Allowed

Canara Bank v. Parameshwarappa H

DRT12 Nov 2025OA/624/2023

Case brief

AI extract

What is this about?

The Tribunal disposed of the Original Application filed by Canara Bank seeking a recovery certificate against eight respondents. As defendants appeared ex parte, the Tribunal found the claim proved and allowed the OA, reducing interest to 6% simple for agricultural loans, and authorized recovery from schedule properties and joint assets.

What did the court decide?

Issuance of Recovery Certificate for Rs. 1.06 Crore with interest at 6% p.a. (simple) recoverable from schedule property and joint/several assets of defendants.

Canara Bank versus Parameshwarappa H — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 12^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.624/2023

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BETWEEN:

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Canara Bank Holalur Branch, Shimoga Taluk & District Karnataka – 577 216 …APPLICANT

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AND:

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Sri. Parameshwarappa H S/o. late Chenappa Aged about 63 years Madikechilur Village, Holalur Hobli, Shimoga Taluk & District Pin – 577 216

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Sri. Mallikarjuna S/o. late Chenappa Aged about 60 years Madikechilur Village, Holalur Hobli, Shimoga Taluk & District Pin – 577 216

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Sri. Rajappa S/o. late Chenappa Aged about 58 years Madikechilur Village, Holalur Hobli, Shimoga Taluk & District Pin – 577 216

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Sri. Shivakumar S/o. late Chenappa Aged about 48 years Madikechilur Village, Holalur Hobli, Shimoga Taluk & District Pin – 577 216

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OA-624/2023

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Sri. Satish S/o. late Chenappa Aged about 47 years Madikechilur Village, Holalur Hobli, Shimoga Taluk & District Pin – 577 216

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Sri. Chandrappa S/o. late Chenappa Aged about 46 years Madikechilur Village, Holalur Hobli, Shimoga Taluk & District Pin – 577 216

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Sri. Hiranayya S/o. late Chenappa Aged about 45 years Madikechilur Village, Holalur Hobli, Shimoga Taluk & District Pin – 577 216

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Smt. Hemavathi D/o. late Chenappa Aged about 62 Years Madikechilur Village, Holalur Hobli, Shimoga Taluk & District Pin – 577 216 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : V Mohan Defendants : 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 seeking for issuance of Recovery Certificate against the defendants for Rs. 1,06,86,619.75/- (Rupees One Crores Six Lakhs Eighty Six

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OA-624/2023

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Thousand Six Hundred and Nineteen and Paisa Seventy Five Only)

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with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the 1^st defendant availed the following credit facilities:

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KCC limit of Rs. 3,00,000/- (Rupees Three Lakhs Only) on 17.06.2013. 1^st enhancement of KCC limit of Rs. 4,50,000/- (Rupees Four Lakhs Fifty Thousand Only) on 15.05.2015. 2^nd enhancement of KCC limit of Rs. 3,00,000/- (Rupees Three Lakhs Only) on 05.10.2015.

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Kisan credit card limit of Rs. 1,50,000/- (Rupees One Lakh Fifty Thousand Only) on 05.09.2013.

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Kisan OD limit of Rs. 12,50,000/- (Rupees Twelve Lakhs Fifty Thousand Only) on 09.05.2015.

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Kisan credit card limit of Rs. 12,50,000/- (Rupees Twelve Lakhs Fifty Thousand Only) on 09.05.2015.

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Kisan credit card limit of Rs. 1,70,000/- (Rupees One Lakh Seventy Thousand Only) on 01.10.2015.

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Farm development loan of Rs. 19,00,000/- (Rupees Nineteen Lakhs Only) on 14.03.2016.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with simple mortgage deed.

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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 accounts as NPA.

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In the above circumstances, the applicant approached this

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Tribunal by filing this OA seeking issuance of Recovery Certificate for

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OA-624/2023

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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 ex parte on 20.12.2024.

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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 A-1 to A-62 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 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 the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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OA-624/2023

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due are also proved by the above documents. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are 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 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

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.624/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 1,06,86,619.75/- (Rupees One Crores Six Lakhs Eighty Six Thousand Six Hundred and Nineteen and Paisa Seventy Five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against 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 found sufficient to cover the

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amount due and payable to the applicant bank, the defendants

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OA-624/2023

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jointly, severally and personally and their assets are liable for balance

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amounts due under the loan accounts.

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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 receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of 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 DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 12^th Day of November, 2025].

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Sd/-

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(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: Gairuboni Nagavamshi, S/o. late Sri. Narayana, Senior Manager, of Applicant Bank.

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OA-624/2023

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	-----	Evidence affidavit
A2	-----	List of documents
A3	15.06.2013	Common application cum appraisal form for credit facilities for agricultural loan above Rs. 2,00,000/- and up to Rs. 10,00,000/-by defendant no.1
A4	17.06.2013	Sanction memorandum
A5	17.06.2013	Agreement and deed of hypothecation for Kisan credit card executed by defendant no.1
A6	15.06.2013	Simple mortgage deed for Kisan credit card scheme (KCCs) facility to agriculturists executed by defendant nos.1 to 8 as document SMG-1-02615- 2013-14 stored in CD no. SMGD 174 in the office of the sub registrar, Shimoga
A7	15.05.2015	Application memorandum for enhanced limit
A8	15.05.2015	Sanction memorandum for enhanced limit
A9	15.05.2015	Supplemental agreement executed by defendant no.1
A10	15.05.2015	Simple mortgage deed for Kisan credit card scheme (KCCs) facility to agriculturists executed by defendant no.1 as document no. SMG-1-01322- 2015-16 stored in CD SMGD 236 in the office of the sub-registrar, Shimoga
A11	05.10.2015	Application for renewal/reduction of KCCs limit from Rs. 4,50,000/-to Rs. 3,00,000/-
A12	05.10.2015	Sanction memorandum of loans and advances
A13	05.10.2015	Letter of renewal executed by defendant no.1
A14	22.09.2015	Simple mortgage deed for Kisan credit card scheme (KCCs) facility defendant nos.1 to 8 as document no. SMG-1-06212-2015-16 stored in CD no. SMGD 255 in the office of the sub registrar,Shimoga
A15	05.07.2016	Application cum sanction for renewal and/or enhancement under Kisan credit card scheme
A16	05.07.2016	Sanction memorandum of loans and advances
A17	05.07.2015	Letter of renewal executed by defendant no.1
A18	15.05.2015	Letter of revival executed by defendant no.1

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OA-624/2023

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A19 A20	07.11.2017 03.11.2013	Letter of revival executed by defendant no.1 Letter of revival executed by defendant no.1
A21	05.09.2013	Common application form cum appraisal report for credit facility for agricultural loan up to Rs. 2,00,000
A22	05.09.2013	Sanction memorandum of loans and advances
A23	05.09.2013	Agreement and deed of hypothecation for Kisan credit card
A24	05.09.2013	Simple mortgage deed for Kisan credit card scheme (KCCs) facility to agriculturists executed by defendant no.1 as document no HNL-1-01819-2013- 14 stored in CD no. HNLD 51 in the office of the sub registrar, Honnali
A25	15.05.2015	Letter of revival executed by defendant no.1
A26	09.05.2018	Letter of revival executed by defendant no.1
A27	07.04.2021	Letter of revival executed by defendant no.1
A28	09.05.2015	Common application cum appraisal form for credit facilities for agricultural loan above Rs. 2,00,000 and up to Rs. 10,00,000/-
A29	09.05.2015	Sanction memorandum of loans and advances
A30	09.05.2015	Agreement and deed for Kisan OD
A31	08.05.2015	Simple mortgage deed for Kisan OD executed by defendant no.1 as document no SMG-1-01179-2015- 16 stored in CD no. SMGD 236 in the office of the sub registrar, Shimoga
A32	07.11.2017	Letter of revival executed by defendant no.1
A33	09.10.2020	Letter of revival executed by defendant no.1
A34	09.05.2015	Common application cum appraisal form for credit facilities for agricultural loan above Rs. 2,00,000 and upto Rs. 10,00,000/-
A35	09.05.2015	Sanction memorandum of loans and advances
A36	09.05.2015	Memorandum of agreement for agricultural loans
A37	08.05.2015	Simple mortgage deed for Kisan credit card scheme (KCCs) facility to agriculturists executed by defendant no.1 as document no SMG-1-01180-2015- 16 stored in CD no. SMGD 236 in the office of the sub registrar, Shimoga
A38	07.11.2017	Letter of revival executed by defendant no.1
A39	03.11.2020	Letter of revival executed by defendant no.1

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OA-624/2023

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A40	01.10.2015	Common application cum appraisal form for credit facilities for agricultural loan upto Rs. 2,00,000/-
A41	03.10.2015	Sanction memorandum of loans and advances
A42	03.10.2015	Agreement of hypothecation for agricultural loans executed bydefendant no.1
A43	22.09.2015	Simple mortgage deed for Kisan credit card scheme (KCCs) facility to agriculturists executed by defendant no.1 as document no SMG-1-06211-2015- 16 stored in CD no. SMGD 255 in the office of the sub registrar,Shimoga
A44	01.08.2018	Letter of revival executed by defendant no.1
A45	09.07.2021	Letter of revival executed by defendant no.1
A46	14.03.2016	Common application cum appraisal form for credit facilities for agricultural loan above Rs. 10,00,000 and upto Rs. 30,00,000
A47	28.03.2016	Sanction memorandum of loans and advances
A48	28.03.2016	Memorandum of agreement for agricultural loans executed bydefendant no.1
A49	07.11.2016	Simple mortgage deed for agricultural advances executed by defendant no.1 to 8 as document no SMG-1-07705-2016-17 stored in CD no. SMGD 316 in the office of the sub registrar,Shimoga
A50	28.02.2019	Letter of revival executed by defendant no.1
A51	01.09.2021	Letter of revival executed by defendant no.1
A52	20.07.2022	Legal notice issued by the applicant bank in vernacular
A53	20.07.2022	Translated version of the legal notice
A54	-----	Postal receipt
A55	-----	RPAD card received from defendant no.1
A56	-----	Statement of account extract of KCCs 0561840013174
A57	-----	Statement of account extract of KCCs 0561840013239
A58	-----	Statement of account extract of KCCs 056187000508
A59	-----	Statement of account extract of KCCs 0561840013548
A60	-----	Statement of account extract of KCCs

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OA-624/2023

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		0561840013609
A61	-----	Statement of accounts extract of FDL 0561883012048
A62	------	Core banking statement

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Parameshwarappa H

Case brief

What is this about?

What did the court decide?

Canara Bank v. Parameshwarappa H

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Case details

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