Allowed

Canara Bank v. Mr Umesh M T

DRT19 Sept 2025OA/762/2024

Case brief

AI extract

What is this about?

The Tribunal allowed a Recovery Certificate application filed by Canara Bank against two defendants for an agricultural loan default. The defendants were absent, and the Court validated the bank's claim based on uncontroverted evidence, granting recovery with reduced interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 87,77,568.47 with interest at 6% p.a. (simple) for agricultural loans, executable against defendants jointly and severally and schedule properties.

Canara Bank versus Mr Umesh M T — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of September, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.762/2024

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BETWEEN:

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Canara Bank Madikeri Main Branch Office at: P.B. 54 Kodava Samaj Building Main Road, Madikeri Town, Madikeri Taluk-571201 Kodagu District, Rep. by its Chief Manager Mr. Suresh Babu P … APPLICANT

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AND:

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Mr. Umesh M T S/o. Mr. Thammaiah M A Aged about 54 years Residing at: Kandanakolly village, Somavarpet Taluk, Kodagu District-571237

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Mr. Poovaiah T K S/o. Mr. Kariappa T M Major, Residing at Mukkodlu village & Post, Madikeri Taluk, Kodagu District - 571214 ...DEFENDANTS

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Counsel on record/appeared for: Applicant : M/s. M V Kini & Co., Defendants : Exparte

OA. No.762/2024

FINAL ORDER

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.87,77,568.47/- (Rupees Eighty Seven Lakh Seventy Seven Thousand Five Hundred Sixty Eight and Forty Seven paise 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 defendants availed the following facilities:

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i. Credit facility of Rs.2,40,000/- on 04.08.2003 for renovation and repairs of the Farm House.

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ii. Credit facility of Rs.55,000/-on 04.05.2004 for constructions of irrigation water pond.

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iii. Credit facility of Rs.4,85,000/- on 09.09.2005 for purchase of MF TAFE SAMRAT Tractor and Deccan Trailer and other accessories.

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iv. Credit facility of Rs.78,000/- on 18.01.2005 for purchase of Sprinkler set with pump.

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v. Credit facility of Rs.4,40,000/- on 29.02.2008 for purchase of Mahendra Bolero.

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OA. No.762/2024

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vi. Credit facility of Rs.7,50,000/on 27.06.2014 for maintenance of eh Farm house.

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vii. Credit facility of Rs.6,50,000/- for maintenance of the Estate.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents apart from the creation of security interest by way of mortgage and hypothecation over the Schedule ‘A, B & C’ 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 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 accounts.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 24.01.2025.

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OA. No.762/2024

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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 A3 to A79 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 claim as against the defendants? 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 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 accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well

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OA. No.762/2024

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within the limitation.

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Hence in view of the above findings which cover both the 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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was availed for agriculture 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 6.00% (simple).

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13. In the result, OA.No.762/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.87,77,568.47/- (Rupees Eighty Seven Lakh Seventy Seven Thousand Five Hundred Sixty Eight and Forty Seven paise only) consisting of:

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a. Rs.5,84,962.30 with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendantNo.1;

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b. Rs.96,078.42 with further interest of 6.00% p.a.(simple)

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from the date of filing OA till the realization from the

OA. No.762/2024

defendantNo.1;

c. Rs.21,10,416.08 with further interest of 6.00% p.a.(simple)

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from the date of filing OA till the realization from the defendant Nos.1 and 2;

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d. Rs.1,53,604.77 with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant Nos.1;

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e. Rs.17,11,030.04 with further interest of 6.00% p.a.(simple)

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from the date of filing OA till the realization from the defendant Nos.1 and 2;

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f. Rs.22,43,485.06 with further interest of 6.00% p.a.(simple)

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from the date of filing OA till the realization from the defendant No.1;

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g. Rs.18,77,991.80 with further interest of 11.4% p.a.(simple) from the date of filing OA till the realization from the defendant Nos.1;

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after giving credit to all the amounts recovered and received

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during the pendency of the OA allowed the same to be recovered

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by proceeding against defendants jointly, severally and personally

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and also by proceeding against the schedule ‘ A, B & C’ properties.

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OA. No.762/2024

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The schedule properties to the OA be the schedule properties to

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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

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jointly, severally and personally and their other assets are liable

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for all such amounts due under the loan account.

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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 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

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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 22^nd Day of September 2025].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA. No.762/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Suresh Babu P, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars	Date
A1	Authorization letter/letter of authority	13.07.2023
A2	Loan application	04.08.2003
A3	Sanction memorandum	04.08.2003
A4	Memorandum of agreement	04.08.2003
A5	Letter evidencingdeposit of title deeds	04.12.2003
A6	Letter of revival	15.07.2005
A7	Letter of revival	09.01.2008
A8	Letter of revival	27.12.2010
A9	Letter of revival	05.07.2013
A10	Letter of revival	27.06.2014
A11	Letter of revival	22.12.2016
A12	Letter of revival	28.12.2018
A13	Letter of revival	10.08.2021
A14	Loan application	04.05.2004
A15	Sanction memorandum	04.05.2004
A16	Memorandum of agreement for agricultural loan	04.05.2004
A17	Letter of revival	01.08.2006
A18	Letter of revival	11.07.2009
A19	Letter of revival	03.10.2011
A20	Letter of revival	27.06.2013
A21	Letter of revival	27.06.2014
A22	Letter of revival	22.12.2016
A23	Letter of revival	28.12.2018
A24	Letter of revival	18.08.2021
A25	Application for agriculture credit short term/term loan	09.09.2005
A26	Sanction memorandum	09.09.2005

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OA. No.762/2024

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A27	Memorandum of agreement agricultural loans	for	09.09.2005
A28	Guarantee covering letter along guarantee agreement	with	09.09.2005
A29	Letter containing particulars hypothecation tractor and trailor	of	18.10.2005
A30	Letter of revival		09.01.2008
A31	Letter of revival		27.12.2010
A32	Letter of revival		20.07.2013
A33	Letter of revival		22.12.2016
A34	Letter of revival		28.12.2018
A35	Letter of revival		18.08.2021
A36	Loan application		17.01.2005
A37	Sanction letter		18.01.2005
A38	Memorandum of agreement agricultural loans	for	18.01.2005
A39	Letter containing particulars hypothecation equipment/goods	of	28.01.2005
A40	Letter of revival		09.01.2008
A41	Letter of revival		27.12.2010
A42	Letter of revival		05.07.2013
A43	Letter of revival		27.06.2014
A44	Letter of revival		22.02.2016
A45	Letter of revival		28.12.2018
A46	Letter of revival		18.08.2021
A47	Loan application		25.02.2008
A48	Sanction letter		29.02.2008
A49	Memorandum of agreement		29.02.2008
A50	Covenants of co-obligant		29.02.2008
A51	Letter containing particulars hypothecation Mahindra Bolero	of	03.03.2008
A51(a)	Certificate of registration		--------
A52	Letter of revival		27.12.2010
A53	Letter of revival		27.06.2013
A54	Letter of revival		27.06.2014
A55	Letter of revival		22.12.2016
A56	Letter of revival		28.12.2018
A57	Letter of revival		18.08.2021

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OA. No.762/2024

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A58	Loan application	25.06.2014
A59	Sanction letter	27.06.2014
A60	Memorandum of agreement	27.06.2014
A61	Letter of Revival	22.12.2016
A62	Letter of Revival	28.12.2018
A63	Letter of Revival	10.08.2021
A64	Loan application	25.06.2014
A65	Sanction letter	27.06.2014
A66	Agreement and Deed of hypothecation	27.06.2014
A67	Letter of Revival	22.12.2016
A68	Letter of Revival	28.12.2018
A69	Letter of Revival	10.08.2021
A70	Demand notice	13.01.2023
A71	Legal notice	12.07.2023
A72	Legal notice	12.07.2023
A72(a)	Legal notice	07.07.2022
A72(b)	Legal notice	07.07.2022
A72(c)	Legal notice	07.07.2022
A72(d)	Legal notice	07.07.2022
A72(e)	Legal notice	07.07.2022
A72(f)	Legal notice	07.07.2022
A73	Statement of Accounts for loan No.1	-------
A74	Statement of Accounts for loan No.2	-------
A75	Statement of Accounts for loan No.3	-------
A76	Statement of Accounts for loan No.4	-------
A77	Statement of Accounts for loan No.5	-------
A78	Statement of Accounts for loan No.6	-------
A79	Statement of Accounts for loan No.7	-------

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Mr Umesh M T

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr Umesh M T

Case brief

What is this about?

What did the court decide?

What the court decided

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