Allowed

Canara Bank v. Malagouda Styagouda Patil and Ors.

DRT24 Jul 2026OA/137/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Canara Bank for issuance of a Recovery Certificate against four defendants for an agricultural term loan default of Rs. 26,88,704/- with reduced interest at 6% p.a., as defendants appeared ex parte.

What did the court decide?

Issuance of Recovery Certificate for Rs. 26,88,704 plus 6% simple interest; recovery from schedule property and personal assets.

Canara Bank versus Malagouda Styagouda Patil and… — 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 24^th Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.137/2025

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BETWEEN:

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Canara Bank Soundatti Branch, Kumbar Galli, Saundatti, Raibagh Taluk, Dist- Belgaum. By its Senior Manager, Mr. Rohit Ramachandra Patil.

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…APPLICANT

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AND:

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Malagouda Satyagouda Patil, S/o Satyagouda Patil, Aged Major

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Iragouda Malagouda Patil, S/o Malagouda Patil, Aged major

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Rajagouda Bharama Patil, S/o Satyagouda Patil, Aged Major

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Balasab Tavanappa Kuge, S/o Satyagouda Patil, Aged Major

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All are residents of Soundatti Taluk- Raibagh Dist-Belgaum, Karnataka-591213. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : S.B. Srikanth Defendants : Exparte

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2 137/2025

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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. 26,88,704/- (Rupees Twenty Six Lakh Eighty Eight Thousand Seven Hundred Four 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 defendants availed the Crop and Agricultural Term Loan credit facility of Rs. 4,00,000/- from the applicant bank.

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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 simple mortgage deed, agricultural loan, memorandum of agreement, guarantee for agricultural Advances.

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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 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 03.07.2025.

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3 137/2025

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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-8 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 facility as stated in the OA, creation of Mortgage as claimed by the applicant bank and the defaults committed in the accounts.

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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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4 137/2025

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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 agricultural 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.137/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 26,88,704/- (Rupees Twenty Six Lakh Eighty Eight Thousand Seven Hundred Four Only) with further interest @ 6.00 % 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 proceeding against schedule property. Schedule Properties

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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

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amount due and payable to the applicant bank, 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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5 137/2025

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

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order.

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

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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 24^th Day of July, 2026].

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Sd/-

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(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: Saurebh Rajara, 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	10.06.2004	Copy of Simple Mortgage Deed
A2	25.06.2004	Copy of the application for agricultural loan
A3	25.06.2004	Copy of Sanction memorandum of Rs. 4,00,000
A4	25.06.2004	Copy of the Memorandum of Agreement for Term Loans

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6 137/2025

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A5	25.06.2004	Copy of Deed of guarantee for Agricultural
		Advances
A6	07.02.2023	Legal Notice
A7	--	Statement of Account 05488540000593
A8	16.12.2022	Letter of Revival

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

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Sd/-
(T. RAJESH)
PRESIDING OFFICER

Canara Bank v. Malagouda Styagouda Patil and Ors.

Case brief

What is this about?

What did the court decide?

Canara Bank v. Malagouda Styagouda Patil and Ors.

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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