Allowed

Canara Bank v. Mounesh

DRT29 Aug 2025OA/722/2023

Case brief

AI extract

What is this about?

Application was filed by Canara Bank for issuance of recovery certificate against the defendant for outstanding agricultural loans totaling approximately Rs. 26.87 million. Defendant appeared exparte. Tribunal allowed the application, permitting recovery with interest capped at 6% per annum.

What did the court decide?

Recovery certificate issued for Rs. 26,87,024/- with further interest @ 6% p.a. Recoverable from defendant personally and from schedule property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II,

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BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.722/2023

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BETWEEN:

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Canara Bank Branch Office at: Maski, Basavan Gouda Building, New Bazaar, Maski, Raichur District-584124 …APPLICANT

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AND:

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Sri. Mounesh S/o. Sri. Durugappa R/at: #119, Buddinni, Lingsugur Taluk, Raichur District ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : K. Raveendran 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 seeking issuance of Recovery Certificate for

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Rs.26,87,024/- (Rupees twenty six lakh eighty seven thousand

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OA 722-2023

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twenty four only) with further interest thereon 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

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following credit facilities from the applicant bank:-

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I. KCC Loan of a sum of Rs.5,00,000/- (Rupees Five Lakh Only), which was later enhanced from time to time,

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II. KOD loan limit of Rs.5,00,000/- (Rupees Five Lakh Only), and

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III. ALLHV Loan limit of Rs.48,000/- (Rupees forty eight thousand only) and

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IV. Sheep Rearing loan of Rs.7,50,000/- (Rupees seven lakh fifty thousand only)

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with sanction memorandum, supplemental agreement and letters of renewal from time to time.

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It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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OA 722-2023

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In the above circumstances, the applicant approached this

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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 26.02.2024.

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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 A-3 to A-61 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 the 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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OA 722-2023

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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 facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and

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the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favor of applicant and hence

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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

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are availed by defendant for agricultural 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 @6% p.a.

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OA 722-2023

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13. In the result, OA.No.355/2020, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.26,87,024/- (Rupees twenty six lakh eighty seven thousand and twenty four only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendant personally and his other assets are liable to be proceeded against for the balance amount.

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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

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order and transferred to Recovery for execution.

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OA 722-2023

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v) Interim application pending, if any, stands disposed of

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in terms of 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 (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of August, 2025].

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Parashuram L Bharamoji, Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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The documents are appended in this order.

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mounesh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mounesh

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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