Allowed

Canara Bank v. Rajani Gundappa

DRT22 May 2026OA/1387/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by a bank for issuance of a Recovery Certificate. The court found the debt evidence uncontradicted due to the defendants appearing exparte. A recovery certificate was passed for the principal amount along with interest.

What did the court decide?

Issuance of Recovery Certificate for principal amount Rs. 35,75,182.33 with further interest till realization.

Canara Bank versus Rajani Gundappa — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 22^nd Day of May, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1387/2024

¶5

BETWEEN:

¶6

Canara Bank Gokak Branch Sangoli Rayana Gokak, Dist Belgavi-591 307 Through its Chief Manager Mr. Raju Nanarao Prasalwad

¶7

…APPLICANT

¶8

AND:

¶9

Smt. Rajani Gundappa Kamate D/o Gundappa Kamate Aged about 36 years At & Post Dixit Plot No.7, Laxmi Extension Area, Gokak, Dist Belgavi Karnataka-591307

¶10

Mr. Gundappa Annappa Kamate S/o Annappa Kamate Aged about 66 years At & Post Dixit Plot No.7, Laxmi Extension Area, Gokak, Dist Belgavi Karnataka-591307

¶11

Mr. Balalappa Balappa Jigadi S/o Balappa Jigadi Aged about 50 years Masguppi, Gokak, Dist. Belgavi Karnataka-591 307.

¶12

...DEFENDANTS

¶13

2 OA/1387/2024

¶14

Counsel on record/appeared for:

¶15

Applicant : Mr. Venu K.V. and Mr. Naushad A.K Defendants : Exparte

¶16

FINAL ORDER

¶17

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. 35,75,182.33 (Rupees Thirty Five lakh Seventy Five Thousand One Hundred Eighty Two and Paise Thirty Three only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶18

It is the case of the applicant that the defendant availed the following credit facilities from the applicant bank:-

¶19

I. Educational Loan of a sum of Rs. 2,00,000/- (Rupees Two Lakh Only),

¶20

II. Medical Clinic Loan of sum of Rs. 3,00,000/- (Rupees Three Lakh Only).

¶21

It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with Loan application, General Agreement, Deed of Guarantee, Acknowledgment of Liability.

¶22

It is further contended that, the defendants despite availing the credit facilities, agreeing to service the loan account promptly and

¶23

3 OA/1387/2024

¶24

regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

¶25

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.

¶26

Despite, service of summons on the defendant, he failed to appear, resulting the defendants being set exparte on 25.04.2025.

¶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 A-1 to A-22 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 the proof affidavit.

¶29

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?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the applicant in the Application remains

¶34

unrebutted as defendants remained exparte. The evidence tendered by

¶35

4 OA/1387/2024

¶36

the applicant remains uncontroverted and undisputed. The evidences put

¶37

forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation 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

¶38

within the limitation.

¶39

Hence in view of the finding arrived herein above, this Tribunal find

¶40

both these issues in favour of applicant and hence this Tribunal is of the view that OA is to be allowed.

¶41

Taking into consideration the facts that the credit facilities are availed by defendant for education purpose and to start medical clinic and also that the OA claim is arrived at by calculating interest at the agreed rate and also by applying default interest, the prayer for monthly rest and future penal interest are declined.

¶42

In the result, OA.No.1387/2024 stands allowed,

¶43

i) The applicant is allowed to recovery an aggregate sum of Rs.

¶44

35,75,182.33/- (Rupees Thirty Five Lakh Seventy Five Thousand One Hundred Eighty Two and Paise Thirty Three only) consisting of:-

¶45

5 OA/1387/2024

¶46

a) Defendants No.1 to 3 to pay, jointly or severally the sum of Rs. 26,96,607.29/- (Rupees Twenty Six Lakhs Ninety six Thousand Sixty Hundred Seven and Paise Twenty Nine Only) with further interest @ 11.00% p.a. (Simple)

¶47

b) Defendants No.1 and 2 to pay the sum of Rs. 8,78,575.04/(Rupees Eight Lakh Seventy Eight Thousand Five Hundred Seventy Five Only) with further interest @ 11.00% 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.

¶48

(ii) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to proceed against the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

¶50

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

¶51

v) Interim application pending, if any, stands disposed of in terms

¶52

6 OA/1387/2024

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of this final order.

¶54

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

¶55

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

¶56

Rules, 1993.

¶57

[Dictated to the Stenographer (DV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 2^nd day of May, 2026].

¶58

Sd/-

¶59

(T. RAJESH)

¶60

PRESIDING OFFICER

¶61

ANNEXURES

¶62

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶63

AW-1: Jutur Tejdeep, officer of Applicant Bank.

¶64

Exhibits on the part of the Applicant:

¶65

Exhibit Nos.	Date	Particulars of Documents
A1	12.09.2006	Loan Application
A2	14.09.2006	General Agreement
A3	14.09.2006	Deed of Guarantee
A4	25.03.2009	Acknowledgment of liability
A5	29.02.2012	Acknowledgment of liability
A6	31.01.2015	Acknowledgment of liability
A7	31.12.2017	Acknowledgment of liability
A8	05.08.2020	Acknowledgment of liability
A9	02.09.2021	Acknowledgment of liability
A10	06.01.2014	Process Note
A11	06.01.2014	Composite Hypothecation Agreement
A12	06.01.2014	Deed of Guarantee
A13	03.01.2017	Acknowledgment of liability
A14	31.03.2019	Acknowledgment of liability

¶66

7 OA/1387/2024

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A15	31.03.2020	Letter of Revival
A16	31.03.2020	Demand Promissory Note
A17	02.01.2023	Acknowledgment of liability
A18	19.01.2023	Notice
A19	--	True Extract of Statement of Accounts pertaining to the Defendants aforesaid Loan Accounts 0511791000344
A20	--	Statement showing total outstanding liabilities
A21	--	Certificate under section 2a of Banker’s Book evidence act, 1891

¶68

Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

¶69

-Nil -

¶70

-Nil -

¶71

Sd/- (T. RAJESH) PRESIDING OFFICER

¶72

8 OA/1387/2024

¶73

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶74

Dated this 22^th Day of May, 2026

¶75

Present: Sri. T. RAJESH Presiding Officer

¶76

OA.No.1387/2024

¶77

BETWEEN:

¶78

Canara Bank Gokak Branch Sangoli Rayana Gokak, Dist Belgavi-591 307 Through its Chief Manager Mr. Raju Nanarao Prasalwad

¶79

…APPLICANT

¶80

AND:

¶81

Smt. Rajani Gundappa Kamate D/o Gundappa Kamate At & Post Dixit Plot No.7, Laxmi Extension Area, Gokak, Dist Belgavi Karnataka-591307

¶82

Mr. Gundappa Annappa Kamate S/o Annappa Kamate

¶83

At & Post Dixit Plot No.7, Laxmi Extension Area, Gokak, Dist Belgavi Karnataka-591307

¶84

Mr. Balalappa Balappa Jigadi S/o Balappa Jigadi Masguppi, Gokak, Dist. Belgavi Karnataka-591 307. ...DEFENDANTS

¶85

Counsel on record/appeared for:

¶86

Applicant : Mr. Venu K.V. and Mr. Naushad A.K Defendant : Exparte

¶87

9 OA/1387/2024

¶88

FINAL ORDER

¶89

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 defendant for Rs. 35,75,182.33 (Rupees Thirty Five lakh Seventy Five Thousand One Hundred Eighty Two and Paise Thirty Three only) with further interest thereon from the date of filing the Application till realization.

¶90

It is the case of the applicant that the defendant availed following Loan facilities from the applicant Bank:

¶91

I. Education Loan of a sum of Rs. 2,00,000/- (Rupees Two Lakhs Only) on 14.09.2006

¶92

II. Medical clinic Loan of sum of Rs. 3,00,000/- (Rupees Three Lakhs Only)

¶93

It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with arrangement letter.

¶94

It is further contended that, despite availing the credit facilities, 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.

¶95

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the balance amount due in the account.

¶96

10 OA/1387/2024

¶97

Despite, entering appearance defendant failed to file written statement within stipulated time, hence written statement of defendant stood closed.

¶98

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-22 and got the same marked in evidence.

¶99

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.

¶100

The following issues arise for consideration in this matter:

¶101

i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

¶102

ii) What order are to be passed?

¶103

Both these issues are gone into and decided together.

¶104

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, the defaults committed in the accounts. The liability of the defendants and the claim of the

¶105

11 OA/1387/2024

¶106

amount due are also proved by the above documents. The claim of the

¶107

applicant is well within the limitation.

¶108

Hence in view of the findings arrived herein above, the Tribunal

¶109

find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶110

Taking into consideration the facts that the credit facilities are

¶111

availed for Business 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 10.00% (simple).

¶112

In the result, OA.No.1387/2024, stands allowed,

¶113

i) The applicant is allowed to recovery an aggregate sum of Rs. 37,75,681.23 (Rupees Thirty Seven Lakh Seventy Five Thousand Six Hundred Eighty One and Paise Twenty Three Only) with further interest @10.00 % p.a.(simple)

¶114

ii) from the date of filing OA till the realization, from the defendant 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 the defendants jointly, severally and personally and also proceeding against their assets.

¶115

12 OA/1387/2024

¶116

ii) The applicant bank is allowed cost of the proceedings which

¶117

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

¶118

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

¶119

transferred to Recovery for execution.

¶120

iv) Interim application pending, if any, stands disposed of in terms

¶121

of this final order.

¶122

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

¶123

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

¶124

Rules, 1993.

¶125

[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 04^th day of March, 2026].

¶126

(T. RAJESH)

¶127

PRESIDING OFFICER

¶128

ANNEXURES

¶129

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶130

AW-1: Jutur Tejdeep, Officer scale-I, of the applicant bank

¶131

Exhibits on the part of the Applicant:

¶132

Exhibit Nos.	Date	List of documents
A1	12.09.2006	Loan application
A2	14.09.2006	General agreement
A3	14.09.2006	Deed of Guarantee
A4	25.03.2009	Acknowledgement of Liability
A5	29.2.2012	Acknowledgement of Liability

¶133

13 OA/1387/2024

¶134

A6	31.01.2015	Acknowledgement of Liability
A7	31.12.2017	Acknowledgement of Liability
A8	05.08.2020	Acknowledgement of Liability
A9	02.09.2021	Acknowledgement of Liability
A10	06.01.2014	Process note
A11	06.01.2014	Composite Hypothecation Agreement
A12	06.01.2014	Deed of Guarantee
A13	03.01.2017	Acknowledgement of Liability
A14	31.03.2019	Acknowledgement of Liability
A15	31.03.2020	Letter of Revival
A16	31.03.2020	Demand Promissory Note
A17	02.01.2023	Acknowledgement of Liability
A18	19.01.2023	Notice
A19		True extract of statement of Accounts pertaining to the defendants aforesaid Loan Account s 0511761000231
A20		True extract of statement of Accounts pertaining to the defendants aforesaid Loan Accounts 05117910001344
A21		Statement showing total outstanding liabilities
A22		Certificate under section 2a of bankers book evidence ct, 1891

¶135

Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

¶136

-Nil -

¶137

-Nil -

¶138

Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Rajani Gundappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Rajani Gundappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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