Allowed

Canara Bank v. Chikkalingegowda

DRT27 Nov 2025OA/688/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's OA for a Recovery Certificate of Rs.20,16,760.14 plus interest at 6% p.a. against deceased borrower's legal heirs and mortgaged properties, as the defendants remained in default and appeared exit persuada.

What did the court decide?

Issuance of Recovery Certificate for Rs.20,16,760.14 with 6% p.a. simple interest from date of filing against respondents jointly/severally and mortgaged properties.

Canara Bank versus Chikkalingegowda — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

OA. No.688/2023

BETWEEN:

Canara Bank

Channarayapatna Branch Mysuru Road Channarayapatna Dist Hassan-573 116 Through its Chief Manager Mr.Chandrashekhara Patil … APPLICANT

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AND:

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Mr. Chikkalingegowda S/o. Late Puttegowda Since deceased legal heirs Defendant No.2 to 4 Having address at: Dindagur Village and Post, Kasaba Hobli, Channarayapatna Hassan District, Karnataka 573 116

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Smt. Bhagya W/o. D.P. Chillalingegowda Age: about 56 years Residing at: Dindagur Village and Post, Kasaba Hobli, Channarayapatna Taluk Hassan District, Karnataka-573 116

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Mr. Bharath D.C. S/o. D.P. Chikkalingegowda Age: about 33 years

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OA. No.688/2023

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Residing at: Dindagur Village and Post, Kasaba Hobli, Channarayapatna Taluk Hassan District, Karnataka 573 116

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4 Mr. Shahrath D.C. S/o. D.P. Chikkalingegowda Age: about 30 years Residing at: Dindagur Village and Post, Kasaba Hobli, Channarayapatna Taluk Hassan District, Karnataka 573 116

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Girish S Poojary Defendants : 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 defendants for Rs.20,16,760.14 (Rupees Twenty Lakh Sixteen Thousand Seven Hundred Sixty and Fourteen 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 deceased defendant No.1 was the borrower and defendant Nos.2 to 4 are the legal heirs of deceased defendant No.1 and defendant No.2 and 4 are mortgagers. The deceased defendant No.1 availed financial

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OA. No.688/2023

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assistance towards agricultural purpose (Crop cultivation) for a sum of Rs.4,40,000/- on 01.02.2016 and Kissan OD for a sum of Rs.7,50,000/- on 09.11.2016

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It is also the case of the applicant that, in view of the above financed credit facilities, the deceased borrower and defendants Nos. 2 and 4 executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule properties.

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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 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 defendants No.2 to 4, they failed to appear, resulting the defendants No.2 to 4 being set exparte on 16.10.2024.

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OA. No.688/2023

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A13 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 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 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

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remains unrebutted as defendants remained exparte. The

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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 security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendants and the claim of the amount due are also

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OA. No.688/2023

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proved by the above documents. The claim of the applicant is well

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within the limitation.

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11. 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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12. Taking into consideration the facts that the credit facilities

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were availed for agricultural purpose and also that OA claim is

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arrived at by calculating interest at the agreed rate, this Tribunal

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in view of the OA can be allowed with a reduced interest of 6.00%

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p.a.(simple).

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In the result, OA.No.688/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.20,16,760.14 (Rupees Twenty Lakh Sixteen Thousand Seven

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Hundred Sixty and Fourteen Only) with further interest of 6.00%

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p.a.(simple) from the date of filing OA till the realization from the defendants No. 2 and 4 and defendant No.3 to the extent of their

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inheritance of any estate from the deceased borrower Late Chikkalingegowda, after giving credit to all the amounts recovered

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OA. No.688/2023

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and received during the pendency of the OA and allowed the same

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to be recovered by proceeding against defendants No.2 and 4 jointly, severally and personally and also by proceeding against

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the schedule properties. The schedule properties to the OA be the schedule properties to the Recovery Certificate.

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

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the amount due and payable to the applicant bank, the defendants No.2 and 4 jointly, severally and personally and their other assets

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and the defendant no.3 to the extent of their inheritance of any estate from the deceased borrower Late Chikkalingegowda 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 order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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OA. No.688/2023

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14. 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

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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 27^th Day of November 2025].

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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: Sri.Saransh Garg, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A3	Loan application dated 22.01.2016
A4	Sanction letter dated 01.02.2016
A5	Agreement and deed of hypothecation for kisan credit card dated 01.02.2016
A6	Simple mortgage deed dated 10.11.2016 with regard to the mortgaged property
A7	Loan application dated 09.11.2016
A8	Sanction letter dated 09.11.2016
A9	Agreement and Deed for Kisan OD dated 15.12.2016

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OA. No.688/2023

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A10	Simple Mortgage Deed dated 25.01.2016 with regard to the mortgaged property
A11	Notice dated 06.03.2023
A12	True extract of statement of accounts pertaining to A/c.No.0667895020760
A13	True extract of statement of accounts pertaining to A/c.No.0767897001718

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Chikkalingegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Chikkalingegowda

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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