Allowed

Canara Bank v. Mr. Hanumappa Kariyappa Walikar

DRT28 Oct 2025OA/89/2024

Case brief

AI extract

What is this about?

DRT-II Bangalore allowed an application for issuance of a recovery certificate under Section 19(1) RDB Act. The court found the evidence un-rebutted and sufficient to prove the claim. Future interest was awarded at a reduced simple rate of 6% p.a. considering the agricultural purpose of the loan.

What did the court decide?

Issued Recovery Certificate for Rs. 37,09,241.67 plus interest @6% p.a. (simple), recoverable by sale of property and from other assets, with costs.

Canara Bank versus Mr. Hanumappa Kariyappa Walikar — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

¶2

Dated this 28^th Day of October, 2025

¶3

PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

¶4

O.A.No.89 of 2024

¶5

Canara Bank, Lakshmeshwar Branch, Sindhur Building, Pampa Circle, Lakshmeshwar, Dist. Gadag – 582 116. Through its Senior Manager, Mr.Ravi Garg.

¶6

… Applicant.

¶7

Vs.

¶8

Mr.Hanumappa Kariyappa Walikar, S/o. Kariyappa Walikar, Having address at: At & Post: Akkigunda Village, Lakshmeshwar, Taluk Lakshmeshwar, Dist. Gadag, Karnataka – 582 116.

¶9

Mr.Basappa Shivappa Aloor, S/o. Shivappa Aloor, Having address at: At & Post: Magadi Village, Lakshmeshwar, Taluk Lakshmeshwar, Dist. Gadag, Karnataka – 582 116. … Defendants. Counsel for Applicant : M/s.Venu K.V. Defendants : Exparte. ……

¶10

¶11

ORDER

¶12

The Application is filed under Section 19 (1) of the Recovery of Debts And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for a sum of Rs.37,09,241.67 together with future interest @14.45% compounded Half Yearly from 01.10.2023 till the date of realisation together with costs from the defendants jointly and severally and by way of sale of schedule mentioned property.

¶13

The Applicant contends that the defendants approached the erstwhile Syndicate Bank for financial assistance of Rs.4,50,000/towards agricultural purpose (crop production) and availed the same on 15.09.2009 by execution of necessary loan documents including Agreement for Agricultural Advances coupled with Simple Mortgage Deed dt.14.09.2009 in respect of schedule mentioned property in favour of applicant which was registered on 14.09.2009 vide Doc.No.SRH-1-01338-2009-10. The 2^nd defendant guaranteed the due repayment of facility advanced to 1^st defendant by executing Deed of Guarantee dt.15.09.2009.

¶14

It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

¶15

¶16

The Applicant further contends that after availing the aforesaid facility, the defendants failed to regularize the said loan and hence the loan account of the defendants was declared as Non-Performing Asset. The applicant bank has also issued Legal Notice dt.03.08.2023 to the defendants. Despite availing the credit facility by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

¶17

Summons was taken out and as the defendants failed to enter appearance, they were set exparte on 19.08.2024.

¶18

The Applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A10, got the same marked in evidence.

¶19

Heard. The following issues arise for consideration in this matter:

¶20

i) Whether the applicant succeeded in proving the OA claim as against the Defendants?

¶21

ii)If so, to what extent?

¶22

Both these issues are gone into and decided together.

¶23

The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is

¶24

¶25

found to be entitled for the OA claim. The OA claim is made within

¶26

limitation and there is no capitalization of penal interest.

¶27

Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of agricultural purpose the pendent lite and future interest is awarded at simple rate that too at reduced rate of 6% p.a. (simple).

¶28

In view of the above

¶29

i) OA No.89 of 2024 stands allowed,

¶30

ii) Applicant is permitted to recover an amount of Rs.37,09,241.67 (Rupees Thirty Seven Lakhs Nine Thousands Two Hundred Forty One and Sixty Seven Paise only) together with interest @6% p.a. (simple) from the date of filing of OA till the date of realization together with costs from the defendants jointly, severally and personally 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 the schedule mentioned property. The schedule to the OA to be the schedule to the Recovery Certificate.

¶31

¶32

iii) If the sale proceeds are not sufficient to clear the liability, then the Defendants are personally and their other assets are liable to be proceeded against for realization of respective dues.

¶33

iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

¶34

v) Interim application pending, if any, stands disposed of in terms of this final order.

¶35

vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

¶36

Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

¶37

(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 28^th day of October, 2025)

¶38

Sd./- (T. RAJESH) PRESIDING OFFICER

¶39

Applicant Witness:

¶40

AW1 –Mr.Rakesh Shankar Gawade, Senior Manager, Applicant Bank.

¶41

Exhibits on the part of the Applicant:

¶42

Ext A1 - Evidence Affidavit. Ext.A2 - List of documents.

¶43

¶44

Ext.A3 - Interview-cum-Assessment Form for Short Term Loan/ Overdraft (Crop Production Credit/Kisan Credit Card Scheme). Ext.A4 - Memorandum for Sanction of Short Term Loan dt.14.09.2009. Ext.A5 - Agreement for Agricultural Advances dt.15.09.2009. Ext.A6 - Simple Mortgage Deed registered 14.09.2009. Ext.A7 - Deed of Guarantee Agreement for Agricultural Advances dt.15.09.2009. Ext.A8 - Letter dt.01.09.2021 acknowledging the liability. Ext.A9 - Legal Notice dt.03.08.2023. Ext.A10 - True Extract of Statement of Accounts.

¶45

Witness Examined for the Defendants:

¶46

NIL

¶47

List of Documents Exhibited for the Defendants :

¶48

NIL

¶49

Sd./- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mr. Hanumappa Kariyappa Walikar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr. Hanumappa Kariyappa Walikar

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

Canara Bank versus Aadinath Plastics

Canara Bank versus Harjit Singh

Bank of Baroda versus Sh. Sukhraj Singh

Asset Reconstruction Company India Ltd. versus Krishna Pratap Singh Chandel

Hdfc Bank versus Sunita Tayal

Sh Khusinder Singh versus Himachal Pradesh Gramin Bank