Allowed

Canara Bank v. Shidlingappa M Billur and Others

DRT30 Jan 2026OA/2204/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's recovery certificate application under Section 19 RDB Act for approximately Rs. 35 lakhs borrowed by four respondents. Due to defendant absenteeism, the court found the bank's evidence uncontroverted and unlimited, reducing the interest rate from agreed to 6% simple per annum.

What did the court decide?

Recovery certificate issued for Rs. 35,12,402.00 plus interest at 6% p.a. (simple) from filing date till realization, recoverable from property and personally.

Canara Bank versus Shidlingappa M Billur and Others — Banking and Recovery | 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

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OA.No.2204/2024

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BETWEEN:

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Canara Bank, Branch office at Kulgod, Kulgod Branch, Mudalagi Taluk, Belagavi District- 591 310 and Represented by its Branch/ Senior Manager And Authorised Signatory, Mr. Harish Y Gadinaik.

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…APPLICANT

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AND:

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Sri. Shidlingappa M Billur, Aged about 42 years, S/o Sri. Mallappa Billur, R/o. Hunshyal P. Y. Village and post, Gokak Taluk, Belgavi District- 591 227.

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Sri. Parasappa M Billur, Aged about 38 years, S/o Sri. Mallappa Billur, R/o Hunshyal P.Y. Village and Post, Gokak Taluk, Belagavi District- 591 227.

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Sri. Lakkappa M Billur, Aged about 36 years, S/o Sri. Mallappa Billur, R/o Hunshyal P.Y. Village and Post, Gokak Taluk, Belagavi District- 591 227.

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Sri. Mahadev M Billur, Aged about 33 years, S/o Sri. Mallappa Billur, R/o Hunshyal P.Y. Village and Post, Gokak Taluk, Belagavi District- 591 227.

...DEFENDANTS

OA 2204/2024

Counsel on record/appeared for:

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Applicant : Veena R Rai 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. 35,12,402.00 (Rupees Thirty Five Lakh Twelve Thousand Four Hundred and Two 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 defendants availed Kisan Suvidha Loan of Rs. 3.50 lakhs and additional limit of Rs. 2 lakhs and Kisan OD Limit of Rs. 6.50 lakhs and additional limit of Rs. 3 lakhs.

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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 agreement and deed of hypothecation, letter of revival and simple mortgage deed.

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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

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by filing this OA seeking issuance of Recovery Certificate for the amount

OA 2204/2024

due in the account.

Despite, summons the defendants, they failed to appear, resulting the defendants being set exparte on 26.03.2025.

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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-54 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

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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 the security interest and the defaults committed in the accounts. The liability of the

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OA 2204/2024

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defendants and the claim of the amount due are also proved by the above

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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

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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 are

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availed for Agriculture 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 6.00% (simple).

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In the result, OA.No.2204/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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35,12,402.00 (Rupees Thirty Five Lakh Twelve Thousand Four Hundred and Two Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & 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. 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 defendants jointly,

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OA 2204/2024

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severally & personally and their assets are liable for the respective

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amounts due under the respective loan accounts.

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iii) The applicant bank is allowed cost of the proceedings 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 in terms of 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) Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of January, 2026].

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Sd/- (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: Mahesh Hosatti, Officer, of Applicant Bank

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OA 2204/2024

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Exhibits on the part of the Applicant:

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Exhibit Number	Date of document	Description of Documents
Exhibit No. A1	14.07.2015	Application for Loan submitted by the Defendant Nos.1 to 4-(Page no.60-74)
Exhibit No. A2	14.07.2015	Sanction Letter - (Page no.75)
Exhibit No. A3	14.07.2015	Agreement and deed of hypothecation executed by the Defendant Nos.1 to 4 - (Page no.76-85)
Exhibit No. A4	14.07.2015	Nomination cum authority letter - (Page no.86)
Exhibit No. A5	14.07.2015	Letter of attestation / declaration - (Page no.87)
Exhibit No. A6	14.07.2015	Letter evidencing execution of documents - (Page no.88)
Exhibit No. A7	14.07.2015	Simple mortgage deed executed by the Defendant Nos.1 to 4-(Page no.89-96)
Exhibit No. A8	03.10.2016	Application for enhancement submitted by the Defendant Nos.1 to 4-(Page no.97-98)
Exhibit No. A9	03.10.2016	Sanction Letter - (Page no.99)
Exhibit No. A10	03.10.2016	Letter of Revival executed by the Defendant Nos.1 to 4-(Page no.100)
Exhibit No. A11	03.10.2016	Letter of Renewal executed by the Defendant Nos.1 to 4-(Page no.101-104)
Exhibit No. A12	03.10.2016	Supplemental Agreement executed by the Defendant Nos.1 to 4-(Page no.105-108)
Exhibit No. A13	03.10.2016	Letter evidencing execution of documents - (Page no.109)
Exhibit No. A14	27.09.2016	Simple mortgage deed executed by the Defendant Nos.1 to 4-(Page no.110-118)

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OA 2204/2024

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Exhibit No. A15	04.08.2015	Application for loan submitted by the Defendant Nos.1 to 4-(Page no.119-132)
Exhibit No. A16	22.09.2015	Specimen signature card executed by the Defendant Nos.1 to 4-(Page no.133)
Exhibit No. A17	22.09.2015	Sanction Memorandum -(Page no.134)
Exhibit No. A18	22.09.2015	Request for overdraft facilities executed by the Defendant Nos.1 to 4-(Page no.135-138)
Exhibit No. A19	22.09.2015	Agreement and deed for Kisan OD executed by the Defendant Nos.1 to 4-(Page no.139-148)
Exhibit No. A20	22.09.2015	Certificate of loan papers obtained- (Page no.149)
Exhibit No. A21	19.09.2015	Simple Mortgage Deed executed by the Defendant Nos.1 to 4--(Page no.150-160)
Exhibit No. A22	27.03.2017	Application for enhancement of loan submitted by the Defendant Nos.1 to 4 - (Page no.161- 164)
Exhibit No. A23	27.03.2017	Sanction Memorandum - (Page no.165)
Exhibit No. A24	27.03.2017	Request for overdraft facilities executed by the Defendant Nos.1 to 4-(Page no.166-169)
Exhibit No. A25	27.03.2017	Letter of Renewal executed by the Defendant Nos.1 to 4-(Page no.170-173)
Exhibit No. A26	27.03.2017	Letter of attestation / declaration - (Page no.174)
Exhibit No. A27	27.03.2017	Letter of attestation / declaration - (Page no.175)
Exhibit No. A28	27.03.2017	Certificate of loan paper obtained-- (Page no.176)
Exhibit No. A29	27.03.2017	Letter evidencing execution of documents - (Page no.177)
Exhibit No. A30	27.03.2017	Letter evidencing execution of documents - (Page no.178)

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OA 2204/2024

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Exhibit No. A31	23.03.2017	Simple Mortgage Deed executed by the Defendant Nos.1 to 4-(Page no.179-189)
Exhibit No. A32	02.06.2017	Application for enhancement submitted by the Defendant Nos.1 to 4-(Page no.190-193)
Exhibit No. A33	02.06.2017	Sanction Memorandum - (Page no.194)
Exhibit No. A34	02.06.2017	Request for overdraft facilities executed by the Defendant Nos.1 to 4-(Page no.195-198)
Exhibit No. A35	02.06.2017	Letter of renewal executed by the Defendant Nos.1 to 4-(Page no.199-202)
Exhibit No. A36	02.06.2017	Supplemental Agreement executed by the Defendant Nos.1 to 4--(Page no.203-206)
Exhibit No. A37	02.06.2017	Letter of attestation / declaration execution of documents--(Page no.207)
Exhibit No. A38	02.06.2017	Certificate of loan papers obtained - (Page no.208)
Exhibit No. A39	02.06.2017	Letter evidencing execution of documents - (Page no.209)
Exhibit No. A40	01.06.2017	Simple Mortgage Deed executed by the Defendant Nos.1 to 4 dated - (Page no.210- 221)
Exhibit No. A41	06.02.2019	Letter of Revival executed by the Defendants - (Page no.222)
Exhibit No. A42	31.12.2021	Letter of Revival executed by the Defendants - (Page no.223)
Exhibit No. A43	22.08.2018	Letter of Revival executed by the Defendants - (Page no.224)
Exhibit No. A44	19.02.2020	Letter of Revival executed by the Defendants - (Page no.225)
Exhibit No. A45	30.06.2022	Letter of Revival executed by the Defendants - (Page no.226)
Exhibit No. A46	05.03.2021	Notice issued to the Defendants - (Page no.227)

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OA 2204/2024

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Exhibit No. A47	05.03.2021	Notice issued no.228)	to the Defendants - (Page
Exhibit No. A48	23.05.2023	Notice issued no.229)	to the Defendants - (Page
Exhibit No. A49	22.05.2023	Notice issued no.230)	to the Defendants - (Page
Exhibit No. A50	22.05.2023	Notice issued no.231)	to the Defendants - (Page
Exhibit No. A51	22.05.2023	Notice issued no.232)	to the Defendants - (Page
Exhibit No. A52	22.05.2023	Notice issued no.233)	to the Defendants - (Page
Exhibit No. A53	--	Statement of Suvidha Loan, Certificate-(P	Account in respect of Kisan interest calculation sheet and age no.234-238)
Exhibit No. A54	--	Statement of A interest calcul (Page no.239-2	ccount in respect of Kisan OD, ation sheet and Certificate - 44)

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil –

Sd/- (T. RAJESH)

PRESIDING OFFICER

Canara Bank v. Shidlingappa M Billur and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shidlingappa M Billur and Others

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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