Allowed

Canara Bank v. Sriramaiah

DRT27 Nov 2025OA/883/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's recovery certificate application against defendants who failed to appear. The court reduced interest to 6% simple due to agricultural purpose, permitting recovery against the guarantors and scheduled properties.

What did the court decide?

Recovery Certificate issued for Rs. 26,20,348 with 6% simple interest, enforceable against respondents jointly and severally from their assets.

Canara Bank versus Sriramaiah — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 27^th Day of November, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.883/2024

¶5

BETWEEN:

¶6

Canara Bank, Hi-tech Agriculture Finance Branch, Ground Floor, Krishi Bhavan, Nrupthunga Road, Hudson Circle, Bangalore- 560001. (Karnataka State).

¶7

…APPLICANT

¶8

AND:

¶9

Sri. Sriramaiah, S/o Shivarappa, Aged 65 years, Residing at No. 54, Siddeshwara Nilaya, New AD Colony, Muthyalapete, Mulbagilu, Kolar 563131.

¶10

Smt. Kalavathi, W/o Sriramaiah, Aged 60 years, Residing at No. 54, Siddeshwara Nilaya, New AD Colony, Muthyalapete, Mulbagilu, Kolar 563131.

¶11

Sri. Punith Kumar, S/o Sriramaiah, Aged 33 years, Residing at No. 54, Siddeshwara Nilaya, New AD Colony, Muthyalapete, Mulbagilu, Kolar 563131.

¶12

OA 883/2024

¶13

¶14

Sri. Umakanth, S/o Sriramaiah, Aged 35 years, Residing at No. 54, Siddeshwara Nilaya, New AD Colony, Muthyalapete, Mulbagilu, Kolar 563131.

¶15

...DEFENDANTS

¶16

Counsel on record/appeared for:

¶17

Applicant : U C Vasanth Defendants : EXPARTE

¶18

FINAL ORDER

¶19

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. 26,20,348/- (Rupees Twenty Six lakh Twenty Thousand Three Hundred Forty Eight Only) with further interest thereon from the date of filing the Application till realization.

¶20

It is the case of the applicant bank, the defendant No.1 along with defendants Nos. 2 to 4 availed term loan facility of Rs. 38,00,000/(Rupees Thirty Eight Lakh Only) for establishment of polyhouse for protected cultivation of Capsicum.

¶21

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with guarantee agreement and memorandum of deposit of title deeds.

¶22

It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the

¶23

OA 883/2024

¶24

¶25

defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶26

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.

¶27

Despite, Summons on defendants they failed to appear resulting the defendants being set exparte on 23.04.2025.

¶28

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-27 and got the same marked in evidence.

¶29

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.

¶30

The following issues arise for consideration in this matter:

¶31

i) Whether the applicant had succeeded in proving the OA claim

¶32

as against the defendants?

¶33

ii) What order are to be passed?

¶34

Both these issues are gone into and decided together.

¶35

The case put forth by the applicant in the Application remains

¶36

unrebutted as defendants remained exparte. The evidence tendered by

¶37

OA 883/2024

¶38

¶39

the applicant remains uncontroverted and undisputed. The evidences put

¶40

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 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.

¶41

Hence in view of the findings arrived herein above, the Tribunal

¶42

find both these issues in favour of applicant and hence, this Tribunal is of

¶43

the view that OA is to be allowed.

¶44

Taking into consideration the facts that the credit facilities are

¶45

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

¶46

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

¶47

The applicant bank in reliefs sought has asked for relief against defendants Nos. 1 & 2 only.

¶48

In the result, OA.No.883/2024 stands allowed,

¶49

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

¶50

Rs. 26,20,348/- (Rupees Twenty Six lakh Twenty Thousand Three

¶51

Hundred Forty Eight Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants Nos. 1

¶52

OA 883/2024

¶53

¶54

& 2 jointly, severally & 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

¶55

schedule to the OA be the schedule to the recovery certificate.

¶56

ii) If the sale proceeds are not found sufficient to cover the

¶57

amount due and payable to the applicant bank, the defendants Nos. 1 & 2 jointly, severally & personally and their assets are liable for respective amounts due under the loan accounts.

¶58

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

¶59

applicant to file cost memo within 7 days from the date of receipt of the order.

¶60

iv) The Recovery Certificate to be drawn in terms of this order and

¶61

transferred to Recovery for execution.

¶62

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

¶63

of this final order.

¶64

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

¶65

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

¶66

Rules, 1993.

¶67

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of November, 2025].

¶68

Sd/- (T. RAJESH)

¶69

PRESIDING OFFICER

OA 883/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶74

AW-1: Anuj Kumar, Senior Manager, of Applicant Bank.

¶75

Exhibits on the part of the Applicant:

¶76

Exhibit Nos.	Date	Particulars of Documents
A1	04.11.2020	Loan application made by defendant No. 1 & 2
A2	09.12.2020	Sanction memorandum
A3	21.12.2020	Memorandum of agreement for agricultural loans
A4	-do-	Guarantee covering letter by defendant No.2
A5	-do-	Guarantee agreement letter by defendant No2.
A6	-do-	Guarantee covering letter by defendant No.3
A7	-do-	Guarantee agreement letter by defendant No.3
A8	-do-	Guarantee covering letter by defendant No.4
A9	-do-	Guarantee agreement letter by defendant No.4
A10	17.12.2020	Memorandum of deposit of title deeds in favour of the applicant which is registered as Doct. No. MBL-1- 03873-2020-21, and stored in CD No. MBLD745, in the office of the Sub-registrar, Mulabagilu, in respect of Schedule-A property
A11	03.10.2020	Registered release deed registered as Doct. No. MBL- 1-02360-2020-21, and stored in CD No. MBLD702, in the office of the Sub-registrar, Mulbagal, in respect of schedule A property
A12	09.09.2020	RTC extract for the period 2021-21 in respect of schedule A property
A13	28.07.2020	Tax paid receipt for the period 2020-21, in respect of schedule A property
A14	16.10.2020	Encumbrance certificate in respect of schedule A property
A15	17.12.2020	Encumbrance certificate in respect of schedule A property
A16	17.12.2020	Memorandum of deposit of title deeds in favour of the applicant which is registered as Doct. No. MBL-1- 03873-2020-21, and stored in CD No. MBLD745, in

¶77

OA 883/2024

¶78

¶79

		the office of the Sub-registrar, Mulabagilu, in respect of Schedule-b property
A17	27.11.1999	Registered Gift deed registered as Doct. No. 1739/1999-2000, Book-1, Vol. 1570, paged 146-148 in the office of the sub-registrar, mulabagilu, in respect of Schedule B property
A18	26.02.2019	E-khata from No.3 (Rule 20) issued by Mulbagal CMC in respect of schedule B property
A19	28.07.2020	Encumbrance certificate in respect of schedule B property
A20	16.10.2020	Encumbrance certificate in respect of schedule B property
A21	05.11.2023	Letter of revival executed by defendant Nos 1 to 4
A22	10.01.2024	Legal notice
A23	--	Postal acknowledgement of legal notice issued to defendant No.1
A24	--	Postal acknowledgement of legal notice issued to defendant No.2
A25	--	Postal acknowledgement of legal notice issued to defendant No.3
A26	--	Postal acknowledgement of legal notice issued to defendant No.4
A27	05.02.2024	Statement of accounts in respect of term loan A/c No. 2373882000029

¶80

Witness Examined for the Defendants: -Nil -

¶81

List of Documents Exhibited for the Defendants: -Nil -

¶82

Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sriramaiah

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sriramaiah

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

Similar cases

Hdfc Bank versus Ashok Kumar

Canara Bank versus Amarjit Singh

Ajay Kashyap versus Piramal Capital

Ms Hi Tech Constructions versus State Bank of India

Hdfc Bank versus Lal Babu Singh

Isaac john gill versus Bank of Baroda