Allowed

Canara Bank v. Yanmula Basappa

DRT30 Jan 2026OA/210/2024

Case brief

AI extract

What is this about?

In an ex parte proceeding, the Tribunal allowed the Applicant Bank's Original Application for issuance of a Recovery Certificate. While accepting the proven loan default and liability, the Tribunal reduced the recovery interest to 6% simple given the agricultural purpose of the loan.

What did the court decide?

Recovery Certificate to be drawn for Rs. 24,12,639/- with 6% simple interest from filing till realization, executable against defendant's properties and assets.

Canara Bank versus Yanmula Basappa — Specific Performance | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.210/2024

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BETWEEN:

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Canara Bank Head office at: No.112, JC road, Bangalore – 560 002 Branch office at: Raichur main branch 1, Opposite vishal mart, Lingasugur road, Raichur – 584 101

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Represented by its Principal Officer Sri. B Suresh Kumar …APPLICANT

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AND:

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Sri. Yanmula Basappa S/o. Sri. Dodda Pantappa Alias Pedda Pantappa Aged about 62 years

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Residing at: Athkur Village, Dist. Raichur – 584 101 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. T P Muthanna Defendant : Ex parte

OA-210/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendant for Rs. 24,12,639/- (Rupees Twenty Four Lakhs Twelve Thousand Six Hundred Thirty Nine 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 availed an agricultural loan of Rs. 2,50,000/- (Rupees Two Lakhs Fifty Thousand Only) for purchase of purchase of pump set, pipes & other accessories and laying of pipes etc.

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It is also the case of the applicant that, in view of the above availed loan, the defendant executed the necessary loan document along with simple mortgage deed.

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It is further contended that, despite availing the credit facility, 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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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set ex parte on 07.01.2025.

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OA-210/2024

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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-12 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

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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 facility as stated in the OA, creation of the security interest and the defaults committed in the 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 applicant is well within the limitation.

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OA-210/2024

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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 are

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.210/2024 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 24,12,639/- (Rupees Twenty Four Lakhs Twelve Thousand Six Hundred Thirty Nine Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule 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 defendant personally and his assets are liable for all such amounts due under the loan accounts.

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OA-210/2024

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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

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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

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the Open Court, this the 30^th Day of January, 2026].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA-210/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 K Shivaprasad, S/o. Sri. Rangappa, Manager and authorized officer, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Original of the comprehensive application-cum-appraisal report for minor irrigation/farm development/land development activities dated 10.04.2003
A2	Original of the memorandum of agreement for agricultural loans executed by the defendant dated 10.04.2003
A3	Original of simple mortgage deed dated 07.04.2003
A4	Original of the letter of revival dated 06.04.2006
A5	Original of the letter of revival dated 02.04.2009
A6	Original of the letter of revival dated 05.11.2011
A7	Original of the letter of revival dated 01.11.2014
A8	Original of the letter of revival dated 02.02.2017
A9	Original of the letter of revival dated 05.04.2019
A10	Original of the letter of revival dated 08.03.2022
A11	Original of the legal notice dated 20.11.2021
A12	Copy of the statement of account certified under banker’s book of evidence act. Showing the outstanding liability under minor irrigation loan no. 0519881003147
Witness	Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Yanmula Basappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Yanmula Basappa

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

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Case details

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