Allowed

Canara Bank v. Basavaraj

DRT28 Oct 2025OA/42/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank seeking a Recovery Certificate against the defendant for defaulted agricultural loans. As the defendant appeared ex parte, the undisputed evidence proved the loan availment and defaults. The Tribunal awarded the principal amount with interest reduced to 6% p.a. and authorized execution against the schedule property.

What did the court decide?

Allowed recovery of Rs. 1,12,46,544/- with further interest @6% p.a. (Simple) from the date of filing; ordered recovery from schedule property and other assets.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 28^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.42/2024

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BETWEEN:

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Canara Bank Branch office at: Kalaburgi Main 1 Branch, Janata Bazar Building, Super Market, Kalburgi- 585101 …APPLICANT

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AND:

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Sri. Basavaraj @ Basavaraj Veeranagouda Patil S/o. Veeranagowda Patil R/o Naribol Village, Jewargi Taluk, Kalburgi District-585310

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for

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Rs.1,12,46,544/- (Rupees one crore twelve lakh forty six

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OA 42/2024

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thousand five hundred and forty four 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 defendant availed the following credit facilities from the applicant bank:-

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I. Agricultura Loan of a sum of Rs.10,00,000/- (Rupees Ten Lakh Only),

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II. Kisan Credit Card loan limit of Rs.5,00,000/- (Rupees five lakh Only), and

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III. Kisan OD Credit Loan limit of Rs.7,50,000/- (Rupees seven lakh fifty thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with simple mortgage deed, sanction memorandum and letter of revival in favor of the applicant bank. 4. It is further contended that, the defendant 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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OA 42/2024

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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 defendant, he failed to appear, resulting the defendant being set exparte on 19.08.2024.

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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-30 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered

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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

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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

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OA 42/2024

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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 mortgage as claimed by

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the applicant bank and the defaults committed in the accounts. The liability of the defendants and 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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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 defendant 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

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interest @6% p.a.(Simple).

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In the result, OA.No.42/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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OA 42/2024

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sum of Rs.1,12,46,544/- (Rupees one crore twelve lakh forty six

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thousand five hundred forty four only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant

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personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same 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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(ii) If the sale proceeds are not sufficient, the defendant

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personally and his 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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OA 42/2024

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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

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me in the Open Court, this the 28^th day of October, 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: Sri. Satwant Singh, 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
A2
A3	28.03.2009	Simple Mortgage deed registered as document No. JVG-1-00008-2009-10, at the office of Sub-registrar, Jewargi
A4	28.03.2009	Common Application for Agricultural loan (A/c No.0513891011271)
A5	04.04.2009	Memorandum of agreement for agricultural loans
A6	04.04.2009	Sanction memorandum
A7	19.03.2012	Letter of Revival
A8	10.03.2015	Letter of Revival
A9	02.03.2021	Letter of Revival
A10	04.07.2009	Simple mortgage deed registered as document No.1511-2009-10, at the office of Sub-registrar, Jewargi
A11	04.07.2009	Common Application for Agricultural Loan (A/c No.0513840011439)
A12	15.07.2009	Agreement and deed of hypothecation for kisan credit card

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OA 42/2024

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A13	15.07.2009	Sanction memorandum
A14	25.06.2012	Letter of Revival
A15	10.03.2015	Letter of Revival
A16	05.02.2021	Letter of Revival
A17	22.09.2009	Simple mortgage deed registered as document No.JVG-1-02789-2009-10 at the office of sub registrar
A18	22.09.2009	Common Application For Agricultural Loan (A/c No.0513897007610)
A19	22.09.2009	Agreement and deed for Kisan OD
A20	22.09.2009	Sanction Memorandum
A21	31.08.2012	Letter of Revival
A22	30.07.2015	Letter of Revival
A23	25.01.2018	Letter of Revival
A24	08.02.2018	Letter of Revival
A25	24.01.2021	Letter of Revival
A26	23.08.2021	Legal Notice along with postal receipt
A27		Postal cover returned as refused
A28		Bank statement A/c No.0513891011271
A29		Bank statement A/c No.0513840011439
A30		Bank statement A/c No.0513897007610

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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. Basavaraj

Case brief

What is this about?

What did the court decide?

Canara Bank v. Basavaraj

Case brief

What is this about?

What did the court decide?

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