Allowed

Canara Bank (Syndicate Bank) v. Vivin Richards

DRT19 Nov 2025OA/21/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Original Application filed by Canara Bank seeking recovery certificate for an overdraft amount due from two defendants. The court found evidence uncontroverted and reduced the interest rate to 12% per annum simple interest for recovery.

What did the court decide?

Proceedings allowed; Recovery Certificate issued for Rs. 41,52,500 plus 12% p.a. simple interest from filing date; cost of proceedings awarded.

Canara Bank (Syndicate Bank) versus Vivin Richards — Company and Corporate | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.21/2022

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BETWEEN:

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Canara Bank, (Erstwhile Syndicte Bank) KGF Branch, B.M. Road, Robertsonpet, KGF-563 122. AND:

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…APPLICANT

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Mr. Vivin Richards, S/o Sri. Pathianathan, Aged about 40 years, No. 811, Sylvia Cottage, BM Road, Susiapalayam, Andersonpet, KGF-563 113.

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Sri. B. Sreenath Arun Prasad, S/o Sri. S.P.V. Balasubbaiah, R/a No. 579, 7^th Cross, Subhasnagar, Robertsonpet, KGF- 563 122. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Rohit R Achar 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

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of Recovery Certificate against the defendants for Rs. 41,52,500.00

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OA 21/2022

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(Rupees Forty One Lakh Fifty Two Thousand Five Hundred 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 Overdraft facility of Rs. 20,00,000/- (Rupees Twenty lakhs 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 with Composite hypothecation agreement and registered memorandum of deposit of title deeds.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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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Written statement of defendant No.1 stands closed and despite summons on defendant No.2 none appeared hence placed exparte on 13.09.2023.

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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-10 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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OA 21/2022

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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 the applicant remains uncontroverted and undisputed. The evidences put 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

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availed for Business purpose and also that the OA claim is arrived at by

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OA 21/2022

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

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be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.21/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 41,52,500.00 (Rupees Forty One Lakh Fifty Two Thousand Five Hundred Only) with further interest @12.00 % 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 the schedule property. 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 amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for amounts due under the loan account.

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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

OA 21/2022

of this final order.

14. 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)

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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 19^th Day of November, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Chandan Maji, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A3	27.02.2015	Loan application
A4	02.03.2015	Composite hypothecation agreement
A5	02.03.2015	Guarantee agreement
A6	28.02.2015	Regd. Memorandum of deposit of title deeds
A7	26.11.2017	Acknowledgement of debt
A8	30.11.2019	Acknowledgement of debt
A9	24.08.2021	Legal notice
A10	--	Account extract

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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 (Syndicate Bank) v. Vivin Richards

Case brief

What is this about?

What did the court decide?

Canara Bank (Syndicate Bank) v. Vivin Richards

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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Case details

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