Allowed

Canara Bank v. Abhishek T R

DRT31 Dec 2025OA/667/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed Original Application filed by Canara Bank to issue a Recovery Certificate against a borrower for a housing loan default. Given the defendant remained ex parte, the Tribunal considered evidence uncontroverted but directed recovery of principal and interest at a reduced rate of 8.00% simple interest.

What did the court decide?

Recovery Certificate issued for Rs.52,74,143/- plus 8% simple interest from filing date to realization, executable against defendant and mortgage property.

Canara Bank versus Abhishek T R — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of December, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

OA. No.667/2024

BETWEEN:

Canara Bank

Gandhi Bazar Branch PB No.459, Bangalore-560004 Rep. by its Manager, Smt. B Srenima

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… APPLICANT

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AND:

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Sri. Abhishek T R S/o. V M Rudra Murthy Aged about 40 years R/at: No.36, 4^th Block, Nagarona, 2^nd Stage, Benne S B Bank, Malagala Main Road, Bengaluru - 560091

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Smt. Malini Vinay Defendant : Exparte

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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 for seeking issuance of Recovery Certificate against the defendant for Rs.52,74,143/- (Rupees Fifty Two Lakh Seventy Four Thousand One Hundred and Forty Three only) with further interest thereon

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OA. No.667/2024

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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 housing loan of Rs.41,60,000/- on 27.02.2020.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan account 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 to appear, resulting the defendant being set exparte on 15.10.2024.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and

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OA. No.667/2024

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also produced Exhibits A1 to A9 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: i) Whether the applicant had succeeded in proving the 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 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 facility as stated in the OA, as to the execution of loan documents 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 are also proved by the above documents. The claim of the applicant is well within the limitation.

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OA. No.667/2024

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Hence in view of the above finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is to be allowed.

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

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In the result, OA.No.667/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.52,74,143/- (Rupees Fifty Two Lakh Seventy Four Thousand One Hundred and Forty Three only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization from defendants, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendant personally and his other assets, including the schedule is liable for all such amounts due under the loan account. The 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 amount due and payable to the applicant bank, the defendant

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OA. No.667/2024

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personally and his other assets are liable for all such amounts due under the loan accounts.

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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 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

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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 the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of December 2025].

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Sd/(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: Rajendra T K, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Loan Application Dated 14.02.2020

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OA. No.667/2024

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A2	Letter sanction by applicant duly acknowledged by defendant dated 27.02.2020
A3	Housing loan agreement dated 27.02.2020
A4	Registered memorandum of deposit of title deeds dated 28.02.2020
A5	Acknowledgment of debt by borrower as legal heir dated 06.01.2023
A6	letter of revival by defendant dated 06.01.2023
A7 & A8	Legal notice and postal receipt dated 20.12.2022
A9	Statement of account

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Sd/-

Canara Bank v. Abhishek T R

Case brief

What is this about?

What did the court decide?

Canara Bank v. Abhishek T R

Case brief

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What did the court decide?

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