Allowed

Canara Bank v. Narsappa

DRT30 Oct 2025OA/519/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's Original Application requesting a recovery certificate. The court ruled that respondents, as legal heirs, are liable up to the value of the inherited estate, approving a reduced simple interest rate of 6.00% due to the agricultural purpose of the loan.

What did the court decide?

Application allowed; Recovery Certificate issued for Rs. 53,46,232.00 with simple interest at 6.00% p.a. from filing date; respondents liable only up to value of inherited estate.

Canara Bank versus Narsappa — Specific Performance | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.519/2023

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BETWEEN:

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Canara Bank, M/s. Canara Bank, Main Branch -I, Lingasugur Road, Raichur- 584101, Represented by Chief Manager, Sri. Suresh Kumar.

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…APPLICANT

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AND:

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Mr. Narsappa, S/o Gundugadu, Aged- 42 years.

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Mr. Thimappa, S/o Gundugadu, Age- 39 years.

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Mr. Devappa, S/o. Gundugadu, Age- 37 years.

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Mr. Janardhana, S/o Gundugadu, Age- 30 years.

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Mrs. Aparnamma, W/o Gundugadu, Age- 59 years.

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All the above addressed at: R/o of Atkur, Raichur District- 584102.

...DEFENDANTS

OA 519/2023

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 filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 53,46,232.00 (Rupees Fifty Three lakh forty Six Thousand Two Hundred Thirty Two 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 that the defendants are the legal heirs of borrower Late Gundugadu. The deceased borrower availed a term loan for agricultural purpose of Rs. 5,50,000/- (Rupees Five Lakh Fifty Thousand Only).

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

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the deceased borrower 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

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OA 519/2023

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by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, summons on the defendants they failed to appear, resulting the defendants being set exparte on 25.07.2024.

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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-3 to A-20 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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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

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forth by the applicant were found admissible and are sufficient to prove

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availment of credit facilities as stated in the OA, creation of security

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OA 519/2023

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interest as claimed by the applicant bank and the defaults committed in

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the accounts. The claim of 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, the Tribunal find

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both these issues in favour of applicant and hence, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agriculture 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 6.00% (simple).

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In the result, OA.No.519/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 53,46,232.00 (Rupees Fifty Three lakh forty Six Thousand Two Hundred Thirty Two Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, 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 against the schedule property. Properties Schedule to the OA be the schedule to the recovery certificate.

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ii) The defendants being the LRs of the deceased borrowers are

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OA 519/2023

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liable only to the extent of the estate inherited by them from the

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deceased.

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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, are disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in terms

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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 Open Court, this the 30^th Day of October, 2025].

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Sd/-

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(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: Sagarappa S/o Ayyanna, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	--	Applicant’s evidence

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OA 519/2023

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A2	--	List of documents
A3	10.04.2003	Comprehensive application cum appraisal report-Term loan A/c No. 0519881003145
A4	10.04.2003	Memorandum of agreement for agriculture loan
A5	19.03.2003	Simple mortgage deed registered as Doc. 3954/2003-04 office Sub-registrar, Raichur
A6	06.04.2006	Letter of revival
A7	02.04.2009	Letter of revival
A8	18.02.2012	Letter of revival
A9	29.08.2015	Letter of revival
A10	02.07.2017	Letter of revival
A11	21.03.2020	Letter of revival
A12	24.08.2022	Legal notice
A13	--	Postal cover returned unserved
A14	18.11.2022	Legal Notice
A15 to A19	--	Five numbers of postal departments endorsed of online postal tracking
A20	--	Bank statement of A/c 0519881003145

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Narsappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Narsappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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