Allowed

Canara Bank v. Raghunatha

DRT19 Sept 2025OA/278/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's Original Application for a recovery certificate for an NPA housing loan. The bank proved availment of credit, security creation, and defaults. Interest was reduced to 8% for housing loans. Proceeds from auctioned property were credited.

What did the court decide?

Recovery certificate directed for recovery of Rs. 66,70,973 with 8% simple interest; respondents and their assets made liable.

Canara Bank versus Raghunatha — Maintenance and Alimony | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 19^th Day of September, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.278/2022

¶5

BETWEEN:

¶6

Canara Bank, Fortune Plaza, near Brahmagiri Circle, Brahmagiri, Udupi, Represented by Branch Manager & PA Holder, Mr. Archana N

¶7

…APPLICANT

¶8

AND:

¶9

Mr. Raghunatha, S/o Late Jayarama, Aged about 37 years.

¶10

Ms. Dhanya, W/o Raghunatha, Aged about 32 years.

¶11

Both are residing at, HNO 3-180, Ayyappanagar, Kukkundur, Karkala Taluk, Udupi- 576117.

¶12

Also at: D No, 2-40 [4] Dhanya Marati Thota, Athrady Udupi- 576117.

¶13

...DEFENDANTS

¶14

Counsel on record/appeared for:

¶15

Applicant : Naveen Tao Defendants : C. Gangaraju

OA 278/2022

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. 66,70,973/- (Rupees Sixty Six lakh Seventy Thousand Nine Hundred and Seventy Three Only) with further interest thereon from the date of filing the Application till realization.

¶20

It is the case of the applicant that, the defendants availed housing loan of Rs. 57,00,000/- (Rupees Fifty Seven Lakh Only) and second housing loan of Rs. 2,95,000/- (Rupees Two Lakh Ninety Five Thousand Only)

¶21

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 deposit of deed of sale and execution of memorandum of deposit of title deeds.

¶22

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.

¶23

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.

¶24

OA 278/2022

¶25

¶26

The defendants filed IA 2443/2023 a petition to condone the delay in filing the written statement, which was allowed with cost of Rs. 2,000/to Karnataka legal service on or before 20.11.2024 stating that if the defendants failed to make payment the IA 2443/2023 would stands automatically dismissed vide separate order dated 30.09.2024, however the defendants failed to file proof of compliance hence IA 2443/2023 stood automatically dismissed and the chance for filing of written statement of defendants is closed. Hence the OA remains uncontested.

¶27

The applicant 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-12 and got the same marked in evidence.

¶28

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.

¶29

The following issues arise for consideration in this matter:

¶30

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

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the applicant in the Application remains

¶34

unrebutted as defendants remained exparte. The evidence tendered by

¶35

OA 278/2022

¶36

¶37

the applicant remains uncontroverted and undisputed. The evidences put

¶38

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.

¶39

The applicant bank has filed the memo dated 13.12.2024 stating that the mortgaged property has been sold by way of public auction under the SARFEASI proceeds, a sum of Rs. 35,73,900/- (Rupees Thirty Five Lakh Seventy Three Thousand Nine Hundred Only).

¶40

Hence in view of the findings arrived herein above, the Tribunal

¶41

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

¶42

Taking into consideration the facts that the credit facilities are

¶43

availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can

¶44

be allowed with a reduced interest of 8.00% (simple).

¶45

In the result, OA.No.278/2022, stands allowed,

¶46

i) The applicant is allowed to recovery an aggregate sum of Rs.

¶47

66,70,973/- (Rupees Sixty Six lakh Seventy Thousand Nine Hundred and

¶48

OA 278/2022

¶49

¶50

Seventy Three Only) with further interest @8.00 % p.a.(simple) from the

¶51

date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received

¶52

during the pendency of the OA including the amount received from SARFEASI proceedings and allowed the same to be recovered by proceeding against the defendants jointly, severally & personally and their assets are liable for respective amounts due under the loan account.

¶53

ii) 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.

¶54

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

¶55

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

¶56

Communicate a copy of the order to the parties concerned in terms

¶57

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

¶58

Rules, 1993.

¶59

[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 September, 2025].

¶60

Sd/- (T. RAJESH) PRESIDING OFFICER

OA 278/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶65

AW-1: Sowmya Suvarna W/o Nithesha J Karkera, Senior Manager, of Applicant Bank.

¶66

Exhibits on the part of the Applicant:

¶67

Exhibit Nos.	Date	Particulars of Documents
A1	11.11.2019	Home loan application
A2	21.11.2019	Letter of sanction
A3	21.11.2019	Housing loan
A4	22.11.2019	Deed of sale
A5	22.11.2019	Memorandum of deposit of title deeds
A6	26.12.2019	Home loan application
A7	02.01.2020	Sanction letter
A8	02.01.2020	Loan agreement
A9	08.01.2020	Memorandum of deposit of title deeds
A10	19.04.2021	Demand notice u/s 13(2) of SARFEASI
A11	13.07.2021	Possession notice
A12	--	Account extract in respect of A/c No. 02229330000011
A13	--	Account extract in respect of A/c No. 02229340001081

¶68

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

¶69

-Nil -

¶70

-Nil -

¶71

Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Raghunatha

Case brief

What is this about?

What did the court decide?

Canara Bank v. Raghunatha

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

Abbas Ca versus Urban Co. operative Bnak Ltd.

State Bank of India versus Sachin Kumar Kaushal

Canara Bank versus M/S Avtar Bag Factory

Karnataka Bank Limited versus Hardik

Ms Habib Agro Industries Rep by Its Partners and Legal Heir of Late Sri Habib Khan and Others versus the Authorised Officer Indiabulls Housing Finance Ltd.

Ms Habib Agro Industries Rep by Its Industries Rep by Its Partner and Legal Heirs of Late Sri Habib Khan and Others versus the Authorised Officer Indiabulls Housing Finance Ltd.