Allowed

Canara Bank v. Basappa Krishnappa Devaramani

DRT30 Jun 2026OA/1597/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal served a Recovery Certificate against four respondents for agricultural loan defaults totaling Rs. 34.30 Lakhs. After the respondents appeared ex parte, the Tribunal allowed the application, reducing the interest to 6% simple per annum, and authorized recovery proceedings against the debtor properties.

What did the court decide?

Recovery Certificate issued for Rs. 34,30,392.72 with 6% simple interest p.a. from date of filing, recoverable jointly, severally, and personally from respondents against scheduled properties.

Canara Bank versus Basappa Krishnappa Devaramani — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1597/2023

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BETWEEN:

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Canara Bank Kulgod Branch, Gokak Road, Mudalgi Taluk, Dist. Belagavi

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Through Its Senior Manager Mr. Harish Yamanappa Gadinaik …APPLICANT

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AND:

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Mr. Basappa Krishnappa Devaramani S/o. Krishnappa Devaramani Aged about 47 years R/at; Laxmeshwara Post, Taluk Gokak, Dist. Belagavi

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Mr. Mallappa Krishnappa Devaramani S/o. Krishnappa Devaramani Aged about 43 years R/at; Laxmeshwara Post, Taluk Gokak, Dist. Belagavi

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Smt. Kallawwa Krishnappa Devaramani W/o. Krishnappa Devaramani Aged about 74 years R/at; Laxmeshwara Post, Taluk Gokak, Dist. Belagavi

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Smt. Dundawwa W/o. Bharamappa Magadum Devaramani Aged about 53 years R/at; Laxmeshwara Post, Taluk Gokak, Dist. Belagavi ...DEFENDANTS

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OA-1597/2023

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Counsel on record/appeared for:

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Applicant : Venu K V Defendants : Ex parte

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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 seeking for issuance of Recovery Certificate against the defendants for Rs. 34,30,392.72/- (Rupees Thirty-Four Lakhs Thirty Thousand Three Hundred and Ninety-Two and Paisa Seventy-Two 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 defendants are availed the following credit facilities:

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Agricultural loan of Rs. 8,50,000/- (Rupees Eight Lakhs Fifty Thousand Only) for purchase of pumset and PVC pipes.

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Agricultural loan of Rs. 4,00,000/- (Rupees Four Lakhs only) for purpose of sugarcane cultivation.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents along with deed of hypothecation & Simple Mortgage deed.

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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

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OA-1597/2023

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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 ex parte on 26.07.2024.

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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-14 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 ex parte. 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 facilities as stated in the OA,

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OA-1597/2023

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. 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

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find both these issues are 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 facilities is availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1597/2023 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 34,30,392.72/- (Rupees Thirty-Four Lakhs Thirty Thousand Three Hundred and Ninety-Two and Paisa Seventy-Two Only) with further interest @6.00 % 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 amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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OA-1597/2023

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

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amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their assets are liable for all such

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amounts due under the loan accounts.

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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 order

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and transferred to Recovery for execution.

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

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 30^th Day of June, 2026].

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Sd/-

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(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 Shivanand Irappa, S/o Kurabagatti Irappa, Asst. Manager, of Applicant Bank.

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OA-1597/2023

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Exhibits on the part of the Applicant:

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Exhibits	Documents
A1	Loan application dated 18.09.2014
A2	Simple mortgage deed dated 15.09.2014
A3	Memorandum of agreement for agricultural loans dated 18.09.2014
A4	Letter of revival dated 01.09.2017
A5	Letter of revival dated 17.06.2020
A6	Loan application dated 18.09.2014
A7	Sanction letter dated 18.09.2014
A8	Agreement and deed of hypothecation for kisan credit card dated 18.09.2014
A9	Simple mortgage deed dated 15.09.2014 against availing facility of Rs. 4,00,000/-
A10	Letter of revival dated 01.09.2017
A11	Letter of revival dated 05.08.2020
A12	Notice dated 04.09.2023
A13	True extract of statement of account’s pertaining to the defendant’s loan a/c. 0677881008905
A14	True extract of statement of account’s pertaining to the defendant’s aforesaidloana/c. 0677847000168
Witness	Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Basappa Krishnappa Devaramani

Case brief

What is this about?

What did the court decide?

Canara Bank v. Basappa Krishnappa Devaramani

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

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