Allowed

Canara Bank v. M/S Mahalakshmi Enterprises Rep by Its Proprietrix Sri.K.Kalpana

DRT19 Jun 2025OA/381/2022

Case brief

AI extract

What is this about?

In OA No. 381/2022, the Debt Recovery Tribunal allowed the bank's application for a recovery certificate of Rs. 35,04,000 with interest at 12% p.a., declining monthly rests, after the defendant remained absent and evidence was uncontroverted.

What did the court decide?

Recovery Certificate for Rs. 35,04,000 plus pendente lite and future interest at 12% p.a.; cost of proceedings granted.

Canara Bank versus M/S Mahalakshmi Enterprises Rep by Its… — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 19^th Day of June, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.381/2022

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BETWEEN:

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Canara Bank, Kathriguppe Branch, No.36, Durga Complex, Kathriguppe, Banashankari 3^rd Stage, Bangalore -560085.

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…APPLICANT

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AND:

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M/s. Mahalakshmi Enterprises, Rep. by its Proprietrix Sri. K. Kalpana, W/o. Sri. K. Babu Reddy, No.140/4, 3^rd Block, Thyagarajanagar Main Road, Bangalore -560028.

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Also at, No. 301/A, 7TH Main, 2nd Cross, Bhuvaneshwari Nagar, Banashankari 3rd Stage, Bangalore -560085. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Rohit R Achar Defendant : Exparte

OA 381/2022

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 for Rs. 35,04,000/(Rupees thirty-five lakh four thousand only) with further interest thereon and cost from the Defendant.

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It is the case of the Applicant that Defendant is the borrower

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of the followed credit facilities availed from the applicant for its business activities, they are:

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Term Loan Limit of Rs. 19,75,000/- (Rupees nineteen lakh seventy-five thousand only) and,

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Open cash credit Facility (OCC) of Rs. 12,80,000/(Rupees twelve lakh eighty thousand only).

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It is also the case of the applicant that, in view of the above facilities, the defendant executed necessary loan documents in favour of the Applicant bank to secure the loan.

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It is the case of the Applicant that the Defendant, despite availing the credit facility, after agreeing with the Terms and Conditions for the loan, failed in complying with the same,

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OA 381/2022

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resulting in defaults and consequentially turning the loan accounts as Non-Performing Asset (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, taking out the summons through paper publication, there was no appearance of Defendant. Hence, was called absent and set exparte.

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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-3 to A-13, 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 succeeded in proving the OA claim as against the defendant?

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OA 381/2022

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ii) If so, to what extent?

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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 evidence tendered by the applicant remains uncontroverted and undisputed. The evidence put forth by the applicant is found admissible and sufficient to prove the averments made in the OA, and the default committed by the Defendant in repaying the loan amount due. The liability of the Defendant and the loan amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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11. Hence in view of the above findings this Tribunal comes

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to the conclusion that the OA is liable to be allowed.

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12. Taking into consideration the fact that the credit facilities

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are availed by Defendant for term loan and open cash credit facility for their business activities, this Tribunal in view, that the

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rate of interest as claimed need not be reduced. However, as

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the OA Claim is arrived at by calculating interest at the agreed

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OA 381/2022

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rate and also by applying default interest, the prayer for monthly

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rest is declined.

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In the result, OA.No.381/2022, is allowed,

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i) The Applicant is allowed to recover an aggregate sum of Rs. 35,04,000/- (Rupees thirty-five lakh four thousand only) along with pendente lite and future interest of 12.00% p.a. (simple), from the date of filing OA till the realization, from the Defendant personally and other assets after giving credit to all the amounts recovered and received during the pendency of the OA if any. Properties schedule to the OA be the schedule to the Recovery Certificate.

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ii) The applicant bank is allowed cost of the proceedings

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for which Applicant to file cost memo within seven days from the date of receipt of the order.

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iii) 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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iv) 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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OA 381/2022

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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 (PY), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 19^th Day of June, 2025].

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Sd/(T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Smt. Kitty Anto, Senior 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	20.07.2020	Loan Application
A4	10.08.2020	Sanction Letter
A5	25.08.2020	Deed of Hypothecation
A6	25.08.2020	On Demand Pro Note
A7	25.08.2020	Take Delivery Letter to DPN
A8	09.02.2021	On Demand Pro Note
A9	09.02.2021	Cash credit agreement
A10	09.02.2021	Letter of Undertaking
A11	01.09.2021	Legal Notice
A12	--	Account Extract (Term Loan)
A13	--	Account Extract (OCC)

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Witness Examined for the Defendant:

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-Nil –

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. M/S Mahalakshmi Enterprises Rep by Its Proprietrix Sri.K.Kalpana

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S Mahalakshmi Enterprises Rep by Its Proprietrix Sri.K.Kalpana

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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