Allowed

Canara Bank v. Ms Pratiksha Enterprises And Ors.

DRT20 Aug 2026OA/3/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's recovery certificate application against five respondents. An aggregate debt exceeding ruin seven lakhs was admitted as the claim was unrebutted due to the respondents' absences. Interest was reduced to 12% p.a. in the certificate.

What did the court decide?

Allowed recovery of aggregate sum of Rs. 77,74,976.27 with further interest at 12% p.a. (simple) till realization from Defendant No.4 personally and against schedule property.

Canara Bank versus Ms Pratiksha Enterprises And Ors. — Specific Performance | 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

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OA.No.03/2022

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BETWEEN:

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Canara Bank Shahpur II, Belagavi Branch, Laxminarayana Building, Mahatma Phule Road, Shahpur Belgaum, Karnataka -590003, Through its Senior Branch Manager, Mr. Dharmaraj B Sontakke.

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…APPLICANT

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AND:

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M/s Pratiksha Enterprises Prop: Prabhu Shankarappa benni, No. 325, basavana Galli, Khasbag, Belagavi, Karnataka-590003.

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Sri. Prabhu Shankarappa benni, S/o Shankarappa benni, No. 325, basavana Galli, Khasbag, Belagavi, Karnataka-590003.

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Sri. Viranna Shankarappa benni, S/o Shankarappa benni, No. 325, basavana Galli, Khasbag, Belagavi, Karnataka-590003.

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Sri. Basavaraja veerabhadrappa Kottur S/o veerabhadrappa Kottur,

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2 03/2022

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H. NO. 1347, Basavanahalli, Shahpur, Belgaum, Karantaka- 590003.

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Sri. Shankarappa Devendrappa Benni, S/o Devendrappa Benni S/o Shankarappa benni, No. 325, basavana Galli, Khasbag, Belagavi, Karnataka-590003. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Vegnesh Shetty Defendants : Exparte

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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 seeking issuance of Recovery Certificate against the defendants for Rs. 77,74,976.27/(Rupees Seventy Seven Lakh Seventy Four Thousand Nine Hundred Seventy Six and Paise Twenty Seven 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 Defendant No.1, 2, 3 and 5 are deceased. The defendants availed the following credit facilities from the applicant bank:-

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I. Term Loan of a sum of Rs. 30,00,000/- (Rupees Thiry Lakh Only) on 21.03.2017.

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II. Working Capital Loan of sum of Rs. 40,00,000/- (Rupees Forty Lakh

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3 03/2022

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Only) on 27.12.2018

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Composite Hypothecation Agreement, guarantee Agreement, Memorandum of Deposit of Title Deeds.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 13.01.2026.

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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-14 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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4 03/2022

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i) Whether the applicant had succeeded in proving the OA 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 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 Mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are 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 findings arrived herein above, the 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 was availed for business purpose and also that the 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 of 12.00% (simple).

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5 03/2022

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In the result, OA.No.03/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 77,74,976.27/- (Rupees Seventy Seven Lakh Seventy Four Thousand Nine Hundred Seventy Six and Paise Twenty Six Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant No.4 personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Schedule Properties to the OA be the schedule to the recovery certificate. As per proceedings dated 30.01.2026, it was stated that OA Claim against the defendants No. 1, 2, 3 & 5 stands dismissed as abated. ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant personally and his assets are liable for the amounts due under the loan accounts.

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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 and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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6 03/2022

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

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

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 20^th Day of August, 2026].

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Altap Chopdar, Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	21.03.2017	Sanction Letter
A2	27.12.2018	Sanction Letter
A3	31.03.2017	Composite Hypothecation Agreement executed by defendant No.1 (represented by proprietor defendant No.2) in favour of Applicant
A4	31.03.2017	Guarantee Agreement executed by defendant No.3 in favour of Applicant
A5	04.03.2013	Memorandum of Deposit of Title Deeds executed by defendant No.2,3, & 5 in favour of Applicant
A6	26.02.2016	Confirmation of Creation of Second / Subsequent equitable mortgage executed by defendant No.2 in favour of Applicant
A7	30.03.2017	Confirmation of Creation of Second / Subsequent equitable mortgage executed by defendant No.2 in favour of Applicant

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7 03/2022

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A8	29.12.2018	Composite Hypothecation Agreement executed by defendant No.1 (represented by proprietor defendant No.2) in favour of Applicant
A9	29.12.2018	Guarantee Agreement executed by defendant No.3 & 4 in favour of Applicant
A10	29.12.2018	Letter from Borrower/ guarantor regarding undrawn limit executed by defendant No.1 (represented by proprietor defendant No.2)
A11	17.08.2020 15.12.2021	Legal/ Demand/ Recall Notice
A12	--	True Extract of Statement of Accounts pertaining to the defendants loan Account-5039910000536
A13	--	True Extract of Statement of Accounts pertaining to the defendants loan Account-05031400000030

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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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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Ms Pratiksha Enterprises And Ors.

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms Pratiksha Enterprises And Ors.

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

Coram

Case details

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