Allowed

Canara Bank v. Shrimannarayana

DRT13 Feb 2026OA/1082/2022

Case brief

AI extract

What is this about?

Tribunal allowed an Original Application under section 19 of RDB Act seeking recovery certificate. Defendants appeared ex parte. Court reduced interest to 6% p.a. and ordered recovery of principal plus interest against defendants jointly, severally and personally, as well as over secured schedule property.

What did the court decide?

Recovery of Rs.33,48,853.39 plus 6% p.a. interest; execution against defendants jointly, severally, personally and against schedule property; cost of proceedings.

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

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 13^th Day of February, 2026

¶3

Present: Sri. T. RAJESH

¶4

Presiding Officer

¶5

OA. No.1082/2022

¶6

BETWEEN:

¶7

Canara Bank Maski Branch at Basavangouda building, New Bazar, Maski, Lingasugur Taluk, Raichur District-584124 Rep. by its Branch Manager Sri. Parushuram L Bharamoji … APPLICANT

¶8

AND:

¶9

Mr. K. Srimannarayana Aged major, S/o. Mr. Sriramulu, Residing at: Shankarnagar Camp, Maski Taluk, Raichur Distrct

¶10

Smt. N. Sudha Aged about 42 years W/o. Sri. Edukondalu Residing at: Hanchinal (K) Camp, Sindhanur Taluk, Raichur District

¶11

M/s. N. Sudha Warehouse A proprietorship concern, Having its office at: Shankar Nagar Camp, Maski Taluk, Raichur District

...DEFENDANTS

OA. No.1082/2022

Counsel on record/appeared for:

¶16

Applicant : Sri. Brijesh Chander Guru Defendants : Exparte

¶17

:FINAL ORDER:

¶18

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 Rs.33,48,853.39 (Rupees Thirty Three Lakh Forty Eight Thousand Eight Hundred Fifty Three and Thirty Nine Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶19

It is the case of the applicant that, the defendants availed the following credit facilities:

¶20

i. Kisan Credit Card (KCC) facility of Rs.60,000/to Rs.1,00,000/- (Enhanced) on 20.10.2014 and 02.03.2017

¶21

ii. Canara Kisan OD (KOC) facility of Rs.3,00,000/- on 10.02.2015

¶22

iii. Loan for rural godown of Rs.9,63,000/- on 19.11.2015

¶23

iv. Produce loan (PL) of Rs.8,00,000/- on 28.03.2018

¶24

It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan

¶25

OA. No.1082/2022

¶26

¶27

documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

¶28

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

¶29

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.

¶30

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 03.02.2026.

¶31

The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A53 and got the same marked in evidence.

¶32

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.

¶33

OA. No.1082/2022

¶34

¶35

The following issues arise for consideration in this matter:

¶36

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶37

ii) What order are to be passed?

¶38

Both these issues are gone into and decided together.

¶39

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 security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶40

Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

¶41

Taking into consideration the facts that the credit facilities

¶42

were availed for agricultural purpose and also that OA claim is

¶43

OA. No.1082/2022

¶44

¶45

arrived at by calculating interest at the agreed rate, this Tribunal

¶46

in view of the OA can be allowed with a reduced interest of 6.00%

¶47

p.a.(simple).

¶48

In the result, OA.No.1082/2022 stands allowed, i) The applicant is allowed to recovery an aggregate sum

¶49

of Rs.33,48,853.39 (Rupees Thirty Three Lakh Forty Eight Thousand Eight Hundred Fifty Three and Thirty Nine Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the

¶50

OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶51

ii) If the sale proceeds are not found sufficient to cover

¶52

the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan account.

¶53

iii) The applicant bank is allowed cost of the proceeding

¶54

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

¶55

OA. No.1082/2022

¶56

¶57

receipt of the order.

¶58

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

¶59

order and transferred to Recovery for execution.

¶60

v) Interim Application pending, if any, stands disposed of

¶61

with this Final Order.

¶62

Communicate a copy of the order to the parties concerned

¶63

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

¶64

DRT (Procedure) Rules, 1993.

¶65

[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 13^th Day of February 2026].

¶66

(T. RAJESH) PRESIDING OFFICER

¶67

ANNEXURES

¶68

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶69

AW-1: Sri. B. Krishna, Officer/Manager of the applicant bank.

¶70

Exhibits on the part of the Applicant:

¶71

Sl. No.	Description of Documents	Exhibit Number
1.	Common application cum appraisal form for credit facilities dated 20.10.2014	A1
2.	Sanction memorandum dated 20.10.2014	A2
3.	Registered simple mortgage deed for agricultural advances dated 10.10.2014	A3
4.	Agreement of hypothecation for agricultural loans dated 20.10.2014	A4

¶72

OA. No.1082/2022

¶73

¶74

5.	Specimen signature card for borrowal accounts dated 20.10.2014	A5
6.	Certificate of loan paper obtained dated 20.10.2014	A6
7.	Application cum sanction for renewal and/or enhancement under kisan credit card scheme dated 02.03.2017	A7
8.	Annual review report for kisan credit card dated 02.3.2017	A8
9.	Letter of renewal dated 02.03.2017 submitted by the defendants	A9
10.	Supplemental agreement dated 02.03.2017 executed by the defendants	A10
11.	Letter of Revival dated 02.03.2017 executed by the defendants	A11
12.	Letter of Revival dated 07.01.2020 executed by the defendants	A12
13.	Common application cum appraisal form for credit facilities dated 04.02.2015	A13
14.	Sanction memorandum dated 10.02.2015	A14
15.	Registered simple mortgage deed dated 03.02.2015	A15
16.	Agreement and deed for kisan OD dated 04.02.2015	A16
17.	Specimen signature card for borrowal accounts dated 04.02.2015	A17
18.	Letter of revival dated 15.06.2017 executed by the defendants	A18
19.	Letter of Revival dated 14.06.2020 executed by the defendants	A19
20.	Comprehensive application-cum-appraisal report for minor irrigation/ farm development/ land development activities dated 19.411.2015	A20
21.	Sanction memorandum dated 19.11.2015	A21
22.	Registered simple mortgage deed dated 06.11.2015	A22
23.	Specimen signature card for borrowal accounts dated 19.11.2015	A23
24.	Certificate of loan papers obtained dated 19.11.2015	A24
25.	Letter of evidencing execution of documents dated 19.11.2015	A25

¶75

OA. No.1082/2022

¶76

¶77

26.	Letter or Revival dated 09.10.2018	A26
27.	Letter or revival dated 05.09.2021	A27
28.	Application for loan on goods or documents of title to goods dated 28.03.2018	A28
29.	Letter for loans/advances LIC policy/NSC/Post office time Deposits/ Govt. Securities/ National Deposit Receipts/ KVP/ Bonds dated 28.03.2018	A29
30.	Take delivery note to DPN dated 28.03.2018	A30
31.	Pronote dated 28.03.2018	A31
32.	Sanction memorandum dated 28.03.2018	A32
33.	Registered simple mortgage deed in respect of running limits dated 07.12.2017	A33
34.	Empanelled private ware housing units dated 28.03.2018	A34
35.	Guarantee covering letter dated 28.03.2018	A35
36.	Guarantee agreement dated 28.03.2018	A36
37.	Guarantee covering letter dated 19.03.2016	A37
38.	Guarantee agreement dated 19.03.2016	A38
39.	Agreement between the warehouse/cold storage unit and bank dated 19.03.2016	A39
40.	Letter of guarantor whenever limits are to be renewed dated 19.03.2016	A40
41.	Specimen signature card for borrowal accounts dated 28.03.2018	A41
42.	Certificate of loan papers obtained dated 28.03.2018	A42
43.	Letter dated 28.03.2018 submitted by the defendants	A43
44.	PL stock inspection report dated 23.03.2018 submitted by the defendants	A44
45.	Proforma of letter of undertaking to be obtained where the access dated 28.03.2018 submitted by the defendants	A45
46.	Letter of attestation dated 28.03.2018 submitted by the defendants	A46
47.	Consent letter dated 28.03.2018 submitted by the defendants	A47

¶78

OA. No.1082/2022

¶79

¶80

48.	Letter of evidencing execution of documents dated 28.03.2018 submitted by the defendants	A48
49.	Clauses to be incorporated in the documentation submitted by the defendants	A49
50.	Letter of Revival dated 20.02.2021 executed by the defendants	A50
51.	Legal notice dated 22.12.2020 sent by the applicant bank	A51
52.	Certified statement of account pertaining to the loan accounts of the defendants	A52
53.	Statement showing the total outstanding in the loan accounts of the defendants	A53

¶81

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Shrimannarayana

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shrimannarayana

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

State Bank of India versus Ms Priti Industries through Its Proprietor Ms. Priti Shuddhodhan Ingle

State Bank of India versus Sh. Jasvir Singh @Jasbir Singh

Dipu Mathew versus Canara Bank

Rajibul Sk versus Uco Bank

Mr R Khokan Roy versus Axis Bank

Karnataka Bank Limited versus Imamsabi Siddiqui