Allowed

Canara Bank v. Mr Kamanna Babali

DRT22 Aug 2025OA/380/2023

Case brief

AI extract

What is this about?

DRT allowed the bank's application for recovery certificate under Section 19 RDB Act against borrower and guarantor in absence. Awarded principal debt with interest reduced to 6% p.a. allowing recovery against personal assets and mortgage property.

What did the court decide?

Recovery certificate allowed for Rs. 23,87,087.71 plus interest @6% p.a. from date of filing. Recovery against schedule property and personal assets.

Canara Bank versus Mr Kamanna Babali — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 22^nd Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.380/2023

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BETWEEN:

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Canara Bank Raibag Branch, Sankpal Bldg Ankali Road, Raibag Tq, Belgaum District Pin- 591317, Karnataka …APPLICANT

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AND:

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Sri. Kamanna Babali S/o. Rayappa R/at: Kanakadi Village, Raibag Taluk,

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Belgaum District- 591222

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Sri. Revappa Meti S/o. Tipanna Meti R/at: Mantoor Village, Raibag Taluk, Belgaum District-591317

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant Defendants p

: VS Associates

: Exparte

FINAL ORDER

The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act

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OA 380-2023

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1993 seeking issuance of Recovery Certificate

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Rs.23,87,087.71 (Rupees Twenty three lakh eighty seven thousand eighty seven and paisa seventy one only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant No.1 as the borrower and defendant No.2 as the guarantor. The Defendant had availed the Agricultural loan credit facilities of Rs.19,80,000/(Rupees nineteen lakh eighty thousand only) from the erstwhile Syndicate Bank which later got amalgamated with Canara Bank.

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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 agreement of agricultural advances, deed of guarantee and simple mortgage deed 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

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OA 380-2023

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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 defendant being set exparte on 08.02.2024.

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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-3 to A-7 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 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 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

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remains unrebutted as defendant remained exparte. The

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OA 380-2023

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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 mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as 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 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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12.12. Taking into consideration the facts that the credit facilities

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are availed by defendant No.1 for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed

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

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In the result, OA.No.380/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.23,87,087.71 (Rupees twenty three lakh eighty seven

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OA 380-2023

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thousand eighty seven and paisa seventy one only) with further interest @6% p.a. (Simple)

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from the date of filing OA till the realization, from the defendant 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. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants 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 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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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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OA 380-2023

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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

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me in the Open Court, this the 22^nd 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: P. Chandra Kumar, Chief 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	--	Applicant Evidence
A2	--	List of Documents.
A3	20.02.2016	Agreement for Agricultural Advances
A4	20.02.2016	Deed of Guarantee
A5	05.11.2015	Simple Mortgage Deed
A6	29.08.2022	Legal Notice
A7		True Extract of Statement of Accounts pertaining to the Defendant’s Loan Account No.05088320000821

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Witness Examined for the Defendant:

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

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Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mr Kamanna Babali

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr Kamanna Babali

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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