Allowed

Canara Bank v. Dileep Thiagarajan

DRT23 Sept 2025OA/90/2022

Case brief

AI extract

What is this about?

The DRT, Bengaluru allowed the recovery of debt application filed by Canara Bank against borrowers and guarantors. The Tribunal found the defendants ex parte and upheld the bank's claim for principal, interest at 8%, and costs, issuing a recovery certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs.1,52,75,005/- plus 8% simple interest; recovery to be pursued jointly and severally from defendants.

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

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 23^rd Day of August, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.90/2022

¶5

BETWEEN:

¶6

Canara Bank, Having its head office at: No. 112, J C road, Bangalore – 560 002 And its branch office: J P Nagar II phase branch, Bangalore – 560 078

¶7

Represented by its chief branch manager Sri. Dhanunjaya Aragala

¶8

…APPLICANT

¶9

AND:

¶10

1.Mrs. Dileep Thiagarajan S/o. N K Thyagarajan Aged about 50 years,

¶11

Mrs. Aswini Srinivasan W/o. Dileep Thiagarajan Aged about 41 years, Both residing at: 332, Sarakki kere, 23^rd main, Bangalore – 560 078

¶12

Sri. Paramesh Markuli Puttegowda S/o. Puttegowda Residing at: No.404, habitat orchre, Uttarahalli road, Near Airtel office,

¶13

OA-90/2022

¶14

¶15

Chikkalasandra, Bangalore – 560 061

¶16

Sri. Naveen Kumar S/o. Parshwanthayya No. 5 surabi, 1^st floor, 9^th K main 2^nd cross, vijayanagar, Bengaluru – 560 040

¶17

Sri C K Prasad Raya Rawath S/o. Late C V Krishnamurthy Rowth Aged about 49 years, Residing at: No. 56, 1^st floor, 1^st A main road, Surabhi Nagar west, 8^th phase J P Nagar, Bangalore – 560 078

¶18

Sri. C K Prashanth Rawath S/o. Late C V Krishnamurthy Rowth Aged about 49 years, Residing at: No.76, Hemareddy building, 100/2, 3^rd floor,1^st phase J P nagar, Bangalore – 560 078

¶19

Sri. Pradeep Kumar Jampa S/o. Sri umakanth Jampa Aged about 39 years, Residing at: B-303, Jampa delight, MLA layout, Bannerghatta road, Bangalore – 560 076 ...DEFENDANTS

¶20

Counsel on record/appeared for:

¶21

Applicant : Sushree Priya Mehanty Defendants : Ex parte

OA-90/2022

FINAL ORDER

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.1,52,75,005/-(Rupees One Crore Fifty Two Lakhs Seventy Five Thousand and Five Only) with further interest thereon from the date of filing the Application till realization.

¶26

The defendant nos.1 and 2 are the borrower. The defendant no.3 GPA Holder of defendant nos.1&2. The defendant no.4 is the guarantor for the loan availed by the defendant nos.1&2. The defendant nos.5&6 are the builders who have executed tripartite agreement along with defendant nos.1&2 in favour of applicant bank. The defendant no.7 is the GPA holder of defendant nos.5&6.

¶27

It is also the case of the applicant that, in view of the above

¶28

availed loans, the defendants No.1 & 2 executed the necessary loan documents along Housing Finance (NRI) agreement, Tripartite

¶29

Agreement, Sanction Memorandum, Sale Agreement and Guarantee Agreement.

¶30

It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants No.1 & 2 failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶31

OA-90/2022

¶32

¶33

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.

¶34

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 11.02.2025.

¶35

The applicant states that the 1^st defendant has sold the schedule property to the 3^rd defendant by executing the registered sale deed who in turn sold the schedule property to the 4^th defendant executing the registered sale deed.

¶36

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-3 to A-12 and got the same marked in evidence.

¶37

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.

¶38

The following issues arise for consideration in this matter:

¶39

i) Whether the applicant had succeeded in proving the OA

¶40

claim as against the defendants?

¶41

ii) What order are to be passed?

¶42

Both these issues are gone into and decided together.

¶43

OA-90/2022

¶44

¶45

The case put forth by the applicant in the Application remains

¶46

unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed.

¶47

The evidences put forth by the applicant were found admissible

¶48

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 is also proved by the above documents. The claim of the applicant is well within the limitation.

¶49

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

¶50

find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶51

Taking into consideration the facts that the credit facilities are availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the

¶52

OA can be allowed with a reduced interest of 8.00% (simple).

¶53

In the result, OA.No.90/2022, stands allowed,

¶54

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

¶55

Rs.1,52,75,005/-(Rupees One Crore Fifty Two Lakhs Seventy Five Thousand and Five Only) with further interest @8.00 % p.a.(simple)

¶56

OA-90/2022

¶57

¶58

from the date of filing OA till the realization, from the defendants 1,2

¶59

and 4 to 6 after giving credit to all the amount recovered and received

¶60

during the pendency and allowed the same to be recovered by proceeding against the defendants 1,2 and 4 to 6 jointly, severally & personally and their assets including the schedule property is liable

¶61

for amounts due under the loan accounts. Properties schedule to the

¶62

OA be the schedule to the recovery certificate.

¶63

ii) The applicant bank is allowed cost of the proceedings

¶64

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

¶65

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

¶66

and transferred to Recovery for execution.

¶67

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

¶68

Communicate a copy of the order to the parties concerned in

¶69

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

¶70

(Procedure) Rules, 1993.

¶71

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 23^rd Day of August, 2025].

¶72

Sd/- (T. RAJESH)

¶73

PRESIDING OFFICER

OA-90/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶78

AW-1: Mr. Azad Kumar Boipai, S/o. Mr. Ramesh Chandra Boipai,

¶79

Worked as Chief Manager, of Applicant Bank.

¶80

Exhibits on the part of the Applicant:

¶81

Exhibit Nos.	Particulars of Documents
A1	Affidavit
A2	List of documents
A3	Copy of loan application 03.12.2018
A4	Sanction memorandum dated 11.12.2018
A5	Housing loan agreement dated 20.12.2018
A6	General power of attorney dated 01.11.2018 executed by defendant nos. 1 & 2 in favour of defendant no.3
A7	Construction agreement dated 20.12.2018
A8	Sale agreement dated 30.11.2018
A9	Tripartite agreement dated 18.12.2018 executed by defendant nos. 1 to 3 and 5 to 7
A10	Guarantee agreement dated 20.12.2018 executed by the defendant no.4
A11	Legal notice fated 07.12.2021
A12	Copy of account statement for housing loan A/c no. 0492662000008

¶82

Witness Examined for the Defendants:

¶83

-Nil -

¶84

List of Documents Exhibited for the Defendants:

¶85

-Nil -

¶86

Sd/- (T. RAJESH) PRESIDING OFFICER

¶87

8 OA-90/2022

Canara Bank v. Dileep Thiagarajan

Case brief

What is this about?

What did the court decide?

Canara Bank v. Dileep Thiagarajan

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

Karnataka Gramin Bank versus Sri Acha Shirishaila

Punjab National Bank versus G Krishnamurhty

Icici Bank Limited versus Svb Infra Projects

Canara Bank versus Veena Shetty

Union Bank of India versus Munivenkate Gowda

Union Bank of India versus Sukumar Mohan