Allowed

Canara Bank v. Smt. Rukmini Hanamanth Yaragudri

DRT25 Nov 2025OA/506/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's original application seeking a Recovery Certificate for an agricultural loan default. With the defendant in default and present ex-parte, the court admitted the claim and reduced interest to 6% simple to account for the agricultural purpose.

What did the court decide?

Recovery Certificate issued for Rs. 20,79,849.50 with 6% simple interest until realization, recoverable from defendant personally and schedule property.

Canara Bank versus Smt. Rukmini Hanamanth Yaragudri — 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 25^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.506/2023

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BETWEEN:

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Canara Bank, Kulgod Branch, Gokak Road, Mudalgi Taluk, Dist Belgavi, Through its Senior Manager, Mr. Harish Yamanappa Gadinaik.

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…APPLICANT

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AND:

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Smt. Rukmini Hanamanth Yaragudri, W/o Hanamanth Yaragudri, Having address at: At & Post Hulakund, Gokak Taluk, Dist. Belgavi, Karnataka- 591 114.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Venu K V Defendant : EXPARTE

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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 defendant for Rs. 20,79,849.50 (Rupees Twenty Lakh Seventy Nine Thousand Eight Hundred Forty Nine

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OA 506/2023

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and Paise Fifty Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant bank, that the defendant has availed a sum of Rs. 7.5 lakhs and Rs. 6.5 lakhs for agricultural purpose.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with deed of hypothecation and simple mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant 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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Despite, Summons on defendant he failed to appear resulting the defendant being set exparte on 20.09.2023.

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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 A-3 to A-13 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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OA 506/2023

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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 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 the security interest and the defaults committed in the accounts. The liability of the defendant 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 Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA

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can be allowed with a reduced interest of 6.00% (simple).

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OA 506/2023

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In the result, OA.No.506/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 20,79,849.50 (Rupees Twenty Lakh Seventy Nine Thousand Eight Hundred Forty Nine and Paise Fifty Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant 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

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amount due and payable to the applicant bank, the defendant personally

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and his assets are liable for respective amounts due under the 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

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OA 506/2023

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[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 25^th Day of November, 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: Harish Yamanappa Gadinaik, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A3	Loan applicant dated 6.02.2018
A4	Sanction letter dated 07.02.2018
A5	Agreement and deed for kisan OD dated 07.02.2018
A6	Simple mortgage dated 03.02.2018
A7	Loan applicant dated 15.05.2018
A8	Sanction letter dated 17.05.2018
A9	Simple mortgage deed dated 16.05.2018
A10	Agreement and deed of hypothecation for kissan credit card dated 17.052018
A11	Notice dated 18.12.2022
A12	True extract of statement of accounts pertaining to the defendants aforesaid loan account No. 0677897000476
A13	True extract of statement of accounts pertaining to the defnedants aforesaid loan account No. 067789500956

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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. Smt. Rukmini Hanamanth Yaragudri

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Rukmini Hanamanth Yaragudri

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

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