Allowed

Canara Bank v. Hemavathi

DRT11 Sept 2026OA/1838/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an OA filed by Canara Bank seeking a Recovery Certificate against Smt. Hemavathi for agricultural loans. The defendant appeared neither in person nor by representative. The Tribunal found the evidence unrebutted and admissible, confirming the debt and default. While acknowledging the agricultural nature of the loan, the Tribunal reduced the interest rate to 6% p.a. (simple) and granted the recovery from the defendant's personal assets and scheduled property.

What did the court decide?

Recovery Certificate to be drawn for an aggregate sum of Rs. 55,23,269.92 with further interest @ 6.00% p.a. (simple) from the filing date till realization. Recovery to be effected from the defendant personally and her assets, and from the scheduled property (Agricultural Land).

Canara Bank versus Hemavathi — 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 11^th Day of September, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1838/2025

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BETWEEN:

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Canara Bank Branch office at Bidadi, Khata No. 553/583/12, Nelligudda Tank, BGS Road, Bidadi, Ramanagara Taluk, Ramananagara District-562 109. Represented by its Manager, Smt. Priyanka Bathula. …APPLICANT

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AND:

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Smt. Hemavathi W/o Sri. Ravindranatha Reddy Aged about 53 years, Residing at Chowkahalli Village Bidadi Hobli, Ramanagara Taluk, Ramanagara District- 562 109.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Srinivasamurthy HC 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. 55,23,269.92/-

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(Rupees Fifty Five Lakh Twenty Three Thousand Two Hundred Sixty Nine and Paise Ninety Two 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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I. Kisan OD Limit of a sum of Rs. 7,50,000/- (Rupees Seven Lakh Fifty Thousand Only) on 17.03.2015.

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II. Farm land Development Loan of sum of Rs. 15,00,000/- (Rupees Fifteen Lakh Only) on 08.02.2016.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Agreement and Deed for Kisan OD, Simple Mortgage Deed, Sanction conveying letter, legal Notice.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant 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 11.08.2026.

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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-16 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 defendant?

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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 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 and Hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant 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

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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 agricultural 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.1838/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 55,23,269.92/- (Rupees Fifty Five lakh Twenty Three Thousand Two

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Hundred Sixty Nine and Paise Ninety Two Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant 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. 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 amount due and payable to the applicant bank, the defendant personally and her 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 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 in terms

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of this final order.

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14. 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 11^th Day of September, 2026].

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Sd/-

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(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: Mondeep Bailung, Senior Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Annexure No.
1.	Copy of the common application cum appraisal form for credit facilities for Agricultural Loan dated 17.03.2015.	A01
2.	Copy of the Sanction conveying Letter dated 17.03.2015.	A02
3.	Copy of the Agreement and Deed for Kisan OD dated 17.03.2015 executed by Defendant.	A03

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4.	Copy of the simple mortgage deed for Kisan OD facility to Agriculturists dated 16.03.2015 executed by Defendant.	A04
5.	Copy of the Letter of Revival dated 01.03.2018 executed by Defendant.	A05
6.	Copy of the Letter of Revival dated 30.01.2019 executed by Defendant.	A06
7.	Copy of the Letter of Revival dated 20.01.2022 executed by Defendant.	A07
8.	Copy of the Letter of Revival dated 20.12.2024 executed by Defendant.	A08
9.	Copy of the common application cum appraisal form for credit facilities for Agricultural Loan dated 08.02.2016.	A09
10.	Copy of the Sanction Conveying Letter dated 08.02.2016.	A10
11.	Copy of the Agreement and Deed for Agricultural Loans dated 08.02.2016 executed by Defendant.	A11
12.	Copy of the Simple Mortgage deed for Term Loan dated 30.01.2016 executed by Defendant.	A12
13.	Copy of the Letter of Revival dated 30.01.2019 executed by Defendant.	A13
14.	Copy of the Letter of Revival dated 20.01.2022 executed by Defendant.	--
15.	Copy of the Letter of Revival dated 20.12.2024 executed by Defendant.
16.	Copy of the Legal Notice dated 26.03.2025.	A14
17.	Copy of the Statement of Account Certified under Bankers’ Book of Evidence Act showing the outstanding Liability under KOD Loan Account No. 0426897005542	A15

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Copy of the Statement of Account Certified under A16 Bankers’ Book of Evidence Act showing the outstanding Liability under Farm Development Loan Account No. 0426883021747.

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Hemavathi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Hemavathi

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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Case details

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