DRT allowed Canara Bank's OA under RDB Act 1993 seeking recovery certificate for approx Rs. 14.17 crore. Defendant was absent. Court found evidence sufficient and ordered recovery with 9.15% simple interest from filing date.
Recovery Certificate issued for Rs. 14,17,78,809.47 with further interest at 9.15% p.a. (simple) from filing date till realization.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 24th Day of April, 2025
Present: Sri. T. RAJESH Presiding Officer
OA.No.657/2022
BETWEEN:
Canara Bank, Lalbagh West Branch, 29, Sir M N K Rao Road, Lalbagh West, Basavanagudi, Bangalore- 560 004. Through its Chief Manager, Smt. Shilpa Jain. …APPLICANT
AND:
Mr. Lokanath Naidu K, No. 40/46, 2nd Floor, Sri Rama Mandir Road, Basavanagudi, Bangalore 560 004. ...DEFENDANT
Counsel on record/appeared for:
Applicant : M/s. VS Associates Defendant : Exparte
FINAL ORDER
filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of a Recovery Certificate against the defendant for Rs. 14,17,78,809.47(Rupees Fourteen Crore
OA 657/2022
2
Seventeen lakh Seventy Eight Thousand Eight Hundred Nine and Paise Forty Seven Only) with further interest thereon from the date of filing the Application till realization.
OA 657/2022
3
defaults in repayment and consequentially turning the loan account as NPA.
OA claim as against the defendant?
OA 657/2022
4
ii) What order are to be passed?
Both these issues are gone into and decided together.
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 the availment of credit facilities as stated in the OA, creation of security interest 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 is also proved by the above documents. The claim of the applicant is well within the limitation.
Tribunal find both these issues in favour of applicant and hence
this Tribunal is of the view that OA is liable to be allowed.
are availed by defendant is for commercial purpose, this Tribunal in view that interest as agreed upon can be allowed. However
taking into consideration the fact that the OA claim is arrived at
OA 657/2022
5
by calculating interest at the agreed rate and also by calculating default interest, the prayer for monthly rest and penal interest for future period is declined.
sum of Rs. 14,17,78,809.47 (Rupees Fourteen Crore Seventeen lakh Seventy Eight Thousand Eight Hundred Nine and Paise Forty Seven Only)with further interest @ 9.15% p.a.(simple) from the date of filing OA till the realization, from the defendant after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against schedule property. Properties schedule to the OA be the schedule to the recovery certificate.
ii) If the sale proceeds are not found sufficient to cover
the amount due and payable to the applicant bank, the defendant personally, his assets are liable for all such amounts due under the loan accounts.
iii) The applicant bank is allowed cost of the proceedings
which applicant to file cost memo within 7 days from the date of
OA 657/2022
6
receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this
order and transferred to Recovery for execution.
v) Interim Application pending, if any, are disposed of
with this Final Order.
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16
of DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by
me in the Open Court, this the 24th Day of April, 2025].
Sd/- (T. RAJESH)
PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Arun A Lakra S/o Late Gregory Lakra, Senior Manager, of
Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit | Particulars of Documents |
|---|---|
| Nos. | |
| A1 | Applicant Evidence |
| A2 | List of Documents. |
| A3 | Sanction letter dated 30.06.2018 |
OA 657/2022
7
| A4 | Term loan agreement dated 18.09.2018 along with supporting documents therein |
|---|---|
| A5 | Memorandum of Deposit of title deeds dated 20.09.2018 |
| A6 | Sanction letter dated 18.11.2019 |
| A7 | Letter dated 18.11.2019 issued by defendant stating that the carries business in the name of M/s. Wine |
| A8 | Demand Promissory Note of Rs. 2 crores on 18.11.2019 |
| A9 | Common hypothecation agreement dated 18.11.2019 |
| A10 | Letter of undertaking regarding loans/ advances dated 18.11.2019 |
| A11 | Demand promissory note for Rs. 20 lakhs dated 18.04.2020 |
| A12 | Letter of undertaking dated 18.04.2020 |
| A13 | Common hypothecation agreement 28.05.2020 |
| A14 | Supplemental memorandum of deposit of title deeds dated 24.06.2020 |
| A15 | Supplemental common hypothecation agreement dated 24.06.2020 |
| A16 | Sanction letter dated 01.09.2020 |
| A17 | Legal/Demand/Recall notice dated 22.04.2021 |
| A18 | True Extract of Statement of Account pertaining to the defendants A/C No. 0887605010621 |
| A19 | True Extract of Statement of Account pertaining to the defendants A/C No. 0684261010644 |
| A20 | True Extract of Statement of Account pertaining to the defendants A/C No. 068475000012 |
| A21 | True Extract of Statement of Account pertaining to the defendants A/C No. 0684755000040 |
| A22 | True Extract of Statement of Account pertaining to the defendants A/C No. 0684710000001 |
Witness Examined for the Defendant: -Nil -
List of Documents Exhibited for the Defendant: -Nil -
Sd/- (T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant succeeded in proving the claim against the defendant?
What order are to be passed in this OA?
2 provisions across 1 enactments
Canara Bank, Lalbagh West Branch
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
