Allowed

Canara Bank v. Smt. C. Ramyashree Prop of Vruschika Industries

DRT27 Mar 2026OA/1359/2022

Case brief

AI extract

What is this about?

In this ex parte appeal under Section 19 of the RDB Act, 1993, the DRT examined uncontroverted evidence of loan availability and defaults. The Tribunal allowed the application, granting a recovery certificate with interest reduced to 8% p.a.

What did the court decide?

Recovery certificate issued for aggregate sum of Rs.1,68,81,656.05 with interest at 8% p.a. (simple) recoverable personally and against secured assets.

Canara Bank versus Smt. C. Ramyashree Prop of… — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 27^th Day of March, 2026

¶3

Present: Sri. T. RAJESH

¶4

Presiding Officer

¶5

OA. No.1359/2022

¶6

BETWEEN:

¶7

Canara Bank Branch office at: Chamundipuram Branch, Mysore, Rep.by its Senior Manager Mr. H.S. Ravisha … APPLICANT

¶8

AND:

¶9

Smt. C Ramyashree W/o. Mr. L S Yogesh Aged about 42 years Proprietary of Vruschika Industries Plot #15-E, III Stage Industrial Suburb Mysore-South, Mysore-570008 Also at: #112, 4^th Cross, 4^th Main Kandayanagara Srirampura Mysore-570023

¶10

...DEFENDANT

¶11

Counsel on record/appeared for:

¶12

Applicant : Sri. Manik B T Defendant : Exparte

¶13

:FINAL ORDER:

¶14

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for

¶15

seeking issuance of Recovery Certificate against the defendant for

¶16

OA. No.1359/2022

¶17

¶18

Rs.1,68,81,656.05 (Rupees One Crore Sixty Eighty Lakh Eighty One Thousand Six Hundred Fifty Six and Five Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendant.

¶19

It is the case of the applicant that, the applicant bank for a takeover of its existing credit facilities amounting to Rs.9,50,000/on 12.02.2013, which was enhanced to Rs.30,00,000/- on 03.08.2013 and the defendant availed MSME TL loan of Rs.80,00,000/- on 12.02.2013; MSME Term loan of Rs.27,00,000/on 15.06.2018 for the purpose of business.

¶20

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

¶21

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.

¶22

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate

¶23

OA. No.1359/2022

¶24

¶25

for the amount due in the account.

¶26

Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 27.11.2025.

¶27

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 A31 and got the same marked in evidence.

¶28

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.

¶29

The following issues arise for consideration in this matter:

¶30

i) Whether the applicant had succeeded in proving the OA

¶31

claim as against the defendant?

¶32

ii) What order are to be passed?

¶33

Both these issues are gone into and decided together.

¶34

The case put forth by the applicant in the Application

¶35

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 security interest as claimed by the

¶36

OA. No.1359/2022

¶37

¶38

applicant bank and the defaults committed in the account. The 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 within the limitation.

¶39

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.

¶40

Taking into consideration the facts that the credit facilities

¶41

were availed for business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view

¶42

of the OA can be allowed with a reduced interest of 8.00% p.a.(simple).

¶43

In the result, OA.No.1359/2022 stands allowed,

¶44

i) The applicant is allowed to recovery an aggregate sum

¶45

of Rs.1,68,81,656.05 (Rupees One Crore Sixty Eighty Lakh Eighty One Thousand Six Hundred Fifty Six and Five Paisa only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization from the defendant, 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

¶46

OA. No.1359/2022

¶47

¶48

defendant personally and also by proceeding against the schedule.

¶49

The schedule to the OA be the schedule to the Recovery Certificate.

¶50

ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant personally and his other assets are liable for all such amounts due under the loan account.

¶51

iii) The applicant bank is allowed cost of the proceeding

¶52

which applicant to file cost memo within 7 days from the date of receipt of the order.

¶53

iv) The Recovery Certificate to be drawn in terms of this

¶54

order and transferred to Recovery for execution.

¶55

v) Interim Application pending, if any, stands disposed of

¶56

with this Final Order.

¶57

Communicate a copy of the order to the parties concerned

¶58

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

¶59

DRT (Procedure) Rules, 1993.

¶60

[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of March 2026].

¶61

Sd/-

¶62

(T. RAJESH) PRESIDING OFFICER

OA. No.1359/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶67

AW-1: Sri. G Ashok kumar, Chief Manager of the applicant bank.

¶68

Exhibits on the part of the Applicant:

¶69

Sl. No.	Description of Documents	Exhibit Number
1	Original letter for takeover of loan of Rs 9,50,000/- (Rupees Nine Lakhs Fifty Thousand Only) along with fresh loan application Rs. 80,00,000/- (Rupees Eighty lakhs Only) for Micro and Small Enterprises (MSME TL) dated 12-02-2013	A1
2	Original Letter of Sanction of takeover of loan of Rs 9,50,000/- (Rupees Nine Lakhs Fifty Thousand Only) along with fresh loan Rs. 80,00,000/- (Rupees Eighty lakhs Only) for Micro and Small Enterprises (MSME TL) dated 12-02-2013	A2
3	Original separate Hypothecation Agreement for OCC & TL dated 25-02-2013.	A3
4	Original loan application for the loan amount of Rs. 30,00,000/- (Rupees Thirty Lakhs Only) dated 03/08/2013	A4
5	Original Particulars of Assets & Liabilities of the Applicant (Defendant) dated 03-08-2013	A5
6	Original Sanction Letter of Rs. 30,00,000/- (Rupees Thirty Lakhs Only) dated 03-08-2013	A6
7	Original Sanction Letter of Rs. 30,00,000/- (Rupees Thirty Lakhs Only) dated 29-06-2016	A7
8	Original Loan application for MSME of Rs. 27,00,000/- (Rupees Twenty-Seven Lakhs Only) along with renewal of existing OCC Limit of Rs 30,00,000/- (Rupees Thirty Lakhs Only) dated 19-05-2018	A8
9	Original Bank's inter office communication of Sanction Letter of Rs. 27,00,000/- (Rupees Twenty-Seven Lakhs Only) dated 15/06/2018	A9
10	Original Sanction Letter of Rs. 27,00,000/- (Rupees Twenty-Seven Lakhs Only) dated 19/06/2018 conveyed to the defendant.	A10

¶70

OA. No.1359/2022

¶71

	Original Hypothecation Agreement of Rs.
11	27,00,000/- (Rupees Twenty-Seven Lakhs Only) dated 19/06/2018	A11
12	Original Loan application for MSME of Rs.50,00,000/- (Rupees Fifty Lakh Only) dated 05/04/2019	A12
13	Original Sanction Letter of Rs.50,00,000/- (Rupees Fifty Lakh Only) dated 06/05/2019	A13
	Original Hypothecation Agreement of
14	Rs.50,00,000/- (Rupees Fifty Lakh Only) dated 06/05/2019	A14
15	Original Loan Application for renewal of OCC Limit of Rs. 50,00,000/-dated 29/08/2020.	A15
16	Original Particulars of the Guarantor/ Co- Obligant dated 29/08/2020	A16
17	Original Supplement Agreement for OCC Facilities dated 29/08/2020	A17
18	Original Link Letter for loan account 17051400000036 dated 29/08/2020	A18
19	Original Letter of Renewal for OCC Facilities of Rs 50,00,000/-(Rupees Fifty lakhs Only) in loan account no: 17051400000036 dated 29/08/2020	A19
20	Original Sanction Memorandum- Renewal of existing Limit dated 29/08/2020	A20
	Original Offer letter for Guaranteed Emergency
21	Credit Line (GECL) Rs. 20,00,000/- (Rupees Twenty Lakhs Only) dated 16/09/2020	A21
22	Original letter for Pre-Approved loan facility Guaranteed Emergency Credit Line (GECL) dated 16/09/2020	A22
	Original Link Letter to be obtained from the
23	borrower of Rs. 20,00,000/- (Rupees Twenty Lakhs Only) for loan account no. 17059160000403 dated 16/09/2020	A23
24	Original Undertaking Letter dated 16/09/2020	A24
25	Original Sanction Memorandum dated 16/09/2020	A25
	Original letter of Revival for loan account no. 17059910000513 with limit of Rs.27,00,000/-
26	(Rupees Twenty-Seven Lakhs Only)dated 02/05/2021	A26

¶72

OA. No.1359/2022

¶73

¶74

27	Original letter of Revival for limit of Rs.50,00,000/- (Rupees Fifty Lakhs Only) in loan accounts no. 17051400000036 dated 23/02/2022	A27
28	Copy of the statement of accounts for the loan account no.17057910000287with run date 01/07/2022	A28
29	Copy of the statement of accounts for the loan account no.17051400000036 with run date 01/07/2022	A29
30	Copy of the statement of accounts for the loan account no.17059910000513with 13with run date 01/07/2022	A30
31	Copy of the statement of accounts for the loan account no.17059160000403with run date 01/07/2022	A31

¶75

Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Smt. C. Ramyashree Prop of Vruschika Industries

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. C. Ramyashree Prop of Vruschika Industries

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

Similar cases

State Bank of India versus Rajendrakumar Jain

Inno Infra Pvt. Ltd. and 9 Others versus Indian Overseas Bank

Icici Bank Limited versus Rajdeepsinh

Punjab National Bank versus Sh. Sher Singh

Punjab Gramin Bank versus Smt. Jaswinder Kaur

Hdfc Bank versus Ms Bandhav Filling Centre