Allowed

Canara Bank v. Ajjanna and Others

DRT24 Feb 2026OA/2260/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Canara Bank's application for a recovery certificate against eight defendants jointly and severally liable for a defaulted agricultural loan, granting reduced simple interest at 6.00% p.a. due to the nature of the loan.

What did the court decide?

Recovery certificate issued allowing recovery of Rs. 27,97,011.86 plus interest at 6% p.a. simple from defendants jointly and personally, with execution against schedule property.

Canara Bank versus Ajjanna 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 24^th Day of February, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2260/2024

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BETWEEN:

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Canara Bank, Interalia its Branch Office at Tavarekere Branch, Taverekere, Sira Taluk- 572 139, Tumakuru District, Represented by its Senior Manager, Sri. Nagendra N.S.

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…APPLICANT

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AND:

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Sri. Ajjanna, S/o Late Madappa, Aged about 85 years.

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Sri. A. Eranna,

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S/o Ajjanna, Aged about 57 years.

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Smt. Marakka, D/o Ajjanna, Aged about 55 years.

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Smt. Jayamma, D/o Ajjanna, Aged about 53 years.

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Sri. Ramakrishnappa, S/o Ajjanna, Aged about 51 years.

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Smt. Devamma, D/o Ajjanna, Aged about 47 years.

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OA 2260/2024

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Sri. Mallikarjuna, S/o Ajjanna, Aged about 40 years.

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Sri. Sudhakara, S/o Ajjanna, Aged about 40 years.

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All are residing at Melekote Village, Gowdagere Hobli, Sira Taluk, Tumakuru District- 572139. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mohamed 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 seeking issuance of Recovery Certificate against the defendants for Rs. 27,97,011.86 (Rupees Twenty Seven Lakh Ninety Seven Thousand Eleven and Paise Eighty Six 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 No. 1 availed KCCS loan of Rs. 17,56,000 (Rupees Seventeen Lakh Fifty Six Thousand Only) and Kisan OD of Rs. 4,00,000/- (Rupees Four lakh Only). The defendants No. 2 to 8 are the mortgagers.

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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

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OA 2260/2024

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agreement cum deed of hypothecation and registered 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 by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, summons 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 A-1 to A-16 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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OA 2260/2024

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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 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 are 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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OA 2260/2024

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In the result, OA.No.2260/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 27,97,011.86 (Rupees Twenty Seven Lakh Ninety Seven Thousand Eleven and Paise Eighty Six 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 amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for the respective 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 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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OA 2260/2024

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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 (AJ), 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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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: Anuj Kumar, Senior Manager, of Applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	29.12.2017	Application for KCCS
A2	30.12.2017	Sanction memorandum
A3	30.12.2017	Agreement and deed of hypothecation for kisan credit card
A4	30.12.2017	Interest variation letter
A5	30.12.2017	NF-82, certificate of loan papers obtained
A6	27.12.2017	Registered simple mortgage deed
A7	27.11.2020	Letter of revival
A8	15.11.2023	Lette of revival

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OA 2260/2024

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A9	18.01.2018	Loan application for kisan OD loan
A10	18.01.2018	Sanction memorandum
A11	18.01.2018	Agreement and deed for kisan OD loans
A12	27.12.2017	Registered simple mortgage deed
A13	16.01.2020	Letter of revival
A14	10.01.2023	Letter of revival
A15	--	Statement of account in KCCS loan-A/No. 0468840022122
A16	--	Statement of account in Kisan OD loan A/No. 0468897005490

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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. Ajjanna and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ajjanna and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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