Allowed

Canara Bank v. Chinnavva Laxman Jadagannavar

DRT31 Dec 2025OA/67/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for issuance of a Recovery Certificate in an ex-parte proceeding. Reduced interest was awarded at 6% per annum on an agricultural loan default.

What did the court decide?

Issuance of Recovery Certificate for Rs. 23,21,597.07 along with 6% simple interest p.a. from filing date, liable to be recovered from defendants jointly, severally and personally or from schedule pro

Canara Bank versus Chinnavva Laxman Jadagannavar — Execution and Attachment | 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 Presiding Officer OA.No.67/2023

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BETWEEN:

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Canara Bank Mudalagi Branch TMC No. 880, Mallikarjuna Nilaya, College Road, Mudalagi Gokak Taluk, Belgaum District

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Represented by its Chief Manager

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Mr. Sandip Suresh Dhawas …APPLICANT

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AND:

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Chinnavva Laxman Jadagannavar W/o. Laxman Jadagannavar Aged about 68 years

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Mr. Laxman Lagamappa Jadagannavar S/o. Lagamappa Jadagannavar Aged major

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Mr. Ramappa Lagamappa Jadagannavar S/o. Lagamappa Jadagannavar Aged major

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Mr. Siddappa Lagamappa Jadagannavar S/o. Lagamappa Jadagannavar Aged major

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Mr. Lagamappa S/o. Laxman Jadagannavar Aged major

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Mrs. Dundavva W/o. Lagamappa Jadagannavar Aged major

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OA-67/2023

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7. Ms. Sujata W/o. Appy Halagi Aged major

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Sri. Ajith S/o. Adappa Pattannashetty Aged about 46 years

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All are residing at: Nanganoor, Gokak Taluk, Belgaum District – 591 312 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Prakasha Hegde K 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. 23,21,597.07/- (Rupees Twenty Three Lakhs Twenty One Thousand Five Hundred and Ninety Seven and Paisa Seven Only) 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 defendants are availed the following credit facilities:

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Agricultural term loan of Rs. 8,40,000/- (Rupees Eight Lakhs

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OA-67/2023

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Forty Thousand Only) on 18.08.2016.

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Agricultural term loan of Rs. 6,60,000/- (Rupees Six Lakhs Sixty Thousand Only) on 18.08.2016.

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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 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 defendants, they failed to appear, resulting the defendants being set ex parte on 07.10.2024.

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The applicant had let in evidence through AW-3, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-15 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

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OA-67/2023

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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 due are also proved by the above document. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal 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 that the OA can be allowed with a reduced interest of 6.00% (simple).

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OA-67/2023

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In the result, OA.No.67/2023 stands allowed,

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

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Rs 23,21,597.07/- (Rupees Twenty Three Lakhs Twenty One Thousand Five Hundred and Ninety Seven and Paisa Seven 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 the schedule properties. 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 jointly, severally and personally and their 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 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 and transferred to Recovery for execution.

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

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OA-67/2023

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14. 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

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the Open Court, this the 31^st Day of December, 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: Mr. Sachin Kambla, S/o. Dharmanand, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A3	Loan application dated 08.08.2016
A4	Sanction letter dated 18.08.2016
A5	Agreement for agricultural advances dated 22.08.2016
A6	Deed of guarantee for agricultural advances dated 22.08.2016
A7	Loan application dated 08.08.2016
A8	Sanction letter dated 18.08.2016
A9	Agreement for agricultural advances dated 20.08.2016

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OA-67/2023

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A10	Deed of guarantee for agricultural advances dated 20.08.2016
A11	Simple mortgage deed dated 11.08.2016
A12	Statement of account in a/c. no. 05108210002503
A13	Statement of account in a/c. no. 05108010020344
A14	Legal notice dated 30.11.2022
A15	Postal receipts

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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. Chinnavva Laxman Jadagannavar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Chinnavva Laxman Jadagannavar

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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