Allowed

Canara Bank v. prakash k k

DRT22 Sept 2025OA/782/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application under Section 19 of the RDB Act 1993 filed by Canara Bank. The bank claimed a recovery certificate for a business term loan defaulting. The defendants appeared ex parte. The Tribunal allowed the claim with reduced interest at 12% p.a. simple.

What did the court decide?

Orient to recover Rs. 29,38,541/- with interest at 12% p.a. (simple) from the date of filing; proceed against scheduled and other assets.

Canara Bank versus prakash k k — 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 22^nd Day of SEPTEMBER, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.782/2023

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BETWEEN:

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Canara Bank Bylkuppe Branch, Bylakuppe, B M Road, Periyapatna Taluk Mysore District - 571 104

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Represented by its Chief Manager, Sri. Maheshgunari

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S/o. Sri. Veerappa …APPLICANT

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AND:

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Sri K K Prakash S/o Mr. late Krishnoji Rao K R Aged about 54 years, No. 1788, Uppara Road, Periyapatna Taluk, Mysuru – 571 107

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Sri. K K Manikanta S/o Mr. late Krishnoji Rao Aged about 44 years, Both are also residing at: No. 1824, near school, Medar block, Periyapatna Town, Periyapatna Taluk Mysuru District – 571 107

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Sri. Prakash N S/o Sri Okkodi Narasimha Major by age, R/at: No. 117, Basanthuru, Kudige road, Somavarpet, kodagu – 571 232 ...DEFENDANTS

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2 OA-782/2023

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Counsel on record/appeared for:

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Applicant : Mr. Veeresh Kumar Javali M C 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 seeking issuance of Recovery Certificate against the defendants for Rs. 29,38,541/-(Rupees Twenty Nine Lakh Thirty Eight Thousand Five Hundred and Forty One 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 availed an business term loan of Rs. 15,00,000/- (Rupees Fifteen Lakhs only) for the purpose business improvement.

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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 documents along with 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

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3 OA-782/2023

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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 defendants, they failed to appear, resulting the defendants being set exparte on 15.10.2024

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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-11 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?

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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 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 facility as stated in the OA,

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4 OA-782/2023

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creation of the security interest and the defaults committed in the

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accounts. The liability of the defendants and the claim of the amount

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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 facility are

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availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view

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that OA can be allowed with a reduced interest of 12.00%(simple).

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In the result, OA.No.782/2023 stands allowed,

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

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Rs. 29,38,541/-(Rupees Twenty Nine Lakh Thirty Eight Thousand Five

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Hundred and Forty One Only) with further interest @12.00%

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p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all

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the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule

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property. Properties schedule to the OA be the schedule to the

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5 OA-782/2023

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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 balance 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

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and transferred to Recovery for execution.

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

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terms of this final order.

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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 22^nd Day of September, 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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6 OA-782/2023

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AW-1: Sunil L S/o K Lekshmanan Pillai, working as Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	04.09.2015	Loan application
A2	11.09.2015	Letter of sanction
A3	14.09.2015	General Agreement executed by the defendant no.1 and 2
A4	14.09.2015	Consideration receipt for Rs. 7,00,000/- dated 14.09.2015 executed by the defendant no.1 and 2
A5	21.09.2015	Consideration receipt for Rs. 7,00,000/- dated 21.09.2015 executed bythe defendant no.1 and 2
A6	21.12.2015	Consideration receipt for Rs. 1,00,000/- dated 21.12.2015 executed bythe defendant no.1 and 2
A7	14.09.2015	Guarantee agreement executed by the defendant 3
A8	11.09.2015	Memorandum of Deposit of Title Deeds executed by the defendant no.1 and 2 in favour of applicant bank registered as document no.2540/2015-16 stored in CD no. pypd 193 in the office of the Sub- registrar,Periyapatna.
A9	09.11.2017	Demand notice issued by the bank
A10	27.02.2018	Demand notice published by the bank
A11	-----	Statement of account term loan

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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. prakash k k

Case brief

What is this about?

What did the court decide?

Canara Bank v. prakash k k

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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