Allowed

Canara Bank v. M/S Blossom of Creations Rep by Its Prop Kavya.R

DRT29 May 2026OA/1987/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Canara Bank for issuance of a Recovery Certificate. The respondent was absconding and appeared exparte; the Tribunal found the credit facilities, defaults, and claim amounts proved by documentary evidence and permitted recovery of dues with reduced interest.

What did the court decide?

Issuance of Recovery Certificate for Rs.20,43,942.65 with future interest at 12% p.a. simple interest from date of filing till realization.

Canara Bank versus M/S Blossom of Creations Rep by… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 29^th Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1987/2024

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BETWEEN:

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Canara Bank Branch office at: BSK II stage, No.507, 9^th Main Road, BSK 2^nd Stage, Bengaluru-560070

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…APPLICANT

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AND:

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M/s Blossom of Creations Represented by Proprietrix Miss Kavya R. No.103/A, 25^th Cross, 6^th Block, Jayanagar, Bengaluru-560082

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And Also R/at No.75/A, 2^nd Main Road, Thyagaraja Nagar, Basavangudi Bengaluru- 560050

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And Also R/at: No.256/13, Ground Floor, 4^th Main, 8^th Cross, Byrasandra, Jayanagar, 1^st Block East, Bengaluru- 560011 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sowbhagya N.A Defendants : Exparte

OA 1987/2024

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 for Rs.20,43,942.65 (Rupees twenty lakh forty three thousand nine hundred forty and sixty five paisa 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 is a Proprietary Concern represented by its Proprietor (Miss Kavya R.) availed the following credit facilities from the applicant bank:-

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I. OCC Loan of a sum of Rs.24,00,000/- (Rupees twenty four Lakh Only) and

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II. Term loan limit of Rs.1,00,000/- (Rupees One Lakh 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 guarantee agreement and sanction letter in favor of the applicant bank.

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It is further contended that, the defendant despite availing the credit facility, 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

OA 1987/2024

NPA.

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 defendant, he failed to appear, resulting the defendant being set exparte on 27.11.2025.

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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-15 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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OA 1987/2024

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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 admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants 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 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 OCC and Term loan purpose and also that 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 @12% p.a. (Simple).

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In the result, OA.No.1987/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.20,43,942.65 (Rupees twenty lakh forty three

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OA 1987/2024

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thousand nine hundred forty and sixty five paisa only) with further interest @12% p.a. (Simple),

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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

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to be recovered by proceedings against the other assets including the schedule. Schedule to the OA be the schedule to the recovery certificate.

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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 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of May, 2026].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1987/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Santosh T.P, Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	18.10.2021	Loan Application along with specimen signature card
A2	28.09.2021	UDYAM Registration certificate
A3	04.11.2021	Loan sanction letter
A4	04.11.2021	Guarantee agreement
A5	04.11.2021	Guarantee covering letter
A6	04.11.2021	NF-480 pronote
A7	04.11.2021	Certificate of loan papers obtained
A8	04.11.2021	Particulars of assets standing in name of applicant
A9	04.11.2021	NF-803 letter evidencing execution of documents
A10	04.11.2021	NF-855 agreement cum deed of hypothecation
A11	08.11.2021	NF-1024 disbursement request format for loans
A12	06.06.2022	Copy of letter
A13 & A14		Copy of computerized statement of accounts and total amount certificate
A15		Certificate under Section 2(A) b and 2(a) of bankers book of evidence act 1891

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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. M/S Blossom of Creations Rep by Its Prop Kavya.R

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S Blossom of Creations Rep by Its Prop Kavya.R

Case brief

What is this about?

What did the court decide?

What the court decided

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