Allowed

Canara Bank v. Mahantesh Mahantappa a Baligar

DRT29 Sept 2025OA/323/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed under Section 19 of the RDB Act for issuance of a Recovery Certificate. Evidence was uncontroverted due to the defendants being absent. The recovery amount was adjusted to 6% simple interest per annum.

What did the court decide?

Issuance of Recovery Certificate for Rs.46,46,502/- with further interest at 6% p.a. (Simple) till realization, recoverable from defendants personally and against schedule properties.

Canara Bank versus Mahantesh Mahantappa a Baligar — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 29^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.323/2023

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BETWEEN:

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Canara Bank Branch office at: Yeragatti Branch, Yeragatti-591129, Soundatti Taluk, Belgaum District

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…APPLICANT

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AND:

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Mahantesh @ Mahantappa A. Baligar S/o Aprayappa,

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Mahadevappa A. Baligar S/o Aprayappa

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Ningappa A. Baligar S/o Aprayappa

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All are R/at:

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Dasanal Village, Mugaligal Post, Dasanal- 59129 Soundatti Taluk, Belgaum District.

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Govindappa B. Murakatti S/o Bhimasheppa Murakatti, R/at: Dasanal Village, Mugaligal Post,

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OA 323-2023

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Dasanal- 59129 Soundatti Taluk, Belgaum District

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...DEFENDANTS

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Counsel on record/appeared for: Applicant : M.R. Rajini 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 seeking issuance of Recovery Certificate for Rs.46,46,502/- (Rupees forty six lakh forty six thousand five hundred and two 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 defendants No.1, 2 & 3 are borrowers and defendant No.4 as guarantor availed the following credit facilities from the applicant bank:-

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I. Agriculture Crop Loan of a sum of Rs.15,00,000/- (Rupees Fifteen Lakh Only),

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II. Agricultural Term loan limit of Rs.5,00,000/- (Rupees Five lakh Only), and

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III. Agricultural Term Credit Loan limit of Rs.10,00,000/(Rupees Ten Lakh Only)

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OA 323-2023

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with deed of guarantee, simple mortgage deed, and sanction memorandum in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, 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 27.08.2024.

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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-33 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered

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OA 323-2023

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the contentions as taken in the OA in the light of documentary evidence and the 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 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 facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and

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the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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OA 323-2023

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendants for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a.(Simple).

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In the result, OA.No.323/2023, stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs.46,46,502/- (Rupees forty six lakh forty six thousand five

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hundred and two only) with further interest @6% p.a. (Simple), from the date of filing OA till the realization, from the defendants personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property.

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

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OA 323-2023

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(ii) If the sale proceeds are not sufficient, the defendants

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personally and their other assets are liable to be proceeded against for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 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

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order and transferred to Recovery for execution.

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

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in terms of this final order.

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14. 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of September, 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: Naga Chetan M., Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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OA 323-2023

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Exhibit Nos.	Date	Particulars of Documents
A1	28.12.2017	Loan Application
A2	02.01.2018	Sanction Letter
A3	02.01.2018	Agreement for Agricultural Advances
A4	02.01.2018	Deed of Guarantee for Agricultural Advance
A5	21.07.2018	Loan Application
A6	21.07.2018	Sanction Letter
A7	21.07.2018	Agreement for Agricultural Advances
A8	21.07.2018	Deed of guarantee for Agricultural Advance
A9	23.07.2018	Consideration Receipt
A10	18.08.2018	Loan Application
A11	21.08.2018	Sanction letter
A12	21.08.2018	Consideration receipt
A13	07.09.2018	Consideration receipt
A14	24.09.2018	Consideration receipt
A15	21.08.2018	Agreement for Agricultural Advance
A16	21.08.2018	Deed of Guarantee for Agricultural Advance
A17	30.12.2017	Simple Mortgage
A18	20.07.2018	Simple Mortgage
A19	30.12.2017	Encumbrance Certificate for the period 30.12.2017 to 30.12.2017
A20	20.07.2018	Encumbrance Certificate for the period 20.07.2018 to 20.07.2018
A21		RTC for Sy.No.13
A22		RTC for Sy.No.15
A23		RTC for Sy.No.111
A24		RTC for Sy.No.185
A25	28.02.2022	Legal Notice
A26		Postal Receipt
A27		Postal Acknowledgement
A28		Postal Acknowledgement
A29		Postal Acknowledgement
A30		Postal Acknowledgement
A31	31.03.2022	Statement showing the outstanding balance in the loan account of defendant in respect of loan A/c No.05178010022347

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OA 323-2023

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A32	31.03.2022	Statement showing the outstanding balance in the loan account of defendant in respect of loan A/c No.0517823000584
A33	31.03.2022	Statement showing the outstanding balance in the loan account of defendant in respect of loan A/c No.0517823005667

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

-Nil -

-Nil -

Sd/ (T. RAJESH)

PRESIDING OFFICER

Canara Bank v. Mahantesh Mahantappa a Baligar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mahantesh Mahantappa a Baligar

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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