Allowed

Canara Bank v. Mr. Siddappa Irappa Keshappanatti

DRT31 Jul 2026OA/1248/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's original application for a recovery certificate against defendants who defaulted on an agricultural loan. Since defendants appeared ex parte, the Tribunal found the claim proved and ordered recovery of the principal amount with reduced interest at 6% p.a.

What did the court decide?

Recovery certificate issued for Rs.40,96,180/- with further interest at 6% p.a. simple from filing date till realization, against properties listed in schedule and personal assets of defendants jointl

Canara Bank versus Mr. Siddappa Irappa Keshappanatti — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1248/2023

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BETWEEN:

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Canara Bank Konnur Branch Gokak Taluk, District Belgavi

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…APPLICANT

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AND:

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Mr. Siddappa Irappa Keshappanatti S/o. Irappa Keshappanatti Mamdapur Village,

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Taluk Gokak,

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District Belagavi- 591233

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Mr. Tippanna Irappa Keshappanatti S/o. Irappa Keshappanatti Mamdapur Village, Taluk Gokak,

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District Belagavi- 591233

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Mr. Mutteppa Irappa Keshappanatti S/o. Irappa Keshappanatti Mamdapur Village, Taluk Gokak, District Belagavi- 591233

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Venu K.V Defendants : Exparte

OA 1248-2023

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 for Rs.40,96,180/- (Rupees Forty Lakhs Ninety Six Thousand one Hundred Eighty 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 availed the Agricultural loan credit facilities of Rs.7,30,000/-(Rupees Seven Lakh Thirty Thousand only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with memorandum of agreement, simple mortgage deed and letters of revival in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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OA 1248-2023

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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 24.03.2026.

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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-10 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 the proof affidavit.

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The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the OA claim as against the defendanst?

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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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OA 1248-2023

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The case put forth by the applicant in the Application

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remains unrebutted as defendant 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 mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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11. Hence in view of the finding arrived herein above, this

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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 facilities

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are availed by defendants 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 @6% p.a. (Simple).

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OA 1248-2023

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In the result, OA.No.1248/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.40,96,180/- (Rupees Forty Lakhs Ninety Six Thousand One Hundred Eighty Only) with further interest @6% p.a. (Simple), from the date of filing OA till the realization, from the defendants jointly severally and 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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants jointly severally and personally and their other assets are liable to be proceeded against for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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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

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in terms of this final order.

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OA 1248-2023

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14. Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (GS), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 31^st day of July, 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: Hanumantha Avvappa Naik, Senior Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents	Date
A1	Memorandum of agreement for agricultural loans	18.02.2006
A2	Simple mortgage deed	18.02.2006
A3	Letter of revival	03.11.2008
A4	Letter of revival	03.01.2011
A5	Letter of revival	01.10.2014
A6	Letter of revival	13.07.2016
A7	Letter of revival	02.05.2022
A8	Letter of revival	20.05.2022
A9	Legal notice	19.06.2023
A10	True extract of statement of accounts pertaining to the defendant’s aforesaid loan accounts

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mr. Siddappa Irappa Keshappanatti

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr. Siddappa Irappa Keshappanatti

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

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Case details

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