Allowed

Canara Bank v. D Prasad

DRT28 Nov 2025OA/29/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for issuance of a Recovery Certificate against three defendants for an unpaid agricultural loan. The court reduced the allowed interest rate to 6% simple interest and ordered recovery from the defendants' assets and schedule property.

What did the court decide?

Issued a Recovery Certificate for Rs. 37,36,718 with further interest at 6% p.a. (simple) from the date of filing, to be recovered from defendants and their schedule property.

Canara Bank versus D Prasad — 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 28^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.29/2023

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BETWEEN:

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Canara Bank, Gadag-II Branch, Mahalaxmi Complex, Bank Road, Gadag- 582 101, Karnataka.

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…APPLICANT

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AND:

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Sri. D Prasad @ Huchappa D. Chalawadi, S/o Sangavva Chalwadi, Aged about 60 years.

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Sri Manjunath D. Prasad, S/o Sri D. Prasad @ Huchappa D Chalawadi, Aged about 34 years.

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Sri Mahesh Guddad, S/o Sanna Basappa Guddad,

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All are residing at: Dambal Village & post, Gadag Taluk, Gadag District, Karnataka- 582 102. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. HSR & Associates Defendants : Exparte

OA 29/2023

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. 37,36,718/- (Rupees Thirty Seven Lakh Thirty Six Thousand Seven Hundred and Eighteen 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 that the defendants availed KCC loan of Rs. 5,88,000/- (Rupees Five Lakh Eighty Eight Thousand Only) for farm development.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with simple mortgage deed and deed of guarantee.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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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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, summon the defendants, they failed to appear, resulting the defendants being set exparte on 25.04.2024.

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OA 29/2023

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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 A-1 to A-11 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?

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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 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.

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

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OA 29/2023

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find both these issues in favour of applicant and hence, this Tribunal is of

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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 the 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.29/2023, stands allowed,

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

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37,36,718/- (Rupees Thirty Seven Lakh Thirty Six Thousand Seven Hundred and Eighteen Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly,

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severally & 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 defendants jointly,

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severally & personally and their assets are liable for respective amounts due under the respective loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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applicant to file cost memo within 7 days from the date of receipt of the

OA 29/2023

order.

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

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transferred to Recovery for execution.

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

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of this final order.

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

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

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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 28^th Day of November, 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: Panjagala Venkateshwarlu, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	18.12.2008	Loan application submitted by the defendants
A2	30.12.2008	Simple mortgage deed executed by the defendants
A3	09.01.2009	Agreement for agricultural advances executed by the defendants
A4	09.01.2009	Deed of guarantee executed by the defendants
A5 to A8	27.12.2011 20.12.2014 18.12.2017 25.12.2021	Four letters of revival executed by the defendants

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OA 29/2023

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A9 & A10	08.12.2021	Office copy of the legal notice and returned RPAD envelop
A11	--	Certified account extract of the defendant No.1 maintained by the applicant bank.

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. D Prasad

Case brief

What is this about?

What did the court decide?

Canara Bank v. D Prasad

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

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