Allowed

Canara Bank v. Akash Enterprises

DRT27 Aug 2026OA/1614/2024

Case brief

AI extract

What is this about?

The tribunal allowed an original application under Section 19 of the RDB Act filed by Canara Bank for issuance of a Recovery Certificate against M/s Akash Enterprises. The tribunal reduced the agreed interest to 11% p.a. and ordered the bank to recover the principal sum with reduced interest.

What did the court decide?

Issuance of Recovery Certificate for Rs.22,95,824.91 with further interest at 11% p.a. simple from filing till realization.

Canara Bank versus Akash Enterprises — Contract and Commercial Disputes | 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 August, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1614/2024

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BETWEEN:

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Canara Bank, having its Head Office at No 112, J.C. Road, Bangalore - 560 002, Represented by it's Senior Manager, Mr. Shaik Rajavali, Yelachanahalli Branch, Kanakapura Road, Bagalore-560078

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… APPLICANT

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AND:

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M/s Akash Enterprises, Proprietor: Mrs. S Nagendra S/o. Shivalinge Gowda, Aged about 42 years, No. 15, Munueshwara Block, Yelachenahalli, Chunchaghatta Main Road, Bangalore – 560062 And also No. 317, 1st Floor, 2nd Stage, 3rd Cross, 7th Main, near 15F Bus stop, Kumaraswamy Layout, Bangalore-560 078

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Smt. Sushreepriya Mohanty Defendant : 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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OA. No.1613/2024

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.22,95,824.91 (Rupees Twenty Two Lakh Ninety Five Thousand Eight Hundred and Twenty Four and Ninety 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.21,50,000/- and Cash Credit loan of Rs.1,00,000/- on 08.02.2022.

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

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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 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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OA. No.1613/2024

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 08.04.2026.

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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 A12 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

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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

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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 facilities as stated in the OA, creation of security interest as claimed by the

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OA. No.1613/2024

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applicant bank and the defaults committed in the account. The liability of the defendants and the claim of the amount due are 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 above findings 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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Taking into consideration the facts that the credit facilities

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were availed for business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view

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of the OA can be allowed with a reduced interest of 11.00%

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p.a.(simple).

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In the result, OA.No.1614/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.22,95,824.91 (Rupees Twenty Two Lakh Ninety Five Thousand Eight Hundred and Twenty Four and Ninety One Paisa only) with further interest of 11.00% p.a.(simple) from the date

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of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA.

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OA. No.1613/2024

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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

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amounts due under the loan account.

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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

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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 27^th Day of August 2026].

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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: Sri. Bhagavan Y S, Senior Manager of the applicant bank.

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OA. No.1613/2024

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Date	Exhibit Number
1	Loan application	15.01.2022	A1
2	Sanction letter	08.02.2022	A2
3	Deed of hypothecation RE: Machinery	08.02.2022	A3
4	Agreement cum hypothecation	08.02.2022	A4
5	Letter of undertaking	08.02.2022	A5
6	Sanction memorandum	08.02.2022	A6
7	Cash credit agreement	08.02.2022	A7
8	Pronote	08.02.2022	A8
9	Letter of Revival	24.02.2023	A9
10	Legal notice	21.07.2023	A10
11	Account statement of term loan A/c.170003609657	-	A11
12	Account statement of cash credit loan A/c. No.125001556440	-	A12

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Akash Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank v. Akash Enterprises

Case brief

What is this about?

What did the court decide?

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