Allowed

Canara Bank v. K. N. Rajendran

DRT11 Mar 2026OA/113/2022

Case brief

AI extract

What is this about?

In this Debt Recovery Tribunal case, the applicant bank sought recovery of agricultural loans totaling Rs. 29.53 Lakhs from the defendant. The court rejected the defendant's application to set aside the ex-parte order due to non-prosecution. Finding the claim valid and not time-barred, the tribunal granted a final order allowing the bank to recover the dues with interest.

What did the court decide?

Directed recovery of Rs. 29,53,384/- comprising principal and subsequent interest, and liberty to sell the schedule property upon failure to pay.

Canara Bank versus K. N. Rajendran — Contract and Commercial Disputes | DRT (2026)

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O.A. No. 113 of 2022

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11.03.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 11^th day of March, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 113 of 2022

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Canara Bank

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Thirumazhapadi Branch Rep by its Senior Manager. No.4, Main Road, Thirumazhapadi Ariyalur Taluk, Ariyalur District - 621 851. ….Applicant

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-Vs-

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Mr. K.N. Rajendran S/o of Sh. Natesan Raja Veedhi, Elanthaikudam Village, Ariyalur District - 621 851 …Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M. Muthukumaran

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Defendant was set ex-parte on 15.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 28.03.2022 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendant for recovery of a total sum of

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Rs.29,53,384/- (Rupees Twenty Nine Lakhs Fifty Three Thousand

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Three Hundred and Eighty Four only) as follows:

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(i) A sum of Rs.19,60,756/- in respect of Farm Development

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Loan (Account No.1582883000329) repayable together with subsequent interest at the rate of 9.75% p.a.

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compounded with half yearly rests from the date of filing of filing till the date of realization;

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ii) A sum of Rs.9,92,628/- in respect of Kisan Credit Card Scheme Facility (Account No.1582840001166) repayable together with subsequent interest at the rate of 9.75% per annum compounded with half yearly rests from the date of filing of Original Application, till date of realization in full;

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for sale of schedule mentioned property morefully detailed in Schedule to the OA, and for costs of this application.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

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It is the case of the applicant bank that the defendant had approached the applicant for availing Farm Development Loan of Rs.2,10,000/- and submitted comprehensive Application-cum-Appraisal Report or Minor Registration Farm Development/Land Development Activities dated 27.05.2003.

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It is submitted by the applicant bank that considering the said request, the applicant bank and granted Farm Development Loan of Rs.2,10,000/- vide Sanction Memorandum Dated 27.05.2003 with

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11.03.2026

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condition and by executing a Memorandum of Agreement for Agricultural Loan in favour of Applicant as security on the same day and the total amount of debt claimed as on 22.01.2022 is Rs.29,53,384/-

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The Applicant further submits that the above loan sanctioned to the defendants in a sum of Rs.2,10,000/- is repayable in 10 yearly instalments of Rs.21,000/- together with interest at 13.50% per annum compounded with half yearly rest or at such rates as may be revised from time to time by the directives of Reserve Bank of India.

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It is submitted that the dues of the above loan are secured by equitable mortgage of the schedule property created by the deposit of the following documents:

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(i) Letter dated 23.04.2003 confirming deposit by the defendant.

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(ii) Letter dated 29.04.2023 evidencing deposit of title deeds along with schedule mentioned property.

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(iii) Partition deed dated 7.3.2003, a registered document No.23/2003 by the defendant.

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(iv) The defendant had hypothecated all pipes and other materials purchased out of loan availed from Applicant and executed Particulars of Hypothecation on 14.06.2003.

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The Applicant further states that defendant had approached them for a Kisan Credit Card Scheme facility of Rs.1,00,000/- for various requirements connected with farming with an Application cum Appraisal Form for Kisan Credit Card Scheme (KCCS) dated 21.10.2003. The

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Applicant, after considering potentials of defendant, had sanctioned KCCS facility of Rs.1,00,000/- to him on 21.10.2003 vide Memorandum for Sanction of Kisan Credit Card Limit annexed with Application cum Appraisal Form for Kisan Credit Card Scheme (KCCS) with certain terms and conditions to be adhered by defendant.

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The defendant, having availed KCCS facility of Rs.1,00,000/- from Applicant under Account No. 1582840001166, had executed Agreement of Hypothecation for Agricultural Loans dated 21.10.2003 in favour of Applicant as security. Without prejudice to rights of Applicant to demand repayment of entire loan amount from defendant at any time, the defendant had undertaken to repay the availed facility, whenever demanded together with interest at the rate of 11% per annum compounded half-yearly or at the rates as may be specified from time to time by the RBI and guidelines of Canara Bank.

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The applicant further states that the defendant had further sought for renewal and enhancement of KCCS Facility from existing Rs.1,00,000/- to Rs.1,50,000/- which was considered by Applicant and sanctioned. The defendant, having availed enhanced KCCS Facility of Rs.1,50,000/- from Applicant, had executed following loan documents on 29.11.2004 in their favour as security:-

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(i) Supplemental Agreement for Rs.1,50,000/-

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(ii) Letter of Renewal

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It is submitted by the applicant bank that the defendant had deposited title deeds as collateral security relating to his properties with Applicant being Agricultural lands measuring an aggregate extent of Hectares 0.99.5 Ares ⇔ 2 Acres and 46 Cents comprised in various Survey Numbers of Elanthaikudam Village, Ariyalur Taluk, Ariyalur District originally on 23.04.2004 and had extended for this facility also and executed Draft of Letter to be used where Additional Limit is Granted on very security on 26.11.2004.

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The applicant further submits that the defendant, since beginning of availing both Farm development Loan and KCCS Facility, had repaid intermittently. When asked, he gave some reasons citing nature and other consequences relating to agriculture. All efforts taken out by applicant to make defendant repay loan installments had failed despite several personal visits and requests made by Applicant. But however, defendant had acknowledged liability of debt on various dates in Farm Development Loan and KCCS Facility accounts and executed Acknowledgement of Debt and Security as follows:

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05.01.2006 – KCCS Facility A/c. No.1582840001166

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07.01.2006 – Farm Development Loan A/c. No.1582883000329

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17.12.2008 – Farm Development Loan A/c. No.1582883000329

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17.12.2008 – KCCS Facility A/c. No.1582840001166

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09.02.2011 – Farm Development Loan A/c. No.1582883000329

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09.02.2011 – KCCS Facility A/c. No.1582840001166

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28.01.2014 – Farm Development Loan A/c. No.1582883000329

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28.01.2014 – KCCS Facility A/c. No.1582840001166

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20.01.2017 – Farm Development Loan A/c. No.1582883000329

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28.01.2017 – KCCS Facility A/c. No.1582840001166

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20.08.2019 – Farm Development Loan A/c. No.1582883000329– KCCS Facility A/c. No.1582840001166

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It is submitted by the applicant bank that the defendant, after availing loan failed and neglected to pay the dues properly despite repeated reminders. Consequently, the loan accounts became NonPerforming Asset on 01.01.2019. Despite repeated requests and demands, as defendant did not come forward to repay the dues, the present Original Application has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons was sent to defendant through Registered Post with Acknowledgment Due, which was duly served. When OA was taken up on 15.06.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 15.06.2022.

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Heard the submissions of Applicant Bank and perused the record s.

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To prove the case of the Applicant Bank, Mrs. T. Kala, Senior Manager of the Applicant Bank, has filed her Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-26.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-26 evidence that the borrowal of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendant.

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The defendant was set ex-parte on 15.06.2022. Subsequently, defendant, although had filed vakalat on 20.07.2022, had filed an application only on 05.09.2022 praying to set aside the ex-parte order dated 15.06.2022, along with written statement. After compliance of returns by the defendant, the IA came to numbered on 05.11.2022. During the hearing on 04.11.2022 and 06.12.2022, it was submitted by the Ld. counsel for petitioner in IA No.1323/2022 / defendant that the borrower intends to approach the bank for settlement. Vide proceeding dated 04.11.2022, defendant was directed to prove his bonafides by causing payments to the credit of borrower’s loan account for consideration of set aside petition. However, the defendant neither reported settlement nor had reported payments as directed. Thereafter, there was representation on behalf of defendant during subsequent hearings. When the case was taken up on 13.01.2026, there was no representation on behalf of defendant. Inspite of filing IA to set aside the ex-parte order, the defendant has not prosecuted the IA diligently. Hence IA No.1323/22 stands dismissed for

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non-prosecution.

Further, a careful scrutiny of records makes it clear that the present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendant and produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that the applicant bank has proved its claim against defendant.

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With regard to the amount advanced, the interest applied, the conduct

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and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the defendant a sum of Rs.29,53,384/- (Rupees Twenty Nine Lakhs Fifty Three Thousand Three Hundred and Eighty Four only) as follows:

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(i) A sum of Rs.19,60,756/- in respect of Farm Development Loan (Account No.1582883000329)

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repayable together with subsequent interest at the rate of 9.75% p.a. compounded with half yearly rests from the date of filing of filing till the date of realization;

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(ii) A sum of Rs.9,92,628/- in respect of Kisan Credit

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Card Scheme Facility (Account No.1582840001166)

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repayable together with subsequent interest at the rate of 9.75% per annum compounded with half yearly rests from the date of filing of Original Application, till date of realization in full along with costs of this application. All the pending IAs, if any stand closed.

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(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned immovable property morefully detailed in the OA schedule.

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(d) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendant duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant bank.

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(e) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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A copy of this order be communicated to the parties concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 11^th day of March, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. T. Kala, Senior Manager of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Comprehensive Application-cum-Appraisal Report for Minor Irrigation/ Farm development/ Land Development Activities dated by defendant to Applicant dated 27.05.2003	A-1
2.	Sanction Memorandum of Applicant Bank dated 27.05.2003	A-2
3.	Memorandum of Agreement for Agricultural Loans by defendant to Applicant dated 27.05.2003	A-3
4.	Letter from Arulanandha Nagar Branch to Applicant along-with Schedule‘A’&‘B’dated 23.04.2003	A-4
5.	Letter evidencing deposit of title deeds along-with Schedule‘A’&‘B’by defendant dated 29.04.2003	A-5
6.	Partition Deed - Document No. 238/2003 dated 07.03.2003	A-6
7.	Particulars of Hypothecation by defendant to Applicant dated 14.06.2003	A-7
8.	Application cum Appraisal Form for Kisan Credit Card Scheme (KCCS) by defendant to Applicant dated 21.10.2003	A-8
9.	Agreement of Hypothecation for Agricultural Loans by defendant to Applicant dated 21.10.2003	A-9
10.	Supplemental Agreement for Rs.1,50,000/- by defendant to Applicant dated 29.11.2004	A-10

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11.	Letter of Renewal by defendant to Applicant dated 29.11.2004	A-11
12.	Draft of Letter to be used where Additional Limit is Granted on very security by defendant to Applicant dated 26.11.2004	A-12
	Acknowledgement of Debt and Security by defendant to Applicant.
13.	KCCS Facility A/c. No. 1582840001166 dated 05.01.2006	A-13
14.	07.01.2006 – Farm Development Loan A/c. No. 1582883000329	A-14
15.	17.12.2008 – Farm Development Loan A/c. No. 1582883000329	A-15
16.	17.12.2008 – KCCS Facility A/c. No. 1582840001166	A-16
17.	Farm Development Loan A/c. No. 1582883000329	A-17
18.	09.02.2011 KCCS Facility A/c.No.1582840001166	A-18
19.	28.01.2014 – Farm Development Loan A/c. No. 1582883000329	A-19
20.	28.01.2014 – KCCS Facility A/c. No. 1582840001166	A-20
21.	28.01.2017 – KCCS Facility A/c. No. 1582883000329	A-21
22.	28.01.2017 – Farm Development Loan A/c. No. 1582840001166	A-22
23.	20.08.2019 – Farm Development Loan A/c. No. 1582883000329	A-23
24.	28.01.2020 – KCCS Facility A/c. No. 1582840001166	A-24
25.	Statement of Accounts – Farm Development A/c. No. 1582883000329	A-25
26.	Statement of Accounts KCCS Facility A/c. No. 1582840001166	A-26

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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:-SCHEDULE-:

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All that piece and parcel of agricultural lands measuring an aggregate extent of Hectares 0.79.5 Acres, 1 Acre and 96 cents comprised in various Survey Numbers of Elanthaikudam Village, Ariyalur Taluk, Ariyalur District as mentioned below:

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Punjai 164/14 Hectares 0.26.5 Ares Acre 0.65 Cents

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Punjai 164/15 Hectares 0.53.0 Ares Acre 1.31 Cents

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Total extent – Hectares 0.79.5 Ares Acre 1.96 Cents

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The above properties are situated within the Registration District of Ariyalur and Sub-Registration District of Pullambadi.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Canara Bank v. K. N. Rajendran

Case brief

What is this about?

What did the court decide?

Canara Bank v. K. N. Rajendran

Case brief

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What did the court decide?

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