Allowed

Canara Bank v. S Puttasiddegowda

DRT27 Oct 2025OA/918/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank seeking a Recovery Certificate. Distinguishing issues were decided in favor of the bank. Recovery of the principal amount with reduced interest at 6% p.a. was ordered against defendants jointly and severally.

What did the court decide?

Order for recovery of Rs. 78,95,917/- plus interest at 6.00% p.a. from defendants with cost of proceedings.

Canara Bank versus S Puttasiddegowda — 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 27^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.918/2022

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BETWEEN:

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Canara Bank, Bidadi Branch, Nelligudda Tank Road, Bidadi- 562 109, Ramnagaram District.

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Represented by its, Manager and PA Holder, Mrs. Nekha Jayaraj, Aged about 35 years, W/o Sri. Prashanth Gopalan.

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…APPLICANT

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AND:

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Sri. S Puttasiddegowda, S/o Late S. Siddaiah, Aged about 62 years.

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Smt. K.P. Ramya, D/o S. Puttasiddegowda, Aged about 32 years.

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Smt. K.P. Soumya, D/o S. Puttasiddegowda, Aged about 30 years.

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Sri. K. Nandish, S/o S. Puttasiddegowda, Aged about 27 years,

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All are residing at: Kurubarahalli Village, Kasaba Hobli, Ramanagaram Taluk & District- 562109.

...DEFENDANTS

OA 918/2022

Counsel on record/appeared for:

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Applicant : M/s. HSR & Associates Defendants : Anitha M

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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 issuance of Recovery Certificate against the defendants for Rs. 78,95,917/- (Rupees Seventy Eight Lakh Ninety Five Thousand Nine Hundred Seventeen 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 defendant No.1 availed farm development loan of Rs. 25,00,000/- (Rupees Twenty Five Lakh Only), KCCS loan of Rs. 4,00,000/- (Rupees Four Lakh Only) and term loan of Rs. 25,00,000/- (Rupees Twenty Five Lakh Only). Defendant Nos. 1 to 4 are the mortgagers.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with agreement and deed of hypothecation and simple mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in compliance of 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 Tribunal

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OA 918/2022

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by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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The defendants filed IA 697/2024 to condone the delay in filing written statement which was dismissed on 28.11.2024 vide separate order and written statement of defendants were closed.

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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-21 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 the 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 exparte. The evidence tendered by

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the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove

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OA 918/2022

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availment of the credit facilities as stated in the OA, creation of security

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interest as claimed by the applicant bank 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

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well within the limitation.

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

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both these issues in favour of applicant and hence, this Tribunal is of the

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view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the

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OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.918/2022, stands allowed,

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

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78,95,917/- (Rupees Seventy Eight Lakh Ninety Five Thousand Nine Hundred Seventeen Only) with further interest @ 6.00 % p.a.(simple), from the date of filing OA till the realization, from the defendants jointly, severally & personally after giving credit to all the amounts recovered and

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received during the pendency of the OA and allowed to recover the same

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by proceeding against the schedule property. Schedule to the OA be the

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OA 918/2022

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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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amount due and payable to the applicant bank, the defendants jointly, severally & personally and their other assets are liable for all such

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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 and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this

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Final Order.

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Communicate a copy of the order to the parties concerned in terms

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

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of October, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

OA 918/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Milee Sobin W/o Sobin Thomas, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	24.01.2015	Loan application for KCCS loan submitted by the defendant No.1
A2	24.01.2015	Sanction memorandum issued by the applicant bank
A3	24.01.2015	Agreement and deed of hypothecation for Kisan credit card executed by the defendant No.1 in favour of the applicant bank
A4	20.01.2015	Registered simple mortgage deed executed by the defendants in favour of applicant bank
A5 & A6	06.06.2019 30.12.2021	Letters of revival executed by the defendant No.1 in favour of applicant bank
A7	29.10.2015	Loan application submitted by the defendant No.1
A8	29.10.2015	Sanction memorandum issued by the applicant bank
A9	29.10.2015	Memorandum of agreement for agricultural loans executed by the defendant No.1 in favour of the applicant bank
A10	21.10.2015	Simple mortgage deed executed by the defendants in favour of the applicant bank
A11 & A12	13.04.2018 30.12.2020	Letters of revival executed by the defendant NO.1 in favour of the applicant bank
A13	14.03.2016	Loan application submitted by the defendant No.1
A14	14.03.2016	Sanction memorandum issued by the applicant bank
A15	14.03.2016	Memorandum of agreement for agricultural loans executed by the defendant No.1 in favour of the applicant bank
A16	11.03.2016	Simple mortgage deed executed by the defendants in favour of the applicant bank
A17 & A18	03.01.2019 30.12.2020	Letters of revival executed by the defendant No.1 in favour of the applicant bank
A19	--	Certified account extract of the defendant No.1 maintained by the applicant bank in respect of KCCS loan Ac No. 0426840021828

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OA 918/2022

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A20	--	Certified account extract of the defendant No.1 maintained by the applicant bank is respect of farm development loan A/c NO. 0426883021720
A21	--	Certified account extract of the defendant No.1 maintained by the applicant bank in respect of farm development loan A/c NO. 0426883021751

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Canara Bank v. S Puttasiddegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. S Puttasiddegowda

Case brief

What is this about?

What did the court decide?

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