Allowed

Canara Bank v. Basavaraj Ningappa

DRT4 Mar 2026OA/1705/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Canara Bank seeking a Recovery Certificate. The court found the defendant's default uncontroverted due to ex-parte proceedings and approved the claim with interest reduced to 6% per annum for agricultural loans.

What did the court decide?

Recovery Certificate issued for Rs.26,04,923.51 plus interest at 6% p.a. (Simple) recoverable from defendant personally and schedule properties.

Canara Bank versus Basavaraj Ningappa — Specific Performance | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 4^th Day of March, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer OA.No.1705/2024

¶4

BETWEEN:

¶5

Canara Bank Shigli Branch Shigli, Taluk Lakshmeshwar District Gadag-582210

¶6

…APPLICANT

¶7

AND:

¶8

Sri. Basavaraj Ningappa Kallihal S/o. Ningappa Kallihal Having address at: At Post: Shigli Shirahatti Taluk, District Gadag, Karnataka- 582210

¶9

...DEFENDANTS

¶10

Counsel on record/appeared for:

¶11

Applicant : Venu K.V Defendants : Exparte

¶12

FINAL ORDER

¶13

The present Original Application in short (OA) has been

¶14

filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.26,04,923.51 (Rupees Twenty six lakh four thousand nine hundred twenty three and paisa fifty one only) with further interest thereon from the date of filing the Application till

¶15

OA 1705/2024

¶16

¶17

realization from the Defendant.

¶18

It is the case of the applicant that the defendant availed the Agricultural loan credit facilities of Rs.13,50,000/- (Rupees thirteen lakh fifty thousand only) from the applicant bank. Further, this loan limit was enhanced from time to time.

¶19

It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with sanction memorandum, agreement and deed of hypothecation and simple mortgage deed in favor of the applicant bank.

¶20

It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

¶21

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.

¶22

Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 16.10.2025.

¶23

OA 1705/2024

¶24

¶25

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.

¶26

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

¶27

The following issues arise for consideration in this matter:

¶28

i) Whether the applicant had succeeded in proving the

¶29

OA claim as against the defendant?

¶30

ii) What order are to be passed?

¶31

Both these issues are gone into and decided together.

¶32

The case put forth by the applicant in the Application

¶33

remains unrebutted as defendant 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 mortgage as claimed by the applicant bank and the defaults committed in the accounts.

¶34

OA 1705/2024

¶35

¶36

The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶37

Hence in view of the finding arrived herein above, this Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that OA is to be allowed.

¶38

Taking into consideration the facts that the credit facilities

¶39

are availed by defendant for agricultural purpose and also that

¶40

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 @6% p.a.(Simple).

¶41

In the result, OA.No.1705/2024, stands allowed,

¶42

i) The applicant is allowed to recovery an aggregate

¶43

sum of Rs.26,04,923.51 (Rupees twenty six lakh four thousand

¶44

nine hundred twenty three and paisa fifty one only) with further

¶45

interest @6% p.a. (Simple),

¶46

from the date of filing OA till the realization, from the defendant

¶47

personally after giving credit to all the amount recovered and

¶48

OA 1705/2024

¶49

¶50

received during the pendency of the OA and allowed the same

¶51

to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

¶52

(ii) If the sale proceeds are not sufficient, the defendant

¶53

personally and his other assets are liable to be proceeded against for the balance amount.

¶54

iii) The applicant bank is allowed cost of the proceedings

¶55

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

¶56

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

¶57

order and transferred to Recovery for execution.

¶58

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

¶59

in terms of this final order.

¶60

Communicate a copy of the order to the parties concerned

¶61

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

¶62

of DRT (Procedure) Rules, 1993.

¶63

[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 4^th day of March, 2026].

¶64

Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1705/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶69

AW-1: Chathalla Pramod, Officer, of Applicant Bank.

¶70

Exhibits on the part of the Applicant:

¶71

Exhibit Nos.	Date	Particulars of Documents
A1	22.06.2016	Loan application
A2	22.06.2016	Sanction memorandum
A3	22.06.2016	Agreement and deed of hypothecation for Kisan credit card
A4	07.06.2016	Simple mortgage deed
A5	11.09.2017	Application cum sanction for renewal and/or enhancement under kisan credit card scheme
A6	11.09.2017	Sanction memo
A7	11.09.2017	Letter of renewal
A8	11.09.2017	Supplemental agreement
A9	09.08.2017	Simple mortgage deed
A10	11.09.2017	Letter of revival
A11	25.05.2019	Letter of revival
A12	20.06.2024	Legal notice
A13		True extract of statement of accounts pertaining to the defendant aforesaid loan Account No.0570840011366

¶72

Witness Examined for the Defendant: -Nil -

¶73

List of Documents Exhibited for the Defendant: -Nil -

¶74

Sd/ (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Basavaraj Ningappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Basavaraj Ningappa

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

Idbi Bank versus Sri Avijeet Ghosh and Anr.

Aamner Multi Food Processing versus Central Bank of India

Icici Bank Limited versus M/S S.S. Sandhu Trading Company

M Rajshekar versus State Bank of India

Bank of Baroda versus Sri Sai Ram Print Tec

Karnataka Gramin Bank versus K B Annegowda