The Tribunal allowed the Original Application for issuance of a Recovery Certificate against defaulted borrowers and guarantor, reducing interest to 6% simple for agricultural loan purposes.
Issuance of Recovery Certificate for Rs.23.82 Lakhs with 6% simple interest; Defendants jointly and severally liable; Mortgage property subject to proceedings.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 24th Day of July 2026
Present: Sri. T. RAJESH
Presiding Officer
OA. No.2011/2024
BETWEEN:
Canara Bank
Raibag Branch,
Sankpal Building Ankali Road, Raibag TQ, Belgaum District, Karnataka
… APPLICANT
AND:
OA. No.2011/2024
2
Counsel on record/appeared for:
Applicant : VS Associates Defendant : Exparte
: FINAL ORDER:
OA. No.2011/2024
3
default in repayment and consequentially turning the loan account as NPA.
ii) What order are to be passed?
Both these issues are gone into and decided together.
OA. No.2011/2024
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of Rs.23,82,020.65/- (Rupees Twenty-Three Lakhs Eighty-Two Thousand Twenty and Paise Sixty-Five Only)
OA. No.2011/2024
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a) The Defendants No.1 to 3 are jointly and severally liable to pay a sum of Rs.23,82,020.65/- (Rupees Twenty-Three Lakhs Eighty-Two Thousand Twenty and Paise Sixty-Five Only) with further interest @ 6% (Simple) p.a from the defendants after giving credit to all the amounts recovered and received during the pendency of the OA if any, in the respective accounts and allowed the same to be recovered by proceeding the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.
ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the respective defendants jointly, several and their other assets are liable for all such amounts due in respective loan accounts.
iii) The applicant bank is allowed cost of the proceeding which applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
v) Interim Application pending, if any, stands disposed of with this Final Order.
OA. No.2011/2024
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14. Communicate a copy of the order to the parties concerned
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of
DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (GS), transcribed by her, corrected and signed and pronounced by me
in the Open Court, this the 24th Day of July 2026].
Sd/(T. RAJESH) PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Sri.Gajanan Shankar Kuri, Branch Manager of the Applicant Bank.
Exhibits on the part of the Applicant:
| Sl. No. |
Description of Documents | Exhibit Number |
|---|---|---|
| Agreement for Agricultural Advances executed | ||
| 1. | in favour of the Applicant executed by Defendant No.1 to 2 dated 12.02.2016 |
A1 |
| 2. | Deed of Guarantee executed by Defendant No.3 in favour of the Applicant dated 12.02.2016 |
A2 |
| 3. | Simple Mortgaged Deed executed by Defendant No.1 in favour of the Applicant with regard to the scheduleproperties dated 05.11.2015 |
A3 |
| 4. | Legal Notice 30.08.2022 | A4 |
| 5. | Legal Extract of Statement of Accounts pertaining to the Defendants’ Loan Accounts: 05088320000839 |
A5 |
Sd/-
(T. RAJESH)
OA. No.2011/2024
7
PRESIDING OFFICER
2 issues framed by the court
Whether the applicant succeeded in proving the claim against the defendants?
What order is to be passed regarding the recovery of the dues?
3 provisions across 2 enactments
Canara Bank Raibag Branch
Katteppa Babli
Laxman Babli
Ravappa Tipanna Meti
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
