Allowed

Canara Bank v. Sathish Kharvi

DRT24 Jun 2026OA/1503/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for a recovery certificate of approx Rs. 37.44 lakh against two borrowers who defaulted on a housing loan. The defendants were defaulted exparte. The court allowed recovery with a reduced interest rate of 8% simple and directed drawing the certificate.

What did the court decide?

Recovery certificate issued for Rs. 37,43,953.91 with 8% simple interest; recovery from joint, several, and personal liability.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1503/2025

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BETWEEN:

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Canara Bank Ganguli Branch Deva Kripa, Ganguli Taluk Kundapura, Udupi District-576 216 Through its Senior Manager Mr. Vasu Devadiga.

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…APPLICANT

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AND:

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Mr. Sathish Kharvi S/o Bikya Kharavi, 13/144 Srilaxmi, Light House, Gangulli Kundapura Taluk, Dist. Udupi-576216.

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Mr. Nithyanda Kharvi S/o Bikya Kharvi 13/144 Srilaxmi, Light House, Gangulli Kundapura Taluk, Dist. Udupi-576216.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Naushad A.K. Defendants : Exparte

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FINAL ORDER

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

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section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance

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of Recovery Certificate against the defendants for Rs. 37,43,953.91/(Rupees Thirty Seven Lakh Forty Three Thousand Nine Hundred Fifty Three and paise Ninety 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 defendant availed the Housing Loan credit facility of Rs. 30 lakhs from the applicant bank on 21.09.2021.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Housing Loan Agreement, Memorandum Deposit of Title Deed, Letter of Revival.

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

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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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 17.10.2025.

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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-7 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 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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The case put forth by the applicant in the Application remains unrebutted as defendants 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

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availment of credit facilities as stated in the OA, and the defaults committed in the accounts. The liability of the defendants and the claim

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

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availed for Housing 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 8.00% (simple). The Vide proceedings dated 19.06.2026, the applicant stated that, they have received an amount of Rs. 23,41,000/- during the pending of the OA.

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In the result, OA.No.1503/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 37,43,953.91/- (Rupees Thirty Seven Lakh Forty Three Thousand Nine Hundred Fifty Three and paise Ninety One Only) with further interest @8.00 % 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 and allowed the same to be recovered by proceeding against schedule property. Schedule Properties to the OA be the schedule 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 defendants jointly, severally and personally and their assets are liable for the amounts due under the loan accounts.

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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

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order.

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

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transferred to Recovery for execution.

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

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of this final order.

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

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

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^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: Manjunatha R. R. Senior Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	21.09.2021	Sanction letter
A2	21.09.2021	Housing Loan Agreement
	23.02.2022	Memorandum Deposit of Title Deed
A3	23.06.2023	Recall Notice
A4	03.02.2024	Letters of Revival
A5	20.06.2023	Notice issued under Section 13 (2) of the SARFAESI Act

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A6	03.04.2025	Notice
A7	--	True Extract of Statement of Accounts pertaining to
		the Defendants aforesaid Loan Accounts No. 160000205072
	--	Certificate under section 2a of banker’s book evidence act, 1891.

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil –

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Sd/-
(T. RAJESH)
PRESIDING OFFICER

Canara Bank v. Sathish Kharvi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sathish Kharvi

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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