Allowed

Canara Bank v. Mahadevi Basavanni

DRT27 Nov 2025OA/905/2024

Case brief

AI extract

What is this about?

DRT allowed the bank's Original Application for a recovery certificate after finding the defendants' case unrebutted. The Tribunal granted the claim for approximately Rs. 23 lakhs but reduced the interest rate to 6% p.a. being an agricultural loan.

What did the court decide?

Issuance of Recovery Certificate for Rs. 23,16,483.87 with 6% p.a. simple interest, recoverable against defendants jointly and severally and by proceeding against schedule property.

Canara Bank versus Mahadevi Basavanni — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.905/2024

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BETWEEN:

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Canara Bank Ghataprabha Branch Near Mrutyunjay Circle, Ghataprabha Dist Belgavi-591 306 Through its Chief Manager

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Mr. Sreekumar Ramachandran … APPLICANT

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AND:

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Mrs. Mahadevi Basavanni Tukkanatti W/o. Basavanni Tukkanatti

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Aged about 49 years R/o.Mallapur PG Taluk Gokak,

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Dist. Belgavi-591 306

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Mr.Basavaraj Mallappa Hattarwat S/o. Mallappa Hattarwat Aged about 49 years, R/o.Mallapur PG Taluk Gokak,

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Dist. Belgavi-591 306

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Mr.Basavanni Shankar Tukkanatti S/o. Shankar Tukkanatti Aged about 50 years R/o.Mallapur PG Taluk Gokak, Dist. Belgavi - 591 306

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OA. No.905/2024

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Mr. Shankar Siddamallappa Kabbur S/o. Siddamallappa Kabbur Aged about 54 years R/o.Mallapur PG Gokak Taluk Belagavi Dist 591 306

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Venu K.V. Defendants : Exparte

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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 for seeking issuance of Recovery Certificate against the defendants for Rs. 23,16,483.87 (Rupees twenty three lakhs sixteen thousand four hundred eighty three and paise eighty seven only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed agricultural facility of Rs.13,00,000/- on 18.12.2017; Rs.50,000/on 14.03.2019 and Rs.4,50,000/on 20.07.2021 and Rs.3,99,000/- on 06.08.2021 for agricultural purposes.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents. Apart from the creation of security interest by way of

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OA. No.905/2024

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mortgage over the Schedule property.

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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 account as NPA.

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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.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 28.10.2024.

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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 A1 to A29 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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OA. No.905/2024

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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

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remains unrebutted as defendants remained exparte. The 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 facilities

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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 findings 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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OA. No.905/2024

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Taking into consideration the facts that the credit facilities

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were availed for agricultural purpose and also that 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 6.00%

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p.a.(simple).

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In the result, OA.No.905/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 23,16,483.87 (Rupees twenty three lakhs sixteen thousand four hundred eighty three and paise eighty seven only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants, 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 defendants jointly, severally and personally and also by proceeding against the 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 jointly, severally and personally and their other assets are liable

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OA. No.905/2024

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for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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

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receipt of the order.

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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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Communicate a copy of the order to the parties concerned

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

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.905/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Sandeep Jagannath, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Loan Application dated 16.11.2017
A2	Sanction letter dated 18.12.2017
A3	Agreement for Agricultural Advance dated 27.12.2017
A4	Simple Mortgage Deed dated 24.05.2017
A5	Deed of Guarantee dated 27.12.2017
A6	Loan Application dated 14.03.2019
A7	Sanction letter dated 14.03.2019
A8	Agreement for Agricultural Advance dated 14.03.2019
A9	Deed of Guarantee dated 14.03.2019
A10	Loan Application dated 20.07.2021
A11	Sanction letter dated 20.07.2021
A12	Agreement and Deed for Kisan OD dated 20.07.2021
A13	Agreement of Hypothecation dated 18.03.2021
A14	Guarantee Agreement dated 18.03.2021
A15	Simple Mortgage Deed dated 06.03.2021
A16	Loan Application dated06.08.2021
A17	Sanction letter dated 06.08.2021
A18	Agreement and Deed of Hypothecation for kissan credit card dated 06.08.2021
A19	Simple mortgage deed dated 26.07.2021
A20	Application cum Sanction for Renewal and/or Enhancement under Kisan Credit Card Scheme dated 04.08.2022
A21	Link letter dated 04.08.2022

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OA. No.905/2024

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A22	Supplemental agreement dated 09.08.2022
A23	Letter of Renewal dated 04.08.2022
A24	Legal Notice dated 04.03.2024
A25	True Extract of Statement of Account of A/c No.05128280001395
A26	True Extract of Statement of Account of A/c No.05128420000018
A27	True Extract 897 Statement of Account of A/c No. 181000968973
A28	True Extract of Statement of Account of A/C No. 181001252909
A29	Statement showing total outstanding liabilities

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mahadevi Basavanni

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mahadevi Basavanni

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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