Allowed

Canara Bank v. Papanna M K

DRT19 Jun 2026OA/1175/2023

Case brief

AI extract

What is this about?

DRT allowed the bank's recovery application filed ex-parte due to respondent defaults. While acknowledging agricultural loan purpose, the Tribunal granted a reduced interest rate of 6.00% p.a. and ordered issuance of a recovery certificate against the sum due.

What did the court decide?

Recovery Certificate issued for Rs.35,57,803/- with further interest at 6% p.a. (simple) to be recovered jointly, severally, and personally from respondents and from schedule property.

Canara Bank versus Papanna M K — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1175/2023

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BETWEEN:

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Canara Bank Bagur Branch Bagur, Taluk Channarayapatna Dist. Hassan-573111 Through its Branch Manager Mr. Vijay Kumar

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… APPLICANT

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AND:

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Mr. Papanna M K S/o. Late Kolabhovi (since deceased through his LRs Defendant No.2 to 4)

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Mr. M.P. Venkataswamy S/o. M.K. Papanna Aged about 47 years Having address at: K. Mallenahalli Village, Post Kundur, Hobli Bagur, Channrayapatna Taluk, Dist. Hassan Karnataka-573111

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Mr. M.P. Nagaraja S/o. M.K. Papanna Aged about 43 years Having address at: K. Mallenahalli Village, Post Kundur, Hobli Bagur, Channrayapatna Taluk, Dist. Hassan Karnataka-573111

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OA. No.1175/2023

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Mr. M.P. Devaraja S/o. M.K. Papanna Aged about: 41 years Having address at: K. Mallenahalli Village, Post Kundur, Hobli Bagur, Channrayapatna Taluk, Dist. Hassan Karnataka-573111

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Girish Poojary 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.35,57,803/- (Rupees Thirty Five Lakh Fifty Seven Thousand Eight Hundred and Three 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 defendants No.2 to 4 along with deceased defendant No.1 availed credit facility of Rs.4,50,000/- on 09.03.2006 and loan of Rs.50,000/- for crop cultivation on 29.03.2011.

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

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OA. No.1175/2023

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

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It is further contended that, despite availing the credit facility, 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.

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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 being set exparte on 28.01.2025.

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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 A18 and got the same marked in evidence.

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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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OA. No.1175/2023

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

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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

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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 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.

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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.

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Taking into consideration the facts that the credit facilities

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were availed for agricultural purpose and also that OA claim is 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% p.a.(simple).

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OA. No.1175/2023

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In the result, OA.No.1175/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.35,57,803/- (Rupees Thirty Five Lakh Fifty Seven Thousand Eight Hundred and Three only) with further interest of 6.00% p.a.(simple) from the date of filing TA till the realization from the defendants No.2 to 4 and defendant No.2 to 4 to the extent of inheritance of any estate from the deceased defendant No.1, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants No.2 to 4 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.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants No.2 to 4 jointly, severally and personally and their other assets 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 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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OA. No.1175/2023

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned 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 19^th Day of June 2026].

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Reshma, 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 Number
.
1	Loan application dated 09.03.2006	A1
2	Sanction letter dated 09.03.2006	A2
3	Memorandum fo agreement for agricultural loans dated 09.03.2006	A3
4	Simple mortgage dated 04.03.2006	A4
5	Letter of Revival dated 07.01.2009	A5
6	Letter of Revival dated 01.01.2012	A6
7	Letter of Revival dated 01.09.2014	A7
8	Letter of Revival dated 02.01.2017	A8
9	Letter of Revival dated 05.01.2019	A9

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OA. No.1175/2023

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10	Letter of Revival dated 05.05.2021	A10
11	Application dated 28.03.2011	A11
12	Agreement of hypothecation for agricultural loans dated 289.03.2011	A12
13	Letter of Revival dated 22.03.2014	A13
14	Letter of Revival dated 09.02.2017	A14
15	Letter of Revival dated 01.12.2020	A15
16	Notice dated 28.12.2022	A16
17	Loan account as per statement account as on 31.03.2023 in respect of loan Account No.0715883003616	A17
	Loan account as per statement account as on
18	31.03.2023 in respect of loan Account No.0715840008198	A18

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Papanna M K

Case brief

What is this about?

What did the court decide?

Canara Bank v. Papanna M K

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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