Allowed

Canara Bank v. Shambulinga Mukkannavar and Others

DRT30 Jan 2026OA/1116/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Canara Bank seeking a Recovery Certificate against four defendants for defaulted agricultural loans. In order, the Tribunal reduced the interest rate to 6% per annum and authorized recovery from schedule property and other assets.

What did the court decide?

Recovery of Rs. 27,08,990/- with 6% simple p.a. interest from filing date; recovery from schedule property and jointly/severally from defendants; issuance of Recovery Certificate.

Canara Bank versus Shambulinga Mukkannavar and… — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 30^th Day of January, 2026

¶3

Present: Sri. T. RAJESH

¶4

Presiding Officer

¶5

OA.No.1116/2024

¶6

BETWEEN:

¶7

Canara Bank, Branch office at Kulgod, Kulgod Branch, Mudalagi Taluk, Belgavi District- 591 310 and Represented by is Senior Manager, And authorized signatory, Mr. Harish Y Gadinaik.

¶8

…APPLICANT

¶9

AND:

¶10

Mr. Shambulinga Mukkannavar, Aged about 42 years, S/o Sri. Rangappa Mukkannavar, R/o Gujanatti Village, Gujanatti Post, Gokak Taluk, Belgaum District- 591 312.

¶11

Mr. Siddarudh Mukkannavar, Aged about 39 years, S/o Sri. Rangappa Mukkannavar, R/o. Gujanatti Village, Gujanatti Post, Gokak Taluk, Belgaum District- 591 312.

¶12

Mr. Manjunath Mukkannavar, Aged about 36 years, S/o Sri. Rangappa Mukkannavar, R/o Gujanatti Village, Gujanatti Post, Gokak Taluk, Belgaum District- 591 312.

¶13

Mr. Gurunath Mukkannavar, Aged about 34 years,

¶14

OA 1116/2024

¶15

¶16

S/o Sri. Rangappa Mukkannavar, R/o Gujanatti Village, Gujanatti Post, Gokak Taluk, Belgaum District- 591 312.

¶17

...DEFENDANTS

¶18

Counsel on record/appeared for:

¶19

Applicant : Veena R Rai Defendants : Exparte

¶20

FINAL ORDER

¶21

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. 27,08,990/- (Rupees Twenty Seven Lakh Eight Thousand Nine Hundred Ninety Only) with further interest thereon from the date of filing the Application till realization.

¶22

It is the case of the applicant that the defendants availed Kisan credit card scheme loan of Rs. 3,00,000/- (Rupees Three Lakh Only) and Kisan OD/ loan of Rs. 11,00,000/- (Rupees Eleven Lakh Only).

¶23

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with agreement and deed of hypothecation and simple mortgage deed.

¶24

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.

¶25

OA 1116/2024

¶26

¶27

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.

¶28

Despite, summons the defendants, they failed to appear, resulting the defendants being set exparte on 22.11.2024.

¶29

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-27 and got the same marked in evidence.

¶30

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.

¶31

The following issues arise for consideration in this matter:

¶32

i) Whether the applicant had succeeded in proving the OA claim

¶33

as against the defendants?

¶34

ii) What order are to be passed?

¶35

Both these issues are gone into and decided together.

¶36

The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by

¶37

the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove

¶38

OA 1116/2024

¶39

¶40

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

¶41

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

¶42

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

¶43

the view that OA is to be allowed.

¶44

Taking into consideration the facts that the credit facilities are availed for Agriculture purpose and also that the OA claim is arrived at by

¶45

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

¶46

In the result, OA.No.1116/2024, stands allowed,

¶47

i) The applicant is allowed to recovery an aggregate sum of Rs. 27,08,990/- (Rupees Twenty Seven Lakh Eight Thousand Nine Hundred

¶48

Ninety Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants 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 schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

¶49

OA 1116/2024

¶50

¶51

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

¶52

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.

¶53

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.

¶54

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

¶55

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

¶56

of this final order.

¶57

Communicate a copy of the order to the parties concerned in terms

¶58

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

¶59

[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].

¶60

Sd/- (T. RAJESH)

¶61

PRESIDING OFFICER

¶62

ANNEXURES

¶63

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶64

AW-1: Mahesh Hosatti, Officer, of Applicant Bank.

¶65

OA 1116/2024

¶66

¶67

Exhibits on the part of the Applicant:

¶68

Exhibit	Date	Particulars of Documents
Nos.
A1	28.09.2017	Application for Loan submitted by the Defendants together with sanction memo of the Applicant
A2	31.10.2017	Agreement and deed of hypothecation executed by the Defendants
A3	31.10.2017	Request cum undertaking letter executed by the Defendants d
A4	31.10.2017	Request cum undertaking letter executed by the Defendants
A5	31.10.2017	Request cum undertaking letter executed by the Defendants
A6	31.10.2017	Request cum undertaking letter executed by the Defendants
A7	31.10.2017	Request cum undertaking letter executed by the Defendants
A8	31.10.2017	Request cum undertaking letter executed by the Defendants
A9	27.10.2017	Simple mortgage deed executed bythe Defendants
A10	31.10.2017	Certificate of loanpapers obtained of the Applicant
A11	31.10.2017	Letter evidencing execution of documents of the Applicant
A12	28.09.2017	Application for Loan submitted by the Defendants together with sanction memo of the Applicant
A13	31.10.2017	Specimen signature card of the Defendants
A14	31.10.2017	Request for overdraft facilities
A15	31.10.2017	Agreement and deed for Kisan OD executed by the Defendants
A16	27.10.2017	Simple Mortgage Deed executed bythe Defendants
A17	31.10.2017	Letter evidencing execution of documents of the Applicant
A18	10.08.2020.	Letter of Revival executed bythe Defendants –
A19	30.06.2022	Letter of Revival executed bythe Defendants
A20	10.08.2020	Letter of Revival executed bythe Defendants
A21	30.04.2023	Letter of Revival executed bythe Defendants
A22	05.03.2021	Letter issued to Defendants
A23	15.05.2023	Notice issued to Defendants
A24	16.10.2023	Notice issued to Defendants
A25		Postal acknowledgment
A26		Statement of Account in respect of KCCS Loan together with interest calculation sheet and Certificate

¶69

OA 1116/2024

¶70

¶71

A27 Statement of Account in respect of Kisan OD / Loan together with interest calculation sheet and Certificate

¶72

Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

¶73

Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Shambulinga Mukkannavar and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shambulinga Mukkannavar and Others

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

S Rajeswari versus Union Bank of India

Bank of Baroda versus Kishan Mitrapal Chawla Dairy

Bank of India versus Ms Narmada Pipes

Ms Khajuria Constructions and Another versus State Bank of India

Raj Kumar Baniya versus State Bank of India

Smt Firoja Begum versus Indian Bank