Allowed

Canara Bank v. Ms Renuka Silver Melting Works rep by its proprietor Sri Shankar Machendra Kasheed

DRT25 Nov 2025OA/562/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Original Application filed by Canara Bank seeking recovery certificate for dues of approximately Rs. 22.66 lakh against M/s. Renuka Silver Melting Works and proprietor, defaulting on credit facilities, with interest capped at 12% p.a. due to first instance calculation based on business purpose.

What did the court decide?

Issuance of Recovery Certificate for Rs. 22,66,526/- payable at 12% p.a. simple interest from filing till realization, recoverable jointly, severally and personally against defendants and against the

Canara Bank versus Ms Renuka Silver Melting Works… — 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

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Presiding Officer

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OA. No.562/2022

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BETWEEN:

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Canara Bank Head office at No.112, J.C. Road, Bangalore-560002 Majestic Branch, Rep. by its Authorised Signatory Sri. Ashis Kumar Verma … APPLICANT

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AND:

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M/s. Renuka Silver Melting Works Rep. by its Proprietor Sri. Shankar Machendra Kasheed Office at. No.14/28, M.S. Lane, J M Road, Cubbonpet, Bangalore-560002

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Sri. Shankar Machendra Kasheed S/o. Sri. Machendra Kasheed Aged about 45 years R/at. No.14/28, J.M. Road, Chickpete, Bangalore-560002

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. Sunanda S Rathod Defendants : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for

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OA. No.562/2022

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seeking issuance of Recovery Certificate against the defendants for Rs.22,66,526/- (Rupees Twenty Two Lakh Sixty Six Thousand Five Hundred and Twenty Six 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 defendants availed the following credit facilities:

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i. Overdraft facility of Rs.7,50,000/- on 05.02.2018

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ii. OCC of Rs.15,00,000/- on 14.06.2019

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iii. Term loan of Rs.15,00,000/- on 24.04.2020

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iv. Working capital loan of Rs.1,50,000/- on 24.04.2020

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents. Apart from the creation of security interest by way of hypothecation over the Schedule.

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

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OA. No.562/2022

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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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 06.11.2024.

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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 A3 to A41 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 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

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remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and

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OA. No.562/2022

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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 applicant bank and the defaults committed in the account. 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 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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Taking into consideration the facts that the credit facilities

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were availed for business purpose and also that 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 12.00%

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p.a.(simple).

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In the result, OA.No.562/2022 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.22,66,526/- (Rupees Twenty Two Lakh Sixty Six Thousand Five Hundred and Twenty Six Only) with further interest of 12.00%

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p.a.(simple) from the date of filing OA till the realization from the

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OA. No.562/2022

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defendants, after giving credit to all the amounts recovered and

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received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule. The

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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 amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding which 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 with this Final Order.

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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.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 25^th Day of November 2025].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.562/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Ashok J, Officer and PA Holder of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure		Particulars
A3	Loan applicatio	n dated 28.11.2018
A4	Cash credit ag	reement dated 05.12.2018
A5	Request for ov	erdraft facilities dated 05.12.2018
A6	Pro-note dated	05.12.2018
A7	Guarantee cov Shankar K.A. d	ering letter in the name of Sri. ated 05.12.2018
A8	Guarantee agr K.A dated 05.1	eement in the name of Sri. Shankar 2.2018
A9	Sanction mem	orandum
A10	Supplement ag	reement dated 14.06.2019
A11	Particulars of 14.06.2019	the guarantor/co-obligant dated
A12	Pro-note dated	14.06.2019
A13	Certificate of 14.06.2019	loan papers obtained dated
A14	Letter evidenc 14.06.2019	ing execution of documents dated
A15	Letter of 14.06.2019	attestation/declaration dated
A16	OCC stock 07.06.2019	statement cum MSOD dated
A17	Letter of renew	al dated 14.06.2019
A18	Loan applicatio	n dated 24.04.2020
A19	Sanction mem	orandum dated 24.04.2020
A20	Take deliveryl	etter to DPN dated 24.04.2020
A21	Letter of unde 24.04.2020	rtaking re: loans/advances dated
A22	Letter of 24.04.2020	attestation/declaration dated
A23	Particulars of 24.04.2020	the guarantor/co-obligant dated

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OA. No.562/2022

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A24	Specimen signature for borrowal account dated 24.04.2020
A25	Letter evidencing execution of documents dated 24.04.2020
A26	Letter of revival dated 24.04.2020
A27	Letter of renewal dated 24.04.2020
A28	Sanction memorandum dated 24.04.2020
A29	Agreement cum deed of hypothecation
A30	Pro-note dated 24.04.2020
A31	Letter of Proprietorship
A32	Certificate of loan papers obtained dated 24.04.2020
A33	Undertaking letter from non-corporate borrowers dated 24.04.2020
A34	Letter of attestation/declaration dated 24.04.2020
A35	Legal notice dated 22.03.2022
A36	Postal receipts
A37	Served acknowledgments or RPAD
A38	Statement of account

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Ms Renuka Silver Melting Works rep by its proprietor Sri Shankar Machendra Kasheed

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms Renuka Silver Melting Works rep by its proprietor Sri Shankar Machendra Kasheed

Case brief

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What did the court decide?

What the court decided

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