Allowed

Canara Bank v. Kumar H K

DRT9 Mar 2026OA/1075/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by Canara Bank against the legal heirs of a deceased defaulter for KCC loans. The Tribunal awarded the principal amount plus interest at a reduced rate of 6% per annum and directed the issuance of a recovery certificate against the inherited estate and schedule property.

What did the court decide?

Recovery Certificate issued for Rs. 23,24,855/ plus interest at 6% p.a. from the date of filing, executable against the estate and schedule property of the defendants.

Canara Bank versus Kumar H K — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 9^th Day of March, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1075/2023

¶5

BETWEEN:

¶6

Canara Bank Hassan Main-I, P.O No.45, Near Narasimharaja Circle, Malnad House, Hassan- 573201

¶7

…APPLICANT

¶8

AND:

¶9

Sri. Kumar H K S/o. Late Krishne Gowda

¶10

Sri. Range Gowda S/o. Late Krishne Gowda

¶11

Since Dead Represented by his Legal Heirs

¶12

2.(a) Smt. Shobha W/o. Late Range Gowda

¶13

2(B) Bindu

¶14

Minor Represented by Her Natural Guardian Mother (Smt. Shobha)

¶15

2(c). Sindu Minor Represented by Her Natural Guardian Mother (Smt. Shobha)

¶16

Smt. Lakshmamma W/o. Krishne Gowda

¶17

All are R/at: Hongere Village, Shanthigrama hobli, Hassan Taluk & District- 573212

...DEFENDANTS

OA 1075/2023

Counsel on record/appeared for:

¶22

Applicant : C Vinay Swamy Defendants : Exparte

¶23

FINAL ORDER

¶24

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 for Rs.23,24,855/- (Rupees twenty three lakh twenty four thousand eight hundred fifty five only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶25

It is the case of the applicant that Late Krishne Gowda was the deceased borrower and defendants No.1 to 3 as his legal heirs. The deceased borrower Late Krishne Gowda had availed the following credit facilities from the applicant bank:-

¶26

I. KCC Loan of a sum of Rs.6,00,000/- (Rupees Six Lakh Only) and

¶27

II. KCCs loan limit of Rs.3,00,000/- (Rupees Three lakhs Only).

¶28

It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with simple mortgage deed, sanction

¶29

OA 1075/2023

¶30

¶31

memorandum, deed of hypothecation in favor of the applicant bank.

¶32

It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

¶33

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.

¶34

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 11.06.2025.

¶35

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-12 and got the same marked in evidence.

¶36

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.

¶37

OA 1075/2023

¶38

¶39

The following issues arise for consideration in this matter:

¶40

i) Whether the applicant had succeeded in proving the

¶41

OA claim as against the defendants?

¶42

ii) What order are to be passed?

¶43

Both these issues are gone into and decided together.

¶44

The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. 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 hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶45

Hence in view of the finding arrived herein above, this

¶46

Tribunal find both these issues in favour of applicant and hence

¶47

OA 1075/2023

¶48

¶49

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

¶50

Taking into consideration the facts that the credit facilities

¶51

are availed by the deceased borrower Late krishne Gowda for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal, in view of

¶52

the OA can be allowed with a reduced interest @6% p.a.(Simple).

¶53

In the result, OA.No.1075/2023 stands allowed,

¶54

i) The applicant is allowed to recovery an aggregate

¶55

sum of Rs.23,24,855/- (Rupees twenty three lakh twenty four thousand eight hundred and fifty five only) with further interest @6% p.a. (Simple),

¶56

from the date of filing OA till the realization, from the defendants

¶57

No.1 to 3 to the extent of estate inherited by the deceased

¶58

borrower Late Krishne Gowda after giving credit to all the amount recovered and received during the pendency of the OA

¶59

and allowed the same to be recovered by proceedings against

¶60

the schedule property. Properties schedule to the OA be the

¶61

OA 1075/2023

¶62

¶63

schedule to the recovery certificate.

¶64

ii) The applicant bank is allowed cost of the proceedings

¶65

which applicant to file cost memo within 7 days from the date of receipt of the order.

¶66

iii) The Recovery Certificate to be drawn in terms of this

¶67

order and transferred to Recovery for execution.

¶68

iv) Interim application pending, if any, stands disposed of

¶69

in terms of this final order.

¶70

Communicate a copy of the order to the parties concerned

¶71

in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

¶72

of DRT (Procedure) Rules, 1993.

¶73

[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 9^th day of March, 2026].

¶74

Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1075/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶79

AW-1: Anjaneyulu D K, Officer, of Applicant Bank.

¶80

Exhibits on the part of the Applicant:

¶81

Exhibit Nos.	Date	Particulars of Documents
A1	27.02.2015	Application form
A2	26.02.2015	Registered simple mortgage deed by deceased borrower and defendants
A3	27.02.2015	Sanction memo by applicant duly acknowledged by deceased borrower and 1^st defendant
A4	27.02.2015	Agreement and deed of Kisan OD by deceased borrower and 1^stDefendant
A5	26.02.2015	Application form
A6	26.02.2015	Registered simple mortgage deed by deceased borrower and defendants
A7	27.02.2015	Sanction memo by applicant duly acknowledged by deceased borrower and 1^st defendant
A8	27.02.2015	Agreement and deed of hypothecation for KCC loan by deceased borrower and 1^st Defendant
A9 & A10	02.05.2023	Legal notice along with postal receipts/acknowledgements
A11 & A12		Statements of accounts for two loan accounts

¶82

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

-Nil -

-Nil -

Sd/ (T. RAJESH)

PRESIDING OFFICER

Canara Bank v. Kumar H K

Case brief

What is this about?

What did the court decide?

Canara Bank v. Kumar H K

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus Mr. Ravi Kumar

State Bank of India versus M/S. Ashoka Industries

Bank of India versus Didar Singh through Lrs

Punjab National Bank (Oriental Bank of Commerce) versus David Harvinder Singh

Star Dairy and Ors. versus Cholamandalam Investment and Finance Company Limited

Canara Bank versus Uttam Singh @ Udham Singh