Allowed

Canara Bank v. Narayana Ramachandra Patil

DRT28 Jan 2026OA/1744/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application for issuance of a Recovery Certificate against defaulting borrowers and guarantors of agricultural loans. Evidence was accepted as undisputed due to defendants' absence. The Tribunal granted a reduced simple interest rate of 6%.

What did the court decide?

Allowed to recover Rs. 21,03,917.70 plus 6% simple interest from date of filing, executed against schedule property.

Canara Bank versus Narayana Ramachandra Patil — 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 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1744/2023

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BETWEEN:

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Canara Bank, Yergatti Branch, Mahabaleshwar Complex, Gokak Road, Yergatti, Saundatti Taluk, Dist. Belagavi, Through its Senior manager, Mr. Rahul Shukla.

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…APPLICANT

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AND:

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Mr. Narayan Ramachandra Patil, S/o Ramachandra Patil, Age: 44 years, At & Post: 126, Yeragatti Illage, Savadatti Taluk, Belgaum- 591 129.

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Mr. Krishnappa H Mikdi, S/o Hanumanthappa Mikdi, Age: 44 years, At & Post: Yeragatti village, Savadatti Taluk, Belgaum- 591 129.

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Mr. Hirasab N Jamdar, S/o Nabisab, Age: 43 years, At & Post: Yeragatti Village, Savadatti Taluk, Belgaum- 591 129.

...DEFENDANTS

OA 1744/2023

Counsel on record/appeared for:

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Applicant : 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 seeking issuance of Recovery Certificate against the defendants for Rs. 21,03,917.70 (Rupees Twenty One Lakh Three Thousand Nine Hundred Seventeen and Paise Seventy 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 defendant No.1 availed a sum of Rs. 3,00,000/- (Rupees Three Lakh Only)-1^st loan- defendant No. 2 is the guarantor towards development of agricultural land and Rs. 8,00,000/(Rupees Eight lakh Only)-2^nd loan- defendant No. 3 is the guarantor for crop production under Kisan Credit Card Scheme.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with deed of guarantee and simple mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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

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OA 1744/2023

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by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, summons the defendants, they failed to appear, resulting the defendants being set exparte on 13.03.2025.

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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 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 the security

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OA 1744/2023

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interest and the defaults committed in the accounts. The liability of the

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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 findings arrived herein above, the Tribunal

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find both these issues 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 are availed for Agriculture purpose and also that the 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 6.00% (simple).

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In the result, OA.No.1744/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 21,03,917.70 (Rupees Twenty One Lakh Three Thousand Nine Hundred Seventeen and Paise Seventy Only) with further interest @6.00 % p.a.(simple) as follows:-

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a) 1^st loan- Rs. 6,48,865.71 (Rupees Six Lakh Forty Eight Thousand Eight Hundred Sixty Five and Paise Seventy Only Only) from the date of filing

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OA till the realization, from the defendants Nos. 1 & 2 jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by

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OA 1744/2023

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proceeding against schedule property.

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b) 2^nd loan- Rs. 14,55,051.99 (Rupees Fourteen lakh Fifty Five Thousand

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Fifty One and Paise Ninety Nine Only) from the date of filing OA till the realization, from the defendants Nos. 1 & 3 jointly, severally & personally, 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 schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for respective amounts due under the respective loan accounts.

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iii) The applicant bank is allowed cost of the proceedings 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 and transferred to Recovery for execution.

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

OA 1744/2023

Rules, 1993.

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of January, 2026].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Naga Chetan, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Loan application dated 1.02.2014 seeking facility 3,00,000/-	for Rs.
A2	Loan application dated 21.10.2016 seeking facility 8,00,00/-	for Rs.
A3	Sanction memorandum dated 01.02.2014 san agricultural facility for a sum of Rs. 3,00,000/-	ctioning
A4	Sanction dated 05.12.2016 sanctioning agricultural for a sum of Rs. 8,00,000/-	facility
A5	Simple mortgage deed dated 08.08.2016
A6	Legal opinion is respect of the mortgaged propert 27.09.2016	y dated
A7	Agreement for agricultural advances dated 04.0 executed by defendants against availing sum 3,00,000/-	2.2014 of Rs.
A8	Agreement for agricultural advances dated 05.1 executed by defendants against availing sum 8,00,000/-	2.2016 of Rs.
A9	Deed of guarantee for agricultural advances 04.02.2014 executed by defendants No. 2 sanctioning the facility of Rs. 3,00,000/-to defendan	dated against ts
A10	Deed of guarantee for agricultural advances 05.12.2016 executed by defendants No. 3 sanctioning the facility of Rs. 8,00,000/-to defendan	dated against ts
A11	Legal notice dated 11.10.2023
A12	True extract of statement of accounts pertaining defendants loan accounts 05178010007108	to the

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OA 1744/2023

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A13 True extract of statement of accounts pertaining to the defendants loan accounts 05178280001274 A14 Combined statement showing total outstanding balance

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Narayana Ramachandra Patil

Case brief

What is this about?

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Canara Bank v. Narayana Ramachandra Patil

Case brief

What is this about?

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