Allowed

Canara Bank v. Adiveppa Yalappa Toragal

DRT19 Nov 2025OA/548/2024

Case brief

AI extract

What is this about?

DRT allowed an application for a recovery certificate against legal heirs of a deceased borrower. The court reduced the applicable interest rate to 6% simple interest as the credit facilities were for agricultural purposes, pending payment from the schedule property.

What did the court decide?

The applicant was granted a recovery certificate for Rs. 22,13,712.72 with 6% simple interest, recoverable from the estate of the deceased and the mortgaged property.

Canara Bank versus Adiveppa Yalappa Toragal — 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 19^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA. No.548/2024

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BETWEEN:

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Canara Bank Bailhongal Branch Baihongal Dist. Belagavi

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Through its Division Manager Mr. Venkata Sreekanth Ryali

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APPLICANT

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AND:

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Mr. Adiveppa Yalappa Toragal (Since deceased through his legal heirs)

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a. Smt. Ramakka (Deceased)

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b. Mr. Netaji Adiveppa Toragal S/o. Adiveppa Y Toragal Age: 50 years

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c. Smt. Yellavva D/o. Adiveppa Y Toragal Age: 45 years

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All having their address at: Toragall’s Colony, House No. 241 to 257, Asundi, Taluk, Saundatti, Dist. Belagavi - 591 126 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Venu K V

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OA. No. 548/2024

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Defendant no. 1& (a) : Deceased Defendant’s no.1 (b & c): Ex parte

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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 for seeking issuance of Recovery Certificate against the defendants for Rs. 22,13,712.72/- (Rupees Twenty Two Lakhs Thirteen Thousand Seven Hundred and Twelve and Paisa Seventy Two Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the deceased borrower Late Mr. Adiveppa Yalappa Toragal, availed the following credit facilities:

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Kisan credit card scheme of Rs. 1,46,500/(Rupees One Lakh Forty Six Thousand Five Hundred Only) for cultivation of crops.

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Term loan of Rs. 6,50,000/- (Rupees Six Lakhs Fifty Thousand Only) for minor irrigation.

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It is also the case of the applicant that, in view of the above financed credit facilities, the deceased borrower Mr. Adiveppa Yalappa Toragal executed necessary loan documents, apart from the creation of security interest by way of simple mortgage deed over the schedule property.

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OA. No. 548/2024

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, borrowers 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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After filling of the OA, summons sent to defendant by registered post. The summons to defendant no.1 (a) returned unserved with an endorsement “dead” and the applicant bank has filed a memo dated 24.07.2024 in this regard. When the case came up for hearing on 27.09.2024, in spite of granting sufficient time, defendants no1 (b & c) neither appeared nor represented. Hence, the defendant’s no1 (b & c) placed ex parte on27.09.2024.

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In respect of defendant no.1 (a), who is reported ‘dead’, the applicant bank has filed a memo dated 24.07.2024, and the applicant bank is not willing to bring on record of her legal heirs. 8. The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A17 and got the same marked in evidence. 9. Heard the Ld. Counsel for the Applicant and considered the

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OA. No. 548/2024

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contentions as taken in the OA in the light of documentary evidence and the 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 as against the defendants?

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ii) What orders 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

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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 facilities as stated in the OA, creation of security interest as claimed by the

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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.

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Hence in view of the above findings which cover both the

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

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OA. No. 548/2024

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Taking into consideration the facts that the credit facilities

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are 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 6.00% (simple).

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In the result, OA.No.548/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 22,13,712.72/- (Rupees Twenty Two Lakhs Thirteen Thousand Seven Hundred and Twelve and Paisa Seventy Two Only) with further interest of 6.00% p.a.(simple) from the date of filing of OA till the realization, from the defendant nos. 1(b) & (c), to the extent of their inheritance of any estate of deceased borrower Late Mr. Adiveppa Yalappa Toragal, after giving credit to all the amount recovered and be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not sufficient to clear the

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liability, the defendant nos. 1(b) & (c) to the extent of their inheritance of any estate of deceased borrower Late Mr. Adiveppa

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OA. No. 548/2024

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Yalappa Toragalare, liable for balance amounts due under the loan

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accounts.

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iii) The applicant bank is allowed cost of the proceeding

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

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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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with this Final Order.

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Communicate a copy of the order to the parties concerned in

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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 19^th Day of November, 2025]

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Anurag Mehra, S/o. P K Mehra, Chief Manager of the applicant bank.

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OA. No. 548/2024

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Affidavit of evidence
A2	List of document
A3	Sanction Letter Dated 10.07.2014
A4	Agreement of hypothecation for agricultural loan dated 10.07.2014
A5	Simple Mortgage Dated 01.07.2014 Was Registered On 02.07.2014 Vide Document No. SDTD-1-01546-2014-15 Stored On SDTD107
A6	Proposal dated 10.10.2019
A7	Undated consentgiven bylegal heirs of defendant
A8	Sanction letter dated 10.07.2014
A9	Memorandum of agreement for agricultural loans dated 10.07.2014
A10	Simple mortgage dated 01.07.2014 which was registered on 02.07.2014 vide document no. SDTD-1-01547-2014-15 stored on SDTD107
A11	Proposal dated 07.09.2015
A12	Letters of revival dated 01.09.2016
A13	Letters of revival dated 06.12.2021
A14	Legal notice dated 05.07.2023
	True extract of statement of accounts pertaining to the defendant
A15	aforesaid loan accounts 4738895000041 (new no. 4738847000034)
A16	True extract of statement of accounts pertaining to the defendant aforesaid loan accounts 4738881000023
A17	Statement showingtotal outstandingliabilities

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

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Adiveppa Yalappa Toragal

Case brief

What is this about?

What did the court decide?

Canara Bank v. Adiveppa Yalappa Toragal

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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