Allowed

Canara Bank v. Jagadeeshwara Reddy

DRT30 Jan 2026OA/103/2024

Case brief

AI extract

What is this about?

The DRT allowed Canara Bank's OA for recovery certificate against two defendants for agricultural loan defaults. The court admitted uncontroverted evidence, reduced interest to 6%, and granted recovery up to sum plus interest.

What did the court decide?

Recovery certificate issued for Rs. 63,63,962/- with further interest at 6% simple p.a. to be recovered from schedule property and personal assets.

Canara Bank versus Jagadeeshwara Reddy — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.103/2024

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BETWEEN:

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Canara Bank, Branch Office at Raichur Main Branch 1, Opposite vishal mart, Lingasugur Road, Raichur 584101, Karnataka State, Represented by its Chief Manager And principal Officer, Sri. B Suresh Kumar of The applicant bank.

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…APPLICANT

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AND:

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Sri. Jagadeeshwara Reddy, Major, Aged about 63 years Kalawaladoddi Village, Athkur Post, Raichur District.

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Sri Prahlad, Kalawaladoddi Village, Major, Athkur Post, Raichur District.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. M & R Consult Defendants : Exparte

OA 103/2024

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 against the defendants for Rs. 63,63,962/- (Rupees Sixty Three Lakh Sixty Three Thousand Nine Hundred Sixty Two 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 the following loans:-

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1^st loan- Minor irrigation loan of Rs. 3,00,000/- (Rupees Three Lakhs Only)- defendant No. 2 is the co-obligant.

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2^nd loan- KCC Scheme of Rs. 50,000/- (Rupees Fifty Thousand Only).

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3^rd loan- ALLHV loan of Rs. 32,000/- (Rupees Thirty Two Thousand Only) -defendant No. 2 is the co-obligant.

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4^th loan- Farm development of Rs. 2,19,000/- (Rupees Two Lakh Nineteen Thousand Only).

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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 letter of revivals 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 complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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OA 103/2024

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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, summons the defendants, they failed to appear, resulting the defendants being set exparte on 01.04.2025.

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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-43 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 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

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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 103/2024

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

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interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above

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documents. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agriculture purpose and also that the OA claim is arrived at by

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calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.103/2024, stands allowed,

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

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63,63,962/- (Rupees Sixty Three Lakh Sixty Three Thousand Nine Hundred Sixty Two Only) with further interest @6.00 % p.a.(simple) as

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follows:-

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a) 1^st loan- Rs. 34,17,580/- (Rupees Thirty Four Lakh Seventeen Thousand Five Hundred Eighty Only) from the date of filing OA till the realization, from the defendants Nos. 1 & 2 jointly, severally & personally, after giving credit to all the amount recovered and received during the

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OA 103/2024

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pendency of the OA and allowed the same to be recovered by proceeding

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against schedule property.

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b) Rs. 2,77,773/- (Rupees Two Lakh Seventy Seven Thousand Seven Hundred Seventy Three Only) from the date of filing OA till the realization, from the defendant No.1 personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the

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same to be recovered by proceeding against the defendant No.1 personally and his assets including the hypothecated assets.

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c) Rs. 2,91,972/- (Rupees Two Lakh Ninety One Thousand Nine Hundred Seventy Two Only) from the date of filing OA till the realization, from the defendants Nos.1 & 2 jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendants Nos.1 & 2 jointly, severally & personally and their assets including the hypothecated assets.

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d) Rs. 23,76,637/- (Rupees Twenty Three Lakh Seventy Six Thousand Six Hundred Thirty Seven Only) from the date of filing OA till the realization, from the defendant No. 1 personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property.

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Properties schedule to the OA be the schedule to the recovery certificate.

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OA 103/2024

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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 assets are liable for the respective amounts due under the respective loan accounts.

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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.

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iv) The Recovery Certificate to be drawn in terms of this order and

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this 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) 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 30^th Day of January, 2026].

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Sd/- (T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: K Shivaprasad, Manager, of Applicant Bank.

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OA 103/2024

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Original of the comprehensive application-cum-appraisal report for Minor Irrigation/ farm development/ land development activities dated 27.02.2003
A2	Original of the memorandum of agreement for agricultural loans dated 27.02.2003
A3	Original of the simple mortgage deed dated 25.02.2003
A4	Original of the letter of revival dated 27.02.2006
A5	Original of the letter of revival dated 23.01.2009
A6	Original of the letter of revival dated 20.01.2012
A7	Original of the letter of revival dated 10.01.2015
A8	Original of the letter of revival dated 02.07.2017
A9	Original of the letter of revival dated 21.03.2020
A10	Original of the letter of revival dated 01.01.2022
A11	Original of the application cum appraisal form for Kisan Credit card Scheme (KCCS) dated 04.07.2003
A12	Original of the agreement and deed of hypothecation for Kisan credit card dated 04.07.2003
A13	Original of the letter of revival dated 16.06.2006
A14	Original of the letter of revival dated 18.05.2009
A15	Original of the letter of revival dated 21.04.2012
A16	Original of the letter of revival dated 31.03.2015
A17	Original of the letter of revival dated 24.07.2017
A18	Original of the letter of revival dated 20.02.2020
A19	Original of the letter of revival dated 01.01.2022
A20	Original of the Simplified application-cum-appraisal/ sanction report for ALLHV loans under agriculture dated 14.09.2004
A21	Original of the memorandum of agreement for agricultural loans dated 14.09.2004
A22	Original of the letter of revival dated 09.09.2007
A23	Original of the letter of revival dated 21.01.2010
A24	Original of the letter of revival dated 21.04.2012
A25	Original of the letter of revival dated 23.11.2014
A26	Original of the letter of revival dated 05.05.2017
A27	Original of the letter of revival dated 06.06.2019
A28	Original of the letter of revival dated 01.05.2022
A29	Original of the application for agricultural credit-short term/ term loan cum appraisal report dated 18.12.2004

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OA 103/2024

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A30	Original of the memorandum of agreement for agricultural dated 21.12.2004
A31	Original of the simple mortgage deed dated 18.11.2004
A32	Original of the letter of revival dated 09.09.2007
A33	Original of the letter of revival dated 03.05.2010
A34	Original of the letter of revival dated 14.02.2013
A35	Original of the letter of revival dated 01.02.2016
A36	Original of the letter of revival dated 10.02.2016
A37	Original of the letter of revival dated 12.12.2018
A38	Original of the letter of revival dated 29.01.2019
A39	Original of the letter of revival dated 01.01.2022
A40	Copy of the statement of account certified under banker’s book of evidence act showing the outstanding liability under loan account No. 519881001860
A41	Copy of the statement of account certified under banker’s book of evidence act showing the outstanding liability under loan account No. 519840002526
A42	Copy of the statement of account certified under banker’s book of evidence act showing the outstanding liability under loan account No. 519857004966
A43	Copy of the statement of account certified under banker’s book of evidence act showing the outstanding liability under loan account No. 519883005194

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

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Jagadeeshwara Reddy

Case brief

What is this about?

What did the court decide?

Canara Bank v. Jagadeeshwara Reddy

Case brief

What is this about?

What did the court decide?

What the court decided

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