Allowed

Canara Bank v. Mahesh B S

DRT19 Sept 2025OA/281/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the OA filed by Canara Bank seeking a Recovery Certificate against defaulting borrowers. Finding the claim uncontroverted and within limitation, the Court granted recovery of the principal amount with a reduced simple interest rate of 6.00% p.a.

What did the court decide?

Recovery Certificate granted for aggregate sum of Rs.25,68,232/- with simple interest at 6% p.a. from filing date until realization against respondents jointly and severally.

Canara Bank versus Mahesh B S — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.281/2023

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BETWEEN:

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Canara Bank Hunsur Branch, No.1833/41, Kalpatharu complex, B.M. Road, Hunsur-571105 Rep. by its Senior Manager Sri. Krishnamurthy … APPLICANT

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AND:

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Sri. Mahesha B.S. S/o. Shivalingappa No.17, Beeranahalli, Hunsur Taluk, Mysore District-571105

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Smt. Mahadevamma W/o. Sri. Mahadev Beeranahalli, Hunsur Taluk, Mysuru District-571105

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Smt. Veerabhadrappa S/o. Sri. Manjappa Beeranahalli, Hunsur Taluk, Mysuru District – 571105

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OA. No.281/2023

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Sri. Chethan S/o. Mahesha

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Sri. Chaithra S/o. Mahesh No.4 and 5 are residing at No.17, Berranahalli, Hunsur Taluk, Mysuru District-571105

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Veeresh Kumar Javali M.C. Defendants : 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 for seeking issuance of Recovery Certificate against the defendants for Rs.25,68,232/- (Rupees Twenty Five Lakh Sixty Eight Thousand Two Hundred and Thirty Two only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the following credit facilities:

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KCCS loan of Rs.50,000/- for raising crops on 04.08.2005, which was enhanced from time to time.

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Term loan construction of Farm house loan of Rs.5,00,000/-

OA. No.281/2023

on 29.07.2011.

Kissan Overdraft loan of Rs.3,50,000/- for working capital requirement for allied actives, repairs, replacements, consumption needs on 04.05.2013.

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Term loan – Farm development loan of Rs.2,00,000/- for development on 15.04.2016.

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Kisan Tatkal loan of Rs.50,000/- to meet post harvesting expenses on 27.04.2018.

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Farm development loan of Rs.1,50,000/- on 27.04.2018.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents apart from the creation of security interest by way of mortgage over the schedule property.

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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.

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OA. No.281/2023

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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 accounts.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 05.02.2025.

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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 A1 to A65 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? 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

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remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and

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OA. No.281/2023

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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 security interest as claimed by the applicant bank 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 above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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was availed for agriculture purpose and also that OA claim is arrived 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%

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(simple).

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In the result, OA.No.281/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.25,68,232/- (Rupees Twenty Five Lakh Sixty Eight Thousand Two Hundred and Thirty Two only) consisting of:

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OA. No.281/2023

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a. Rs.3,02,960/- with further interest of 6.00% p.a.(simple) from

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the date of filing OA till the realization from the defendants No.1,2 and 3;

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b. Rs.9,63,989/- with further interest of 6.00% p.a.(simple) from

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the date of filing OA till the realization from the defendants No.1;

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c. Rs.6,41,659/- with further interest of 6.00% p.a.(simple) from

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the date of filing OA till the realization from the defendants No.1, 3 and 5;

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d. Rs.3,06,652/- with further interest of 6.00% p.a.(simple) from

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the date of filing OA till the realization from the defendants No.1, 3 and 5;

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e. Rs.81,385/- with further interest of 6.00% p.a.(simple) from

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the date of filing OA till the realization from the defendants No.1;

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f. Rs.2,71,587/- with further interest of 6.00% p.a.(simple) from

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the date of filing OA till the realization from the defendants No.1, 3 and 5;

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after giving credit to all the amounts recovered and received

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during the pendency of the OA allowed the same to be recovered

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by proceeding against defendants jointly, severally and personally

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and also by proceeding against the schedule properties. The

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OA. No.281/2023

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schedule properties to the OA be the schedule properties to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their other assets are liable

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for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned

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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 22^nd Day of September 2025].

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(T. RAJESH) PRESIDING OFFICER

OA. No.281/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Manas Ranjan Mohapatra, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	25.07.2005	Loan application
A2	04.08.2005	Agreement and Deed of Hypothecation for Kisan Credit card executed by the defendant
A3	10.03.2006	Application for renewal of Kisan Credit Card executed bythe defendant.
A4	10.03.2006	Annual report
A5	10.03.2006	Agreement of hypothecation executed bythe defendant
A6	10.03.2006	Letter of renewal executed by the defendant
A7	25.04.2007	Application for renewal/enhancement of Kisan Credit Card executed by the defendant.
A8	25.04.2007	Letter of Renewal executed by the defendant
A9	08.04.2009	Guarantee covering letter executed by the 2^nddefendant
A10	08.04.2009	Guarantee covering letter executed by the 2^nddefendant
A11	08.04.2009	Guarantee agreement executed by the 2^nddefendant
A12	01.02.2010	Application for renewal/enhancement of kisan credit card executed by the defendant
A13	01.02.2010	Sanction memorandum
A14	01.02.2010	Supplemental agreement executed by the defendant
A15	01.02.2010	Letter of renewal executed by the defendant

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OA. No.281/2023

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A16	01.02.2010	Guarantee covering letter exe 3^rddefendant	cute	d by
A17	01.02.2010	Guarantee agreement execut 3^rddefendant	ed by	the
A18	29.09.2015	Application for renewal of kis card executed bythe defenda	an cr nt	edit
A19	29.09.2015	Request for renewal of lim revised kisan credit card sche	it un me	der
A20	29.10.2015	Supplemental agreement exe the defendant	cuted	by
A21	29.09.2015	Letter of renewal executed defendant	by	the
A22	01.02.2011	Letter revival executed defendant	by	the
A23	04.03.2013	Letter revival executed defendant	by	the
A24	12.06.2015	Letter revival executed defendant	by	the
A25	22.02.2018	Letter revival executed defendant	by	the
A26	24.04.2020	Letter revival executed defendant	by	the
A27	--	Statement of account
A28	29.07.2011	Loan application
A29	29.07.2011	Sanction communication
A30	29.07.2011	Memorandum of agreem agricultural loans	ent	for
A31	26.07.2011	Simple mortgage deed exe the defendant	cuted	by
A32	20.12.2013	Letter of revival executed defendants	by	the
A33	17.06.2015	Letter of revival executed defendants	by	the
A34	26.04.2018	Letter of revival executed defendants	by	the
A35	08.04.2021	Letter of revival executed defendants	by	the
A36	--	Statement of account
A37	04.05.2013	Loan application

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OA. No.281/2023

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A38	04.05.2013	Sanction communi	cation
A39	04.05.2013	Agreement and D executed bythe de	eed for Kisan fendant	OD
A40	20.04.2013	Simple mortgage the defendant	deed executed	by
A41	22.03.2016	Application cum sa	nction for renew	al
A42	22.03.2016	Application cum sa	nction for renew	al
A43	20.08.2015	Letter of renewal defendants	executed by	the
A44	26.04.2018	Letter of revival defendant	executed by	the
A45	08.04.2021	Letter of revival defendants	executed by	the
A46	--	Statement of accou	nt
A47	15.04.2016	Loan application
A48	15.04.2016	Sanction communi	cation
A49	28.04.2016	Memorandum of agricultural loans defendant	agreement executed by	for the
A50	18.04.2016	Simple mortgage the defendant	deed executed	by
A51	26.04.2018	Letter of revival defendant	executed by	the
A52	23.04.2020	Letter of revival defendant	executed by	the
A53	--	Statement of accou	nt
A54	27.04.2018	Loan application
A55	27.04.2018	Sanction communi	cation
A56	27.04.2018	Memorandum of agricultural loans defendant	agreement executed by	for the
A57	08.04.2021	Letter of revival defendant	executed by	the
A58	--	Statement of accou	nt
A59	27.07.2017	Common loan submitted bythe d	application f efendant	orm
A60	03.07.2017	Loan sanction mem	orandum
A61	03.08.2017	Memorandum of agricultural loans	agreement	for

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OA. No.281/2023

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A62	30.07.2017	Simple mortgage deed executed by the defendant
A63	24.04.2020	Letter of revival executed by the defendant
A64	20.06.2022	Legal notice issued to the defendant
A65	--	Statement of account

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mahesh B S

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mahesh B S

Case brief

What is this about?

What did the court decide?

What the court decided

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