Allowed

Canara Bank v. kamalamma

DRT30 Jun 2026OA/1470/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Canara Bank under Section 19 of the RDB Act. The bank sought issuance of a Recovery Certificate for loan defaults where the defendant appeared ex parte. The Tribunal issued a certificate for recovery of principal and reduced interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 95,53,261.00 plus interest @6% p.a. (Simple) from date of filing till realization, recoverable from personal assets and schedule properties.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1470/2024

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BETWEEN:

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Canara Bank Having Branch At Belur Main Road, Belur Hassan Districts Pin-573115 Respresnted by its

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…APPLICANT

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AND:

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Smt.Kamalama W/o Rudregowda Age Major Nagenahalli Village, Arehalli Hobli, Belur Taluk-573115 Hassan District

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : D R Joshi Defendant : Exparte

OA 1470/2024

FINAL ORDER

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. 95,53,261.00/-(Rupees Ninety Five Lakhs Fifty Three Thousand Two Hundred Sixty One 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 an I. Term loan of a sum of Rs. 2,50,000 (Rupees Two Lakh Fifty Thousand Only)

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II. KKC loan of a sum of Rs. 3,75,000 (Rupees Three Lakh Seventy Thousand Only)

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III. Term loan of a sum of Rs. 3,14,000 (Rupees Three Lakh Fourteen Thousand Only)

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IV. Development loan of a sum of Rs. 2,34,000 (Rupees Two Lakh Thirty Four Thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with Deposit of title deeds.

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

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OA 1470/2024

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and regularly, failed in complying the same, resulting in defaults 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 defendant, she failed to appear, resulting the defendant being set exparte on 29.01.2026.

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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-33 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 the 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 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

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OA 1470/2024

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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 mortgage as claimed by

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the applicant bank and the defaults committed in the accounts.

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The liability of the defendant and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this 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

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are availed by defendant for agriculture purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a. (Simple).

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In the result, OA.No.1470/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. 95,53,261.00/-(Rupees Ninety Five Lakhs Fifty Three

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OA 1470/2024

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Thousand Two Hundred Sixty One Only). with further interest @6% p.a. (Simple),from the date of filing OA till the realization,

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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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendant personally and she other assets are liable to be proceeded against for the balance amount.

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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.

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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

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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OA 1470/2024

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[Dictated to the Stenographer (ms), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 30^th day of June, 2026].

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SD/(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: Manjuraj. C, Senior Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Letter evidencing deposit of title deed dated 04.12.1998
A2	Memorandum of agreement for agricultural dated 03.07.2001
A3	Link letter dated 03.07.2001
A4	Agreement for re-sechedulement of coffee loans dated 01.10.2002
A5	Acknowledgement of debt dated 01.10.2002
A6	Acknowledgement of debt dated 14.06.2005
A7	Acknowledgement of debt dated 13.06.2007
A8	Acknowledgement of debt dated 18.05.2010
A9	Acknowledgement of debt dated 10.04.2013
A10	Acknowledgement of debt dated 10.02.2016
A11	Acknowledgement of debt dated 09.10.2018
A12	Acknowledgement of debt dated 02.10.2021
A13	Loan application dated 29.05.2015
A14	Loan sanction memorandum dated 29.05.2015
A15	Letter evidencing deposit of title deed dated 29.05.2015
A16	Agreement and deed for kissan OD dated 29.05.2015
A17	Letter of revival dated 21.04.2018
A18	Letter of revival dated 06.11.2020
A19	Loan application for KCC loan dated 30.05.2015
A20	Letter of sanction dated 30.05.2015
A21	Agreement and deed of hypothecation for kissan credit card dated 30.05.2015
A22	Revival letters dated 15.02.2018

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OA 1470/2024

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A23	Revival letters dated 03.09.2020
A24	Application for loan dated 17.08.2021
A25	Sanction memorandum dated 17.08.2015
A26	Memorandum of agreement for agricultural loans dated 17.08.2015
A27	Link letter dated 17.08.2015
A28	Letter of revival dated 27.04.2018
A29	Letter of revival dated 25.04.2021
A30 & A33	The certified statement of accounts
Witness	Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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SD/-
(T. RAJESH)
PRESIDING OFFICER

Canara Bank v. kamalamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. kamalamma

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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Case details

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