Allowed

Canara Bank v. Siddagangamma and Others

DRT24 Feb 2026OA/2259/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application seeking a Recovery Certificate for a farm machinery loan default. Being in absentia, the liability was proved based on uncontroverted evidence. The order grants recovery with 6% simple interest, allowing proceedings against defendants and scheduled property.

What did the court decide?

Recovery Certificate issued for Rs.28,98,233.17 plus 6% p.a. simple interest; recovery proceedings allowed against defendants and scheduled property; costs awarded.

Canara Bank versus Siddagangamma and Others — 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 24^th Day of February, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.2259/2024

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BETWEEN:

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Canara Bank Branch office at Tavarekere Taverekere, Sira Taluk-572139 Tumakuru District, Rep. by its Senior Manager Sri. Nagendra N.S

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… APPLICANT

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AND:

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Smt. Siddagangamma W/o. Kariyanna Aged about 63 years

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Sri. Ramanna S/o. Bommalinga Naika Aged about 58 years

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Smt. Pushpalakshmi D/o. Kariyamma Aged about 41 years

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Sri. H.K. Bhootanayaka S/o. Kariyanna Aged about 37 years

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Sri. Suresh S/o. Ramanna Aged about 33 years

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OA. No.2259/2024

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Sri. Harish S/o. Ramanna Aged about 31 years,

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All are Residing at Hobur village, Hobur Post, Sira Taluk, Tumakuru District – 572139 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Mohammed Afroze Ahamed 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 for seeking issuance of Recovery Certificate against the defendants for Rs.28,98,233.17 (Rupees Twenty Eight Lakh Ninety Eight Thousand Two Hundred Thirty Three and Seventeen Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the late Kariyanna and 2^nd defendant availed Farm machinery loan of Rs.4,50,000/- on 26.05.2006 for the purpose of Tractor and Trailer. The deceased borrower and defendant Nos.2 to 6 have executed the registered simple mortgage deed dated 25.05.2006.

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It is also the case of the applicant that, in view of the above

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OA. No.2259/2024

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financed credit facility, the deceased borrower and defendant No.2 to 6 executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

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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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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 23.04.2025.

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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 A1 to A23 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

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OA. No.2259/2024

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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

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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 as claimed by the applicant bank and the defaults committed in the account. The liability of the defendant 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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OA. No.2259/2024

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Taking into consideration the facts that the credit facility

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was availed for agricultural purpose 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 6.00%

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p.a.(simple).

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In the result, OA.No.2259/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.28,98,233.17 (Rupees Twenty Eight Lakh Ninety Eight Thousand Two Hundred Thirty Three and Seventeen Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant No.2 to 6 and the defendant No.1 to the extent of their inheritance of any estate from the deceased borrower Kariyanna, 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 defendant No.2 to 6 jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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

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the amount due and payable to the applicant bank, the defendant

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OA. No.2259/2024

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No.2 to 6 jointly, severally and personally and their other assets

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and the defendant No.1 to the extent of their inheritance of any

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estate from the deceased borrower Kariyanna are liable for all such

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amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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

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with this Final Order.

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

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of February 2026].

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(T. RAJESH) PRESIDING OFFICER

OA. No.2259/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Anuj Kumar, Senior 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	Date	Exhibit Number
1	Application for agricultural credit- short term/term loan	24.05.2006	A1
2	Appraisal report	25.05.2006	A2
3	NF-515, purchase of tractor/power tiller/farm machinery	24.05.2006	A3
4	Sanction memorandum	26.05.2006	A4
5	Memorandum of agreement	26.05.2006	A5
6	NF-482, certificate of loan papers	26.05.2006	A6
7	NF-373, Particulars of hypothecation	30.06.2006	A7
8	Registered simple mortgage deed	24.05.2006	A8
9	Copy of registration in respect to the tractor and trailer issued by RTO	09.06.2006	A9
10	letter of revival	11.07.2008	A10
11	letter of revival	11.07.2008	A11
12	letter of revival	23.06.2009	A12
13	letter of revival	23.06.2009	A13
14	letter of revival	25.07.2009	A14
15	letter of revival	08.05.2012	A15
16	letter of revival	08.05.2012	A16
17	letter of revival	04.04.2015	A17
18	letter of revival	04.04.2015	A18
19	letter of revival	27.02.2018	A19

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OA. No.2259/2024

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20	Letter of revival	27.02.2018	A20
21	Letter of revival	24.08.2023	A21
22	Acknowledgment of debt/ and Security form the legal heirs of borrower co-obligant	30.09.2020	A22
	Statement of account in farm	-
23	machinery loan account No.0468856011195		A23

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Siddagangamma and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Siddagangamma and Others

Case brief

What is this about?

What did the court decide?

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