Allowed

Canara Bank v. Channabasappa Lakkappa

DRT4 Sept 2026OA/1767/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank seeking a Recovery Certificate for loan defaults. As defendants appeared ex parte, undisputed evidence proved the debt and mortgage. The Tribunal ordered recovery of the principal with reduced simple interest at 10% p.a.

What did the court decide?

Issuance of Recovery Certificate for aggregate sum of Rs. 1,05,15,198.43 with interest at 10% p.a. (simple) from filing date. Claim against deceased defendant dismissed as prayed.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 4^th Day of September, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1767/2024

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BETWEEN:

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Canara Bank Gokak Branch Gokak Taluk, Dist Belgavi-591 307 Through its Chief Manager Mr. Raju Nanarao Pasalwad.

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…APPLICANT

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AND:

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Mr. Channabasappa Lakkappa RudrapurKamate S/o Lakkappa Rudrapur Aged about 59 years, Having address at: Benachinamardi, Taluk Gokak, Dist. Belgavi, Karnataka-591 307.

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Mr. Lakkappa Channabasappa Rudrapur, S/o Channabasappa Rudrapur, Aged about 66 years, Having address at: Benachinamardi, Taluk Gokak, Dist. Belgavi, Karnataka-591 307.

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Mr. Ashok Siddappa Sangannavar S/o Siddappa Sangannavar Aged about 63 years, Having address at: Benachinamardi,

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2 1767/2024

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Taluk Gokak, Dist. Belgavi, Karnataka-591 307.

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Mr. Basavaraj Siddalingappa Pitagi S/o Sidalingappa Pitagi Aged about 72 years, Having address at: Benachinamardi, Taluk Gokak, Dist. Belgavi, Karnataka-591 307.

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Mr. Basavanippa Dundappa Beradanati S/o Dundappa Deradanati Aged about 60 years, Having address at: Mamdapur, Taluk Gokak, Dist. Belgavi- 591 307.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. 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. 1,05,15,198.43/(Rupees One Crore Five Lakh Fifteen Thousand One Hundred Ninety Eight and Paise Forty Three 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 availed the following credit facilities from the applicant bank:-

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3 1767/2024

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I. Vehicle facility of a sum of Rs. 9,00,000/- (Rupees Nine Lakh Only) on 13.10.2006.

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II. Credit facility of Rs. 2,50,000/- (Rupees Two Lakh Fifty Thousand Only) on 31.01.2008.

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III. Credit facility of a sum of Rs. 2,20,000/- (Rupees Nine Lakh Only) on 08.02.2008.

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It is the case of the applicant that the defendant No.2, 4 and 5 are the LRs of the deceased defendant No.3.

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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 Simple Mortgage Deed, Agreement for agricultural advances, Deed of Guarantee.

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

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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 16.07.2026. The applicant bank stated in its Memo dated 30.05.2025 that, the applicant is not

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4 1767/2024

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seeking any relief against deceased Defendant No.3.

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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-26 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

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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 Mortgage as

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claimed by the applicant bank and the defaults committed in the accounts. 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 findings arrived herein above, the Tribunal 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 was

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availed for vehicle 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 10.00% (simple).

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In the result, OA.No.1767/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of

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Rs.1,05,15,198.43/- (Rupees One Crore Five Lakh Fifteen Thousand One Hundred Ninety Eight and Paise Forty Three only) consisting of:

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a. Rs.77,93,569.57/- with further interest of 10.00% p.a.(simple) from

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the date of filing OA till the realization from the defendant No. 1 and 4 in respect of L/A No. 05118540003423;

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b. Rs.7,36,392.76/- with further interest of 10.00% p.a.(simple) from the

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date of filing OA till the realization from the defendant No.1, 2, 4 & 5 in

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respect of L/A No. 05118540003000;

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c. Rs.19,85,236.10/- with further interest of 10.00% p.a.(simple) from

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the date of filing OA till the realization from the defendant No.1, 2, 4 & 5

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6 1767/2024

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in respect of L/A No. 05118380000184 from the defendants jointly, severally and 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. The Claim against deceased defendant No.3 is dismissed as prayed by the applicant in its memo dated 30.04.2025. Schedule Properties 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

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amount due and payable to the applicant bank, the defendants jointly,

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severally and personally and their assets are liable for the amounts due under the loan accounts.

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

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

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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)

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 4^th Day of September, 2026].

(T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mahesh Hosatti, Chief Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Sr.No.	Particulars	Annexures
1	Sanction memorandum dated 13.10.2006	A-1
2	Simple Mortgage Deed dated 13.10.2006	A-2
3	Agreement for Agricultural Advances dated 19.10.2006	A-3
4	Deed of Guarantee dated 19.10.2006	A-4
5	Demand Promissory Note dated 31.03.2020	A-5
6	Letter of Time Barred Debts dated 31.03.2020	A-6
7	Letter dated 02.09.2023	A-7
8	Sanction Memorandum dated 31.01.2008	A-8
9	Agreement for Agricultural Advances dated 06.02.2008	A-9
10	Deed of Guarantee dated 06.02.2008	A-10
11	Simple Mortgage Deed dated 16.11.2007	A-11
12	Acknowledgement of Debt and Security on 16.11.2019	A-12
13	Acknowledgement of Debt and Security on 15.11.2022	A-13

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14	Sanction memorandum dated 08.02.2008	A-14
15	Agreement for Agricultural Advances dated 08.02.2008	A-15
16	Deed of Guarantee dated 08.02.2008	A-16
17	Acknowledgement of Debt dated 14.10.2014	A-17
18	Acknowledgement of Debt dated 10.10.2017	A-18
19	Acknowledgement of Debt dated 28.03.2020	A-19
20	Demand Promissory dated 28.03.2020	A-20
21	Letter of Revival dated 15.03.2023	A-21
22	Notice dated 25.05.2024	A-22
23	True Extract of Statement of Accounts pertaining to the Defendants’ aforesaid Loan Accounts 05118540003423	A-23
24	True Extract of Statement of Accounts pertaining to the Defendants’ aforesaid Loan Accounts 05118540003000	A-24
25	True Extract of Statement of Accounts pertaining to the Defendants’ aforesaid Loan Accounts 05118380000184	A-25
26	Statement showing total outstanding liabilities	A-26
27	Certificate under section 2a of banker’s book evidence act, 1891.

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

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-Nil –

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Sd/- (T. RAJESH)

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9 1767/2024

Canara Bank v. Channabasappa Lakkappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Channabasappa Lakkappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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