Allowed

Canara Bank v. Smt Venkateswaramma

DRT19 Jun 2025OA/847/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank for issuance of a recovery certificate against agricultural loan defaults. Despite the application, interest was reduced to 8% p.a. The order enabled recovery from schedule property and, insufficiently, from personal assets.

What did the court decide?

Recovery certificate directed for aggregate sum of Rs.32,76,127/- with further interest at 8.00% p.a. (simple) from filing date till realization, recoverable from schedule property and personally by r

Canara Bank versus Smt Venkateswaramma — 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 19th Day of June, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

OA No.847/2022

BETWEEN:

CANARA BANK,

Raichur Main Branch, Opp. Vishal Mart, Chandramoulishwar Circle, Raichur District. Raichur-584 101. Represented by its Chief Manager and PA Holder Sri B. SURESH KUMAR, ..

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APPLICANT

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AND:

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1. SMT. VENKATESHWARAAΜΜΑ

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Aged about 45 years, W/o. Hanumantha Reddy

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2. SRI HANUMANTHA REDDY

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Aged about 48 years S/o Basi Reddy

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Both residing at:

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Atkur Post, Sarjapur Taluk, Raichur District-584 101

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.. DEFENDANTS

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Counsel on record/appeared for:’;

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Applicant : Adv. HSR & Associates Defendants No.1 and 2 : ex parte

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FINAL ORDER

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The present Original Application in short OA has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for

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2 OA/847/2022

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seeking issuance of Recovery Certificate against the defendant for

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Rs.32,76,127/- (Rupees Thirty Two Lakhs Seventy Six Thousand One Hundred Twenty Seven 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 first defendant is the wife of the Defendant No.2 and are agriculturalists by occupation. The Defendant No.1 is the borrower. The Defendant No.1/Defendants availed the following loans from the Applicant Bank;

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i) KCCS loan of Rs.1,00,000 for crop cultivation, executed Agreement and deed of hypothecation on 04.12.2002 by hypothecating the crop grown in the schedule property.

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ii) Farm Development Loan of Rs.4,20,000/- for purchasing Finolex Pipes, pumpset etc., the Defendants jointly executed Memorandum of agreement for4 agricultural loans dated 12,06,2903.

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Applicant Bank submits that the Defendant No.1 is the owner of the schedule property who has created charge on the same by

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3 OA/847/2022

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executing a simple mortgage deed dated 03.06.2003 in favour of the Applicant Bank registered as Document No.753/2003-04 in Book-I, Volume 994, Pages 32 to 34 in the office of the Counsel for the Applicant is present, submits that the Applicant has filed an IA No.1041/2021 for substitution. The IA No.1041/2021, file by the Applicant stands allowed. Heard the Counsel for the Applicant.Registrar, Raichur as collateral security.

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It is also the case of the applicant that defendants undertaken to repay the liability, subject to annual review or on Demand to pay with interest for the value received and further to pay the interest at such rate as revised by the bank from time to time.

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It is also the case of the applicant that, in view of the above financed the amount, the defendants executed necessary loan documents, memorandum of agreement for agricultural loans. .

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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 defaults 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

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for the amount due in the accounts.

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Summons were taken out to the defendants, names of the Defendants were called out in the open court on 24.09.2024, none represented and hence placed ex parte.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A23 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 the 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 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

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remains unrebutted as defendants remained exparte. The

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5 OA/847/2022

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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 security interest as claimed by the applicant bank and the defaults committed in the account. 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 finding which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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availed for agriculture purpose and also that the 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 8.00%p.a. (simple).

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In the result, OA.No.847/2022 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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6 OA/847/2022

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of Rs.32,76,127/- (Rupees Thirty Two Lakhs Seventy Six Thousand One Hundred Twenty Seven only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization, 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. The schedule property to the OA be the schedule property 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 No.1 and 2 personally and their other assets are liable 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 the 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 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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7 OA/847/2022

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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 (Unni), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 19th Day of June, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri D. Manjunath, Manager and PA Holder of the

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A3	KCCS Loan Application submitted by the Defendant No. 1 to the Applicant Bank
A4	Agreement and Deed of Hypothecation for Kisan Credit Card executed by the Defendant 04.12.2002 No. 1 in favour of the Applicant Bank
	Letters of Revival executed by the Defendant
A5 to A11	No. 1 in favour of the Applicant Bank dated 24.08.2005, 13.12.2005, 27.09.2008, 01.08.2011, 30.07.2014, 02.02.2017, 10.02.2019
A12	Loan application submitted by the Defendants dated 12.06.2003
A13	Memorandum of Agreement for Agricultural Loans executed by the Defendants in favour of the Applicant Bank dated 12.06.2003
A14	Simple Mortgage Deed executed by the Defendant No. 1 in favour of the Applicant Bank dated 03.06.2005
	Particulars of Equipment's executed by the
A15	Defendant No. 1 in favour of the Applicant Bank dated 12.06.2003.

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8 OA/847/2022

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Letters of Revival dated 25.08.2005, 30.07.2008, A16 to A21 01.01.2011, 17.12.2013, 10.12.2016, 10.05.2019 A22 and Certified Account extract of Defendant No.1 A23 maintained by the Applicant Bank.

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Smt Venkateswaramma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt Venkateswaramma

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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