Allowed

Canara Bank v. Varade Gowda @ Rajanna

DRT31 Dec 2025OA/288/2022

Case brief

AI extract

What is this about?

DRT allowed the bank's application for recovery certificate regarding an agricultural loan default. The court reduced interest to 6% simple and authorized recovery from the defendant's assets.

What did the court decide?

Recovery Certificate to be drawn for Rs. 20,70,820 with 6% simple interest from filing date, recoverable from defendant's personal assets and mortgage properties.

Canara Bank versus Varade Gowda @ Rajanna — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of December, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.288/2022

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BETWEEN:

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Canara Bank Having its head office at No.112, J.C. Road, Bangalore - 560002 Its branch office at Kanakapura, Rep. by Manager Mr. Rajeshwar Kumar … APPLICANT

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AND:

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Sri. Varade Gowda @ Rajanna S/o. Atthale Gowda Chikkanna Valase Village, Attiguppe Post, Kanakapura Tq., Ramnagar Dist.,

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. K Vijendra Rao 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 for seeking issuance of Recovery Certificate against the defendant for Rs.20,70,820/- (Rupees Twenty Lakh Seventy Thousand Eight

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OA. No.288/2022

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Hundred and Twenty only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed the Farm machinery loan of Rs.5,56,080/- on 14.12.2004.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule properties.

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It is further contended that, despite availing the credit facility, 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 account 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 03.01.2025.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and

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OA. No.288/2022

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also produced Exhibits A1 to A21 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: 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 facility as stated in the OA, as to the execution of loan documents 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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OA. No.288/2022

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Hence in view of the above finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility was availed for agricultural 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% (simple).

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In the result, OA.No.288/2022 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.20,70,820/- (Rupees Twenty Lakh Seventy Thousand Eight Hundred and Twenty only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from defendant, 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 the defendant personally and his other assets, including the schedule properties are liable for all such amounts due under the loan account. The schedule properties to the OA be the schedule properties to the Recovery Certificate.

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OA. No.288/2022

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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 personally and his other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding 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 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 in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of 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 31^st Day of December 2025].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.288/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Shekar Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars		Date
A1	Common Application Form NF 4 Credit Facility for Agricultural Lo	99 For ans	10.12.2004
A2	Enclosure To Application NF 499		10.12.2004
A3	Memorandum Of Agreemen Agricultural Loans	t for	14.12.2004
A4	Quotation issued by the Vinay T Enterprises	ractor	26.11.2004
A5	Receipt voucher issued by Tractor Enterprises	Vinay	17.12.2004
A6	Delivery Challan issued by Tractor Enterprises	Vinay	17.12.2004
A7	Delivery Challan issued by Tractor Enterprises	Vinay	17.12.2004
A8	Certification of Registration No.23 issued by RTO	form	10.02.2005
A9	Certificate of Registration form issued by RTO	No.23	10.02.2005
A10	Simple mortgage deed		07.12.2004
A11	Letter of revival execute defendant	d by	21.11.2007
A12	Letter of revival execute defendant	d by	28.09.2010

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OA. No.288/2022

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A13	Letter of defendant	revival executed	by	10.06.2013
A14	Letter of defendant	revival executed	by	25.01.2016
A15	Letter of defendant	revival executed	by	14.01.2019
A16	Recall Notice	issued to defendant		07.07.2010
A17	Recall notice	issued to defendant		10.04.2012
A18	Recall notice	issued to defendant		08.06.2013
A19	Legal notice	to defendant		06.04.2021
A20	Statement of	account		03.01.2022
A21	Certificate Evidence Act	under Banker’s B	ook	05.01.2022

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Varade Gowda @ Rajanna

Case brief

What is this about?

What did the court decide?

Canara Bank v. Varade Gowda @ Rajanna

Case brief

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What did the court decide?

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