Allowed

Canara Bank v. Smt. Laxmibai

DRT19 Jun 2025OA/620/2022

Case brief

AI extract

What is this about?

Bengaluru DRT allowed an application for recovery certificate under S. 19 RDB Act 1993. The bank proved a NPA agricultural loan of Rs.47,46,150. The court awarded the principal plus interest reduced to 8% p.a. and directed execution proceedings.

What did the court decide?

Recovery Certificate for Rs.47,46,150 plus interest at 8% p.a. issued, executable against schedule property and defendant's personal assets.

Canara Bank versus Smt. Laxmibai — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 19^th Day of June, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.620/2022

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BETWEEN:

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Canara Bank Branch Office at: Kalaburgi Main 1 Branch, Janata Bazar Building, Super Market, Kalburgi-585101 …APPLICANT

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AND:

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Smt. Laxmibai W/o. Revansiddappa Patil R/at Bedagpalli Village, Chincholi Taluk, Kalaburgi District-585320

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendant : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for

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Rs.47,46,150/-(Rupees forty seven lakh forty six thousand one

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OA 620/2022

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hundred fifty only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the Agricultural Credit facilities of Rs.5,50,000/-(Rupees five lakhs fifty 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 defendant executed necessary loan documents along with registered simple mortgage, letters of revival and loan agreements in favor of the applicant bank.

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It is further contended that, the defendant 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 defendant, he failed

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to appear, resulting the defendant being set exparte on 06.06.2023.

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OA 620/2022

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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-15 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 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

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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

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remains unrebutted as defendant 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

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OA 620/2022

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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

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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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are availed by defendant for agricultural purpose and also that 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 @8% p.a.

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In the result, OA.No.620/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.47,46,150/-(Rupees forty seven lakh forty six thousand one hundred fifty only) with further interest @8% p.a.

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(Simple)

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from the date of filing OA till the realization, from the defendant personally after giving credit to all the amount recovered and

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received during the pendency of the OA and allowed the same

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OA 620/2022

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to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendant personally and his other assets are liable to be proceeded against for the balance amount.

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iii) 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

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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

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in terms of this final order.

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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 her, corrected and signed and pronounced by me in the Open Court, this the 19^th day of June, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 620/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Satwant Singh, Senior Manager, of Applicant 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	13.12.2005	Application for agricultural term loan
A4	13.12.2005	Application for purchase of tractor
A5	22.12.2005	Appraisal Report- Purchase of tractor/power tiller
A6	13.12.2005	Simple mortgage deed registered as Doc.1026/2005-2006 dated 14.12.2005
A7	22.12.2005	Memorandum of agreement for agriculture loan
A8	31.01.2008	Letter of Revival
A9	30.12.2010	Letter of Revival
A10	25.12.2012	Letter of Revival
A11	24.11.2017	Letter of Revival
A12	20.11.2020	Letter of Revival
A13	21.02.2022	Legal notice and postal receipt
A14	26.02.2022	Postal acknowledgement card duly served
A15		Bank statement of A/c. 0513856007776

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

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-Nil -

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-Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Smt. Laxmibai

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Laxmibai

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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