Allowed

Canara Bank v. yashodavva

DRT29 Aug 2025OA/286/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application by Canara Bank against legal heirs and a co-obligant after ex parte hearing. The court admitted evidence of default and reduced interest to 6% simple for an agricultural loan, authorizing recovery from personal assets and secured properties.

What did the court decide?

Recovery certificate issued for Rs. 43,80,885/- with 6% simple interest liable to be recovered from defendants personally and schedule properties.

Canara Bank versus yashodavva — Banking and Recovery | 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 Presiding Officer OA.No.286/2023

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BETWEEN:

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Canara Bank, Raichur Main Branch, Lingsur Road, Main Road, Raichur- 584101. Represented by its Chief Manager, Sri. Suresh Kumar Balla, S/o Sri. Rathaiah Balla, Aged about 44 years.

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…APPLICANT

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AND:

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Smt. Yashodavva, W/o Sri. Shankarappa, Major by age.

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Sri. Raghavendra, S/o Late Nagappa, Major by age,

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No. 1 and 2 are residing at Kurtipli Village, Raichur Taluk, Raichur District. 584102.

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Sri. Nagappa, S/o Sri. Ramaiah, Major by age, Residing at Athkur Village, Raichur Taluk, Raichur District- 584102.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Veeresh Kumar Javali M.C. Defendants : Exparte

OA 286/2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of a Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs. 43,80,885/- (Rupees Forty Three Lakh Eighty Thousand Eight Hundred and Eighty Five 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 that, the original borrowers Shankarappa and Nagappa are deceased and defendant No.1 & 2 are their respective legal heirs. Defendant No.3 stood as co-obligant to the loan availed by the deceased Shankarappa and Nagappa.

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It is also the case of the applicant that, the deceased borrowers Shankrappa and Nagappa availed Minor irrigation loan of Rs. 3,25,000/- (Rupees Three lakh Twenty Five Thousand Only). The defendant No. 3 is the Co-obligant to the loan availed.

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It is also the case of the applicant that, in view of the above financed loans, the deceased borrower & defendant No.3 had executed necessary loan documents and memorandum of agreement, particulars of hypothecated equipment, mortgage deed and revival letters.

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OA 286/2023

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It is also contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the deceased borrowers & defendant No.3 failed in complying the same, resulting in defaults 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 defendants, they failed to appear, resulting the defendants being set exparte on 25.10.2024.

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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-1 to A-12 and got the same marked.

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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

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claim as against the defendants?

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OA 286/2023

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

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OA 286/2023

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by calculating interest at the agreed rate, this Tribunal in view of the

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OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.286/2023, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 43,80,885/- (Rupees Forty Three Lakh Eighty Thousand Eight Hundred and Eighty Five Only) with further interest of 6% p.a.(simple) from the date of filing this OA till the date of realization from the defendants No.3 personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the 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 No.3 personally and his assets are liable for all such amounts due under the loan accounts. The defendants Nos.1 & 2 being the LR’s of the deceased borrowers Shankarappa and Nagappa are liable to the

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extent inherited by them from the deceased borrowers respectively.

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iii) The applicant bank is allowed cost of the proceedings

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OA 286/2023

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which applicant to file cost memo within seven days from the date of

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receipt of the order.

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

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and transferred to Recovery for execution.

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v) Interim Application pending, if any, are disposed of with this

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Final Order.

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15. 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/- (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: Sagarappa S/o Ayyanna, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	DATE	Particulars of Documents
Nos.
A1	14.07.2004	Loan application and sanction letter
A2	14.07.2004	Memorandum of agreement for agricultural loans executed by defendants

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OA 286/2023

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A3	20.08.2004	Particulars of hypothecated equipment agreement executed by shankarappa and nagappa
A4	14.07.2004	Particulars of Co-obligation/ Guarantor executed by the defendant No.3
A5	06.07.2004	Mortgage deed dated 06.07.2004 executed by the said Shankarappa and Nagappa Favour of the applicant bank registered as Document No. 1172/04-05, Stored in CD No. RCRD9 in the office of the Sub-Registrar, Raichur
A6	12.07.2007	Revival of letter executed defendant
A7	30.01.2010	Revival of letter executed defendant
A8	13.12.2012	Revival of letter executed defendant
A9	19.11.2015	Revival of letter executed defendant
A10	03.08.2017	Revival of letter executed defendant
A11	10.06.2020	Revival of letter executed defendant
A12	--	Statement of account

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

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. yashodavva

Case brief

What is this about?

What did the court decide?

Canara Bank v. yashodavva

Case brief

What is this about?

What did the court decide?

What the court decided

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