Allowed

Canara Bank v. Annapurna C Hiremath

DRT11 Sept 2026OA/1984/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Applicant Bank's original application filed under Section 19 of the RDB Act for issuance of a Recovery Certificate against the legal heir of a deceased borrower. The Defendant appeared ex parte. The Tribunal held the evidence sufficient to prove default and adjusted the claimed interest to 12% simple p.a.

What did the court decide?

Recovery Certificate issued for Rs. 25,89,577.94 plus interest at 12.00% p.a. (simple) from filing date till realization against the Defendant's inherited estate/schedule property. Costs awarded to Applicant.

Canara Bank versus Annapurna C Hiremath — Banking and Recovery | 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 OA.No.1984/2024

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BETWEEN:

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Canara Bank Chandrangutty Branch, Chandrangutty Taluk, Sorsab, District Shimoga, Karnataka – 577 429

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Canara Bank Harihar Branch, Old P B Road Branch, Dist. Devankere, Karnataka – 577 601 …APPLICANT

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AND:

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Smt. Annapurana C Hiremath Prop: of M/s. Shri Renukamba Petroleum (Since Deceased through her Legal heir)

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Mr. Mahanatasyya C Hiremath S/o. late Annapurna C Hiremath R/at: Holejoladgudde, Sorab Road, Chandrangutty, Dist. Shimoga, Karnataka – 577 429 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Mr. Girish Poojary Defendant : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendant for

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OA-1984/2024

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Rs 25,89,577.94/- (Rupees Twenty-Five Lakhs Eighty-Nine Thousand Five Hundred and Seventy-Seven and Paisa Ninety-Four 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 defendant is the legal heir of the deceased borrower. The Late borrower Smt. Annapurna C Hiremath availed the credit facilities:

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Term loan of Rs. 2,20,000/- (Rupees Two Lakhs Twenty Thousand Only) for purchasing 15 KVA Kirloskar DG set.

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OCC facility of Rs. 10,00,000/- (Rupees Ten Lakhs Only) towards capital requirement.

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OD facility of Rs. 10,00,000/- (Rupees Ten Lakhs Only) towards working capital requirements.

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The deceased borrower executed necessary loan document in

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favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower Smt. Annapurna C Hiremath had also executed deed of hypothecation dated 10.07.2020.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount 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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OA-1984/2024

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set ex parte on 06.03.2025.

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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 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 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,

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creation of the security interest and the defaults committed in the

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accounts. The liability of the defendant and the claim of the amount

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due are also proved by the above document. The claim of the

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OA-1984/2024

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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 facility is

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availed for business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

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that the OA can be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.1984/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 25,89,577.94/(Rupees Twenty-Five Lakhs Eighty-Nine Thousand Five Hundred and Seventy-Seven and Paisa Ninety-Four

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Only) with further interest @12.00 % p.a. (simple) from the date of filing OA till the realization, from the defendant, to the extent of their inheritance of any estate form the deceased borrower, Smt. Annapurna C Hiremath, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the

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same to be recovered by proceeding against the schedule property.

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The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA-1984/2024

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ii) If the sale proceeds are not found sufficient to cover the

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liability, the defendant to the extent of their inherited form the

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deceased Smt. Annapurna C Hiremath is liable to the proceeds against for the balance amount.

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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

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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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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 the Open Court, this the 11^th Day of September, 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 Sanjay S Chate, S/o. Shaligram T Chate, Manager, of Applicant Bank.

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OA-1984/2024

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Letter dated 03.10.2020
A2	Loan application dated 10.07.2020
A3	Sanction letter dated 10.07.2020
A4	Agreement cum deed of hypothecation dated 10.07.2020
A5	Letter of undertaking re: loans/advances dated 10.07.2020
A6	Letter of revival dated 06.07.2023
A7	Sanction letter dated 03.10.2020
A8	Cash credit agreement dated 03.10.2020
A9	Damand promissory note dated 03.10.2020
A10	Application dated 23.06.2021
A11	Sanction letter dated 23.06.2021
A12	Supplemental agreement dated 23.06.2021
A13	Damand promissory note dated 23.06.2021
A14	Letter of renewal dated 23.06.2023
A15	Letter of renewal dated 29.09.2023
A16	Loan application dated 10.12.2021
A17	Sanction letter dated 23.12.2021
A18	Agreement cum deed of hypothecation dated 23.12.2021
A19	Legal notice dated 20.07.2024
A20	True extract of statement of account of a/c. no. 1515768000426
A21	True extract of statement of account of a/c. no. 1515261000137
A22	True extract of statement of account of a/c. no. 170002936709
A23	Statement showing total outstanding liabilities

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Annapurna C Hiremath

Case brief

What is this about?

What did the court decide?

Canara Bank v. Annapurna C Hiremath

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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