Allowed

Canara Bank v. Krishnegowda

DRT16 Sept 2026OA/1713/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Karnataka allowed the applicant bank's application (OA) for a recovery certificate of Rs. 31,43,169.20 against four respondents who were mortgagors and borrowers under an agricultural loan. The respondents failed to appear in court in default of summons (ex parte). The Tribunal held the evidence uncontroverted and adequate to prove the loan facility, security interest, and default. While noting the agricultural purpose of the loan, the Tribunal modified the interest rate to 6% per annum and ordered recovery from the joint and several liability of the respondents and the scheduled property.

What did the court decide?

Recovery Certificate drawn for RS.31,43,169.20 pending interest at 6% per annum. Recovery to be effected jointly and severally from respondents and/or their scheduled property. Remainder of assets liable if short.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 16^th Day of September 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1713/2025

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BETWEEN:

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Canara Bank Heragu Branch Heragu, Dist. Hassan-573118.

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…APPLICANT

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AND:

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Mr.Krishne Gowda

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S/o.Ningegowda Savankanahalli Village, Dudda Hobli,

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Dist.Hassan-573118.

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Mr.Nagaraju

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S/o.Krishne Gowda Savankanahalli Village,

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Dudda Hobli,

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Dist.Hassan-573118.

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Mr.Ashoka

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S/o.Krishne Gowda Savankanahalli Village, Dudda Hobli,

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Dist.Hassan-573118.

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2 OA No.1713/2025

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Smt.Sumithra D/o.Krishne Gowda S/o.Krishna Gowda Savankanahalli Village, Dudda Hobli, Dist.Hassan-573118. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri.Venu.K.V Defendants : 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 defendants for Rs.31,43,169.20 (Rupees Thirty-One Lakhs Forty-Three Thousand One Hundred Sixty-Nine and Paisa Twenty Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendants availed a sum of Rs.5,00,000/- (Rupees Five Lakhs Only) for Construction of Farm House for Agricultural Purpose.

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The Defendant No.1 is the principal borrower and Defendants No.2 to 4 are Mortgagors including Defendant No.1

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents, being owner of the schedule property. Apart from the creation of security interest by way of mortgage, over the Schedule property.

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3 OA No.1713/2025

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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 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 defendants, they failed to appear, resulting the defendants being set exparte on 21.05.2026.

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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 A11 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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4 OA No.1713/2025

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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, creation of security interest as claimed by the 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 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 facility was availed for agricultural 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 6% p.a.(simple).

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In the result, OA.No.1713/2025 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.31,43,169.20 (Rupees Thirty-One Lakhs Forty-Three Thousand One Hundred Sixty-Nine and Paisa Twenty Only) along with current and future interest @ 6% from 18.10.2024 till the date of realization, to pay jointly

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and severally from the Defendants, after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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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 and their

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other assets are liable for all such amounts due in loan accounts.

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iii) The applicant bank is allowed cost of the proceeding which

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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 and

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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 in terms

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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 (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 16^th Day of September 2026].

Sd/-

6 OA No.1713/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.Harish M, Manager of the Applicant Bank.

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Sl. No.	Description of Documents	Exhibits Number
1.	Sanction letter	A1
2.	Memorandum of Agreement for Agricultural Loans dated 28.10.2009	A2
3.	Simple Mortgage Deed dated 16.10.2009	A3
4.	Letter of Revival dated 21.09.2012	A4
5.	Letter of Revival dated 08.01.2013	A5
6.	Letter of Revival dated 10.02.2015	A6
7.	Letter of Revival dated 10.01.2018	A7
8.	Letter of Revival dated 05.09.2020	A8
9.	Letter of Revival dated 15.08.2022	A9
10.	Legal Notice dated 14.03.2025	A10
11.	True Extract of Statement of Accounts pertaining to the Defendants aforesaid Loan Accounts	A11

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Krishnegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Krishnegowda

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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