Allowed

Canara Bank v. Haranahalli Nanjegowda

DRT31 Dec 2025OA/546/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for a recovery certificate. Finding the defendants were present in absentia and defaulters, the court granted recovery of principal plus reduced interest calculable on agricultural loans.

What did the court decide?

Issuance of Recovery Certificate for Rs. 29,21,499 plus 6% simple interest from date of filing, recoverable from the legal heir's estate and attached property.

Canara Bank versus Haranahalli Nanjegowda — Execution and Attachment | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 31^st Day of December, 2025

¶3

Present: Sri. T. RAJESH

¶4

Presiding Officer

OA. No.546/2023

BETWEEN:

Canara Bank

Channarayapatna Branch Mysore road, Channarayapatna Dist. Hassan – 573 116

¶9

Represented by its Chief Manager Mr. Chandrashekhara Patil …APPLICANT

¶10

AND:

¶11

Mr. Haranahalli Nanjegowda S/o. Chikkegowda (Since deceased through his legal heir) Mr. Suresh

¶12

S/o. Haranahalli Nanjegowda Aged about 48 years Having address at: Post Baladare Village, Udayapura Post, Dandiganahalli Hobli, Channarayapatna Taluk, Dist. Hassan, Karnataka – 573 116

¶13

Mr. Suresha Aged about 48 years S/o. Haranahalli Nanjegowda Aged about 48 years Having address at: Post Baladare Village,

¶14

OA. No. 546/2023

¶15

¶16

Udayapura Post, Dandiganahalli Hobli, Channarayapatna Taluk, Dist. Hassan, Karnataka – 573 116 ...DEFENDANTS

¶17

Counsel on record/appeared for:

¶18

Applicant : Girish S Poojary Defendant no.1 : Deceased Defendant no.2 : Ex parte

¶19

FINAL ORDER

¶20

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs. 29,21,499/- (Rupees Twenty Nine lakhs Twenty One Thousand Four Hundred and Ninety Nine Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶21

It is the case of the applicant that, the defendant no. 2 is the legal heir of the deceased borrower. The Late borrower Mr. Haranahalli Nanjegowda is availed a agricultural loan of Rs. 4,70,000/- (Rupees Four Lakhs Seventy Thousand Only) for purchase of HMT tractor, trailer and equipment’s. 3. The deceased borrower executed necessary loan documents in favour of the applicant bank as security for the due repayment

¶22

OA. No. 546/2023

¶23

¶24

of the loans, interest, cost and charges. The Late borrower Mr. Haranahalli Nanjegowda had also executed Simple Mortgage Deed dated 18.01.2005.

¶25

It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

¶26

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 as against the defendants.

¶27

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 19.11.2024. 7. The applicant let in evidence through AW-3, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A11 and got the same marked in evidence. 8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

¶28

The following issues arise for consideration in this matter:

¶29

i) Whether the applicant had succeeded in proving the OA

¶30

OA. No. 546/2023

¶31

¶32

claim as against the defendants?

¶33

ii) What orders are to be passed?

¶34

Both these issues are gone into and decided together.

¶35

The case put forth by the applicant in the Application

¶36

remains unrebutted as defendants remained ex parte. 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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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.

¶37

Hence in view of the above findings which cover both the

¶38

issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

¶39

Taking into consideration the facts that the credit facility are

¶40

availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of

OA. No. 546/2023

6.00% (simple).

In the result, OA.No.546/2023 stands allowed,

¶45

i) The applicant is allowed to recover an aggregate sum

¶46

of Rs. 29,21,499/- (Rupees Twenty Nine lakhs Twenty One Thousand Four Hundred and Ninety Nine Only) with further interest of 6.00% p.a.(simple)from the date of filing OA till the realization, from the defendant no. 2, to the extent of their inheritance of any estate form the deceased borrower Mr. Haranahalli Nanjegowda, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶47

ii) If the sale proceeds are not found sufficient to cover the liability, the defendants to the extent of their inherited form the deceased Mr. Haranahalli Nanjegowda is liable to the proceeds against for the balance amount.

¶48

iii) The applicant bank is allowed cost of the proceeding

¶49

which applicant to file cost memo within 7 days from the date of receipt of the order.

¶50

OA. No. 546/2023

¶51

¶52

iv) The Recovery Certificate to be drawn in terms of this

¶53

order and transferred to Recovery for execution.

¶54

V) Interim Application pending, if any, stands disposed of

¶55

with this Final Order.

¶56

Communicate a copy of the order to the parties concerned in

¶57

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

¶58

DRT (Procedure) Rules, 1993.

¶59

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of December, 2025].

¶60

Sd/-

¶61

(T. RAJESH) PRESIDING OFFICER

OA. No. 546/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶66

AW-1: Chandrasekhar Patil, S/o. P Manjunath Patil, Chief Manager,

¶67

of the applicant bank.

¶68

Exhibits on the part of the Applicant:

¶69

Annexure	Particulars
A3	Loan Application Dated 18.01.2005
A4	Sanction letter dated 18.01.2005
A5	Memorandum Of Agreement For Agricultural Loans Dated 18.01.2005
A6	Simple mortgage dated 18.01.2005
A7	Letter of revival dated 28.02.2015
A8	Letter of revival dated 09.01.2018
A9	Letter of revival dated 18.12.2020
A10	Certified of the notice dated 20.06.2022
A11	True extract of statement of accounts pertaining to the defendant’ aforesaid loan accounts

¶70

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Haranahalli Nanjegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Haranahalli Nanjegowda

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

Similar cases

Idbi Bank versus Sri.Ramesh. B. Gowda

Hdfc Bank versus Sh. Ramraj Grewal

Canara Bank versus Mr. Bhanu Tiwari

Karnataka Bank Limited versus Sri.Bheemaraya. N. Bhosale

Mrs Praveena Pattanashetti versus Union Bank of India

Mr Mohammad Ali Saifuddin Navalgund versus Idbi Bank