Allowed

Canara Bank v. Manjula Devi

DRT19 Jun 2026OA/1378/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Canara Bank's Original Application for a Recovery Certificate against a defendant for agricultural loans. The defendant was present ex parte. The Tribunal granted relief with interest reduced to 6% per annum.

What did the court decide?

Issuance of Recovery Certificate for Rs.63,08,560/- plus 6% p.a. simple interest from filing date against defendant personally and schedule property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1378/2023

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BETWEEN:

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Canara Bank Branch office at

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Rayarakoppal – 573139, Aluyr Taluk, Hassan Distrisct, Karnataka State, Rep.by its Manager and Principal Officer Sri. Rohith M

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… APPLICANT

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AND:

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Smt. Manjuladevi W/o. Sri. N N Dayanand Major Kudidale village, Rayarakoppal Pot-573129 Alur Taluk, Hassan District

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. 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 seeking issuance of Recovery Certificate against the defendant for Rs.63,08,560/- (Rupees Sixty Three Lakh Eight Thousand Five

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OA. No.1378/2023

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Hundred and Sixty 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 defendant availed KCC limit of Rs.8,50,000/- for crop cultivation on 27.12.2011; Kisan OD limit of Rs.6,50,000/- as working capital on 04.01.2012 and Dairy loan of Rs.3,15,000/- on 22.02.2012.

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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 and mortgage over the Schedule property.

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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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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 12.08.2024.

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OA. No.1378/2023

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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 A28 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: 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 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 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.

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OA. No.1378/2023

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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.

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Taking into consideration the facts that the credit facilities 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% p.a.(simple).

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In the result, OA.No.1378/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.63,08,560/- (Rupees Sixty Three Lakh Eight Thousand Five Hundred and Sixty only) with further interest of 6.00% 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 defendant personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property 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, the defendant personally and his other assets are liable for all such

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OA. No.1378/2023

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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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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of 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 19^th Day of June 2026].

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(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: Sri. Arjun P, Officer of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. Description of Documents Exhibit

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OA. No.1378/2023

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No .		Number
1	Copy of the Common Application Cum Appraisal Form for credit facilities dated 27.12.2011	A1
2	Copy of the sanction conveying letter dated 27.12.2011	A2
	Copy of the Agreement and Deed of
3	Hypothecation for Kisan Credit Card dated 27.12.2011	A3
4	Copy of the letter evidencing deposit of title deeds dated 08.05.2010	A4
5	Copy of the common application cum appraisal form for credit facilities dated 04.01.2012	A5
6	Copy of the sanction conveying letter dated 04.01.2012	A6
7	Copy of the agreement and deed of hypothecation for kisan OD dated 04.01.2012	A7
8	Copy of the common application cum appraisal form for credit facilities dated 22.02.2012	A8
9	Copy of the sanction conveying letter dated 22.02.2012	A9
10	Coy of the memorandum of agreement for agricultural advances dated 22.02.2012	A10
11	Copy of the letter of revival in respect of KCC account No.044484012588 dated 09.08.2014	A11
12	Copy of the letter of revival dated 23.09.2016	A12
13	Copy of the letter of Revival dated 27.03.2019	A13
14	Copy of the letter of Revival dated 06.06.2020	A14
15	Copy of the letter of Revival dated 09.08.2014	A15
16	Copy of the letter of Revival dated 23.09.2016	A16
17	Copy of the letter of Revival dated 20.09.2018	A17
18	Copy of the letter of Revival dated 06.06.2020	A18
19	Copy of the letter of Revival dated 31.12.2014	A19
20	Copy of the letter of Revival dated 20.02.2015	A20
21	Copy of the letter of Revival dated 26.07.2017	A21
22	Copy of the letter of Revival dated 06.06.2020	A22
23	Copy of the legal notice dated 16.07.2022	A23

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OA. No.1378/2023

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24	Copy of the legal notice dated 21.05.2022	A24
25	Copy of the legal notice dated 16.07.2022	A25
26	Copy of the statement of account certified under Bankers’ Book of Evidence Act. Showing the outstanding liability under KCC account No.0444484012588	A26
27	Copy of the statement of account certified under Bankers’ Book of Evidence Act. Showing the outstanding liability under KCC account No.0444897005195	A27
28	Copy of the statement of account certified under Bankers’ Book of Evidence Act. Showing the outstanding liability under KCC account No.04444860000008	A28

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Manjula Devi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Manjula Devi

Case brief

What is this about?

What did the court decide?

What the court decided

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