Allowed

Canara Bank v. Sri Sai Readymade Garments

DRT31 Dec 2025OA/619/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for a recovery certificate against five defaulting defendants who appeared ex-parte, adjusting interest to 11% perpetual annum and authorizing joint and several recovery.

What did the court decide?

Issuance of Recovery Certificate for Rs.42,00,650/- with 11% p.a. simple interest recoverable jointly and severally against the defendants.

Canara Bank versus Sri Sai Readymade Garments — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of December, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.619/2023

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BETWEEN:

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Canara Bank Raibagh Branch, Sankalp Building, Ankali Road, Pin:591317 Through its Chief Manager Sri. Sivakumar A … APPLICANT

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AND:

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M/s. Sri Sai Readymade Garments Prop: Mr. Bhimagouda Sidaling Patil, Aged major House No.177/1, Nagaral, Raibagh Belgaum, Karnataka – 591317

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Mr. Bhimagouda Sidaling Patil Aged major, House No.177/1, Nagaral, Raibagh Belgaum, Karnataka – 591317

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Sri. Sidaling Rayagouda Patil S/o. Rayagouda Patil, House No.177/1, Nagaral, Raibagh Belgaum, Karnataka – 591317

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Sri. Rayagouda Sidaling Patil S/o. Sidaling Patil, Nagaral, Raibagh Belgaum, Karnataka – 591317

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OA. No.619/2023

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Sri. Vishal Malagouda Kitture S/o. Malagouda Kitture, Near Railway Station, Basaveshwar Nagar, Nagaral, Raibagh Belgaum, Karnataka-591317

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...DEFENDANTS

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Counsel on record/appeared for: Applicant : Sri. S B Srikanth 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 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.42,00,650/- (Rupees Forty Two Lakh Six Hundred and Fifty 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 credit facility of Rs.39,71,000/- on 25.11.2020.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in

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OA. No.619/2023

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default in repayment and consequentially turning the loan account 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 17.12.2025.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A11 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: 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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OA. No.619/2023

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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 facility as stated in the OA, as to the execution of loan documents as claimed by the applicant bank and the defaults committed in the accounts. 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 finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility was 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 11.00% (simple).

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OA. No.619/2023

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In the result, OA.No.619/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.42,00,650/- (Rupees Forty Two Lakh Six Hundred and Fifty only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from defendants, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendants jointly, severally and personally and their other assets, including the schedule property are liable for all such amounts due under the loan account. 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 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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OA. No.619/2023

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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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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 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 31^st Day of December 2025].

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: S.B. Srikanth, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Loan Application Dated 14.08.2020
A2	Simple mortgage deed dated 19.11.2020
A3	Sanction Letter Dated 25.11.2020
A4	Hypothecation agreement dated 25.11.2020
A5	Take delivery letter to DPN dated 25.11.2020
A6	Pronote dated 25.11.2020

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OA. No.619/2023

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A7	Deed of Guarantee for Agriculture advances dated 25.11.2020
A8	Memorandum of deposit of title deeds dated 25.09.2020
A9	Copy of legal notice dated 22.12.2022
A10	Statement of account 05089450001431
A11	Letter of Revival dated 05.01.2023

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sri Sai Readymade Garments

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri Sai Readymade Garments

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

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Case details

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