Allowed

Canara Bank v. Nagendrappa

DRT31 Dec 2025OA/771/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an application for a recovery certificate against a defaulting borrower. The court confirmed the loan availedness and default, ordered recovery with reduced interest at 6%, and permitted execution against scheduled property.

What did the court decide?

Recovery certificate issued for Rs. 53,17,293.06 plus 6% simple interest from filing date; recovery via schedule property and personal assets.

Canara Bank versus Nagendrappa — Contract and Commercial Disputes | 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

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OA.No.771/2024

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BETWEEN:

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Canara Bank, And branches amongst others, one at M/s. Canara Bank, Kalaburgi Main 1 Branch, Janata Bazar Building, Super Market, Kalburgi- 585101. Represented by senior manager. Mr. Satwant Singh.

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…APPLICANT

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AND:

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Mr. Nagendrappa, S/o Shivasharanappa Sherikar, Aged about 60 years, R/o H.No. 2-295, Jagat, Near Hanuman Temple, Kalaburgi District- 585 101.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Naveen Tao 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 against the defendant for Rs. 53,17,293.06 (Rupees Fifty Three Lakh Seventeen Thousand Two Hundred Ninety Three

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OA 771/2024

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and paise Six 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 defendant availed farm development loan of Rs. 3,00,000/- (Rupees Three Lakh Only) and kisan OD of Rs. 2,00,000/- (Rupees Two lakh Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with letter of revival and simple mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant 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, Summons on defendant they failed to appear resulting the defendant being set exparte on 23.10.2024.

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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-1 to A-31 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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OA 771/2024

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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 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 facilities as stated in the OA, creation of the security interest 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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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues 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

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availed for Agriculture purpose and also that the OA claim is arrived at by

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OA 771/2024

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calculating interest at the agreed rate, this Tribunal in view of the OA can

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be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.771/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 53,17,293.06 (Rupees Fifty Three Lakh Seventeen Thousand Two Hundred Ninety Three and paise Six Only) with further interest @6.00 % p.a.(simple) 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 to be recovered by proceeding against 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 found sufficient to cover the

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amount due and payable to the applicant bank, the defendant personally and his assets are liable for amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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

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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 771/2024

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14. Communicate a copy of the order to the parties concerned in terms

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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 (AJ), 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)

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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: Satwant Singh, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	22.10.2008	Common application cum appraisal form for agricultural loan (A/c No. 0513840010816)
A2	22.10.2008	Agreement of hypothecation for agricultural loan
A3	22.1.2008	Sanction memorandum
A4	22.10.2008	Specimen signature card
A5	17.08.2011	Letter of revival
A6	15.08.2014	Letter of revival
A7	11.08.2017	Letter of revival
A8	10.08.2020	Letter of revival
A9	10.01.2023	Letter of revival
A10	05.03.2009	Simple mortgage deed registered as document No.GLB-1-10340/2008-09 at the office of Sub- registrar, Gulbarga
A11	05.03.2009	Common application cum appraisal form for agricultural loan (A/c No. 0513883011248)
A12	19.03.2009	Memorandum of agreement for agricultural loan
A13	19.03.2009	Sanction memorandum
A14	05.03.2012	Letter of revival
A15	20.02.2015	Letter of revival
A16	18.01.2018	Letter of revival

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OA 771/2024

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A17	15.01.2021	Letter of revival
A18	23.06.2009	Simple mortgage deed registered as document No. GLB-1-2675/2009-10 at the office of sub registrar, Gulbarga
A19	23.06.2009	Common application cum appraisal form for agricultural loan (a. c No. 0513256007593)
A20	25.06.2009	Agreement and deed for kisan OD
A21	25.06.2009	Sanction memorandum
A22	02.02.2012	Letter of revival
A23	07.06.2015	Letter of revival
A24	28.12.2017	Letter of revival
A25	10.06.2020	Letter of revival
A26	10.01.2023	Letter of revival
A27	14.02.2022	Legal notice along with postal receipt
A28	--	Postal acknowledgement card duly served
A29	--	Bank statement of A/c 0513840010816
A30	--	Bank statement of A/c No. 0513883011248
A31	--	Bank statement of A/c No. 0513256007593

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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. Nagendrappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Nagendrappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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