Allowed

Canara Bank v. Ms T Shul Wire Works

DRT24 Oct 2025OA/222/2022

Case brief

AI extract

What is this about?

The Tribunal adjudicated an Original Application under Section 19 of the RDB Act filed by Canara Bank for a Recovery Certificate against a partnership firm and its partners. The claim, initially for over Rs. 78 lakhs, was allowed with interest reduced to 12% simple per annum, and a Recovery Certificate was directed to be issued.

What did the court decide?

Issuance of Recovery Certificate to recover Rs. 78,66,865.67 plus interest at 12% simple p.a. from filing date until realization from the defendants jointly, severally, and personally.

Canara Bank versus Ms T Shul Wire Works — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 24^th Day of October, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.222/2022

¶5

BETWEEN:

¶6

Canara Bank Head office at: No.112, JC road, Bengaluru – 560 001

¶7

Branch office at: Basavanagudi branch, Basavanagudi Bengaluru – 560 004

¶8

Represented by its Chief Manager,

¶9

Sri. S Balasubramanian …APPLICANT

¶10

AND:

¶11

M/s. T-Shul Wire Works A partnership firm, carrying on business At plot no. 95, shed no. 15, Kammasandra village road, Hebbagodi, Hosur road, Electorinic city, Bengaluru – 560 100

¶12

Sri. Shashikumar Agarwal S/o. Sri Maturam Agarwal Aged about 66 years

¶13

Sri. Manojkumar Agarwal S/o. Sri. Shashikumar Agarwal Aged about 37 years

¶14

Sri. Ashishkumar Agarwal S/o. Sri Shashikumar Agarwal Aged about 28 years

¶15

2 OA-222/2022

¶16

Defendant nos. 2 to 4 are residing at: “Sunshine apartments” Flat no.003, east end “D” main road, 9^th block, Jayanagar, Bengaluru – 560 069 ...DEFENDANTS

¶17

Counsel on record/appeared for:

¶18

Applicant : K Aswathanarayana Defendants : Ex parte

¶19

FINAL ORDER

¶20

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. 78,66,865.67/- (Rupees Seventy Eight Lakhs Sixty Six Thousand Eight Hundred and Sixty Five and Paisa Sixty Seven Only) with further interest thereon from the date of filing the Application till realization.

¶21

It is the case of the applicant that, the defendants availed the

¶22

following credit facilities:

¶23

OD/OCC of Rs. 25,00,000/- (Rupees Twenty Five Lakhs Only) on 22.12.2014.

¶24

OCC/OD is enhanced of Rs. 60,00,000/- (Rupees Sixty Lakhs Only) for its business expansion and to meet the working capital requirements on 08.12.2017.

¶25

GGECL loan of Rs. 11,00,000/- (Rupees Eleven Lakhs Only) under working capital term loan facility on 25.08.2020.

¶26

3 OA-222/2022

¶27

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 hypothecation agreement.

¶28

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.

¶29

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.

¶30

Summons was taken out to the defendants. Defendant nos. 1 to

¶31

3 filed vakalat through their counsel and filed written statement. When the case came up for hearing on 21.10.2025, inspite of granting sufficient time, the defendant nos. 1 to 3 did not appear for arguments. Hence the defendant nos. 1 to 3 placed ex parte. Despite, services completed, the defendant no. 4 did not appear and hence, placed ex parte on 21.10.2025.

¶32

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-52 and got the same marked in evidence.

¶33

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence

¶34

4 OA-222/2022

¶35

and proof affidavit.

¶36

The following issues arise for consideration in this matter:

¶37

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶38

ii) What order are to be passed?

¶39

Both these issues are gone into and decided together.

¶40

The case put forth by the applicant in the Application remains 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 facilities as stated in the OA, creation of the security interest and the defaults committed in the accounts. The liability of the defendant and the claim of the amount

¶41

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

¶42

Hence in view of the findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶43

Taking into consideration the facts that the credit facilities are

¶44

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

¶45

5 OA-222/2022

¶46

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

¶47

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

¶48

In the result, OA.No.222/2022 stands allowed, i) The applicant is allowed to recover an aggregate sum of Rs. 78,66,865.67/- (Rupees Seventy Eight Lakhs Sixty Six Thousand Eight Hundred and Sixty Five and Paisa Sixty Seven Only) with further interest @12.00% 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 amount recovered and received during the pendency of the OA.

¶49

ii) In the event of failure of the defendants to pay the aforesaid amount, the applicant bank is at liberty to proceed the defendants jointly, severally and personally and their other assets are liable to be proceeded against for the balance amount.

¶50

iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

¶51

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

¶52

v) Interim application pending, if any, stands disposed of in terms of this final order.

¶53

6 OA-222/2022

¶54

14. Communicate a copy of the order to the parties concerned in

¶55

terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

¶56

(Procedure) Rules, 1993.

¶57

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

¶58

the Open Court, this the 24^th Day of October, 2025].

¶59

Sd/-

¶60

(T. RAJESH)

¶61

PRESIDING OFFICER

¶62

ANNEXURES

¶63

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶64

AW-1: Harish Kumar Kocherlakota, S/o. Sri K Sitaramayya, working

¶65

as Manager, of Applicant Bank.

¶66

Exhibits on the part of the Applicant:

¶67

Exhibit Nos.	Date	Particulars of Documents
A1	-------	Affidavit evidence
A2	-------	List of documents
A3	22.12.2014	Sanction letter issued by the applicant in favour defendant no. 1 partnership firm represented by its partners defendant nos.2 to 4 granting OCC/ODBD loan of Rs. 25,00,000/-
A4	22.12.2014	Partnership letter submitted by the defendant nos.2 to 4 as the partners of defendant no.1 partnershipfirm
A5	22.12.2014	Request for overdraft facilities submitted by the defendants for grant of OCC/ODBD loan of Rs. 25,00,000/-

¶68

7 OA-222/2022

¶69

A6	22.12.2014	On demand promissory note (pronote) executed by the defendants in favour of the applicant in respect of OCC/ODBD loan of Rs. 25,00,000/-
A7	22.12.2014	Cash credit agreement executed by the defendants in favour of the applicant in respect of OCC/ODBD loan of Rs. 25,00,000/-
A8	22.12.2014	Guarantee covering letter executed Sri. Shashikuamr Agarwal- defendant no.2 in favour of the applicant
A9	22.12.2014	Guarantee agreement executed Sri. Shashikumar Agarwal defendant no.2 in favour of the applicant in respect of OCC/ODBD loan of Rs. 25,00,000/-
A10	22.12.2014	Guarantee covering letter executed Sri. Manojkumar Agarwal- defendant no.3 in favour of the applicant
A11	22.12.2014	Guarantee agreement executed Sri. Manojkumar Agarwal defendant no.3 in favour of the applicant in respect of OCC/ODBD loan of Rs. 25,00,000/-
A12	22.12.2014	Guarantee covering letter executed Sri. Ashishkuamar Agarwal- defendant no.4 in favour of the applicant
A13	22.12.2014	Guarantee agreement executed Sri. Ashishkumar Agarwal defendant no.4 in favour of the applicant in respect of OCC/ODBD loan of Rs. 25,00,000/-
A14	22.02.2017	Letter of renewal executed by the defendants
A15	22.02.2017	Letter of renewal executed by the defendants
A16	23.02.2017	Sanction letter issued by the applicant in favour of defendants
A17	23.02.2017	Partnership letter submitted by the defendant nos.2 to 4 as thepartners of defendant no.1
A18	23.02.2017	Letter from defendant no.2- guarantor relating to renewal of the limits
A19	23.02.2017	Letter from defendant no.3- guarantor relating to renewal of the limits
A20	23.02.2017	Letter from defendant no.4- guarantor relating to renewal of the limits

¶70

8 OA-222/2022

¶71

A21	01.12.2017	Loan application submitted by the defendants in favour of the applicant, for grant of OCC/ODBD loan of Rs. 60 lakhs
A22	08.12.2017	Loan sanction letter issued by the applicant in favour of the 1^st defendant sanctioning OCC/ODBD of Rs. 60 lakhs. (enhancement from Rs. 25lakhs to Rs.60 lakhs)
A23	08.12.2017	On demand promissory note (pronote) executed by the defendants in favour of the applicant in respect of OCC/ODBD enhanced loan limit of Rs. 35,00,000/-
A24	08.12.2017	Common hypothecation agreement executed by the agreement executed by the defendants in respect of OCC/ODBD loan of Rs. 60.00 lakhs
A25	08.12.2017	Guarantee covering letter executed defendant no.2 in favour of the applicant
A26	08.12.2017	Guarantee agreement executed by the defendant no.2 along with defendant no.1, in favour of the applicant in respect of OCC/ODBD loan limit of Rs. 60,00,000/-
A27	08.12.2017	Guarantee covering letter executed defendant no.3 in favour of the applicant
A28	08.12.2017	Guarantee agreement executed by the defendant no.3 along with defendant no.1, in favour of the applicant in respect of OCC/ODBD loan of Rs. 60,00,000/-
A29	08.12.2017	Guarantee covering letter executed defendant no.4 in favour of the applicant
A30	08.12.2017	Guarantee agreement executed by the defendant no.4 along with defendant no.1, in favour of the applicant in respect of OCC/ODBD loan of Rs. 60,00,000/-
A31	08.12.2017	Link letter in respect of enhancement of credit facilities executed by the defendants in favour of the applicant in respect of OCC/ODBD loan limit of Rs.60,00,000/-
A32	08.12.2017	Letter of renewal executed by the defendants in favour of the applicant in respect of OCC/ODBD loan limit.

¶72

9 OA-222/2022

¶73

A33	08.12.2017	Letter of revival executed by the defendants in favour of the applicant in respect of OCC/ODBD loan limit.
A34	26.08.2020	Letter of revival executed by the defendants in favour of the applicant in respect of OCC/ODBD loan limit.
A35	29.05.2020	Letter of request submitted by the defendants in favour of the applicant for grant of the applicant for grant of loan under emergency credit line guarantee scheme
A36	25.08.2020	Process note for sanction of guaranteed emergency credit line of Rs. 11,00,000/- issued bythe applicant
A37	26.08.2020	Partnership letter submitted by the defendant nos.2 to 3 as thepartners of defendant no.1
A38	26.08.2020	Offer letter relating to guaranteed emergency credit line of Rs. 11,00,000/- executed by the defendant no.1 firm rep by its partners
A39	26.08.2020	Acceptance letter relating to guaranteed emergency credit line of Rs. 11,00,000/- executed by defendant no. 1 firm rep by its partners
A40	26.08.2020	Undertaking letter relating to guaranteed emergency credit line of Rs. 11,00,000/- issued by defendant no.1 firm rep by its partners
A41	26.08.2020	Supplemental common hypothecation agreement executed by the defendant no.1 represented by its partners defendant nos.2 to 3 in respect of OCC/ODBD limit of Rs. 60 lakhs & GECL limits of Rs. 11 lakhs
A42	11.12.2021	Legal notice issued by the applicant through its counsel to the defendants
A43 to A46	11.12.2021	Postal registration receipts
A47		Postal track confirming the delivery of legal notice to defendant no.3
A48 to A50	13.12.2021/ 18.12.2021	RPAD returned envelops of the defendants

¶74

10 OA-222/2022

¶75

A51	06.12.2021/ 10.01.2022/ 19.01.2022	Certified statement of account of open cash credit loan account no. 0403261006224 of the defendant no.1 partnership firm with interest calculation sheet and certificate
A52	06.12.2021/ 10.01.2022/ 19.01.2022	Certified statement of account of guaranteed emergence CRED loan account no. 0403755000069 of the defendant no.1 partnership firm with interest calculation sheet and certificate

¶76

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Ms T Shul Wire Works

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms T Shul Wire Works

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

Coram

Case details

Similar cases

Punjab National Bank versus Raghbir Singh

Hdfc Bank versus Guzar Ahmad Wani

Punjab National Bank versus Sri Prasanta Ghosh

Ms North Malda Rice Mill and Anr. versus West Bengal Gramin Bank

Canara Bank versus Sannasiddappa Hanumappa Vaddar

Canara Bank versus Mayamma