Allowed

Canara Bank v. Devegowda Eregowda

DRT25 Sept 2025OA/917/2024

Case brief

AI extract

What is this about?

In an ex parte hearing under Section 19 of the RDB Act 1993, the Tribunal found the bank's evidence uncontroverted regarding loan defaults and titled debt. The Original Application was allowed, granting a recovery certificate with interest reduced to 6% p.a. for agricultural purposes, while rejecting a prayer against legal heirs due to lack of averment.

What did the court decide?

Issued a Recovery Certificate for Rs. 22,68,970.15 plus interest at 6% p.a. (simple) from the filing date, with liability to recover against schedule property and other assets.

Canara Bank versus Devegowda Eregowda — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 25^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.917/2024

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BETWEEN:

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Canara Bank Kushalnagar Branch, Kushalnagar, Kodagu District-571234

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…APPLICANT

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AND:

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Mr. Devegowda E.

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S/o Eregowda R/at: Chennakeshavapuru Village, Harnahalli Hobli, Periyapatna Taluk, Mysore Taluk-571104

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Mr. Manjegowda S/o Devegowda R/at: Chennakeshavapuru Village, Harnahalli Hobli, Periyapatna Taluk, Mysore Taluk-571104

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Smt. Sumithra W/o Devegowda R/at: Chennakeshavapuru Village, Harnahalli Hobli, Periyapatna Taluk, Mysore Taluk-571104

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Venu K.V. & Mr. Naushad A.K. Defendants : Exparte

OA 917-2024

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 for Rs.22,68,970.15 (Rupees twenty two lakh sixty eight thousand nine hundred seventy and paisa fifteen 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 the following credit facilities from the applicant bank:-

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I. Agricultural Finance Loan of a sum of Rs.50,000/- (Rupees Fifty Thousand Only), which was later enhanced from time to time,

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II. Agricultural loan limit of Rs.5,00,000/- (Rupees Five lakh Only),

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III. Agriculture Credit Loan limit of Rs.2,00,000/- (Rupees Two Lakh Only) and

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IV. Agriculture Credit loan limit of Rs.50,000/- (Rupees fifty thousand only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan

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OA 917-2024

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documents along with deed of hypothecation, guarantee agreement and letters of revival in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts 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 06.02.2025.

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The applicant 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-30 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered

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the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

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OA 917-2024

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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

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OA claim as against the defendant?

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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 defendant 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 as stated in the OA, creation of mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due

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is 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 finding arrived herein above, this

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Tribunal find both these issues in favor of applicant and hence

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this Tribunal is of the view that OA is to be allowed.

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OA 917-2024

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Even though prayer his sought against the Legal Heirs of

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the defendants, there is no averment about deceased borrower

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and his/her legal heirs. Hence, the prayer of the Applicant in this regard is rejected.

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13.13. Taking into consideration the facts that the credit facilities

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are availed by defendants for agricultural purpose and also that

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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

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interest @6% p.a. (Simple).

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In the result, OA.No.917/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.22,68,970.15 (Rupees twenty two lakh sixty eight

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thousand nine hundred seventy and paisa fifteen only) with further interest @6% p.a. (Simple),

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

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personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property.

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Properties schedule to the OA be the schedule to the recovery

OA 917-2024

certificate.

(ii) If the sale proceeds are not sufficient, the defendants

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jointly severally and personally and their other assets are liable

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to be proceeded against for the balance amount.

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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

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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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in terms of 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 25^th day of September, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 917-2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Rakesh P, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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The documents are appended in this order.

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Devegowda Eregowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Devegowda Eregowda

Case brief

What is this about?

What did the court decide?

What the court decided

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