Allowed

Canara Bank v. Sangavva Ningappa Sanadi

DRT31 Jul 2026OA/1558/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Canara Bank against four defaulting borrowers of agricultural loans. After an ex parte hearing, the Tribunal found the bank's evidence sufficient, certified the Recovery Certificate, and ordered the same with a reduced interest rate of 6% simple p.a.

What did the court decide?

Recovery Certificate issued to recover principal amounts from defendant nos. 1 & 2 and 1, 3 & 4 jointly and severally with interest at 6% p.a. simple.

Canara Bank versus Sangavva Ningappa Sanadi — Consumer Protection | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 31^st Day of July, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer OA NO.1558/2023

¶4

BETWEEN:

¶5

Canara Bank Athani branch, Mahamane Building, Main Road, Opp: to Govnmement hospital, Athani taluk, Belgaum, Karnataka – 591 304 Represented by its Chief Manager Mr. S Arun Kumar

¶6

…APPLICANT

¶7

AND:

¶8

Mrs. Sangavva Ningappa Sanadi W/o. Ningappa Sanadi Aged about 55 years R/at: Aigali Village, Athani Taluk, Belgaum District – 591 248

¶9

Mr. Apparay Gurusidda Dambali S/o. Gurusidda Dambali Aged major R/at: Aigali Village, Athani Taluk, Belgaum District – 591 248

¶10

Mr. Ningappa Sanadi S/o. Dundappa Sanadi Aged major R/at: Aigali Village, Athani Taluk, Belgaum District – 591 248

¶11

Mr. Bapu Chavan S/o. Maruti Chavan Aged major R/at: Aigali Village, Athani Taluk, Belgaum District – 591 248 …DEFENDANTS

¶12

OA-1558/2023

¶13

¶14

Counsel on record/appeared for:

¶15

Applicant : Prakash Hegde K Defendants : Ex parte

¶16

FINAL ORDER:

¶17

The Original Application (OA) has been filed under Section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of sum of 20,66,018.66/- (Rupees Twenty lakhs Sixty-Six Thousand and Eighteen and Paisa Sixty-Six Only) with further interest thereon from the date of filing the Application till realization.

¶18

It is the case of the applicant that, the defendants are availed the credit facilities:

¶19

Agricultural Term loan of Rs. 9,40,000/- (Rupees Nine Lakhs Forty Thousand Only).

¶20

Agricultural Term loan of Rs. 2,22,000/- (Rupees Two lakhs Twenty-Two Thousand Only).

¶21

It is also the case of the applicant that, in view of the above

¶22

availed loans, the defendants executed the necessary loan document along with Simple mortgage deed.

¶23

It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in

¶24

OA-1558/2023

¶25

¶26

repayment and consequentially turning the loan accounts as NPA.

¶27

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.

¶28

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 10.07.2025.

¶29

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-13 and got the same marked in evidence.

¶30

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.

¶31

The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the OA

¶32

claim as against the defendants?

¶33

ii) What order are to be passed?

¶34

Both these issues are gone into and decided together.

¶35

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.

¶36

OA-1558/2023

¶37

¶38

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 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.

¶39

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

¶40

find both these issues are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶41

Taking into consideration the facts that the credit facilities are availed for Agricultural purpose and also that the OA claim is arrived

¶42

at by calculating interest at the agreed rate, this Tribunal is the view

¶43

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

¶44

In the result, OA.No.1558/2023 stands allowed,

¶45

i) The applicant is allowed to recover an aggregate sum of

¶46

Rs. 20,66,018.66/- (Rupees Twenty lakhs Sixty-Six Thousand and Eighteen and Paisa Sixty-Six Only) consisting of:

¶47

a. Rs. 16,51,079.24/- (Rupees Sixteen Lakhs Fifty-One Thousand

¶48

and Seventy-Nine and Paisa Two Four Only) with further interest

¶49

OA-1558/2023

¶50

¶51

@6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 2:

¶52

b. Rs. 4,14,939.42/- (Rupees Four Lakhs Fourteen Thousand Nine

¶53

Hundred and Thirty-Nine and Paisa Forty-Two Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1,3 & 4:

¶54

After giving credit to all the amounts recovered and received during

¶55

the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

¶56

ii) If the sale proceeds are not found sufficient to cover the

¶57

amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for balance amounts due under the loan accounts.

¶58

iii) The applicant bank is allowed cost of the proceedings

¶59

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

¶60

OA-1558/2023

¶61

¶62

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

¶63

and transferred to Recovery for execution.

¶64

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

¶65

terms of this final order.

¶66

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

¶67

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

¶68

(Procedure) Rules, 1993.

¶69

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July, 2026].

¶70

Sd/-

¶71

(T. RAJESH) PRESIDING OFFICER

¶72

ANNEXURES

¶73

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶74

AW-1: Frony John, S/o. Jonny, Branch Manager, of Applicant Bank.

¶75

Exhibits on the part of the Applicant:

¶76

Exhibit	Particulars of Documents
Nos.
A1	Loan application dated 28.12.2016
A2	Interview cum appraisal (sanction letter) dated 28.12.2016
A3	Agreement for agricultural advances dated 28.12.2016
A4	Deed of guarantee for agricultural advances dated 28.12.2016
A5	Loan application dated 27.03.2017
A6	Interview-cum-assessment form (sanction letter) 30.03.2017
A7	Agreement for agricultural advances dated 04.04.2017

¶77

OA-1558/2023

¶78

¶79

A8	Deed of guarantee for agricultural advances dated 04.04.2017
A9	Simple mortgage deed dated 21.10.2016
A10	Statement of account loan account no. 05368210002199
A11	Statement of account loan account no. 05368010030518
A12	Legal notice dated 22.02.2023
A13	Postal receipts

¶80

Witness Examined for the Defendants: -Nil -

¶81

List of Documents Exhibited for the Defendants:

-Nil –

Sd/-

(T. RAJESH)

PRESIDING OFFICER

Canara Bank v. Sangavva Ningappa Sanadi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sangavva Ningappa Sanadi

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

Canara Bank versus Ms Kalka Packaging

Hdfc Bank versus M/S Fine Line Retails Pvt. Ltd.

Canara Bank versus Ramappa G Khanagoudar

Mrs Azaz Fatima versus Hero Housing Finance Limited

M/s Pannalal Associates versus Anand Rathi Global Finance Limited

Ranjana Sharma versus Icici Bank Limited