Allowed

Canara Bank v. Ningappa H

DRT19 Nov 2025OA/970/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Canara Bank under Section 19 of the RDB Act to issue a Recovery Certificate. The court reduced the interest rate to 6% per annum due to the agricultural nature of the loan and directed recovery from the legal heirs and mortgaged property.

What did the court decide?

Recovery Certificate to be issued for Rs. 57,14,786.22 plus interest at 6% p.a. simple, recoverable from defendants and the estate of the deceased borrower against the schedule property.

Canara Bank versus Ningappa H — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer OA. No.970/2023

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BETWEEN:

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Canara Bank Channarayapatna Branch, Mysuru Road, Channarayapatna Dist. Hassan – 573 116

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Through its Chief Manager Mr. Chandrashekhara Patil

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APPLICANT

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AND:

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Mr. Ningappa H S/o. Honnegowda Aged about 78 years

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Mr. V N Nataraj S/o. Ningappa Aged about 51 years

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Mr. V N Divyananda (Since deceased, rep. by his LRs i.e., defendant nos. 1, 2 & 4)

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Mr. V N Suresh S/o. Ningappa Aged about 47 years

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All are residing at: Valagerahalli Village, Nuggehalli Hobli, Channarayapatna Taluk, Hassan District, Karnataka – 573 116 ...DEFENDANTS

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OA. No. 970/2023

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Counsel on record/appeared for:

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Applicant : Girish S Poojary Defendant’s no.1, 2 & 4: Ex parte Defendant no.3 : Deceased

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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

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Rs. 57,14,786.22/- (Rupees Fifty Seven Lakhs Fourteen Thousand Seven Hundred and Eighty Six and Paisa Twenty Two 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 are the legal heirs of the deceased borrower Mr. V N Divyananda along with defendant nos. 1, 2 & 4 have availed the following credit facilities:

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Agriculture facility loan of Rs. 16,65,000/(Rupees Sixteen Lakhs Sixty Five Thousand Only) for the purpose to purchase of JCB 3D/ backhoe loader and equipment.

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Kisan credit card scheme of Rs. 50,000/(Rupees Fifty Thousand Only) on 12.09.2005.

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Kisan credit card scheme of Rs. 50,000/(Rupees Fifty Thousand Only) on 01.02.2008.

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Kisan Credit card scheme of Rs. 40,000/(Rupees Forty Thousand Only) on 11.03.2008.

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

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OA. No. 970/2023

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financed credit facilities, the deceased Mr. V N Divyananda and the defendant no.1, 2 & 4 executed necessary loan documents. Apart from the creation of security interest by way of simple mortgage deed over the schedule property.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, borrowers 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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After filling of the OA, summons sent to defendants by registered post. The summons to defendant no.3 returned unserved with an endorsement “dead” and the applicant bank has filed a memo dated 07.09.2023 in this regard. When the case came up for hearing on 18.12.2024, in spite of granting sufficient time, defendants no1, 2 & 4 neither appeared nor represented. Hence, the defendant’s no1, 2 & 4 placed ex parte on 18.12.2024.

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In respect of defendant no.3, who is reported ‘dead’, the

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applicant bank has filed a memo dated 07.09.2023, stating that the defendant nos.1, 2 & 4 is the legal heirs of defendant no.3 and

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OA. No. 970/2023

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he is already on record.

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The applicant let in evidence through AW-1, who filed Proof

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A38 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

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claim as against the defendants?

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ii) What orders 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 ex parte. 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 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

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OA. No. 970/2023

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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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Taking into consideration the facts that the credit facilities 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

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6.00% (simple).

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In the result, OA.No.970/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 57,14,786.22/- (Rupees Fifty Seven Lakhs Fourteen Thousand Seven Hundred and Eighty Six and Paisa Twenty Two Only) with further interest of 6.00% p.a.(simple) from the date of filing of OA till the realization, from the defendants no.1, 2 & 4

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and form the estate of deceased borrower late Mr. V N Divyananda, after giving credit to all the amount recovered and be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the

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OA. No. 970/2023

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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

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no.1, 2 & 4 jointly, severely and personally and their assets are

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liable 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 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 in

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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 (HS), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 19^th Day of November, 2025]

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA. No. 970/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Saransh Garg, S/o. Pradeep Kumar Agarwal, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Sanction letter dated 17.05.2006
A2	Memorandum of agreement for agricultural loans dated 17.05.2006
A3	Letter Of Revival Dated 21.04.2011
A4	Letter Of Revival Dated 01.01.2013
A5	Letter Of Revival Dated 10.01.2014
A6	Letter Of Revival Dated 30.08.2016
A7	Letter Of Revival Dated 11.07.2019
A8	Letter Of Revival Dated 01.07.2022
A9	Loan application dated 12.09.2005
A10	Sanction letter dated 12.09.2005
A11	Deed of hypothecation for Kisan credit card dated 12.09.2005
A12	Letter Of Revival Dated 21.04.2011
A13	Letter Of Revival Dated 21.04.2011
A14	Letter Of Revival Dated 21.04.2011
A15	Letter Of Revival Dated 21.04.2011
A16	Letter Of Revival Dated 21.04.2011
A17	Letter Of Revival Dated 21.04.2011
A18	Letter Of Revival Dated 21.04.2011
A19	Loan Application Dated 01.02.2008
A20	Sanction Letter Dated 01.02.2008
A21	Agreement Of Hypothecation For Agricultural Loans Dated 01.02.2008
A22	Letter Of Revival Dated 31.02.2013
A23	Letter Of Revival Dated 12.01.2011
A24	Letter Of Revival Dated 25.06.2015
A25	Letter Of Revival Dated 16.02.2018

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OA. No. 970/2023

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A26	Letter Of Revival Dated 30.06.2020
A27	Loan Application Dated 11.03.2008
A28	Sanction letter dated 11.03.2008
A29	Demandpromissorynote dated 11.03.2008
A30, A31, A32 & A33	Letter of revival dated 24.06.2013, 23.0.2015, 16.02.2018 & 30.06.2020
A34	Notice dated 02.06.2022
A35	True extract of statement of accounts pertaining to the defendants aforesaid L/A no. 0766840006745
A36	True extract of statement of accounts pertaining to the defendants aforesaid L/A no. 0767856008811
A37	True extract of statement of accounts pertaining to the defendants aforesaid L/A no. 1806840002574
A38	True extract of statement of accounts pertaining to the defendants aforesaid L/A no. 1806883002613

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

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Ningappa H

Case brief

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Canara Bank v. Ningappa H

Case brief

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What did the court decide?

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