Allowed

Canara Bank v. Hanumappa Gurappa Vaddar

DRT20 Aug 2026OA/1234/2024

Case brief

AI extract

What is this about?

DRT allowed a recovery certificate application filed by Canara Bank against legal heirs of a deceased borrower for an agricultural loan. The claim was decided ex-parte due to defendants' absence. The Tribunal reduced the interest rate to 6% simple.

What did the court decide?

Issuance of Recovery Certificate for Rs. 53,76,051.46 with interest at 6% p.a. from date of filing till realization, recoverable from inherited estate and jointly/severally from personal assets.

Canara Bank versus Hanumappa Gurappa Vaddar — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 20^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1234/2024

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BETWEEN:

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Canara Bank Shirahatti Branch, Kappatnavar Building, Shirahatti Post, Gadag District-582 120. Represented by its Branch Manager, Sri. Ravi Garg.

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…APPLICANT

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AND:

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Sri. Hanumappa Gurappa Vaddar Since deceased by his legal Representatives

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1 (a). Smt. Marakka Lakshman Bandivaddar, W/o Lakhsmana Bandivaddar, Major by age,

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1(b). Smt. Thippavva Hanumappa Binjadagi, W/o Hanumappa Binjadagi, Major by age,

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1(c). Smt. Channamma Shivananda Vaddar, W/o Shivananda Vaddar, Major by age,

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All are residing at: Vadavi Village, Shirahatti Taluk, Gadag District-582112.

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Sri. Jogeppa Sunkappa Lamani, S/o Sunkappa Lamani, Aged about 64 years,

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2 1234/2021

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Residing at: Vadavi Village, Shirahatti Taluk, Gadag Disttict-582 112. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M Mohan 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 seeking issuance of Recovery Certificate against the defendants for Rs. 53,76,051.46/(Rupees Fifty Three Lakh Seventy Six Thousand Fifty One and Paise Forty Six 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(a) to (c) are the legal heir of the deceased borrower Hanumappa Gurappa Vaddar. The Deceased borrower availed agricultural term loan of Rs. 4,88,000/(Rupees Four Lakh Eighty Eight Thousand Only) on 13.08.2003.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Memorandum of Agreement for agricultural loans, Letter of Revival.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment

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3 1234/2021

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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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 07.04.2026.

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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-23 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

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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

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the applicant remains uncontroverted and undisputed. The evidences put

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4 1234/2021

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forth by the applicant were found admissible and are sufficient to prove

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availment of credit facility as stated in the OA, creation of Mortgage and Hypothecation as claimed by the applicant bank 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.

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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 the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility was availed for purchase of Tractor and Trailer 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.1234/2024, stands allowed,

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

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53,76,051.46/- (Rupees Fifty Three Lakh Seventy Six Thousand Fifty One

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and Paise Forty Six Only) with further interest @6.00 % p.a.(simple) from

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the date of filing OA till the realization, from the defendant No. 2 and defendant 1(a) to (c) to the extent of the estate inheritance of any estate

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from the deceased borrower, after giving credit to all the amount

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recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Schedule Properties to the OA be the schedule 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, from the defendant No.2 and defendant 1(a) to (c) to the extent of the estate they inherited from deceased borrower the defendants jointly, severally and personally and their assets are liable for the amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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)

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 20^th Day of August, 2026].

Sd/-

(T. RAJESH)

6 1234/2021

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ravi, Chief Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	13.08.2003	Loan Application
A2	13.08.2003	Sanction Letter
A3	25.07.2003	Quotation issued by M/s JB Industries to the Bank
A4	13.08.2003	Memorandum of Agreement for agricultural Loans executed by defendants
A5	20.08.2003	Delivery letter executed by deceased borrower Gurappa Waddar
A6	15.07.2006	Letter of Revival executed by Hanumappa Gurappa Waddar
A7	10.06.2007	Letter of Revival executed by Hanumappa Gurappa Waddar
A8	25.04.2009	Letter of Revival executed by defendant No.2
A9	18.02.2012	Letter of Revival executed by defendant No.2
A10	18.02.2012	Letter of Revival executed by defendant No.2
A11	09.10.2014	Letter of Revival executed by Hanumappa Gurappa Waddar
A12	06.06.2017	Letter of Revival executed by defendant No.2
A13	25.04.2019	Letter of Revival executed by Smt. Kallamma Hanumappa Waddar
A14	18.02.2012	Letter of Revival executed by Smt. Kallamma Hanumappa Waddar
A15	18.02.2012	Letter of Revival executed by Smt. Kallamma Hanumappa Waddar
A16	09.10.2014	Letter of Revival executed by Smt. Kallamma Hanumappa Waddar in favour of the Applicant Bank

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7 1234/2021

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A17	06.06.2017	Letter of Revival executed by Smt. Kallamma Hanumappa Waddar
A18	20.05.2020	Letter of Revival executed by defendant No.2
A19	20.05.2020	Letter of Revival executed by defendant No.1 (a)
A20	02.11.2015	Legal Notice issued by the applicant bank to the defendants
A21	--	Served Acknowledgement
A22	--	Statement of Accounts
A23	--	RTC Extract in respect of Survey No. 75/1, 75/2, 75/3, 75/4 and 84/1 belonging to defendant No.1 (a), 1(b) and Defendant No.2

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

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-Nil -

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Sd/-
(T. RAJESH)
PRESIDING OFFICER

Canara Bank v. Hanumappa Gurappa Vaddar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Hanumappa Gurappa Vaddar

Case brief

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