Allowed

Canara Bank v. Tinto Gold Mining

DRT23 Sept 2025OA/430/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Canara Bank for issuance of a Recovery Certificate. The defendants, absconding, did not rebut the evidence of loan availing and defaults. The Certificate is issued for a principal sum with reduced interest at 11.00% simple.

What did the court decide?

Recovery Certificate issued to recover Rs. 3,03,53,673.33 with further interest @11.00% p.a. (simple) from filings date; liable to be recovered from schedule property.

Canara Bank versus Tinto Gold Mining — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 23^rd Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.430/2024

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BETWEEN:

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Canara Bank, Branch office called ad Mid Corporate Branch, No. 442, 6^th Main, Vijayanagar I Stage, Mysuru- 570 017, represented by its Senior Manager Of the said Branch office- Mrs. Remya K Manoharan, W/o Mr. Sijin Surendran.T, Aged about 32 years.

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…APPLICANT

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AND:

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M/s. Tinto Gold Mining, A partnership firm having registered Office at CH-29, 7^th Main, 5^th Cross, Sarasthipuram, Mysuru and carrying on, Represented by its partnersDefendant Nos.2 & 3 herein.

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Sri Abhishek S Manegar, Son of Sri Subbappa, Aged 43 years, Partner of M/s. Tinto Gold Mining, CH-29, “Deshika” 7^th Main, 5^th Cross, Sarasthipuram, Mysuru, Pin Code: 570009.

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Sri Subbappa, Son of Late Nanjappa, Aged about 76 years, Partner of M/s. Tinto Gold Mining, CH-29, “Deshika” 7^th Main, 5^th Cross, Sarasthipuram, Mysuru, Pin Code: 570009.

...DEFENDANTS

OA 430/2024

Counsel on record/appeared for:

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Applicant : K Aswathanarayana Defendants : Ramkrishna

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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 against the defendants for Rs. 3,03,53,673.33 (Rupees Three Crore Three Lakh Fifty Three Thousand Six Hundred Seventy Three and Paise Thirty Three Only) with further interest thereon from the date of filing the Application till realization. The 1^st defendant is a partnership firm represented by its partners defendant Nos. 2 & 3

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It is the case of the applicant that, the defendants availed the following loans from the applicant bank:-

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OCC/ODBD loan of Rs. 60,00,000/- (Rupees Sixty Lakh Only),

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Term loan of Rs. 1,40,00,000/- (Rupees One Crore Forty Lakh Only).

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Guaranteed emergency credit line (GECL) of Rs. 36,70,000/(Rupees Thirty Six lakh Seventy Thousand Only),

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10% additional assistance (GECL 4.0) of Rs. 18,35,000/- (Rupees Eighteen lakh Thirty Five Thousand Only) and

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Funded interest term loan of Rs. 1,55,000/- (Rupees One Lakh Fifty Five Thousand Only).

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It is also the case of the applicant that, in view of the above availed

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OA 430/2024

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loans, the defendants executed the necessary loan documents along with On demand promissory note, common hypothecation agreement, letter of undertaking, guarantee covering letter, memorandum of deposit of title deeds.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default 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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Defendants entered appearance through their counsel by filing vakalath, but failed to file written statement within stipulated time, hence written statement of the defendants stands closed.

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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-56 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 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

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OA 430/2024

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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 remains unrebutted as defendants 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 the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of 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 findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, 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 are

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availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 11.00% (simple).

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In the result, OA.No.430/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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OA 430/2024

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3,03,53,673.33 (Rupees Three Crore Three Lakh Fifty Three Thousand Six

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Hundred Seventy Three and Paise Thirty Three Only) with further interest @11.00 % p.a.(simple) from the date of filing OA till the realization, from

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the defendants jointly, severally and 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 proceeding against 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 found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for respective amounts

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due under the respective loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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 order and transferred to Recovery for execution.

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

OA 430/2024

Rules, 1993.

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the

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Open Court, this the 23^rd 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: Chandrika Kumar D/o Late N Seetharaman, 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	02.12.2019	Loan application submitted by the defendant No.1- M/s. Tinto Gold Mining a partnership firm represented by its partners Sri Abhishek S Manegar and Sri Subbappa in favour of the applicant for grant of OCC/ODBD loan of Rs. 60.00 lakhs and term loan of Rs. 140 lakhs
A2	19.11.2019	Partnership letter submitted by Sri Abhishek S Manegar and Sri Subbappa as the partners of Mls. Tinto Gold mining a partnership firm
A3	02.12.2019	Sanction memorandum issued by the applicant in favour of defendant No.1- M/s. Tinto Gold Mining a partnership firm represented by its partners Sri Abhishek S Manegar and Sri Subbappa defendant Nos. 2 & 3, granting OCC/ODBD loan of Rs. 60.00 lakhs and term loan of Rs. 140 lakhs
A4	02.12.2019	Request for overdraft facilities submitted by the defendants in favour of the applicant
A5	02.12.2019	On demand promissory note (pronote) executed by the defendant No.1- M/s. Tinto Gold Mining a partnership firm represented by its partners Sri Abhishek S Manegar and Sri Subbappa defendant Nos. 2 & 3, granting

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OA 430/2024

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		OCC/ODBD loan of Rs. 60.00 lakhs and term loan of Rs. 140 lakhs
A6	02.12.2019	Term loan agreement executed by the defendant No.1- M/s. Tinto Gold Mining a partnership firm represented by its partners Sri Abhishek S Manegar and Sri Subbappa defendant Nos. 2 & 3, granting OCC/ODBD loan of Rs. 60.00 lakhs and term loan of Rs. 140 lakhs
A7	02.12.2019	Common hypothecation agreement executed by the defendant No.1- M/s. Tinto Gold Mining a partnership firm represented by its partners Sri Abhishek S Manegar and Sri Subbappa defendant Nos. 2 & 3, granting OCC/ODBD loan of Rs. 60.00 lakhs and term loan of Rs. 140 lakhs
A8	02.12.2019	Letter of undertaking re: loans/ advances executed by the defendant No.1- M/s. Tinto Gold Mining a partnership firm represented by its partners Sri Abhishek S Manegar and Sri Subbappa defendant Nos. 2 & 3, in favour of the applicant
A9 & A10	02.12.2019	Guarantee covering letter and guarantee agreement executed by Sri. Abhishek .S Manegar -defendant No.2 in favour of the applicant
A11 & A12	02.12.2019	Guarantee covering letter and guarantee agreement executed by Sri Subbappa - defendant No.3 in favour of the applicant
A13	02.12.2019	MODTD executed by Sri. Abhishek .S Manegar -defendant No.2 in favour of the applicant in respect of OCC/ODBD loan of Rs. 2 crores
A14	02.12.2019	Rectification deed of MODTD executed by Sri. Abhishek .S Manegar -defendant No.2 in favour of the applicant in respect of OCC/ ODBD loan of Rs. 2 crores
A15	07.01.2020	Particular of machinery/ equipment hypothecated executed by the defendant No.1 in favour of the applicant
A16	17.06.2020	Offer letter issued by the applicant in favour of the first defendant for the GECL loan
A17	17.06.2020	Acceptance letter submitted by the first defendant in favour of the applicant
A18	23.06.2020	Undertaking letter executed by the first defendant and its partners in favour of the applicant

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OA 430/2024

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A19	23.06.2020	On demand promissory note (pronote) executed by the defendant No.1- M/s. Tinto Gold Mining a partnership firm represented by its partners Sri Abhishek S Manegar and Sri Subbappa defendant Nos. 2 & 3, in favour of the applicant in respect of GECL loan of Rs. 36.70 lakhs.
A20	23.06.2020	Supplemental common hypothecation agreement executed by the defendant No.1- M/s. Tinto Gold Mining a partnership firm represented by its partners Sri Abhishek S Manegar and Sri Subbappa defendant Nos. 2 & 3, in favour of the applicant in respect of OCC/ODBD loan of Rs. 2 Crores and GECL loan of Rs. 36.70 lakhs
A21	23.06.2020	Letter of undertaking regarding loans/ advances executed by the first defendant and its partners in favour of the applicant
A22 & A23	23.06.2020	Guarantee covering letter and guarantee agreement executed by Sri. Abhishek .S Manegar -defendant No.2 in favour of the applicant
A24 & A25	23.06.2019	Guarantee covering letter and guarantee agreement executed by Sri Subbappa - defendant No.3 in favour of the applicant
A26	15.12.2020	Supplemental MODTD executed by Sri. Abhishek S Manegar- defendant No.2 in favour of the applicant in respect of GECL loan of Rs. 36.70 lakhs
A27	28.12.2020	Loan application for loans to MICRO and Small enterprises submitted by the defendant No.1 in favour of applicant
A28	28.05.2021	Sanction letter issued by the applicant in favour of the defendants
A29	28.05.2021	Request for overdraft facilities submitted by the defendant for OCC/ ODBD loan of Rs. 60 lakhs
A30 & A31	28.05.2021	Letters executed by the defendants 2 & 3 in favour of the applicant
A32	28.05.2021	Letter of renewal executed by the defendant in favour of the applicant
A33	28.05.2021	Letter of revival executed by the defendants in favour of the applicant
A34	23.07.2021	Sanction memorandum issued by the applicant in favour of defendants, regarding restructuring of the existing term loan liability

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OA 430/2024

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A35	23.07.2021	Offer letter issued by the applicant in favour of the defendants
A36 & A37	23.07.2021	Restructuring agreements executed by the defendants in favour of the applicant
A38	23.07.2021	Supplemental common hypothecation agreement executed by the defendants, in favour of the applicant in respect of total loan limits of Rs. 2.56 crores
A39	24.09.2021	Supplemental MODTD executed by Sri. Abhishek S Manegar- Defendant No.2 in favour of the applicant in respect of additional loan limit of Rs. 19.90 lakhs
A40	28.10.2022	Loan application for loans to MICRO and small enterprises submitted by the defendant No.1`in favour of applicant
A41	28.10.2022	Sanction memorandum issued by the applicant in favour of defendants, regarding renewal of existing working capital limits
A42 & 43	28.10.2022	Letters executed by the defendants 2 & 3 in favour of the applicant
A44	28.10.2022	Letter of renewal executed by the defendant in favour of the applicant
A45	28.10.2022	Letter of revival executed by the defendants in favour of the applicant
A46	19.09.2023	Demand notice u/s 13(2) of SARFEASI Act, 2022 issued by the applicant in favour of the defendants
A47	21.09.2023	Acknowledgement card
A48	11.12.2023	Possession notice issued by the applicant
A49 to A51	--	Acknowledgement cards of the defendants
A52	01.01.2024 23.01.2024 01.02.2024	Certified statement of account of open MSME- OD/OCC loan A/c No. 4966261000008 with interest calculation sheet and certificate
A53	01.01.2024 23.01.2024	Certified statement of account of open MSME- MFG IND loan A/c No.
	01.02.2024	4966766000031 with interest calculation sheet and certificate
A54	01.01.2024 23.01.2024 01.02.2024	Certified statement of account of Guaranteed emergence Cred loan A/c No. 496675500001 with interest calculation sheet and certificate
A55	01.01.2024	Certified statement of account of 10%
	23.01.2024 01.02.2024	additional assistance loan A/c No.

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OA 430/2024

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		4966717000002 with interest calculation sheet and certificate
A56	01.01.2024	Certified statement of account of funded
	23.01.2024	interest term loan A/c No. 173000104227
	01.02.2024	with interest calculation sheet and certificate

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Tinto Gold Mining

Case brief

What is this about?

What did the court decide?

Canara Bank v. Tinto Gold Mining

Case brief

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What did the court decide?

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