Allowed

Canara Bank v. Sharath Kumar

DRT27 Aug 2026OA/2074/2025

Case brief

AI extract

What is this about?

In an exparte order, the Tribunal allowed the recovery application filed by Canara Bank under Section 19 of the RDBA. The court directed recovery of the dues plus reduced interest of 8% p.a. and issuance of a Recovery Certificate against the defendants and their schedule properties.

What did the court decide?

Recovery Certificate issued for Rs. 54,10,857.54 plus interest at 8% p.a. against defendants and schedule properties.

Canara Bank versus Sharath Kumar — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of August 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.2074/2025

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BETWEEN:

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Canara Bank New Market Yard Branch, Kundapura, Kundapura Taluk, Udupi district-576201.

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… APPLICANT

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AND:

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Mr.Sharath Kumar

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S/o.Jayachandra Poojary

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R/at: Mookambika Nilaya,

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Balegadde, Kollur Post,

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Kundapura Taluk,

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Udupi district-576220

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Mr.Ibrahim Khaleel

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S/o.Mohammed R/at: 2-58, Adyar Katte, Mangalore, Kannur, Dakshina Kannada-575007 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr.Srinivasa Murthy HC Defendants : Exparte

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2 OA No.2074/2025

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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 for seeking issuance of Recovery Certificate against the defendants for Rs.54,10,857.54 (Rupees Fifty-Four Lakhs Ten Thousand Eight Hundred Fifty-Seven Paisa Fifty-Four Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendant No.1 availed Rs.48,00,000/- (Rupees Forty-Eight Lakhs Only) for purpose of Housing Loan. The Defendant No.2 has executed Guarantee Agreement.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage, over the Schedule properties.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account 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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3 OA No.2074/2025

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 08.04.2026.

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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 A1 to A7 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 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 facility as stated in the OA, creation of security interest

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4 OA No.2074/2025

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as claimed by the applicant bank and the defaults committed in the account. 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 above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility was availed for Housing Loan 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 of 8% p.a.(simple).

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In the result, OA.No.2074/2025 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.54,10,857.54 (Rupees Fifty-Four Lakhs Ten Thousand Eight Hundred Fifty-Seven Paisa Fifty-Four Only) along with current and future interest @ 8% from the date of filing the application till the date of realization, from the defendants jointly and severally, after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule properties. The schedule properties to the OA be the schedule properties to the Recovery Certificate.

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

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amount due and payable to the applicant bank, the defendants and their

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other assets are liable for all such amounts due in loan accounts.

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iii) The applicant bank is allowed cost of the proceeding which

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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

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transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with

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this Final Order.

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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 (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August 2026].

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6 OA No.2074/2025

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mrs. Sneha Raju Sapkal, Manager of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit Number
1.	Housing Loan application dated 08.07.2022	A1
2.	Sanction memorandum dated 12.07.2022	A2
3.	Housing Loan Agreement (individuals) dated 26.07.2022	A3
4.	Guarantee covering Letter and Guarantee Agreement for housing Loan to individuals dated 26.07.2022.	A4
5.	Memorandum of deposit of title deeds dated 16.07.2022	A5
6.	Demand Notice under section 13(2) SARFAESI Act dated 26.06.2024	A6
7.	Statement of Account Certified under Banker’s Book of Evidence Act showing the outstanding Liability under Housing Loan A/c No.160000960639	A7

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Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sharath Kumar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sharath Kumar

Case brief

What is this about?

What did the court decide?

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