Allowed

Canara Bank v. Laxman Laxmappa a Biradar Patil

DRT22 Aug 2025OA/318/2023

Case brief

AI extract

What is this about?

OA for recovery certificate against agricultural loan defaulters allowed. Tribunal disposed of exparte application granting reduced interest of 6% p.a. and authorization to proceed against schedule property or personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 37,85,773 with interest at 6% p.a.; applicant allowed to proceed against schedule property and defendants' other assets.

Canara Bank versus Laxman Laxmappa a Biradar Patil — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 22^nd Day of August, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer OA.No.318/2023

¶4

BETWEEN:

¶5

Canara Bank, Yeragatti Branch, Hadimani Complex, Yeragatti 591 129, Soundatti Taluk, Belgaum Dist. Represented by its Senior Manager, Sri Rahul Shukla.

¶6

…APPLICANT

¶7

AND:

¶8

Laxman @ Laxmappa A. Biradar Patil, S/o Adiveppa Biradar Patil, Aged about 60 years. No. 318B, Patil Oni, Near Raamalingeshwara Temple, Mugalihal 591 129, Soundatti Taluk, Belgaum Dist.

¶9

Shankar K. Itnal S/o Kenchappa Itnal, Aged about 43 years, Mellikeri Village, Mellikeri 591 129, Soundatti Taluk, Belgaum Dist.

¶10

...DEFENDANTS

¶11

Counsel on record/appeared for:

¶12

Applicant : M.R. Rajini Defendants : Exparte

OA 318/2023

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

¶17

Rs. 37,85,773/- (Rupees Thirty Seven Lakh Eighty Five Thousand Seven Hundred Seventy Three Only) with further interest thereon from the date of filing the Application till realization.

¶18

It is the case of the applicant that, the defendants availed Agricultural term loan of Rs. 10,00,000/- (Rupees Ten lakh Only) and another agricultural term loan of Rs. 8,00,000/- (Rupees Eight Lakh Only).

¶19

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with agreement for agricultural advances, deed of guarantee, acknowledgement of debt and Simple mortgage in favour of the applicant bank.

¶20

It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in compliance of the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶21

OA 318/2023

¶22

¶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

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 09.07.2024.

¶25

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-3 to A-26 and got the same marked in evidence.

¶26

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

¶27

The following issues arise for consideration in this matter:

¶28

i) Whether the applicant had succeeded in proving the OA

¶29

claim as against the defendants?

¶30

ii) What order are to be passed?

¶31

Both these issues are gone into and decided together.

¶32

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

¶33

OA 318/2023

¶34

¶35

sufficient to prove availment of the credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and

¶36

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.

¶37

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

¶38

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

¶39

Taking into consideration the facts that the credit facilities are

¶40

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

¶41

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

¶42

In the result, OA.No.318/2023, stands allowed,

¶43

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

¶44

Rs. 37,85,773/- (Rupees Thirty Seven Lakh Eighty Five Thousand Seven Hundred Seventy Three Only) with further interest @ 6.00 % p.a.(simple), from the date of filing OA till the realization, from the defendants jointly, severally & personally after giving credit to all the

¶45

amounts recovered and received during the pendency of the OA and

¶46

OA 318/2023

¶47

¶48

allowed to recover the same by proceeding against the schedule

¶49

property. Properties Schedule to the OA be the schedule to the recovery certificate.

¶50

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

¶51

amount due and payable to the applicant bank, the defendants

¶52

jointly, severally & personally and their other assets are liable for all such amounts due under the loan accounts.

¶53

iii) The applicant bank is allowed cost of the proceedings

¶54

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

¶55

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

¶56

and transferred to Recovery for execution.

¶57

v) Interim application pending, if any, are disposed of with this Final Order.

¶58

Communicate a copy of the order to the parties concerned in

¶59

terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

¶60

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

¶61

Sd/- (T. RAJESH) PRESIDING OFFICER

OA 318/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶66

AW-1: Naga Chetan M S/o Naraharinath M, Senior Manager, of Applicant Bank.

¶67

Exhibits on the part of the Applicant:

¶68

Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant’s Evidence
A2	--	List of Documents
A3	26.12.2014	Loan Application
A4	30.12.2014	Agreement for agricultural purpose
A5	30.12.2014	Deed of guarantee for agricultural advance
A6	26.12.2014	Loan application
A7	30.12.2014	Consideration receipt
A8	30.12.2014	Consideration receipt
A9	30.12.2014	Agreement for agricultural advance
A10	30.12.2014	Deed of guarantee for agricultural advance
A11	11.01.2016	Acknowledgement of debt for all types of facilities by borrowers/ Sureties
A12	12.01.2018	Acknowledgement of dent for all types of facilities by borrowers/ Sureties
A13	15.07.2020	Acknowledgement of debt and security
A14	11.01.2016	Acknowledgement of debt for all types of facilities by borrowers/ Sureties
A15	12.01.2018	Acknowledgement of debt for all types of facilities by borrowers/ Sureties
A16	15.07.2010	Acknowledgement of debt and security
A17	26.12.2014	Simple mortgage
A18	27.12.2014	Encumbrance certificate for the period 27.12.2014 to 27.12.2014
A19	--	RTC for Sy.No.360
A20	--	RTC for Sy.No.361
A21	--	RTC for Sy.No.70
A22	--	RTC for Sy.No.68
A23	05.09.2022	Legal Notice
A24	--	Postal receipt

¶69

OA 318/2023

¶70

¶71

A25	31.03.2022	Statement of account showing outstanding balance in the loan accou the defendant in respect of loan A/c 05178010011547 present A/c 05178380005927	the nt of No. No.
A26	31.03.2022	Statement of account showing outstanding balance in the loan accou the defendant in respect of loan A/C 0518230002713	the nt of no.

¶72

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

¶73

-Nil -

¶74

Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Laxman Laxmappa a Biradar Patil

Case brief

What is this about?

What did the court decide?

Canara Bank v. Laxman Laxmappa a Biradar Patil

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

Leelamma C S versus Federal Bank

Ajitha Reji versus Federal Bank

State Bank of India versus M/S Tirupati Associates, a Proprietary Concern Acting through Its Proprietor Shri Namdeo S/O Vishwanath Kadu

Smt Leelavathi versus Karnataka Bank Limited

Bank of India versus Amruth Hardware and Paints

Canara Bank versus Mahadevu