Allowed

Canara Bank v. Vasant S Bhoomaraddi

DRT29 Aug 2025OA/276/2023

Case brief

AI extract

What is this about?

In an original application under the Recovery of Debts and Bankruptcy Act, 1993, the Debt Recovery Tribunal allowed the recovery of a dues against a defendant liquor farmer who failed to appear. The court confirmed the loan availed for pomegranate cultivation and issued a recovery certificate after reducing the interest rate to 6% simple.

What did the court decide?

Recovery of Rs. 32,41,784/- plus interest at 6% p.a. (simple) from date of application, recoverable from defendant and schedule property.

Canara Bank versus Vasant S Bhoomaraddi — 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 29^th Day of August, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.276/2023

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BETWEEN:

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Canara Bank, And branches amongst others, one at M/s. Canara Bank, Bhoomreddy Complex, Ron Road, Gajendragad, Gadag- 582114, Represented by Senior Manager, Mr. Rahul Kapoor.

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…APPLICANT

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AND:

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Mr. Vasant Bhoomaraddi, S/o. Shekarappa Bhoomaraddi, Aged about 49 years, R/o Unachageri Village, Ron Taluk, Gadag District- 582114. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao 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 against the defendant for Rs. 32,41,784/- (Rupees Thirty Two lakh Forty One Thousand Seven Hundred and Eighty Four Only) with further interest thereon from the

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OA 276/2023

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date of filing the Application till realization.

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It is the case of the applicant that, the defendant availed a sum of Rs. 6,00,000/- (Rupees Six Lakh Only) under Farm development loan- Term loan for pomegranate cultivation.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with memorandum of agreement for agricultural loans, simple mortgage deed and letters of revival.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendant 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, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 26.02.2024.

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The applicant 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-15 and got the same marked in evidence.

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OA 276/2023

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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 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 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 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

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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

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is of the view that OA is to be allowed.

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OA 276/2023

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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

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at 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.276/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 32,41,784/- (Rupees Thirty Two lakh Forty One Thousand Seven Hundred and Eighty Four Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant 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 defendant personally and his assets are liable.

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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 receipt of the order.

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

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OA 276/2023

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and transferred to Recovery for execution.

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

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terms of this final order.

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

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

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(Procedure) 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 29^th Day of August, 2025].

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Sd/-

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(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: Raheesa Khatib W/o. Noor Mohammed J.M, Senior Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Affidavit of evidence
A2	--	List of documents
A3	08.09.2005	Application for agricultural credit A/c. 0512883001970
A4	08.09.2005	Memorandum of agreement for agricultural loans
A5	08.09.2005	Sanction memorandum

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OA 276/2023

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A6	05.09.2005	Simple mortgage deed, registered as No. 0620/2005-06, in the office of Sub-registrar, Kusthagi,
A7	20.06.2008	Letter of revival
A8	16.06.2022	Letter of revival
A9	24.12.2013	Letter of revival
A10	20.12.2016	Letter of revival
A11	03.02.2018	Letter of revival
A12	01.02.2021	Letter of revival
A13	25.05.2022	Legal notice
A14	--	Postal cover returned unserved
A15	--	Bank statement of A/c. 0512883001970

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Witness Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Vasant S Bhoomaraddi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Vasant S Bhoomaraddi

Case brief

What is this about?

What did the court decide?

What the court decided

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