Allowed

Canara Bank v. Shabbir and Another

DRT27 Nov 2025OA/2262/2024

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by Canara Bank for an agricultural crop loan of Rs. 3 lakh. The defendants did not appear. The Tribunal proved the debt by documentary evidence and allowed the recovery certificate for the outstanding amount with interest reduced to 6% p.a. due to the agricultural nature of the loan.

What did the court decide?

Recovery Certificate issued for Rs. 28,27,298.84 with interest at 6.00% p.a. (simple) to be recovered jointly, severally, and personally from defendants via execution proceedings.

Canara Bank versus Shabbir and Another — 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 27^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2262/2024

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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. Shabbir, S/o Ghouse Sab Aged about 63 years.

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Smt. Shameena, w/o Shabbir, Aged about 53 years.

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Both are residing at Laxmisagara Village, Sira Taluk, Tumakuru District- 572139.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mohamed Afroze Ahamed Defendants : EXPARTE

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FINAL ORDER

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The present Original Application in short (OA) has been filed under

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section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance

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OA 2262/2024

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of Recovery Certificate against the defendants for Rs. 28,27,298.84 (Rupees Twenty Eight lakh Twenty Seven Thousand Two Hundred Ninety Eight and Paise Eighty 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 bank, the 1^st defendant and 2^nd defendant availed Horticulture development loan of Rs. 3,00,000.00 (Rupees Three 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 with letter evidencing deposit of title deeds and letter of revival.

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

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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-17 and got the same marked in evidence.

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OA 2262/2024

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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

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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 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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OA 2262/2024

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

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by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.2262/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 28,27,298.84 (Rupees Twenty Eight lakh Twenty Seven Thousand Two Hundred Ninety Eight and Paise Eighty Four 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 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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iv) The Recovery Certificate to be drawn in terms of this order and

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OA 2262/2024

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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	09.08.2005	Application for agricultural credit-short term/ term loan
A2	09.08.2005	Appraisal report for farm development loan
A3	09.08.2005	Sanction memorandum
A4	10.08.2005	Memorandum of agreement for agricultural loans
A5	14.07.2000	Letter evidencing deposit of title deeds executed by the 1^stand 2^nddefendants
A6	09.08.2005	Draft of LEDTD
A7	10.08.2005	NF-482, certificate of loan papers
A8	12.08.2005	NF-373, particulars of hypothecation
A9	03.07.2008	Letter of revival

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OA 2262/2024

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A10	09.06.2000	Letter of revival
A11	05.05.2014	Letter of revival
A12	31.05.2014	Letter of revival
A13	02.04.2016	Letter of revival
A14	18.08.2016	Letter of revival
A15	15.08.2020	Letter of revival
A16	14.08.2023	Letter of revival
A17	--	Statement of account in account No. 0468893009651

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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. Shabbir and Another

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shabbir and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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