Allowed

Canara Bank v. Mayamma

DRT24 Oct 2025OA/888/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Original Application filed by Canara Bank for issuance of Recovery Certificate against six defendant relatives of a farmer. As defendants appeared ex-parte and claims were uncontroverted, the Tribunal confirmed liability and granted relief allowing recovery of principal and reduced interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 51,21,706/- with further interest at 6% p.a. simple from filing date.

Canara Bank versus Mayamma — 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 24^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.888/2022

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BETWEEN:

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Canara Bank Bidadi Branch, Nelligudda tank road, Bidadi – 562 109, Ramanagaram District.

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Represented by its Manager and PA holder,

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Mrs. Nekha Jayaraj …APPLICANT

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AND:

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Smt. Mayamma W/o. late Maranna Aged about 69 years

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2. Sri. Kumar

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S/o. late Maranna Aged about 54 years

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Sri. Mallesh S/o. late Maranna Aged about 56 years

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Sri. Sathish S/o. late Maranna Aged about 52 years

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Smt. Prema D/o. late Maranna Aged about 51 years

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All are residing at: Banandur Village, Bidadi Hobli, Ramanagara Taluk & District, Karnataka – 562 159 ...DEFENDANTS

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OA-888/2022

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Counsel on record/appeared for:

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Applicant : HSR & Associates Defendants : Ex parte

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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 for issuance of Recovery Certificate against the defendants for Rs. 51,21,706/- (Rupees Fifty One Lakhs Twenty One Thousand Seven Hundred and Six 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 the following credit facilities:

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Farm development loan of Rs. 25,00,000/- (Rupees Twenty Five Lakhs Only) for land development on 11.05.2016.

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Kisan credit card loan of Rs. 5,00,000/- (Rupees Five Lakhs Only) for the purpose of crop cultivation on 12.05.2016.

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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 simple mortgage deed and deed of hypothecation.

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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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OA-888/2022

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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 ex parte on 09.07.2024.

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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-18 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 ex parte. The evidence tendered

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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 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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OA-888/2022

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due are also proved by the above documents. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal find both these issues are 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 facilities are availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.888/2022 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 51,21,706/- (Rupees Fifty One Lakhs Twenty One Thousand Seven Hundred and Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1 & 2 jointly, severally and personally, and from defendants no. 3 to 5 to the extent of value of their share in the schedule property, 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 schedule property. 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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OA-888/2022

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amount due and payable to the applicant bank, the defendant no.1 &

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2 jointly, severally and personally, and from defendants no. 3 to 5

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to the extent of value of their share in the schedule property and their

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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 the Open Court, this the 24^th Day of October, 2025].

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Sd/- (T. RAJESH)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Priyanka Bathula, D/o. Venkateshwara Rao Jakka, working as Manager, of Applicant Bank.

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OA-888/2022

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	11.05.2016	Loan application submitted by the defendant no.1 & 2 in respect of the farm development loan
A2	11.05.2016	Sanction memorandum issued by the applicant bank
A3	11.05.2016	Memorandum of agreement executed by the defendants in favour of the applicant bank in respect of the farm development loan
A4	29.04.2016	Simple mortgage deed executed by the defendants in favour of the applicant bank in respect of the farm development loan
A5	15.04.2019	Letter of revival executed by the defendant no.1 & 2 in favour of the applicant bank
A6	12.05.2016	Loan application submitted by the defendants in respect of KCCS
A7	12.05.2016	Sanction memorandum issued by the applicant bank
A8	12.05.2016	Agreement and deed of hypothecation for Kisan credit card executed by the defendant no.1 & 2 in favour of the applicant bank
A9	29.04.2016	Simple mortgage deed executed by the defendants in favour of the applicant bank
A10	15.04.2019	Letter of revival executed by the defendant no.1 & 2 in favour of the applicant bank in respect of the applicant bank in respect of the KCCS loan
A11 to A16	23.02.2021	The office copy of the tow letter notices, tow postal receipts & two postal ack. Cards are issued by the applicant bank to the defendant nos.1 & 2
A17	--------	Certified account extract of the defendant no.1 maintained by the applicant bank in respect of FARM DEVELOPMENT LOAN a/c. no. 0426883021761
A18	---------	Certified account extract of the defendant no.1 maintained by the applicant bank in respect of KCCS a/c. no. 0426840021927
Witness E	xamined for	the Defendants: -Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mayamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mayamma

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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