Allowed

Canara Bank v. Basavaraj B Hosamani

DRT12 Nov 2025OA/784/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for issuance of a Recovery Certificate. The court found the bank's evidence unrebutted and the claim within limitation, reducing the interest rate to 6% p.a. pending execution against joint and several liabilities.

What did the court decide?

Issuance of Recovery Certificate for aggregate sum of Rs. 48,35,132/- with interest at 6.00% p.a. (simple) from date of application till realization.

Canara Bank versus Basavaraj B Hosamani — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 12^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.784/2023

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BETWEEN:

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Canara Bank (Erstwhile Syndicate Bank) Yeragatti Branch, Yeragatti-591129 Soundatti Taluk, Belgaum District … APPLICANT

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AND:

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Basavaraj B Hosamani S/o. Basavathappa Hosamani Aged about 60 years

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Muthappa B Hosamani S/o. Basappa Hosamani

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Aged about 60 years

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Kalyanappa B Hosamani S/o. Basavanthappa Hosamani Aged about 65 years,

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Ningappa K Hosamani S/o. Kalyanappa Hosamani Aged about 41 years

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Are all residing at: Sattigeri Village, Soundatti Taluk, Belgaum Dist – 591129

...DEFENDANTS

OA. No.784/2023

Counsel on record/appeared for:

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Applicant : Smt. M.R. Rajini 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.48,35,132/- (Rupees Forty Eight Lakh Thirty Five Thousand One Hundred Thirty Two 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 agricultural short term loan/kisan credit card of Rs.4,25,000/- on 30.06.2014; agricultural long term loan/farm development of Rs.5,75,000/on 30.06.2014; agriculture term loan of Rs.14,00,000/- on 30.06.2014.

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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 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

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OA. No.784/2023

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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 accounts.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 08.10.2024.

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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 A1 to A31 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

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claim as against the defendants?

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ii) What order are to be passed?

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OA. No.784/2023

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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 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% p.a.(simple).

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OA. No.784/2023

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In the result, OA.No.784/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.48,35,132/- (Rupees Forty Eight Lakh Thirty Five Thousand One Hundred Thirty Two only) consisting of:

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a. Rs.10,93,560/- with further interest of 6.00% p.a.(simple)

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from the date of filing OA till the realization from the defendants No.1,2 and 3;

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b. Rs.26,39,356/- with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants No.1,2 and 4;

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after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against 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 jointly, severally and personally and their other assets are liable

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OA. No.784/2023

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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

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order and transferred to Recovery for execution.

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

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with this Final Order.

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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 12^th Day of November 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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AW-1: Mr. Naga Chetan M, Senior Manager of the applicant bank.

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OA. No.784/2023

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Exhibits on the part of the Applicant:

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Annexure	Date	Parti	cula	rs
A1	30.06.2014	Loan Application
A2	30.06.2014	Sanction letter
A3	30.06.2014	agreement for agri	cult	ural advan	ces
A4	30.06.2014	Deed of guarant advance	ee f	or agricu	ltural
A5	30.06.2014	Loan application
A6	30.06.2014	Sanction letter
A7	30.06.2014	Agreement for agr	icult	ural advan	ce
A8	30.06.2014	Deed of Guarant advance	ee f	or agricu	ltural
A9	31.10.2015	Loan application
A10	17.11.2015	Sanction letter
A11	17.11.2015	Agreement for agr	icult	ural advan	ce
A12	17.11.2015	Deed of guarant advance	ee f	or agricu	ltural
A13	30.06.2017	Acknowledgment Security	of	Debts	and
A14	17.06.2020	Acknowledgment Security	of	Debts	and
A15	20.10.2022	Acknowledgment Security	of	Debts	and
A16	30.06.2017	Acknowledgment Security	of	Debts	and
A17	17.06.2020	Acknowledgment Security	of	Debts	and
A18	20.10.2022	Acknowledgment Security	of	Debts	and
A19	29.10.2018	Acknowledgment Security	of	Debts	and
A20	08.10.2021	Acknowledgment Security	of	Debts	and
A21	12.06.2014	Simple mortgage d	eed

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OA. No.784/2023

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A22	05.11.2015	Simple mortgage deed
A23	12.06.2014	Encumbrance certificate
A24	05.11.2015	Encumbrance certificate
A25	--	RTC for the period Sy.No.293	200	8-09 for
A26	--	RTC for the period Sy.No.165	201	3-14 for
A27	21.12.2022	Legal notice
A28	--	Postal receipt
A29	30.09.2022	Statement showing outstanding in a/c.No.0517801000863 defendant	the the 5	balance loan of the
A30	30.09.2022	Statement showing outstanding in a/c.No.0517882300018	the 28	balance the loan
	30.09.2022	Statement showing	the	balance
A31		outstanding in A/c.No.0517828000076 defendant	the 4	loan of the
A56	-	Statement of account in	KCC	loan-I
A57	-	Statement of account loan	in	Irrigation
A58	-	Statement of account in	KCC	loan-II

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Basavaraj B Hosamani

Case brief

What is this about?

What did the court decide?

Canara Bank v. Basavaraj B Hosamani

Case brief

What is this about?

What did the court decide?

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