Allowed

Canara Bank v. Smt. Satyavathi

DRT19 Jun 2025OA/649/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for a Recovery Certificate against four sisters who defaulted on KCC and Kisan Overdraft loans. With evidence unrebutted, the Tribunal granted recovery of ₹21,54,942 plus 8% simple interest, despite the agri-purpose usage of funds.

What did the court decide?

Recovery of ₹21,54,942 plus future/pendential interest @ 8.00% simple interest from OA filing date till realization.

Canara Bank versus Smt. Satyavathi — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 19^th Day of June, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A. No. 649 of 2024

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Canara Bank, And one of its Branch offices called, Hassan Main Branch, at NR Pura Road, Hassan City, Hassan Taluk, Hassan District- 573 201, Represented by its Senior Manager, Sri. Hanumanthappa H.

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. . . Applicant

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Versus

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Smt. Satyavathi, D/o Late Rangaswamy, Aged about 59 Years.

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Smt. Vasantha, D/o M.B. Rangegowda, Aged about 56 years.

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Smt. Lalitha, D/o M.B. Rangegowda, Aged about 49 years.

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Smt. Veena, D/o B.N. Rangaswamy, Aged about 29 years.

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All are residing at, Byrapura Village, Dudda Hobli, Heragu Post,

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OA649/2024

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Hassan Taluk & District, Pin- 573 118. ---Defendants

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Ld. Counsels on record / appeared :- Counsel for Applicants :- Sri. V Haridas Bhat Counsel for Defendants :- EXPARTE

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The Application is filed Under Section 19 (1) of the Recovery of Debt And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for Rs. 21,54,942/- (Rupees Twenty One Lakh Fifty Four Thousand Nine Hundred and Forty Two Only) due in the KCC Loan for Rs. 2,50,000/(Rupees Two Lakh Fifty Thousand Only) and Kisan Overdraft loan Limit of Rs. 5,25,000/- (Rupees Five Lakh Twenty Five Thousand Only) availed by the defendants and defaulted subsequently in gross violation of the terms and conditions stipulated in the loan agreement.

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It is also stated that the facilities is secured by Agreement and deed of hypothecation and mortgage deed.

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The Applicant further contents that despite availing the credit facility by

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obliging to pay back the amount, the defendants failed in compliance of

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the same and all the efforts of the Applicant to make the defendants pay back the amount failed forcing the Applicant to file this Application.

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OA649/2024

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Summons was taken out and as the defendants failed to appear they were

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set exparte on 22.11.2024 and evidence was adduced by the applicant through AW1, who filed proof affidavit, produced documents and got marked Ext.A1 to A20, list of which are annexed to this order.

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The Applicant’s evidence remain un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is to be found entitled for the OA claim as the only issue as to the proof of OA claim is answered in favour of the applicant. The OA claim is made within limitation and there is no capitalization of penal interest.

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Taking into consideration the facts that the credit facilities are availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

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In view of the above

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i. OA 649 OF 2024 stands allowed

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ii. Applicant is permitted to recover an amount of Rs. 21,54,942/(Rupees Twenty One Lakh Fifty Four Thousand Nine Hundred and Forty Two Only) with future and pendentalite interest @ 8.00% (Simple) from the date of filing of the OA till realization from the

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OA649/2024

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defendants jointly, severally & personally after giving credit to all

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the amount recovered and received during the pendency of the OA.

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iii. The schedule property to be proceeded against and sold and if the sale proceeds are not sufficient the defendants jointly, severally & personally and their other assets are liable to be produced against. The schedule to the OA to be the schedule to the Recovery Certificate.

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iv. A Recovery Certificate is to be drawn and issued to the recovery Officer to enable recovery of the as per the above terms.

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v. Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

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vi. Interim application pending, if any, stands disposed of in terms of this final order.

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Communicate a copy of the order to the parties concerned 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 AJ, transcribed by her, corrected, signed and pronounced by me in Virtual Court on this day of 19^th Day of June, 2025)

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Sd/- (T. RAJESH) Hon’ble Presiding Officer

OA649/2024

DRT-II- BANGALORE

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Muralidhar , Chief 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
		KCC Loan of Rs. 2,50,000/-
A1	24.12.2014	Loan application submitted by the 1^st defendant
A2	24.12.2014	Loan sanction letter
A3	24.12.2014	Agreement and deed of hypothecation for kisan credit card executed by the 1^st defendant
A4	22.12.2014	Mortgage deed executed by the defendants and registered in the office of the Sub- Registrar, Hassan as Document No. HSN-1- 8003/2014-15 and stored in CD No. HSND260
A5	07.10.2017	Letter of revival executed by1^stdefendant
A6	25.11.2019	Letter of revival executed by1^stdefendant
A7	19.07.2022	Letter of revival executed by1^stdefendant
		II- Kisan OD of Rs. 5,25,000/-
A8	22.12.2014	Loan application submitted by the 1^st defendant
A9	24.12.2014	Loan sanction letter
A10	24.12.2014	Agreement and deed for kisan overdraft executed bythe 1^stdefendant
A11	22.12.2014	Mortgage deed executed by the defendant and registered in the office of the Sub- Registrar, Hassan as Document No. HSN- 1- 08001/2014-15 and stored in CD No. HSND260
A12	16.08.2017	Letter of revival executed bythe 1^stdefendant
A13	04.04.2020	Letter of revival executed bythe 1^stdefendant
A14	19.07.2022	Letter of revival executed bythe 1^stdefendant

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OA649/2024

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A15	25.11.2019	Letter written by the 1^stdefendant requesting to convert the KCC Loan into term loan
A16	09.11.2021	Notice issued by the applicant bank to the 1^st defendant
A17	25.01.2022	Notice issued by the applicant bank to the 1^st defendant
A18	02.03.2023	Legal notice got issued by the applicant bank to the defendants
A19	--	Statement of account in respect of KCC Account No. 0531847013386 (old Account NO. 0531840909)
A20	--	Statement of account in respect of Kisan OD loan account No. 0531897000240

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) Hon’ble Presiding Officer DRT-II- BANGALORE

Canara Bank v. Smt. Satyavathi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Satyavathi

Case brief

What is this about?

What did the court decide?

What the court decided

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