Allowed

Canara Bank v. Jesus Enterprises

DRT27 Apr 2026OA/158/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application for issuance of a Recovery Certificate. Unrebutted due to the defendant's absence, the Tribunal reduced the interest rate to 10% p.a. and directed the bank to proceed against the respondent's assets for the outstanding loan.

What did the court decide?

Recovery Certificate issued for Rs.20,87,536.71 plus interest at 10% p.a. simple; liberty to pursue other assets if not paid.

Canara Bank versus Jesus Enterprises — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of April, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.158/2025

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BETWEEN:

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Canara Bank Areyur Branch, Tumkur District Sree Veeranjaneya Samudaya Bhavan Areyur, Tumkur District-5672118 Rep. By its Manager and constituted Attorney Shubham Kumar …

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… APPLICANT

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AND:

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Jesus Enterprises Rep. by its Proprietor Sunil G Aged about 24 years S/o. Govnidappa R/at: Near Indira High School, Upparahalli – Tumkur - 572102

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Smt. D. Shashiprabha Ramesh Defendant : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.20,87,536.71 (Rupees Twenty Lakh Eighty Seven Thousand Five

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OA. No.158/2025

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Hundred Thirty Sixt and Seventy One Paisa 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 Term loan of Rs.20,00,000/- under MSME scheme of the government for the purpose of manufacturing Agarbathis on 15.07.2022.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents.

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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 account 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, he failed to appear, resulting the defendant being set exparte on 20.11.2025.

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OA. No.158/2025

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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 A1 to A8 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 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 remains unrebutted as defendant remained exparte. The evidence

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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 security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well

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OA. No.158/2025

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within the limitation.

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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is

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liable to be allowed.

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Taking into consideration the facts that the credit facility

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was availed for business 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 of 10.00% p.a.(simple).

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In the result, OA.No.158/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.20,87,536.71 (Rupees Twenty Lakh Eighty Seven Thousand

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Five Hundred Thirty Sixt and Seventy One Paisa only) with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA.

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ii) In the event of failure of the defendant to pay the

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aforesaid amount, the bank is at liberty to proceed against the defendant personally and his other assets are liable for all such amounts due under the loan account.

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OA. No.158/2025

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iii) The applicant bank is allowed cost of the proceeding

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

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

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Tippanna Rathod, Senior Manager of the applicant bank.

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OA. No.158/2025

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit Number
	15.07.2022	Application form for loan to
1		Medium and Small Enterprises (MSMEs)	A1
2	15.07.2022	Sanction memorandum	A2
3	15.07.2022	Deed of hypothecation RE: Machinery	A3
4	15.07.2022	Letter of undertaking re: loans/advances	A4
5	25.07.2022	Particulars of vehicles/machineries/equipmen t/livestock etc., hypothecated	A5
6	28.03.2024	Office copy of the legal notice	A6
7	-	Acknowledgment	A7
	30.11.2024	Statement of account extract
8		pertaining to the loan account No.170005277698	A8

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Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Jesus Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank v. Jesus Enterprises

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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