Allowed

Canara Bank v. Vijaykumar S. Patil

DRT30 Jan 2026OA/1221/2024

Case brief

AI extract

What is this about?

In an Original Application under Section 19 of the RDB Act, the Tribunal allowed Canara Bank's claim for a Recovery Certificate against defendants who failed to appear. The Court awarded the principal sum with reduced simple interest at 6% per annum, noting the agricultural loan purpose.

What did the court decide?

Recovery Certificate for Rs. 48,03,911.58 plus interest @6% p.a. (simple) from filing date, recoverable from personal assets and scheduled property of defendants.

Canara Bank versus Vijaykumar S. Patil — 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 30^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1221/2024

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BETWEEN:

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Canara Bank, M/s. Canara Bank, Razvi Road, Aland, Gulbarga, Karnataka- 585302, Represented by Manager, Sri. N. Chandrasekhar Babu Jampana.

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…APPLICANT

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AND:

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Mr. Vijaykumar S. Patil and another, S/o Siddangouda Apparao Patil, Aged about 34 years, R/o. H. No. 10-934/84A, Sitara Building, S.B. Temple Road, Kale Layout, Mahalaxmi Nagar, Gulbarga- 585103.

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Mrs. Tara Siddangouda, W/o Siddangouda Apparao Patil, Aged Major, R/o Salegaon, Aland Taluk, Gulbarga District- 585302. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendants : M/s. Sharath & Associates

OA 1221/2024

FINAL ORDER

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. 48,03,911.58 (Rupees Forty Eight Lakh Three Thousand Nine Hundred Eleven and Paise Fifty Eight Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that the defendant No.1 along with Late Siddangouda availed Sheep Rearing loan of Rs. 24,50,000/- (Rupees Twenty Four lakh Fifty Thousand Only) and Kissan Credit Card Scheme (KCCS) loan of Rs. 8,00,000/- (Rupees Eight lakh Only). One of the borrower Siddangouda is reported deceased and the defendant Nos. 1 & 2 are his legal heirs.

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

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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.

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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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OA 1221/2024

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Despite, entering appearance the defendants failed to file written statement within stipulated hence placed exparte on 13.08.2025.

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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 A-1 to A-17 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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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 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 the security 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

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OA 1221/2024

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

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are availed for Agriculture purpose and also that the 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% (simple).

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In the result, OA.No.1221/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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48,03,911.58 (Rupees Forty Eight Lakh Three Thousand Nine Hundred

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Eleven and Paise Fifty Eight Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant No.1 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.

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ii) The defendant No.2 being the Legal heir of the deceased

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borrower -Late Siddangouda is liable only to the extent of the estate inherited by them from the deceased.

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OA 1221/2024

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

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amount due and payable to the applicant bank, the defendant No.1 personally and his assets are liable for the respective amounts due under the respective loan accounts.

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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.

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

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

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of this final order.

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

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

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[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].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Shivashankar, Manager, of Applicant Bank.

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OA 1221/2024

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	15.02.2018	Common application for Agricultural loans (A/c No. 6225861000001)
A2	19.02.2018	Simple mortgage deed registered as document No. ALD-1-05213-2017-18 at the office of Sub- registrar, Aland
A3	28.02.2018	Sanction memorandum
A4	01.03.2018	Memorandum of agreement for agricultural loans
A5	02.09.2020	Death certificate of siddangouda (Passed away on 07.08.2020)
A6	03.02.2021	Acknowledgement of debt by legal heir
A7	03.02.2021	Letter of revival
A8	30.11.2018	Common application for agricultural loans (A/c No. 622584000019)
A9	13.12.2018	Simple mortgage deed registered as document No. ALD-1-03038-2018-19 at the office of Sub- registrar, Aland
A10	14.12.2018	Agreement and deed of hypothecation of KCCS
A11	27.12.2019	Letter of renewal
A12	03.02.2021	Letter of revival
A13	06.05.2023	Legal notice
A14	--	One postal cover returned unserved
A15	--	One postal acknowledgement card served
A16	--	Bank statement A/c No. 6225861000001
A17	--	Bank statement A/c No. 6225840000194

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Vijaykumar S. Patil

Case brief

What is this about?

What did the court decide?

Canara Bank v. Vijaykumar S. Patil

Case brief

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What did the court decide?

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