Allowed

Canara Bank v. Sri Dharnesha Gowda

DRT28 Nov 2025OA/640/2023

Case brief

AI extract

What is this about?

In an ex parte Original Application under Section 19 of the RDB Act, the Tribunal allowed the bank's claim for recovery by issuing a Recovery Certificate for the principal sum, restricted interest to 6% simple, and authorized recovery from inherited assets/properties.

What did the court decide?

Recovery Certificate issued allowing recovery of Rs. 33,30,898 plus 6% simple interest from respondents' inherited estate and property.

Canara Bank versus Sri Dharnesha Gowda — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^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.640/2023

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BETWEEN:

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Canara Bank Mallipatna Branch, Mallipatna – 573 102 Arkalgud Taluk, Hassan District

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Represented by its Manager & PA holder Sri. Shravan Kumble …APPLICANT

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AND:

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Sri. Dharanesha Gowda S/o. Kari Gowda Aged about 46 years Residing at: Hullangala Village, Kasaba Hobli, Arakalagud Taluk, & P.S. Hassan District – 573 102

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Smt. Parvathi W/o. Swamy Gowda Aged about 47 years

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Mr. Mohan Kumar S/o. Swamy Gowda Aged about 30 years

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OA. No. 640/2023

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Ms. Manjula D/o. Swamy Gowda Aged about 35 years

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Sri. Shivakumara S/o. Swamy Gowda Aged about 32 years

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Defendant no. 2 to 5 are residing at: Babbagalale Village, Mallipatna Hobli, Arakalgud Taluk & P.S. Hassan District – 573 102

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Sri. Chinnaswamy Gowda S/o. Swamy Gowda Aged about 47 years

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Residing at: Dharmapura Village, Mallipatna Hobli, Arakalagud Taluk, Hassan District – 573 102 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : HSR & Associates

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Defendants : Ex parte

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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 seeking issuance of Recovery Certificate against the defendants for Rs. 33,30,898/- (Rupees Thirty Three Lakhs Thirty Thousand Eight

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OA. No. 640/2023

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Hundred and Ninety Eight 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 nos. 1 & 6 and defendant nos. 2 to 5 are the legal heirs of the deceased borrower. The Late borrower Sri. Swamy Gowda availed a farm machinery loan of Rs. 5,00,000/- (Rupees Five Lakhs Only) for the purpose of purchasing tractor and trailer.

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The deceased borrower executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower Sri. Swamy Gowda had also executed Simple Mortgage Deed dated 18.10.2005.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants 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 as against the defendants.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 07.10.2024.

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OA. No. 640/2023

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A14 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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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 OA

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claim as against the defendants?

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ii) What orders 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 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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. The

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liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well

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OA. No. 640/2023

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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 facility are

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal

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

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In the result, OA.No.640/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 33,30,898/- (Rupees Thirty Three Lakhs Thirty Thousand Eight Hundred and Ninety Eight Only) with further interest of 6.00% p.a.(simple)from the date of filing OA till the realization,

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from the defendant nos. 1 & 6, to the extent of their inheritance of any estate form the deceased borrower Sri. Swamy Gowda, after giving credit to all the amounts recovered and received

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during the pendency of the OA allowed the same to be recovered

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by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery

OA. No. 640/2023

Certificate.

ii) If the sale proceeds are not found sufficient to cover

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the liability, the defendants to the extent of their inherited form

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the deceased Sri. Swamy Gowda is liable to the proceeds against

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for the balance amount.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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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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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

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DRT (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 28^th Day of November, 2025].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA. No. 640/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Smt. Bhagya N, W/o. Padmanabha, Senior Manager, of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	03.10.2005	Loan application submitted by Sri Swamy Gowda and the defendant no. 1
A2	18.10.2005	Particulars of the co-obligant submitted by the defendant no.6
A3	18.10.2005	Memorandum of agreement for agricultural loans executed by Sri Swamy Gowda and the defendant no. 1 & 6 in favour of the applicant bank
A4	18.10.2005	Simple mortgage deed executed by Sri Swamy Gowda in favour of the applicant bank
A5	11.08.2008 08.10.2010	2 nos. letters of revival executed by Sri Swamy Gowda & the defendant nos. 1 & 6 in favour of the applicant bank
A6	23.01.2011	Death certificate of Sri. SwamyGowda
A7	06.03.2013 02.02.2016 08.01.2019 (2 nos.), 05.01.2022 (2nos.)	6 nos. letters of revival executed by the defendant’s in favour of the applicant bank
A8	-------	Certified account extracts of Sri Swamy Gowda maintained by the applicant bank in usual and the ordinarycourse of business

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

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-Nil -

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-Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Sri Dharnesha Gowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri Dharnesha Gowda

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

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