Allowed

Canara Bank v. Jyothi

DRT30 Jan 2026OA/1462/2024

Case brief

AI extract

What is this about?

In an ex parte hearing, the Tribunal allowed an application under Section 19 of the RDB Act for issuance of a Recovery Certificate. The Court reduced the claimed interest to 6.0% simple interest, directing recovery from respondents to the extent of their inheritance and subsequent proceeds against schedule properties.

What did the court decide?

Recovery Certificate issued for Rs. 40,43,431/ - plus interest at 6.00% p.a. (simple) from filing date, recoverable from inheritances of deceased borrowers and against schedule property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1462/2024

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BETWEEN:

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Canara Bank Having its head office at: No. 112, JC road, Bangalore – 560 002

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Branch office at: Hassan Main Branch-1, No. 45, Near NR Circle, Malad House, Hassan – 573 201 Hassan District

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Represented by its Senior Manager Sri. Hanumanthappa H …APPLICANT

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AND:

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Smt. Jyothi

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W/o. late NR Dore. (Son of co-borrower sri. ND rajaiah) Aged about 37 years Residing at: Nakalgoodu Village, Kasaba Hobli, Alur Taluk, Hassan District – 573 213

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Sri. Yogesha S/o. late ND Rajaiah Aged about 31 years Residing at: Nakalgoodu Village, Kasaba Hobli, Alur Taluk, Hassan District – 573 213

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Smt. Radha D/o. late Akkamma W/o. Sri. Kenchaiah Age major

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OA-1462/2024

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Residing at: Kanathoor Village, Kasaba Hobli, Alur Taluk, Hassan District – 573 213

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Smt. Savithri W/o. late Dyavaiah Aged about 72 years

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Sri. N D suresh S/o. late Dyavaiah Age major

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Sri. N D Yogesha S/o. late Dyavaiah Age major

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Sri. N D swamy S/o. late Dyavaiah Age major

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Smt. Rathnamma W/o. late ND Rajaiah Age major

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Smt. Mohanakumari D/o. late Rajaiah Age major

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Smt. Shobha D/o. late Rajaiah Age major

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Sri. Rajegowda S/o. late N K Thimmegowda Age major

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Sri. N T Somegowda S/o. late N K Thimmegowda Age major

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Nos. 4 to 12 are residing at: Nakalgoodu Village, Kasaba Hobli, Alur Taluk, Hassan District – 573 213 ...DEFENDANTS

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OA-1462/2024

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Counsel on record/appeared for:

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Applicant : V Haridas Bhat Defendants : Ex parte

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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 for issuance of Recovery Certificate against the defendants for Rs. 40,43,431/- (Rupees Forty Lakhs Forty Three Thousand Four Hundred And Thirty One 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 deceased borrowers Sri. Dyavaiah, Smt. Akkamma and Sri. N D Rajaiah, who expired during the pendency of OA have availed an tractor loan of Rs. 4,80,000/(Rupees Four Lakhs Eighty Thousand Only) for purchase of tractor, trailer and other agricultural equipment.

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The deceased borrowers executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrowers Sri. Dyavaiah, Smt. Akkamma and Sri. N D Rajaiah had also executed deposit of mortgage deeds dated 04.02.2006.

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OA-1462/2024

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount 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, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 07.08.2025.

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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-17 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

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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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OA-1462/2024

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The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. 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 the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above document. The claim of the applicant is well within the limitation.

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

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find both these issues are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility are

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

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1462/2024 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs.

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40,43,431/- (Rupees Forty Lakhs Forty Three Thousand Four Hundred And Thirty One Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the

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OA-1462/2024

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defendants, to the extent of their inheritance of any estate of deceased borrowers Sri. Dyavaiah, Smt. Akkamma and Sri. N D Rajaiah, after giving credit to all the amount recovered and be recovered 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

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liability, the defendants to the extent of their inherited form the deceased late Sri. Dyavaiah, Smt. Akkamma and Sri. N D Rajaiah is liable to the proceeds against for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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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 in terms of this final order.

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OA-1462/2024

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

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 30^th Day of January, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Anjanayavlu D R, S/o. late Rammohan D K, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	07.02.2006	Loan application submitted by Sri. Dyavaiah, Smt. Akkamma and Sri. N D Rajaiah
A2	08.02.2006	Loan sanction letter
A3	08.02.2006	Memorandum of agreement for agricultural loans executed by Sri. Dyavaiah, Smt. Akkamma and Sri. N D Rajaiah.
A4	03.02.2006	General power of attorney executed by Sri. Dyavaiah and Smt. Akkamma
A5	04.02.2006	Mortgage deed executed by Sri. Dyavaiah, Smt. Akkamma and Sri. N D Rajaiah, registered in the office of the sub-registrar, aluru as document no. ALR-1-00751-2005-06 and stored in CD no. ALRD4

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OA-1462/2024

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A6	23.12.2008	Letter of revival executed by Smt. Akkamma and Sri. N D Rajaiah
A7	22.12.2011	Letter of revival executed by Smt. Akkamma and Sri. N D Rajaiah
A8	12.02.2014	Letter of revival executed by Smt. Akkamma and Sri. N D Rajaiah
A9	28.12.2015	Letter of revival executed by Smt. Akkamma and Sri. N D Rajaiah
A10	30.09.2018	Letter of revival executed by Sri. N D Rajaiah
A11	30.09.2018	Letter of revival executed by defendant no. 3
A12	29.04.2021	Letter of revival executed by defendant nos. 1 & 2
A13	29.04.2021	Letter of revival executed by defendant no.3
A14	10.02.2023	Letter of revival executed by defendant nos. 1 & 2
A15	10.02.2023	Letter of revival executed by defendant no. 3
A16	31.05.2024	Legal notice got issued by the applicant bank to the defendants
A17	-------	Statement of account in respect of tractor loan account no. 0531856009433

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Jyothi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Jyothi

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

Parties & counsel

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