Allowed

Canara Bank v. Bagish Balakrishnan

DRT29 May 2026OA/1592/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the OA seeking a recovery certificate under Section 19 RDB Act. The court held the bank's claim uncontroverted, adjusted interest to 8% p.a., and directed recovery with interest and costs against the guarantees.

What did the court decide?

Recovery certificate for Rs.1,27,67,508.02 with 8% p.a. interest from filing date, costs awarded to applicant, and order to draw certificate for execution.

Canara Bank versus Bagish Balakrishnan — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of May, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1592/2023

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BETWEEN:

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Canara Bank Branch office at Trinity Circle Branch, BSNL Complex – Ground Floor, M G Road, Bengaluru-560008 Rep. by its Assistant General Manager And Constituted Attorney

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… APPLICANT

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AND:

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Bagish Balakrishnan Aged about 47 years S/o. Balakrishnan At: No.03/336- Padikkal Meethal Sona Nilayam, Chorode-Muttungal Post, Vadakara-Kozikode, Kerala-673106

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Bhaskara Muralidhara Aged about 40 years S/o. Muralidhar Rao No.1534, 39th Cross, 4^th T Block Jayanagara, Bengaluru – 560041

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B. Lingappa Aged about 67 years S/o. B. Boraiah

OA. No. 1592/2023

4. Prema

Aged about 28 years D/o. B. Lingappa

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Ms. Chaitra Aged about 29 years D/o. B. Lingappa

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Harsha Aged about 26 years D/o. B. Lingappa

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Defendant Nos.3 to 6 are residing at No.10, Lingappa Block, Ramakrishnaiah Street, Sheshadripuram, Begaluru-560010

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Defendant Nos.3 to 6 are represented by their GPA Holder – M/s. CYMA Investments Pvt. Ltd., Having its Regd. Office at No.204, Rajani Gandha, Garden Apartments, 21, Vittal Mallaya Road, Bengaluru-560001, Rep. by its DirectorGopal P Shinde

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M/s. CYMA Investments Pvt. Ltd., Having its Registered office at No.204, RajaniGandha, Garden Apartments, 21, Vittal Mallaya Road, Bengaluru-560001 Rep. by its Director – Gopal P Shinde

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M/s. Parth Constructions Pvt. Ltd., Having its Registered office at No.204, RajaniGandha, Garden Apartments, 21, Vittal Mallya Road, Bengaluru-560001 (A sister concern of M/s. Cyma Investments Pvt.Ltd.,) Rep. by its Director Gopal P Shinde

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OA. No. 1592/2023

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Bimalendu Kumar Aged about 49 years S/o. Sudhir Mishra Residing at No.423, Ranka Park, Richmond Circle, Lalbagh Road, Bengaluru – 560027

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Ambarish Kumar Aged about 40 years S/o. Sudhir Mishra Residing at No.B 408, Lodha Meridian, Kukatpally, Hyderabad-Telangana-560072 … DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. D. Shashipraha Ramesh Defendants : Exparte

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FINAL ORDER

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

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.1,27,67,508.02 (Rupees One Crore Twenty Seven Lakh Sixty Seven Thousand Five Hundred Eight and Two Paisa 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 1^st and 2^nd defendants

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are the borrowers/guarantors and the and the defendants No.1,3 to 8 have entered into a Tripartite Agreement. The defendant No.1

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OA. No. 1592/2023

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and 2 availed Rs.1,35,90,000/- for purchasing house.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants have 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 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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 04.02.2025.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A14 and got the same marked in evidence.

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OA. No. 1592/2023

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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? 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 as stated in the OA and execution of tripartite agreement agreeing 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 is also proved by the above documents. The claim of the applicant is well within the limitation.

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OA. No. 1592/2023

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Hence in view of the above finding which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Since the OA claim is arrived at by calculating agreed rate of interest, penal interest/default interest, which this Tribunal considers as on the higher side, pendentalite and future interest is awarded at reduced rate @8.00%p.a. (simple).

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In the result, OA.No.1592/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.1,27,67,508.02 (Rupees One Crore Twenty Seven Lakh Sixty Seven Thousand Five Hundred Eight and Two Paisa only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization from defendants, 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 defendants jointly, severally and personally and also by proceeding against their assets including the schedule ‘B & C’ property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA. No. 1592/2023

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

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the amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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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 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

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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 29^th Day of May 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA. No. 1592/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mrs. Aswathy S Kumar, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	16.11.2018	Loan Application
A2	04.12.2018	Sanction memorandum
A3	06.12.2018	HousingLoan Agreement
A4	06.12.2018	Guarantee covering letter by 2^nd defendant
A5	06.12.2018	Guarantee agreement for housing loan to individuals by2^nddefendant
A6	06.12.2018	Tripartite agreement in respect to Flat No.211
A7	06.12.2018	Tripartite Agreement in respect to Flat No.212
A8	20.11.2018	Agreement for Sale in respect of Flat No.211
A9	20.11.2018	Agreement for sale in respect of Flat No.212
A10	05.09.2023	Office copyof the legal notice
A11	Nil	RPAD receipts
A12	Nil	Unserved/returned RPAD cover of first defendant
A13	Nil	Unserved/returned RPAD cover of second defendant
A14	31.08.2023	Statement of account extract pertaining to housingloan A/c. 8402662000002

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Bagish Balakrishnan

Case brief

What is this about?

What did the court decide?

Canara Bank v. Bagish Balakrishnan

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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