Allowed

Canara Bank v. Sri.Kalegowda K S

DRT19 Jun 2025OA/982/2023

Case brief

AI extract

What is this about?

The DRT allowed an Originated Application for a recovery certificate from a bank against two borrowers defaulted on an agricultural farm machinery loan. The court reduced the interest rate to 8% simple considering the agricultural nature of the credit facility and issued a certificate for recovery of the principal and future interest.

What did the court decide?

Issuance of a Recovery Certificate for Rs. 46,24,996 with future interest @ 8% simple from the date of filing; schedule property to be proceeded against.

Canara Bank versus Sri.Kalegowda K S — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 19^th Day of June, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A. No. 982 of 2023

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Canara Bank, Hassan Main-I, P.O. No. 45, Near Narasimharaja Circle, Malnad House, Hassan- 573201. Represented by, It’s Senior Manager, Hanumanthappa H

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. . . Applicant

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Versus

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Sri. K.S. Kale Gowda, S/o Sidde Gowda, Aged about 51 years.

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Sri. Shanthamma, W/o Nanje Gowda, Aged about 66 years,

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R/at: Kallenahalli Village, Halekote Hobli, Holenarsipura Taluk, Hassan District.

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Hassan District. ---Defendants Ld. Counsels on record / appeared :- Counsel for Applicants :- Sri. C Vinay Swamy Counsel for Respondents :- EXPARTE

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OA 982/2023

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The Application is filed Under Section 19 (1) of the Recovery of Debt And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for Rs. 46,24,996/- (Rupees Forty Six Lakh Twenty Four Thousand Nine Hundred Ninety Six Only) due in the Farm Machinery Loan for Rs. 4,50,000/(Rupees Four Lakh Fifty Thousand Only) availed by the defendants and defaulted subsequently in gross violation of the terms and conditions stipulated in the loan agreement.

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It is also stated that the facilities is secured by Registered simple mortgage deed.

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The Applicant further contents that despite availing the credit facility by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to appear they were set exparte on 09.02.2024 and evidence was adduced by the applicant through AW1, who filed proof affidavit, produced documents and got marked Ext.A3 to A15 list of which are annexed to this order.

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The Applicant evidence remain un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are

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OA 982/2023

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sufficient to prove the OA claim. Hence the Applicant is to be found

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entitled for the OA claim as the only issue as to the proof of OA claim is answered in favour of the applicant. The OA claim is made within limitation and there is no capitalization of penal interest.

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Taking into consideration the facts that the credit facilities are availed for

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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 OA can be allowed with a reduced interest of 8.00% (simple).

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In view of the above

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i. OA 982 OF 2023 stands allowed

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ii. Applicant is permitted to recover an amount of Rs. 46,24,996/(Rupees Forty Six Lakh Twenty Four Thousand Nine Hundred Ninety Six Only) with future and pendentalite interest @ 8.00% (Simple) from the date of filing of the OA till realization from the defendants jointly, severally & personally after giving credit to all the amount recovered and received during the pendency of the OA.

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iii. The schedule property to be proceeded against and sold and if the sale proceeds are not sufficient the defendants and their other assets are liable to be produced against. The schedule to the OA to be the schedule to the Recovery Certificate.

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OA 982/2023

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iv. A Recovery Certificate is to be drawn and issued to the recovery

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Officer to enable recovery of the as per the above terms.

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v. Applicant is allowed to realize cost of the proceeding for which cost

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memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

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vi. Interim application pending, if any, stands disposed of in terms of this final order.

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

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Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to AJ, transcribed by her, corrected, signed and pronounced by me in Virtual Court on this day of 19^th Day of June, 2025)

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Sd/-

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(T. RAJESH)

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Hon’ble Presiding Officer DRT-II- BANGALORE

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Hanumanthappa H , Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	--	Applicant’s Evidence
A2	--	List of Documents

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OA 982/2023

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		Farm Machinery Loan of Rs. 4,50,000/-,
		availed on 30.03.2007 in A/c No 0531856011773
A3	26.02.2007	Registered simple mortgage deed on
A4	29.03.2007	Application cum appraisal form
A5	30.03.2007	Sanction memorandum
A6	30.03.2007	Memorandum of agreement
A7 & A8	20.03.2010	Letter of revival
A9	18.03.2013	Letter of revival
A10	20.02.2015	Letter of revival
A11	27.02.2018	Letter of revival
A12	31.12.2020	Letter of Revival
A13	02.05.2023	Legal Notice
A14	02.05.2023	Originalpostal receipts/acknowledgements
A15	--	Statement of accounts

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) Hon’ble Presiding Officer DRT-II- BANGALORE

Canara Bank v. Sri.Kalegowda K S

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri.Kalegowda K S

Case brief

What is this about?

What did the court decide?

What the court decided

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