Allowed

Canara Bank v. v Marappa

DRT27 Aug 2026OA/1061/2025

Case brief

AI extract

What is this about?

In an original application under Section 19 of the RDB Act, 1993, the Debt Recovery Tribunal allowed the bank's claim for a recovery certificate against a defaulting agricultural loan borrower. The debt was reduced in interest rate to 6% simple, and the certificate was directed to be drawn for execution against scheduled properties.

What did the court decide?

Issuance of Recovery Certificate for Rs. 1,07,15,030/- with further interest at 6% p.a. (simple) from date of filing, recoverable from defendant personally and schedule properties.

Canara Bank versus v Marappa — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1061/2025

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BETWEEN:

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Canara Bank Dasarahalli Branch, BEML Nagar, Kolar District, Karnataka – 563 132

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Represented by its Chief Manager

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Mr. U Ganesan …APPLICANT

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AND:

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Sri. V Marappa S/o. Sri. Venkataswamy Bhovi Aged major R/at: Olagerahalli Village, Gudipalli, Kolar District, Karnataka – 563 132 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : S N Manjunath Defendant : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendant for Rs 1,07,15,030/- (Rupees One Crore Seven Lakhs Fifteen Thousand

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and Thirty Only) with further interest thereon from the date of filing

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OA-1061/2025

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the Application till realization.

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It is the case of the applicant that, the defendant is availed an agricultural loan of Rs. 90,00,000/- (Rupees Ninety Lakhs Only) for the purpose of construction of poultry form.

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It is also the case of the applicant that, in view of the above availed loan, the defendant executed the necessary loan documents along with Simple mortgage deed.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendant failed in complying 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 by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant been absent.

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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-9 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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OA-1061/2025

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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 defendant?

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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 defendant 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 facility as stated in the OA, creation of the security interest and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above document. 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

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find both these issues are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility is

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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).

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OA-1061/2025

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In the result, OA.No.1061/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs.

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1,07,15,030/- (Rupees One Crore Seven Lakhs Fifteen Thousand and Thirty Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, 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 the schedule properties. Properties schedule to the OA be the 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 defendant personally and his assets are liable for all such amounts due under the 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 transferred to Recovery for execution.

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

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OA-1061/2025

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14. 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 DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August, 2026].

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Sd/-

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(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 Sourabh Kumar, S/o Sushil Kumar, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhib its	Date	Particulars
A1	14.11.2022	The loan application form
A2	16.12.2022	Letter of sanction
A3	16.12.2022	Memorandum of agreement for agricultural loans
A4	16.12.2022	Pornote
A5	08.12.2022	Simple mortgage deed for agricultural advances
A6	08.12.2022	Memorandum of deposit of title deeds
A7	02.10.2024	Office copy of legal notice
A8	-------	Postal receipt
A9	-------	Statement of account extract a/c no. 182001151374
Witnes	s Examined	for the Defendant: -Nil

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. v Marappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. v Marappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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