Allowed

Canara Bank v. K P Yogananda Legal Heir of Late Bhagyamma and K P Manjunath Legal Heir of Late Bhagyamma

DRT23 Sept 2025OA/446/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application under section 19 of the RDB Act 1993 for a recovery certificate. Reducing the interest rate to 6% p.a. simple due to agricultural purpose, it directed recovery from the respondent legal heirs personally and from inherited estate assets.

What did the court decide?

Recovery of Rs.41,74,571.72 plus interest at 6% p.a. simple from defendants personally and inherited assets.

Canara Bank versus K P Yogananda Legal Heir of Late Bhagyamma… — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 23^rd Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.446/2024.

BETWEEN:

Canara Bank

Kallambella Branch,

Tumkur District-572125

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…APPLICANT

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AND:

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Mr. K.P. Yogananda

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{(Legal Heir of Late Bhagyamma) (Borrower)} S/o Puttahannumaiah and Bhagyamma, R/at: Kilaradahalli,

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Bukkapattana Hobli, Shira Taluk, Tumkur District-572129

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Mr. K.P. Manjunath

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{(Legal Heir of Late Bhagyamma) (Borrower)} S/o Puttahannumaiah and Bhagyamma, R/at: Kilaradahalli,

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Bukkapattana Hobli, Shira Taluk,

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Tumkur District-572129

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Pai and Anand Law Associates 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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OA 446-2024

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.41,74,571.72/- (Rupees forty one lakh seventy four thousand

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five hundred seventy one and paisa seventy two only) with further interest thereon from the date of filing the Application till

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realization from the Defendants.

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It is the case of the applicant that the Smt. Bhagyamma was a deceased borrower and Defendants No.1 & 2 as her legal heirs.

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The deceased borrower had availed the following credit facilities from the applicant bank:-

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I. KCC Loan of a sum of Rs.1,00,000/- (Rupees One Lakh Only),

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II. Tractor loan limit of Rs.4,63,500/- (Rupees Four Lakh Sixty Three Thousand Five Hundred Only),

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III. Agricultural Loan limit of Rs. 90,000/- (Rupees Ninety Thousand Only) and

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IV. Farm Development loan limit of Rs.4,50,000/- (Rupees four 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

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OA 446-2024

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memorandum, agreement of hypothecation and letters of revival in favor of the applicant bank.

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It is further contended that, the deceased borrower 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 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 defendants being set exparte on 29.01.2025.

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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-1to A-32 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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OA 446-2024

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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 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 the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due

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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 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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OA 446-2024

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are availed by defendants for agricultural purpose and also that

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

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In the result, OA.No.446/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.41,74,571.72 (Rupees forty one lakh seventy four thousand five hundred seventy one and paisa seventy two only) with further interest @6% p.a. (Simple),

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

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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 defendants

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personally and their other assets are liable to be proceeded against for the balance amount to the extent of estate they had

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inherited from deceased borrower.

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iii) The applicant bank is allowed cost of the proceedings

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OA 446-2024

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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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14. 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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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 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: Nagalingamurthy M.R, Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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The Documents are appended in this order.

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

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-Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. K P Yogananda Legal Heir of Late Bhagyamma and K P Manjunath Legal Heir of Late Bhagyamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. K P Yogananda Legal Heir of Late Bhagyamma and K P Manjunath Legal Heir of Late Bhagyamma

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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