Allowed

Canara Bank v. Smt Mallamma

DRT25 Nov 2025OA/406/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Originating Application filed by Canara Bank to issue a Recovery Certificate against agricultural loan defaulters. The court held the un-rebutted evidence sufficient, allowing recovery of the principal sum with reduced simple interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 55,08,732/ with interest at 6% p.a. (simple) and costs; personal liability if schedule property sale is insufficient.

Canara Bank versus Smt Mallamma — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 25^th Day of November, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.406 of 2022

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Canara Bank, Raichur Main Branch, Lingasugur Road, Raichur – 584 101. Through its Chief Manager, Mr.B.Suresh Kumar.

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… Applicant.

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Vs.

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Smt.Mallamma, W/o.Mallikarjuna, R/o. Hal Venkatapur Village, PO Muranpur, Taluk & Dist.Raichur.

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Mr.Mallappa @ Mallikarjuna, S/o.Sharanappa, R/o. Hal Venkatapur Village, PO Muranpur, Taluk & Dist.Raichur. … Defendants. Counsel for Applicant : M/s.V.S.Associates. Defendants : Exparte. …… ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts

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And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for a sum of Rs.55,08,732/- together with further interest

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@13.25% compounded Half Yearly from 01.10.2021 till the date of realisation together with costs from the defendants jointly and severally and by way of sale of schedule mentioned property.

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The Applicant contends that the defendants 1 and 2 approached the applicant for Agricultural Credit of Rs.4,95,000/- and availed the same on 05.03.2005 by execution of necessary loan documents including Memorandum of Agreement of Agricultural Loan coupled with Simple Mortgage Deed dt.02.03.2005 in respect of schedule mentioned property executed by 1^st defendant in favour of applicant. Even though it is mentioned in the affidavit filed in support of OA that the Memorandum of Agreement of Agricultural Loan is executed on 06.03.2005, it is evident that the date of execution of the same is on 05.03.2005.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facility, the defendants failed to regularize the said loan and hence the loan account of the defendants was declared as Non-Performing Asset. The applicant bank has also issued Legal Notice dt.19.12.2015 to the defendants to repay the outstanding liability. Despite availing

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the credit facility by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to enter appearance, they were set exparte on 07.02.2023.

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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 A3 to A8, got the same marked in evidence.

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Heard. 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 Defendants?

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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 Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.

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Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of Agricultural

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Credit the pendent lite and future interest is awarded at simple rate

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that too at reduced rate of 6% p.a. (simple).

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In view of the above

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i) OA No.406 of 2022 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.55,08,732/(Rupees Fifty Five Lakhs Eight Thousands Seven Hundred and Thirty Two only) together with interest @6% p.a. (simple) from the date of filing of OA till the date of realization together with costs from the defendants jointly, severally and personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule mentioned property. The schedule to the OA to be the schedule to the Recovery Certificate.

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iii) If the sale proceeds are not sufficient to clear the liability, then the Defendants are personally and their other assets are liable to be proceeded against for realization of respective dues.

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iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

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Communicate a copy of the order to the parties concerned 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 PS, transcribed by him corrected and pronounced by me in the open Court on this the 25^th day of November, 2025)

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Sd./-

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(T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Mr.D.Manjunath, Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Ext.A1 - Applicant Evidence by way of affidavit. Ext.A2 - List of Documents. Ext.A3 - Loan Application dt.22.02.2005. Ext.A4 - Memorandum of Agreement for Agricultural Loan dt.05.03.2005. Ext.A5 - Simple Mortgage Deed dt.02.03.2005. Ext.A6 - Letters of Revivals dt.18.01.2008; 01.01.2011; 23.12.2013; 05.12.2016 & 04.05.2019. Ext.A7 - Legal Notice dt.19.12.2015. Ext.A8 - True Extract of Statement of Accounts pertaining to the Defendant’s Loan A/c.

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Witness Examined for the Defendants:

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NIL

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List of Documents Exhibited for the Defendants :

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NIL

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Sd./-

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(T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. Smt Mallamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt Mallamma

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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