The Tribunal disposed of an Original Application filed by Canara Bank to recover a defaulted agricultural loan. As respondents appeared ex parte, the Tribunal found the evidence unrebutted and allowed the claim, reducing the interest rate to 6% simple interest.
Recovery certificate to be drawn for Rs. 87,49,705.11 plus further interest at 6% simple p.a. from date of filing.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 24th Day of October, 2025
Present: Sri. T. RAJESH Presiding Officer OA NO.940/2022
BETWEEN:
Canara Bank Maski Branch, Basavanagouda Building, New Bazar, Maski, Lingasugur Taluk, Raichur Dist, Karnataka – 584124
Rep. by its Manager Mr. Sudhir Kumar Jitti …APPLICANT
AND:
OA-940/2022
2
Counsel on record/appeared for:
Applicant : V.S Associates Defendants : Ex parte
FINAL ORDER:
of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of sum of Rs.87,49,705.11/- (Rupees Eighty Seven Lakhs Forty Nine Thousand Seven Hundred and Five and Eleven Only)
OA-940/2022
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with further interest thereon from the date of filing the Application till realization.
OA-940/2022
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loan availed by 1st Defendant for a sum of Rs.50 lakh against agricultural produce stored in the warehouse of M/s. Vishnumurthy Warehouse.
no. 1 created charge over the schedule immovable properties by executing Mortgage Deed dated 13.12.2013 as collateral security
to the overall limit of Rs.900 lakhs which includes Rs. 50 Lakhs advanced to 1st Defendant. Further, defendants 2 to 7 executed
guarantee agreement dated 15.03.2016 unconditionally and irrevocably guaranteeing the repayment of the overall exposure limit of Rs.900 lakhs which includes Rs.50 lakh advanced to the 1st
Defendant. In the sanction letter, there is an endorsement of
Defendant No.2 that there is a lien in favour of applicant bank
against the pledged agricultural produce.
(Rupees Twenty Five Lakhs Only) for agriculture purpose on 21.02.2011; agriculture loan of Rs. 42,000/- (Rupees Forty Two
Thousand Only) as per sanction letter dated 22.02.2011 and defendant no.1 availed an warehouse loan of Rs. 50,00,000/-
5 OA-940/2022
(Rupees Fifty Lakhs Only) on 10.03.2017 on the guarantee of defendants no. 2 to 7 and against 4770 bags of paddy valued at for Rs.1260 lakhs stored in M/s. Vishnumurthy Warehouse and against the warehouse receipt issued by M/s. Vishnumurthy Warehouse.
agreeing to the terms and conditions of sanction. After availing the financial assistance, defendants failed and neglected to repay the dues and committed default. Hence the bank issued Legal Notice dated 04.05.2022 demanding the defendants to repay the amount due. However, the defendants failed to repay the loan amount due. Hence, the present OA has been filed to recovery of the amount due from the Defendants. It is contended by applicant bank that M/s. Vishnumurthy Warehouse has released the agricultural products stored against the Warehouse receipt to Defendant No.1 without any contention by the applicant bank.
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amount due are also proved by the above documents. The claim of the applicant is well within the limitation.
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this Tribunal is of the view that OA is to be allowed.
are availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is
the view that the OA can be allowed with a reduced interest of 6.00% (simple).
Rs. 87,49,705.11/- (Rupees Eighty Seven Lakhs Forty Nine Thousand Seven Hundred and Five and Eleven Only) consisting of: a. Rs. 3,77,413.75/- (Rupees Three lakhs seventy seven thousand
four hundred and thirteen and paisa seventy five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1;
b. Rs. 52,405.36/- (Rupees Fifty Two Thousand Four Hundred and
Five and Paisa Thirty Six Only ) with further interest @6.00 %
p.a.(simple) from the date of filing OA till the realization, from the defendant no.1;
OA-940/2022
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c. Rs. 83,19,886/- (Rupees eighty three lakhs nineteen thousand
eight hundred and eighty six) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1 to 7;
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 schedule property. Properties schedule to the OA be the schedule to the recovery certificate.
ii) If the sale proceeds are not found sufficient to cover the
amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for balance amounts due under the loan accounts.
iii) The applicant bank is allowed cost of the proceedings
which applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this order
and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in
terms of this final order.
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17. 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.
[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me
in the Open Court, this the 24th Day of October, 2025].
Sd/-
(T. RAJESH) PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: B Krishna, S/o. Raju, working as Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit | Particulars of Documents |
|---|---|
| Nos. | |
| A1 | Application & sanction letter dated 21.02.2011 |
| A2 | Application & sanction letter dated 22.02.2011 |
| A3 | Application & sanction letter dated 10.03.2017 |
| A4 | Agreement and deed of hypothecation for Kisan OD executed by defendant no.1 in favour of applicant dated 11.09.2014 |
| A5 | Agreement and deed of hypothecation for agricultural loans executed by defendant no.1 in favour of applicant dated 22.02.2011 |
| A6 | Supplemental agreement executed by defendant no.1 in favour applicant dated 11.09.2014 |
| A7 | Letter of renewal executed by defendant no.1 in favour applicant dated 11.09.2014 |
OA-940/2022
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| A8 | Access letter to godown executed b defendant no.2 in favour of applicant bank dated 10.03.2017 |
|---|---|
| A9 | Letter for loans/ advances against securities i.e. warehouse receipt executed by defendant no.1 in favour of applicant bank dated 10.03.2017 |
| A10 | Demand promissory note along with take delivery note executed by defendant no.1 in favour of applicant dated 10.03.2017 |
| A11 | Warehouse receipt issued by Vishnumurthy warehouse in favour of defendant no.1 dated 10.03.2017 |
| A12 | Consolidated RSM deed dated 13.12.2013 for a value of Rs. 900 lakhs executed by defendant |
| A13 | Guarantee covering letter and consolidated guarantee agreement for value of Rs. 9.00 Crores executed by defendant no.1,2,3,4,5,6 & 7 in favour of applicant, for Vishnumurthy warehouse issuing warehouse receipts to farmers for availing loans from applicant bank dated 15.03.2016 |
| A14 | Revival letter dated 20.02.2014, 20.02.2016, 01.02.2019, 20.02.2014, 10.02.2016, 15.01.2017, 01.02.2019, 01.01.2022 & 01.01.2022 |
| A15 | Simple mortgage deed dated 17.02.2011 |
| A16 | True extract of statement of accounts pertaining to the defendant’s loan accounts 0545897000371 |
| A17 | True extract of statement of accounts pertaining to the defendant’s loan accounts 0545840006856 |
| A18 | True extract of statement of accounts pertaining to the defendant’s loan accounts 0545844010128 |
Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:
-Nil -
-Nil -
Sd/-
(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim against the defendants given the ex parte status?
What order are to be passed regarding the recovery of the claimed amount?
1 provisions across 1 enactments
Canara Bank Maski Branch
Smt. Katta Sridevi
Sri. K Vishnumurthy
Sri. K Muralikrishna
Smt. K Laxmi
Smt. Vasanthalakshmi
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
