	Simple mortgage deed executed by defendant
A9		Particulars of Vehicle/ Machinery hypothecated executed by defendant
A10	20.06.2020	Letter of Revival
A11 & 12	24.01.2022	Office copy of the legal notice issued by the applicant bank along with postal acknowledgement card.
A13 & 14		2 Nos. of certified Accounts extracts of the defendant maintained by the applicant bank.

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

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. Nanjappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Nanjappa

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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