Allowed

Canara Bank v. Parasappa Siddappa Tanvashi Since Deceased by His Lrs Sri Shrishail Parasappa Tanvashi

DRT29 Aug 2025OA/576/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application for a recovery certificate. The applicants proved the debt via documentary evidence in the defendants' absence. The recovery amount was approved at a judicially reduced interest rate of 6% p.a. due to the agricultural nature of the loan.

What did the court decide?

Issuance of Recovery Certificate for Rs.30,66,032/- plus future interest at 6% p.a. (simple), enforceable against the 2nd Defendant and the estate of the deceased borrower.

Canara Bank versus Parasappa Siddappa Tanvashi Since Deceased… — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II,

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BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.576/2023

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BETWEEN:

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Canara Bank Branch Office at: Athani I. Opp. Govt. Hospital, Athani-591304, Belagavi District …APPLICANT

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AND:

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Sri. Parasappa Siddappa Tanvashi Since Deceased by his LR’s

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1(a) Sri. Shrishail Parasappa Tanvashi S/o. Late Parasappa Siddappa Tanvashi

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1(b) Sri. Mahadev Parasappa Tanvashi S/o. Late Parasappa Siddappa Tanvashi

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1(c) Smt. Kassawwa Parasappa Tanvashi W/o. Late Parasappa Siddappa Tanvashi

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1(d) Sri. Suresh Parasappa Tanvashi S/o. Late Parasappa Siddappa Tanvashi

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Sri. Irappa Ramappa Thakkanavar S/o. Sri. Ramappa Thakkanavar R/at: Baligeri Village, Athani Taluk, Belagavi District

...DEFENDANTS

OA 576-2023

Counsel on record/appeared for:

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Applicant : K. Raveendran 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

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1993 seeking issuance of Recovery Certificate Rs.30,66,032/- (Rupees thirty lakh sixty six thousand and thirty 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 defendant No.1 Late Parasappa Siddappa Tanvashi was the deceased borrower and D1(a) to (d) are his legal heirs. The deceased borrower and defendant No.2 had availed Agricultural Loan credit facilities of Rs.3,85,000/- (Rupees three lakh eighty five thousand only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the borrower executed necessary loan documents along with memorandum of agreement, letter of revival and particulars of the Vehicle/Machinery in favor of the Applicant Bank.

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OA 576-2023

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It is further contended that, the deceased defendants No.1

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& 2 despite availing the credit facility, agreeing to service the loan account promptly and regularly, 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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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 20.09.2023.

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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-32 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered

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the 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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OA 576-2023

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i) Whether the applicant had succeeded in proving the

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OA claim as against the defendant?

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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 forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as 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, this Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendants for agricultural purpose and also that

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OA 576-2023

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OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a. (simple).

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In the result, OA.No.576/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.30,66,032/- (Rupees thirty lakh sixty six thousand and thirty two only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the 2^nd defendant personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the 2^nd defendant personally and his assets and also the assets to the extent of estate the defendants No.1 (a) to 1 (d) had inherited from the deceased borrower along with schedule property to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the proceedings

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

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

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OA 576-2023

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order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of

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in terms of this final order.

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14. Communicate a copy of the order to the parties concerned

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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 29^th day of August, 2025].

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Sd/ (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: Prasahnth Ujjalavant Kamble, Asst. Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant Evidence
A2	--	List of Documents.
A3	26.09.2003	Application for agricultural credit facilities
A4	27.09.2003	Sanction Memorandum letter
A5	26.09.2003	Memorandum of Agreement for Agricultural Loans
A6	10.10.2003	Particulars of Vehicle/Machinery/Equipment
A7	10.06.2004	Draft of link letter
A8	10.06.2004	Memorandum of Agreement for Agricultural Loans

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OA 576-2023

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A9 A10 A11	08.03.2007	Letters of revival
A12 A13 A14	06.03.2007	Letter of Revival
A15 to A18	14.01.2012	Letter of Revival
A19 to A22	07.02.2014	Letter of Revival
A23 & A25	16.01.2017	Letter of Revival
A26 to A28	20.04.2019	Letter of Revival
A29 to A31	17.06.2021	Letter of Revival
A32		Statement of Account in respect of Farm Machinery Loan account No.1069856001056 along with interest sheet and certificate

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

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Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Parasappa Siddappa Tanvashi Since Deceased by His Lrs Sri Shrishail Parasappa Tanvashi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Parasappa Siddappa Tanvashi Since Deceased by His Lrs Sri Shrishail Parasappa Tanvashi

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

All orders in this case

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