Allowed

Canara Bank v. D Narasimhamurthy and Others

DRT27 Nov 2025OA/2261/2024

Case brief

AI extract

What is this about?

In an exparte recovery application, the Tribunal allowed the bank's claim for a farm development loan default, reducing interest to 6% simple and permitting recovery from mortgaged/defendant assets.

What did the court decide?

Recovery Certificate granted for Rs. 32,54,041.17 plus 6% simple interest from filing date; recoverable from defendants jointly and severally against property and assets.

Canara Bank versus D Narasimhamurthy and Others — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2261/2024

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BETWEEN:

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Canara Bank, Branch office at Tavarekere Branch, Taverekere, Sira Taluk- 572 139, Tumakuru District.

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…APPLICANT

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AND:

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Sri. D. Narasimhamurthy, S/o Doddeerappa alias Dodderanna, Aged about 70 years.

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Miss. Lakshmamma,

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D/o Doddeerappa alias Dodderanna, Aged about 35 years.

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Sri. Harish,

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S/o Doddeerappa alias Dodderanna, Aged about 30 years.

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All are residing at Kaluvarahally Village, Hebbur Post, Sira Taluk, Tumakuru District- 572 139.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mohamed Afroze Ahamed Defendants : EXPARTE

OA 2261/2024

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. 32,54,041.17 (Rupees Thirty Two lakh Fifty Four Thousand Forty One and Paise Seventeen 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 bank, the 1^st defendant availed farm development loan of Rs. 4,00,000.00 (Rupees Four Lakh Only). The defendants are the mortgagers to the loan availed.

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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 registered mortgage deed and letter of revival.

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It is further contended that, despite availing the credit facilities,

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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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Despite, Summons on defendants they failed to appear resulting the defendants being set exparte on 23.04.2025.

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OA 2261/2024

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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-16 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 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

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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

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OA 2261/2024

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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 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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In the result, OA.No.2261/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 32,54,041.17 (Rupees Thirty Two lakh Fifty Four Thousand Forty One and Paise Seventeen Only) with further interest @6.00 % 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 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

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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 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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OA 2261/2024

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iv) The Recovery Certificate to be drawn in terms of this order and

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this final order.

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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 27^th Day of November, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Anuj Kumar, Senior 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
A1	12.07.2005	Application for agricultural credit-short, term/ term loan
A2	12.07.2005	Comprehensive application-cum-appraisal report
A3	19.07.2005	Sanction memorandum
A4	20.07.2005	Memorandum of agreement for agricultural loans
A5	20.07.2005	NF-482, certificate of loan papers obtained
A6	26.08.2005	NF-373, particulars of hypothecation
A7	12.07.2005	Particulars of assets standing in the name of the applicant executed by the 1^stdefendant

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OA 2261/2024

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A8	13.07.2005	Registered mortgage deed executed by the all the defendants
A9	08.02.2008	Letter of revival
A10	31.01.2011	Letter of revival
A11	14.03.2013	Letter of revival
A12	06.02.2016	Letter of revival
A13	20.08.2018	Letter of revival
A14	09.08.2020	Letter of revival
A15	09.06.2023	Letter of revival
A16	--	Statement of account in farm development loan account No. 0468883009467

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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)

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PRESIDING OFFICER

Canara Bank v. D Narasimhamurthy and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. D Narasimhamurthy and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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