Allowed

Canara Bank v. Vasanthamma

DRT24 Jun 2026OA/1509/2025

Case brief

AI extract

What is this about?

The Tribunal, hearing an ex-parte original application for a recovery certificate under the RDB Act, found the bank's evidence uncontroverted. While allowing the application to recover the outstanding agricultural loan with principal and interest, the Tribunal reduced the interest rate to 6% p.a. (Simple) and ordered recovery jointly, severally, and personally from the defaulting borrowers.

What did the court decide?

Recovery certificate issued for Rs. 32,36,252.78 with further interest at 6% p.a. (Simple) to be recovered jointly, severally, and personally from the defendants, with priority to the schedule propert

Canara Bank versus Vasanthamma — Execution and Attachment | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, 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.1509/2025

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BETWEEN:

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Canara Bank Kodigehalli, Taluk Doddaballapur, Dist. Bangalore Rural, Bangalore-561203

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…APPLICANT

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AND:

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Smt. Vasanathamma

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W/o. L. Gurumurthy

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Sri. L. Gurumurthy S/o Late Lakshmaiah

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R/at:#60, 1^st Main Road Kodigehalli,

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Doddabelavangala Hobli, Doddaballapura Taluk, Bangalore Rural-561203

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Naushad A K Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act

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OA 1509/2025

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1993 seeking issuance of Recovery Certificate for

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Rs.32,36,252.78/- (Rupees Thirty Two Lakhs Thirty Six Thousand Two Hundred and Fifty Two and Paise Seventy Eight Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendants availed an agricultural loan of Rs 30,53,000/- (Rupees Thirty Lakhs Fifty Three Thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan document along with simple mortgage deed.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly 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 defendants, they failed to appear, resulting the defendants being set exparte on

OA 1509/2025

17.10.2025.

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-08 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

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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 availment of credit facility

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as stated in the OA, creation of mortgage as claimed by the applicant bank and the defaults committed in the accounts. The

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OA 1509/2025

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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 within the limitation.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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 defendants for agricultural purpose and also that 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 @6% p.a. (Simple).

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In the result, OA.No.1509/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. Rs.32,36,252.78 /- (Rupees Thirt Two Lakhs Thirty

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Six Thousand Two Hundred Fifty Two and Paise Seventy Eight Only) with further interest @6% p.a. (Simple),from the date of

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filing OA till the realization, from the defendants jointly serverally and personally after giving credit to all the amount recovered and received during the pendency of the OA and

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allowed the same to be recovered by proceedings against the

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OA 1509/2025

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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 defendants

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jointly serverally and personally and their 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

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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

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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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (ms), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 24^th day of June, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA 1509/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: DV Chandra Teja, Officer , 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	Loan application dated 03.06.2016
A2	Memorandum of agreement for agricultural loans dated 26.08.2016
A3	Simple mortgage deed dated 23.08.2016
A4	Letter of revival dated 06.08.2019
A5	Letter of revival dated 02.07.2022
A6	Letter of revival dated 21.01.2025
A7	Legal notice dated 02.04.2025
A8	True extract of statement of accounts of A/C No.4434883000016
Witness	Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Vasanthamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Vasanthamma

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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