Allowed

Canara Bank v. Moodalagirigowda

DRT6 Jan 2026OA/1282/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by a bank seeking a recovery certificate against a defendant (legal heir of deceased borrower) for Rs.60.69 lakhs with interest, finding the evidence unrebutted as the defendant was absent.

What did the court decide?

Recovery Certificate directed for Rs.60,69,212 with 6% p.a. simple interest from filing date, recoverable against estate and schedule properties.

Canara Bank versus Moodalagirigowda — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 06^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1282/2023

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BETWEEN:

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Canara Bank Branch office at Neggehalli – 573131, Hasan District, Karnataka State, Rep. by its Manager, Sri. Praveen Kumar B

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… APPLICANT

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AND:

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Sri. Moodalagirigowda Alias Moodalagiriyappa (since deceased) Rep. by his legal heir: Sri. Nagaraj B M S/o. Moodalagiriyappa Major, R/o. Bhoovanahalli Village, Bhoovanahalli Post, Nuggehalli Hobli, Channarayapatna Taluk, Hassan District ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : T.P. Muthanna Defendant : 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

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OA. No.1282/2023

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seeking issuance of Recovery Certificate against the defendant for Rs.60,69,212 (Rupees Sixty Lakh Sixty Nine Thousand Two Hundred and Twelve only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the deceased borrower Moodalagirigowda alias Moodalagiriyappa availed ALFDL loan of Rs.5,00,000/- for the purpose of land development on 24.01.2012 and Kisan Credit Card Limit of Rs.3,00,000/- on 12.10.2012.

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It is also the case of the applicant that, in view of the above financed credit facilities, the deceased borrower executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule properties.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendant 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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OA. No.1282/2023

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 24.07.2024.

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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 A37 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 defendant?

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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 defendant remained exparte. The evidence

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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

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OA. No.1282/2023

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applicant bank and the defaults committed in the account. The

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liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well

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within the limitation.

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Hence in view of the above findings which cover both the

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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%

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p.a.(simple).

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In the result, OA.No.1282/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.60,69,212/- (Rupees Sixty Lakh Sixty Nine Thousand Two Hundred and Twelve only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the

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defendant to the extent of their inheritance of any estate from the deceased borrower Moodalagirigowda alias Moodalagiriyappa after

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OA. No.1282/2023

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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 defendant to the extent of their inheritance of any estate from the deceased borrower Moodalagirigowda alias Moodalagiriyappa and also by proceeding against the schedule properties. The schedule properties to the OA be the schedule properties 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, defendant to the extent of their inheritance of any estate from the deceased borrower Moodalagirigowda alias Moodalagiriyappa 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 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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OA. No.1282/2023

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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 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 06^th Day of January 2026].

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Sd/(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: T Biyon Seelan, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Original of comprehensive application-cum- appraisal report for minor irrigation/farm development/land development activities dated 24.01.2012
A2	Original of sanction memorandum dated 24.01.2012
A3	Original memorandum of agreement for agricultural loans dated 24.01.2012
A4	Original of simple mortgage deed dated 11.01.2012
A5	Original of the letter of revival dated 18.10.2014
A6	Original of the letter of revival dated 16.10.2017
A7	Original of the letter of revival dated 10.08.2020
A8	Original of the application cum appraisal form for kisan credit card scheme dated 12.10.2012

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OA. No.1282/2023

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A9	Original of the sanction memorandum dated 12.10.2012
	Original of the agreement and deed of
A10	hypothecation for kisan credit card dated 12.10.2012
A11	Original of the simple mortgage deed dated 11.10.2012
A12	Original of the letter of revival dated 28.11.2014
A13	Original of the letter of revival dated 18.12.2017
A14	Original of the letter of revival dated 18.12.2017
	Original of the application cum sanction for renewal
A15	and/or enhancement under kisan credit card scheme dated 25.11.2018
A16	Original of the letter of revival dated 10.08.2020
	Original of the common application cum appraisal
A17	form for credit facilities for agricultural loan dated 05.12.2014
A18	Original of sanction memorandum dated 05.12.2014
A19	Original of agreement and deed for kisan OD dated 05.12.2014
A20	Original of Pronote dated 05.12.2014
A21	Original of Simple Mortgage Deed on respect of Kisan OD dated 29.11.2014
A22	Original of letter of Revival dated 04.12.2017
A23	Original of letter of revival dated 10.08.2020
A24	Original of the common application cum appraisal form for credit facilities for agricultural loan dated 26.05.2015
A25	Original of the sanction memorandum dated 26.05.2015
A26	Original of memorandum of agreement for agricultural loans dated 26.05.2015
A27	Original of the simple mortgage deed for agricultural advances dated 18.02.2015
A28	Original of letter of revival dated 25.05.2018

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OA. No.1282/2023

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A29	Original of letter of r	eviv	al dated 1	0.08.2020
A30	Original of legal noti	ce d	ated 02.1	1.2022
A31	Original of legal noti	ce d	ated 02.1	1.2022
A32	Original of legal noti	ce d	ated 02.1	1.2022
A33	Original of legal noti	ce d	ated 02.1	1.2022
A34	Original statement Bankers’ Book of outstanding liabili No.0590883015490	of Evi ty	account dence Ac under	certified t, showin loan a	under g the ccount
A35	Original statement Bankers’ Book of outstanding liabili No.059084015748	of Evi ty	account dence Ac under	certified t, showin loan a	under g the ccount
A36	Original statement Bankers’ Book of outstanding liabili No.0590897000013	of Evi ty	account dence Ac under	certified t, showin loan a	under g the ccount
	Original statement	of	account	certified	under
A37	Bankers’ Book of outstanding liabili No.0590883015500	Evi ty	dence Ac under	t, showin loan a	g the ccount

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Moodalagirigowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Moodalagirigowda

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

Coram

Case details

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