Allowed

Canara Bank v. Gowramma

DRT22 May 2026OA/1093/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Canara Bank for issuance of a Recovery Certificate against legal heirs of a deceased borrower. Considering the case was agricultural, interest was reduced to 6% p.a., and recovery was permitted from inheritance and schedule property.

What did the court decide?

Issuance of Recovery Certificate for Rs. 36,40,071/- plus 6% simple interest from filing date, recoverable from inheritance and schedule property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 22^nd Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1093/2022

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BETWEEN:

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Canara Bank Nanjangudu Branch, Priya Complex, M.G. Road, Nanjangudu, Mysuru District-571301 Rep. by its Manager & PA Holder Mr. Amith Kumar Bhardwaj

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… APPLICANT

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AND:

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Smt. Gowramma Aged about 83 years W/o. Late Narsimhegowda

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Sri. Singhe Gowda Aged about 53 years S/o. Late Narasimhegowda

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Sri. Cheluvaraju Aged about 58 years S/o. Late Narisimhegowda

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Sri. Suresh Gowda Aged about 46 years S/o. Late Narasimhegowda

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Parmesh Gowda – (Deceased) Aged about 50 years S/o. Late Narasimhegowda

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OA. No. 1093/2022

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Sri. Srinivas Aged about 42 years S/o. Late Narasimhegowda

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All are residing at: Chengowdanahalli Village, Saragur Hobli, Nanjangud Taluk ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. H.S. Rukkoji Rao Defendants : Exparte

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FINAL ORDER

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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.36,40,071/- (Rupees Thirty Six Lakh Forty Thousand and Seventy One Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the borrower Narasimhegowda died intestate on 18.11.2014 leaving behind the defendants herein as his legal heirs. The defendants are the legal heirs of deceased borrower.

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It is also the case of the applicant that, in view of the above financed the deceased borrower executed necessary loan documents. Apart from the creation of security interest by way of

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OA. No. 1093/2022

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mortgage over the Schedule property.

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It is further contended that, despite availing the credit facilities, agreed 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 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 defendants, they failed to appear, resulting the defendants No.1 to 4 and 6 being set exparte on 07.01.2026. The summons to Defendant No.5 returned unserved with an endorsement ‘dead’ and the applicant bank has filed a memo dated 08.10.2025 in this regard. The defendant No.2,3,4 and 6 are the brothers of the defendant No.5 and are also legal heirs and the legal heirs are already on record.

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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 A1 to A24 and got the same marked in evidence.

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OA. No. 1093/2022

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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 as against the defendants? 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 the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

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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 defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Taking into consideration the facts that the credit facilities are availed for agricultural purpose and also that OA claim is

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OA. No. 1093/2022

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

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In the result, OA.No.1093/2022 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.36,40,071/- (Rupees Thirty Six Lakh Forty Thousand and Seventy One Only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants Nos.1 to 4 and 6 to the extent of inheritance of any estate from the deceased borrower and inherited from the Defendant No.5 to the extent of inheritance of any estate from the deceased borrower, 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. The schedule property to the OA be the schedule property to the Recovery Certificate.

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

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OA. No. 1093/2022

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the amount due and payable to the applicant bank, the defendants

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Nos.1 to 4 and 6 to the extent of inheritance of any estate from the deceased borrower and inherited from the Defendant No.5 to the extent of inheritance of any estate from the deceased borrower

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are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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14. Communicate a copy of the order to the parties concerned

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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 22^nd Day of May 2026].

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DRT-II, BENGALURU

OA. No. 1093/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Lakkireddy Vasudeva Reddy, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl.	Description of loan documents	Date	Exhibits
No
	Loan application submitted by Sri.	1.02.2005
01	Narasimhegowda to the applicant bank		A-1
02	Memorandum of agreement for agricultural loans	04.02.2005	A-2
	Simple mortgage deed by Sri.	02.02.2005
03	Narasimhegowda in favour of the applicant bank		A-3
	Form of Certificate of Registration	04.04.2005
04	of Tractor and Trailer issued by the RTO		A-4 & A5
	Particulars of Vehicle/Machinery	05.11.2005
05	hypothecated executed by Sri. Narasimhegowda		A6
	4 Nos. of Letter of Revival executed by Sri. Narasimhegowda	16.10.2007 12.11.2008
06		05.05.2011 And 28.12.2011	A7 to A10
	4 Nos. of Letter of Revival	30.11.2014
07	executed by the defendants as	(2 Nos.)	A11 to
	legal heirs of Late	30.11.2016 22.02.2017	A14

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OA. No. 1093/2022

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	Narasimhegowda in favour of applicant bank
	KCCS loan application submitted	01.06.2011
08	by Sri. Narasimhegowda to the applicant bank		A15
09	Agreement and Deed of Hypothecation for KCCS loan	14.06.2011	A16
10	Simple mortgage deed executed by Sri. Narasimhegowda	07.06.2011	A17
11	Letter of revival executed by Sri. Narasimhegowda	04.03.2014	A18
	Letter of revival executed by the	22.02.2017
12	defendants as legal heirs of Late Narasimhegowda		19
	Letter of revival executed by the	30.04.2019
13	defendants as legal heirs of Late Narasimhegowda		A20
	Office copy of the legal notice and	05.07.2013
14	postal Ack. Card issued by the applicant bank		A21& A22
	Two certified account extracts of	-
15	Sri. Narasimhegowda maintained by the applicant bank		A23 & A24

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Gowramma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Gowramma

Case brief

What is this about?

What did the court decide?

What the court decided

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