Allowed

Canara Bank v. a v Narendra Babu

DRT27 Aug 2026OA/1502/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Canara Bank for issuance of a Recovery Certificate against a defaulting agricultural loan borrower, granting a reduced interest rate of 6% p.a. simple despite the claim being within the agreed higher rate. The defendant appeared ex parte.

What did the court decide?

Recovery Certificate to be drawn for Rs 48,39,835/- plus 6% per annum simple interest from filing date; enforceable against defendant's personal assets and schedule properties. Cost of proceedings awa

Canara Bank versus a v Narendra Babu — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 27^th Day of August, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer OA.No.1502/2024

¶4

BETWEEN:

¶5

Canara Bank Palanjogihalli, Bengaluru rural – 561 203

¶6

Represented by its Manager Smt. Karra Suneela …APPLICANT

¶7

AND:

¶8

Sri. A V Narendra Babu S/o. Venkataswamy Aged about 52 years Alipura Village, Thondebhavai Hobli, Gowri Bidanur Taluk, Bengaluru rural dist. – 561 213 ...DEFENDANT

¶9

Counsel on record/appeared for: Applicant : Sowbhagya V Defendant : Ex parte

¶10

FINAL ORDER

¶11

The present Original Application in short (OA) has been filed

¶12

under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendant for Rs 48,39,835/- (Rupees Forty-Eight Lakhs Thirty-Nine Thousand Eight

¶13

Hundred and Thirty-Five Only) with further interest thereon from the

¶14

OA-1502/2024

¶15

¶16

date of filing the Application till realization.

¶17

It is the case of the applicant that, the defendant is availed an agricultural loan of Rs. 20,00,000/- (Rupees Twenty Lakhs Only).

¶18

It is also the case of the applicant that, in view of the above availed loan, the defendant executed the necessary loan documents along with Simple mortgage deed.

¶19

It is further contended that, despite availing the credit facility, 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 accounts as NPA.

¶20

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.

¶21

Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set ex parte on 04.03.2025.

¶22

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.

¶23

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.

¶24

OA-1502/2024

¶25

¶26

The following issues arise for consideration in this matter:

¶27

i) Whether the applicant had succeeded in proving the OA

¶28

claim as against the defendant?

¶29

ii) What order are to be passed?

¶30

Both these issues are gone into and decided together.

¶31

The case put forth by the applicant in the Application remains unrebutted as defendant 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 defendant and the claim of the amount due are also proved by the above document. The claim of the applicant is well within the limitation.

¶32

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

¶33

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

¶34

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

¶35

Taking into consideration the facts that the credit facility is

¶36

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

¶37

OA-1502/2024

¶38

¶39

In the result, OA.No.1502/2024 stands allowed,

¶40

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

¶41

48,39,835/- (Rupees Forty-Eight Lakhs Thirty-Nine Thousand Eight Hundred and Thirty-Five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, 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 the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

¶42

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 assets are liable for all such amounts due under the loan accounts.

¶43

iii) The applicant bank is allowed cost of the proceedings

¶44

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

¶45

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

¶46

v) Interim application pending, if any, stands disposed of in terms of this final order.

¶47

OA-1502/2024

¶48

¶49

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

¶50

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

¶51

(Procedure) Rules, 1993.

¶52

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August, 2026].

Sd/-

(T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶57

AW-1 Sri. C Amaranath Reddy, S/o Narayana Reddy, Manager, of Applicant Bank.

¶58

Exhibits on the part of the Applicant:

¶59

Exhi bits	Date	Particulars
A1	15.05.2015	Common application cum-appraisal form for credit facilities for agricultural loan (kisan all-purpose term loan)
A2	28.05.2015	Sanction memorandum of kissan all purpose term loan
A3	28.05.2015	Memorandum of agreement for agricultural loan (kisan all- purpose term loan)
A4	19.05.2015	Simple mortgage deed for agricultural advance
A5	22.11.2017	Letter of revival
A6	23.10.2020	Letter of revival
A7	24.08.2023	Legal notice sent by RPAD
A8	12.09.2023	Statement of account (kissan All purpose term loan) no. 3826839000006

¶60

Witness Examined for the Defendant:

¶61

-Nil -

¶62

List of Documents Exhibited for the Defendant:

¶63

-Nil -

¶64

Sd/-

Canara Bank v. a v Narendra Babu

Case brief

What is this about?

What did the court decide?

Canara Bank v. a v Narendra Babu

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

Coram

Case details

Similar cases

Icici Bank Limited versus Shilpy

Bank of India versus Sh. Hardev Singh

Bank of India versus Amarjit Kaur

Santosh Kumari versus Central Bank of India

State Bank of India versus Mokksh

Ms Tamanna Enterprises versus Indian Bank