Allowed

Canara Bank v. Vimal Babu Janagouda

DRT30 Jun 2026OA/1905/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of the RDB Act for issuance of a recovery certificate. The defendant was absent ex-parte. The debt and defaults were uncontroverted. The claim was allowed with interest reduced to 12% p.a. simple.

What did the court decide?

Recovery certificate issued for Rs. 62,25,491/- plus interest at 12% p.a. simple from filing date, recoverable from personal assets and schedule property.

Canara Bank versus Vimal Babu Janagouda — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1905/2023

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BETWEEN:

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Canara Bank

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Opp: Huns Talkies, Khade Bazar, Belgam Branch, Respresnted by its Manager, …APPLICANT

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AND:

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Sri Vimal Babu Janagouda Age: 48 Years, S/o. Sri. Babu Janagouda Proprietor:

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M/s Hitech Food Processing Industry Plot No. 1084(P), Kanabargi Industrial Area Belgaum-590015.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : T P Muthanna Defendant : Exparte

OA 1905/2023

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 Rs. 62,25,491/-(Rupees Sixty Two Lakh Twenty Five Thousand Four Hundred Ninety One Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed an

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I. Term Loan of a sum Rs.4,50,000/- (Rupees Four Lakh Fifty Thousand Only)

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II. Working Capital Limit of a sum Rs.2,54,000/- (Rupees Two Lakh Fifty Four Thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with Deed Of Hypothecation.

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It is further contended that, the defendant 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 1905/2023

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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 defendant, he failed to appear, resulting the defendant being set exparte on 30.07.2024.

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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-19 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 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

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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

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OA 1905/2023

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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 defendant 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 defendant for business purpose and also that OA

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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

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@12% p.a. (Simple).

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In the result, OA.No.1905/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. 62,25,491/-(Rupees Sixty Two Lakh Twenty Five Thousand Four Hundred Ninety One Only). with further interest @12% p.a. (Simple),from the date of filing OA till the realization,

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from the defendant personally after giving credit to all the

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OA 1905/2023

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amount recovered and received during the pendency of the OA and allowed the same to be recovered 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 defendant

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personally and his 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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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

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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 30^th day of June, 2026].

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Sd/(T. RAJESH)

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PRESIDING OFFICER

OA 1905/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Kishor Mane, chief Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Copy of small sacle industries application form for credit facilities dated 27.01.2006
A2	Copy of loan sanction memorandum dated 31.01.2006
A3	Copy of deed of hypothecation re: machinery dated 31.01.2006
A4	Copy of letter of undertaking re: loans/ advances dated 31.01.2006
A5	Copy of agreement cum deed of hypothecation dated 23.03.2006
A6	Copy of letter of revival dated 25.03.2008
A7	Copy of letter of revival dated 13.05.2008
A8	Copy of letter of revival dated 10.03.2011
A9	Copy of letter of revival dated 10.03.2011
A10	Copy of letter of revival dated 01.03.2014
A11	Copy of letter of revival dated 01.03.2014
A12	Copy of letter of revival dated 21.12.2016
A13	Copy of letter of revival dated 21.12.2016
A14	Copy of letter of revival dated 04.02.2019
A15	Copy of letter of revival dated 05.01.2022
A16	Copy of letter of revival dated 05.01.2022
A17	Copy of the legal notice dated 17.12.2022
A18	Copy of the statement of account & memo of calculation certified under bankers’ Book of evidence Act showing the outsanding liabilities inder loan a/c.no.1390773001377
A19	Copy of the statement of account & memo of calculation certified under bankers’ Book of evidence Act showing the outsanding liabilities under loan a/c.no.1390773001420
Witness	Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/(T. RAJESH) PRESIDING OFFICER

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7 OA 1905/2023

Canara Bank v. Vimal Babu Janagouda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Vimal Babu Janagouda

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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