Allowed

Canara Bank v. M/s. The Jeans Shop

DRT31 Dec 2025OA/811/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Canara Bank under Section 19 of the RDB Act for a Recovery Certificate. The court found the defendants in default on an overdraft facility. It awarded recovery of the principal amount plus interest at a reduced rate of 12% p.a., allowing execution against property and personal assets.

What did the court decide?

Recovery Certificate drawn for Rs. 22,10,493/- with interest at 12% p.a. to be recovered jointly and severally against the defendants.

Canara Bank versus M/s. The Jeans Shop — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.811/2024

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BETWEEN:

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Canara Bank Basrur Branch, Bank Street, Kundapura Taluk, Udupi District, Basrur – 576 211

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Represented by its Branch Manager Sri. Diwaker Kumar …APPLICANT

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AND:

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M/s. The Jeans Shop No. 36-5/III, Ammaasana Complex, Chikkansal Road, Near Sangam, Kundapura – 576 201 Represented by its proprietrix Mrs. Shahina

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Mrs. Shahina W/o. Mr. Mohammed Rafiq Aged about 35 years Proprietrix of M/S. The Jeans Shop No. 1/2, Bolakatte, Gulvadi, Kundapura – 576 283 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Raghavendra G K Defendants : Ex parte

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2 OA-811/2024

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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. 22,10,493/- (Rupees Twenty Two Lakhs Ten Thousand Four Hundred and Ninety Three 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 are availed an overdraft facility of Rs. 20,00,000/- (Rupees Twenty Lakhs Only) on 04.02.2021.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan documents. 4. It is further contended that, despite availing the credit facility, 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 account.

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Despite, service of summons on the defendants, they failed to

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appear, resulting the defendants being set ex parte on 23.10.2024.

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3 OA-811/2024

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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-8 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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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 ex parte. 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, creation of the security interest and the defaults committed in the 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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4 OA-811/2024

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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

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is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility are 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 that OA can be allowed with a reduced interest of 12.00%(simple).

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In the result, OA.No.811/2024 stands allowed, i) The applicant is allowed to recover an aggregate sum of Rs. 22,10,493/- (Rupees Twenty Two Lakhs Ten Thousand Four Hundred and Ninety Three Only) with further interest @12.00% p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and 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 the schedule properties. 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 defendants jointly, severally and personally and their assets are liable for balance amounts due under the loan accounts.

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5 OA-811/2024

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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

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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 31^st Day of December, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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6 OA-811/2024

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Amit Kumar Meena, S/o. Sri. Shrawan Kumar Meena, Senior 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	04.02.2021	Letter of proprietorship
A2	04.02.2021	Request for overdraft facilities
A3	04.02.2021	Cash credit agreement
A4	18.03.2022	Letter of renewal
A5	27.02.2023	Letter of renewal
A6	27.02.2023	Letter of renewal
A7	01.10.2023	Legal notice
A8	-------	Statement of accounts extract

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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. M/s. The Jeans Shop

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s. The Jeans Shop

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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