Allowed

Canara Bank v. Manjegowda

DRT20 Aug 2026OA/1894/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank against two defendants for recovery of a loan amount. The defendants were absent in an ex parte proceeding. The Tribunal granted a reduced interest rate of 6% simple and authorized recovery from schedule properties.

What did the court decide?

Issuance of Recovery Certificate for Rs. 30,29,373/- plus interest @6% p.a. (simple) from date of filing, recoverable from defendants jointly, severally, and personally via schedule properties.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 20^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1894/2025

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BETWEEN:

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Canara Bank Gorur Branch, Gorur Village, Opposite KEB Office College Road, Kattaya Hobli Post, Hassan Taluk & District – 573 120 Represented by Senior Manager Mr. Akshay P …APPLICANT

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AND:

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Sri. Manjegowda S/o. Sri. Gangegowda Aged about 64 years

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Sri. Sannegowda S/o. Sri. Gangegowda Aged about 38 years

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Both are R/at: Byadarahalli Village, Kattaya Hobli, Hasan Taluk & District – 573 128 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendants : Ex parte

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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

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seeking for issuance of Recovery Certificate against the defendants

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OA-1894/2025

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for Rs 30,29,373/- (Rupees Thirty Lakhs Twenty-Nine Thousand Three Hundred and Seventy-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 are availed the following credit facilities:

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Kisan OD loan of Rs. 4,50,000/- (Rupees Four Lakhs Fifty Thousand Only) for agricultural purpose.

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KCC loan of Rs. 2,40,000/- (Rupees Two Lakhs Forty Thousand Only).

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Dairy loan of Rs. 4,50,000/- (Rupees Four Lakhs Fifty Thousand Only).

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

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount 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, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 07.04.2026.

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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-31 and got the same marked in evidence.

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OA-1894/2025

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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

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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 ex parte. 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 interest and the defaults committed in the

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accounts. The liability of the defendants and the claim of the amount due are also proved by the above document. 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 are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities is

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OA-1894/2025

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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 is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1894/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 30,29,373/- (Rupees Thirty Lakhs Twenty-Nine Thousand Three Hundred and Seventy-Three Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. 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 and personally and their assets are liable for all such amounts due under the loan accounts.

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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 order

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OA-1894/2025

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and transferred to Recovery for execution.

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

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terms of this final order.

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14. Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 20^th Day of August, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Sri. Karthikeyan M, S/o. Murugesan, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhi	Date	Particulars
bits
A1	15.01.2013	Simple mortgage deed registered as document no. HSN-1- 09513-2012-13, at the office of sub-registrar, Hassan
A2	24.01.2013	Common application cum appraisal form for credit facilities for agricultural loan (a/c. no. 0548897005151)
A3	24.01.2013	Agreement and deed for kisan OD
A4	24.01.2013	Sanction Memorandum
A5	24.01.2013	Sanction signature card
A6	28.01.2015	Letter of revival
A7	18.12.2017	Letter of revival
A8	27.11.2020	Letter of revival

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OA-1894/2025

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A9	03.10.2023	Letter of revival
A10	05.09.2015	Simple mortgage deed registered as document no. HSN-1- 04684-2015-16, at the office of sub-registrar, Hassan
A11	11.09.2015	Common application cum appraisal form for credit facilities for agricultural loan (a/c. no. 0548840013156)
A12	11.09.2015	Agreement and deed of hypothecation for kisan credit card
A13	11.09.2015	Sanction memorandum
A14	11.09.2015	Specimen signature card
A15	03.09.2018	Letter of revival
A16	30.08.2021	Letter of revival
A17	01.03.2024	Letter of revival
A18	24.09.2015	Simple mortgage deed registered as document no. HSN-1- 05284-2015-16, at the office of sub-registrar, Hassan
A19	06.10.2015	Common application cum appraisal form for credit facilities for agricultural loan (a/c. no. 0548860000064)
A20	06.10.2015	Memorandum of agreement for agricultural loans
A21	06.10.2015	Sanction memorandum
A22	06.10.2015	Specimen signature card
A23	20.09.2018	Letter of revival
A24	10.06.2021	Letter of revival
A25	14.02.2024	Letter of revival
A26	06.11.2024	Legal notice
A27	07.11.2024	Two postal receipts
A28	--------	One postal acknowledgement card served
A29	-------	Bank statement A/c. no. 0548897005151
A30	-------	Bank statement A/c. no. 0548840013156
A31	-------	Bank statement A/c. no. 0548860000064

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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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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Manjegowda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Manjegowda

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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