Allowed

Canara Bank v. Sharanabasappa

DRT27 Aug 2026OA/1878/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application for issuance of a Recovery Certificate. The appellant bank claimed dues of Rs. 25.72 lakh from a defaulter who did not appear. The Tribunal confirmed the loan defaults, mortgage creation, and admissibility of evidence, allowing recovery with reduced interest.

What did the court decide?

Recovery Certificate to be drawn for Rs. 25,72,577/- plus further interest @6% p.a. (simple) from the date of filing OA till realization, recoverable from the defendant personally and via schedule pro

Canara Bank versus Sharanabasappa — 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 27^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1878/2023

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BETWEEN:

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Canara Bank Janata Bazar Building, Super Market Complex, Kalburgi-585101, Represented by its Senior Manager, Mr. Satwant Singh.

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…APPLICANT

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AND:

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Mr. Sharanabasappa S/o Rachanna Aged about 52 years R/o Pattan Village, Kalburgi Taluk, Kalburagi District-585 311. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Naveen Tao 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. 25,72,577/- (Rupees Twenty Five Lakh Seventy Two Thousand Five Hundred Seventy Seven Only) with further interest thereon from the date of filing the Application

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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 Credit Card Scheme of a sum of Rs. 35,000/- (Rupees Five lakh Only) on 08.9.2008.

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II. Kisan OD Loan of sum of Rs. 2,50,000/- (Rupees Two Lakh Fifty Thousand Only) on 27.05.2004.

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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 of Hypothecation, Sanction Memorandum, 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 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 defendant failed to appear, resulting the defendants being set exparte on 18.03.2026.

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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

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Exhibits A-1 to A-18 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 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.1879/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 25,72,577/- (Rupees Twenty Five Lakh Seventy Two Thousand Five Hundred Seventy Seven 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

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amount due and payable to the applicant bank, the defendant personally and his 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 27^th Day of August, 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: Bhoom Reddy, Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	8.09.2008	Common Application cum appraisal report for Kisan Credit Card Scheme A/c 0513840010635
A2	8.09.2008	Agreement of Hypothecation for agricultural loans
A3	8.09.2008	Sanction Memorandum,
A4	04.09.2011	Letter of Revival
A5	04.06.2014	Letter of revival
A6	30.05.2017	Letter of Revival
A7	25.05.2020	Letter of Revival
A8	--	Bank Statement of A/c 0513840010635

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A9	18.12.2009	Common Application cum Appraisal report for Kisan OD A/c No. 0513262000002
A10	--	Agreement and Deed of kisan OD
A11	17.11.2009	Simple Mortgage deed, registered as No. 7795/2009-10, in the office of sub registrar, Gulbarga
A12	18.11.2012	Letter of revival
A13	22.04.2015	Letter of revival
A14	16.03.2017	Letter of revival
A15	14.03.2020	Letter of revival
A16	14.02.2022	Legal Notice
A17	--	Postal cover returned unserved
A18	--	Bank Statement of A/c 0513262000002

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Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sharanabasappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sharanabasappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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