Allowed

Canara Bank v. Chilkuri Ramachandra Rao

DRT24 Jun 2026OA/1805/2025

Case brief

AI extract

What is this about?

In an ex parte proceeding, the Debt Recovery Tribunal allowed an original application filed by Canara Bank seeking a recovery certificate against three defaulting borrowers. The Tribunal validated the credit facilities, mortgage, and default evidence. It granted the sum due but reduced the interest rate from the claimed rate to 6% p.a. (simple) for future recovery.

What did the court decide?

Issuance of Recovery Certificate for Rs. 71,53,107/- (principal) plus interest at 6% p.a. (simple) to be recovered jointly and severally by the defendants and against schedule properties.

Canara Bank versus Chilkuri Ramachandra Rao — Specific Performance | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1805/2025

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BETWEEN:

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Canara Bank

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Shahapur Branch, Opposite TVS Showroom,

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Near New Bus Stand, B B Road Shahapur, Yadgir District-585223

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Respresented By Its Branch Manager

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…APPLICANT

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AND:

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Mr. Chilkuri Ramachandra Rao S/o. Satya Narayan

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Mr. Ram Mohan Rao S/o. Ramachandra Rao

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Mr. Chilkuri Venkata Satya Narayana S/o. Ramachandra Rao

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Residing at: Aikur Camp, Aikur, Taluk Shahapur, Yadgir Distict-585223

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M V Kini & Co Defendants : Exparte

OA 1805/2025

FINAL ORDER

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 for Rs.71,53,107/- (Rupees Seventy One Lakhs Fifty Three Thousand One Hundred and Seven Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendants availed the credit faclities:

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I. Agricultural Loan Rs 35,00,000/-(Rupees Thirty five Lakhs Only).

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II. Crop loan of Rs 33,00,000/- (Rupees thirty three lakhs Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with simple mortgage deed.

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It is further contended that, the defendants despite availing the credit facilities, 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.

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In the above circumstances, the applicant approached this

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OA 1805/2025

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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 09.02.2026.

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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 A-1 to A-24 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 the 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

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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

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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

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OA 1805/2025

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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. 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.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendants 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 @6% p.a. (Simple).

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In the result, OA.No.1805/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. 71,53,107/- (Rupees Seventy One Lakhs Fifty Three

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Thousand One Hundred And Seven Only) consisting of:

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a. Rs.56,89,939/-(Rupees Fifty Six Lakhs eighty nine thousnad

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nine hundred and thirty nine only) with further interest @6%

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OA 1805/2025

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p.a. (Simple) from the date of filing OA till the realization from

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the defendant no 1,2 and 3;

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b. Rs.14,63,168/-(Rupees Fourteen Lakhs Sixty Three Thousand

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One Hundred and Sixty Eight Only ) with further interest @6% p.a. (Simple) from the date of filing OA till the realization from the defendant no 1,2 and 3;

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After giving credit to all the amount recovered and received during the pendency of the OA and allowed the defendants jointly serverally and personally and also by proceedings against the 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 sufficient, the defendants

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jointly serverally and personally and their other assets are liable to be proceeded against for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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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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OA 1805/2025

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

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in terms of 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 DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (ms), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 24^th day of June, 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: Manoranjan Behera, Chief Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
A1	18.01.2018	Loan Application
A2	18.01.2018	Sanction Proceedings
A3	25.06.2018	Sanction Memorandum
A4	22.06.2018	Simple mortage deed for agricultural advances
A5	25.06.2018	Memorandum of agreement for agricultural loans
A6	25.06.2018	Guarantee covering letter and gurantee agreement
A7	30.03.2021	Letter Of Revival
A8	30.03.2022	Letter Of Revival
A9	30.03.2023	Letter Of Revival
A10	09.02.2024	Letter Of Revival
A11	07.03.2020	Legal Notice
A12	01.02.2024	Legal Notice
A13	05.11.2024	Legal Notice

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OA 1805/2025

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A14	07.11.2016	Loan Application
A15	23.11.2016	Sanction Letter
A16	06.12.2026	Sanction Memorandum
A17	06.12.2016	Agreement And Deed Of Hypothecation
A18	20.11.2019	Letter of undertaking from the borrower/ co obligant for conversion of crop loan into term loan
A19	20.11.2019	Letter to be addressed to borrowers for rephasement of overdue loans
A20	04.08.2019	Letter Of Revival
A21	28.02.2022	Letter Of Revival
A22	01.02.2024	Legal Notice
A23		Statement of account for A/c No.0569887007389 (loan no.1)
A24		Statement of account for A/c no.0569847000004 (old a/cno.0569840009620) (loan no.2) along with certifcate U/s.2a of the bankers book of evidence act,1981
Witnes	s Examined fo	r the Defendants: -Nil -
List of	Documents Ex	hibited for the Defendants: -Nil:

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-Nil -

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Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Chilkuri Ramachandra Rao

Case brief

What is this about?

What did the court decide?

Canara Bank v. Chilkuri Ramachandra Rao

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

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Case details

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