The Tribunal allowed the application for a recovery certificate of Rs 24,09,670 against the legal heirs of a deceased borrower and co-mortgagors, accepting uncontroverted bank evidence and granting interest at 7% per annum simple.
Allowed recovery of Rs. 24,09,670 with pendente lite and future interest (7% simple) from defendants jointly and severally.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU
Dated this 25th Day of November, 2025
Present: Sri. T. RAJESH Presiding Officer
OA.No.544/2023
BETWEEN:
Canara Bank, Channarayapatna Branch, Mysuru Road, Channarayapatna Dist. Hassan -573116, Through its Chief Manager
…APPLICANT
AND:
S/o. Krishnegowda @ Shettygowda, Having addredd at: Aralapura Village, Dindaguru Post, Kasaba Hobli, Channarayapatna Taluk, Dist. Hassan, Karnataka -573116.
OA 544/2023
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S/o. Krishnegowda @ Shettygowda, Having addredd at: Aralapura Village, Dindaguru Post, Kasaba Hobli, Channarayapatna Taluk, Dist. Hassan, Karnataka -573116.
...DEFENDANTS
Counsel on record/appeared for:
Applicant : Sri. Girish S Poojary Defendant No. 1 : Deceased Defendant No.2 to 5 : Ex parte
FINAL ORDER
filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs. 24,09,670/(Rupees twenty-four lakh nine thousand six hundred and seventy only) with further interest thereon and cost from the Defendants.
OA 544/2023
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Only), the second for a sum of Rs. 90,000/- (Rupees Ninety Thousand Only), and the third for a sum of Rs. 25,000/- (Rupees Twenty-Five Thousand Only). Further, the deceased Defendant No.1, along with Defendant No.2, had also availed a credit facility of Rs. 4,50,000/- (Rupees Four Lakh Fifty Thousand Only).
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ii) If so, to what extent?
Both these issues are gone into and decided together.
remains unrebutted as Defendants remained ex parte. Defendant No.1 is deceased, and Defendant Nos. 2 to 5 are his legal heirs. Defendant Nos. 2 to 5, having jointly created the mortgage along with the deceased Defendant No.1, are liable as co-mortgagors for the dues arising out of the said mortgage. In addition, as legal heirs of the deceased borrower, Defendant
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Nos. 2 to 5 are liable for the outstanding dues of the deceased Defendant No.1, but only to the extent of the estate or properties inherited from him. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidence put forth by the applicant is found admissible and sufficient to prove the averments made in the OA, and the defaults committed by the Defendants in repaying the loan amount due. The liability of the Defendants and the loan amount due are also proved by the above documents. The claim of the applicant is well within the limitation.
for agricultural purpose and also the fact that OA claim is arrived at by calculating interest at the agreed rate, pendente lite and future interest is awarded at 7.00% (simple). The prayer for interest with monthly rests and for penal interest for the future period is hereby declined.
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13. In the result, OA.No.544/2023, is allowed,
i) The Applicant is allowed to recover an aggregate sum
of Rs. 24,09,670/- (Rupees twenty four lakh nine thousand six hundred and seventy only) with pendente lite and future interest of 7.00% p.a. (simple) from the date of filing of the OA till the realization, from the Defendants jointly and severally after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allow the same to be recovered by proceedings against schedule property. Property schedule to the OA be the schedule to the Recovery Certificate.
ii) If the schedule property is not sufficient to clear the outstanding dues, then, in respect of the first three credit facilities, the legal heirs of the deceased Defendant No.1 shall be liable only to the extent of the property inherited from the deceased. In respect of the last credit facility, Defendant No.2 is personally liable, and the legal heirs of the deceased shall be liable only to the extent of the estate inherited from the deceased.
iii) The applicant bank is allowed cost of the proceedings
for which Applicant to file cost memo within seven days from the
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date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this
order and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed
of in terms of this final order.
14. 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) Rules, 1993.
(Dictated to PY directly on the Computer, after its transcription, corrected and pronounced by me in the open Court on this the 25th day of November, 2025)
Sd/(T. RAJESH)
PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Sri. Chandrashekhara Patil, Chief Manager of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit | Date | Particulars of Documents |
|---|---|---|
| Nos. | ||
| A1 | -- | Evidence affidavit |
| A2 | -- | List of Documents |
| A3 | 16.09.2005 | Loan application |
OA 544/2023
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| A4 | 16.09.2005 | Sanction letter |
|---|---|---|
| A5 | 16.09.2005 | Memorandum of agreement |
| A6 | 16.01.2008 | Letter of revival |
| A7 | 15.12.2009 | Letter of revival |
| A8 | 20.04.2012 | Letter of revival |
| A9 | 10.07.2014 | Letter of revival |
| A10 | 20.07.2016 | Letter of revival |
| A11 | 10.12.2018 | Letter of revival |
| A12 | 16.09.2021 | Letter of revival |
| A13 | 10.05.2007 | Simple mortgage deed |
| A14 | 11.05.2007 | Application |
| A15 | 11.05.2007 | Sanction letter |
| A16 | 11.05.2007 | Agreement and Deed of Hypothecation |
| A17 | 07.01.2019 | Letter of revival |
| A18 | 16.09.2021 | Letter of revival |
| A19 | 29.05.2007 | Application |
| A20 | 29.05.2007 | Sanction letter |
| A21 | 29.05.2007 | Agreement of hypothecation |
| A22 | 10.07.2014 | Letter of revival |
| A23 | 26.07.2016 | Letter of revival |
| A24 | 10.12.2018 | Letter of revival |
| A25 | 16.09.2021 | Letter of revival |
| A26 | 24.12.2018 | Simple mortgage deed |
| A27 | 13.01.2009 | Application |
| A28 | 13.01.2009 | Sanction letter |
| A29 | 13.01.2009 | Memorandum of agreement |
| A30 | 26.07.2016 | Letter of revival |
OA 544/2023
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| A31 | 16.09.2021 | Letter of revival |
|---|---|---|
| A32 | 20.06.2022 | Notice |
| A33 | -- | Statement of account |
| A34 | -- | Statement of account |
| A35 | -- | Statement of account |
| A36 | -- | Certificate under Bankers book evidence act |
Witness Examined for the Defendant:
-Nil -
List of Documents Exhibited for the Defendant:
-Nil -
Sd/(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant succeeded in proving the OA claim as against the Defendants?
To what extent is the claim allowed considering the liability of legal heirs and co-mortgagors?
1 provisions across 1 enactments
Canara Bank
Krishnegowda @ Shettygowda
Lakshmidevamma
Rajesh
Suresh
Rangaswamy
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
